WCRC meeting – May 2016

May 23, 2016 · Posted in All politics is local, Business and industry, Campaign 2016, Campaign 2018, Delmarva items, Maryland Politics, Politics, State of Conservatism · Comments Off on WCRC meeting – May 2016 

The fact that Memorial Day occurs on a somewhat rare fifth Monday of the month this year provided the WCRC with an “extra” meeting this year, and they took advantage by scheduling something that’s becoming a tradition: the annual Legislative Wrapup. All six Republican members of our local delegation (from Districts 37 and 38) were invited – but thanks to a number of calendar conflicts, only two of them came. It was ladies’ night for the delegation as Delegate Mary Beth Carozza and Senator Addie Eckardt gave their accounts of the recently completed session. (Delegate Chris Adams made the attempt to stop by, but came just after we wrapped up.)

So once we did our usual Lord’s Prayer, Pledge of Allegiance, and introduction of distinguished guests, Eckardt got the meeting underway by praising the state’s $42 billion budget, which needed no new taxes for balance. The reason for this was that the Hogan cabinet was finding more efficiencies in their respective departments, enabling the state to become more business-friendly. One way they were doing this was through fee reduction, although Eckardt noted that some Democrats were fretting that fees were getting too low. Yet the budget allowed for a reduction in the structural deficit and did not feature a BRFA, the omnibus bill where spending mandates are often buried. This year’s spending had “full transparency,” said Addie.

But the push to reduce taxation was one goal of the Augustine Commission, explained Addie. Sadly, the broader tax reform package could not pass thanks to the question of passing a package mandating expanded paid sick leave – despite the fact changes to the earned income tax credit would have helped thousands of working Maryland families that I thought the majority party deigned to represent.

On the other side of that Augustine coin, Addie continued, was the idea of being responsive to constituents; to “change the tenor of government.” This went with a drive to bring things to the county level, as Addie noted “local control is important to me.”

One complaint Eckardt had about the session was the “crusade to get the Red Line back.” It led to the passage of what’s known as the “Maryland Open Transportation Investment Decision Act of 2016.” (I call it the “Revenge for Not Funding the Red Line in Baltimore” Act.) While the bill overall is terrible, Eckardt noted it was amended somewhat to give local jurisdictions a little more priority.

And while she was pleased Wicomico County would be receiving an additional $8.7 million from the state for various projects, Addie was more passionate about a series of initiatives to bolster mental health and combat addiction around the state. She was also happy to see the Justice Reinvestment Act pass, which was a bipartisan effort at criminal justice reform. The state was also doing more to address mental and behavioral health, particularly since she claimed later in the evening it took someone who was addicted and incarcerated two years to re-integrate fully. This led to a discussion about what the state and local governments were doing to deal with the issue of homelessness, to which Muir Boda revealed the city of Salisbury would be embarking on a Housing First program modeled after one in the state of Utah.

Between Eckardt’s main presentation and the later discussion about mental and behavioral health issues, we heard Delegate Carozza’s perspective. She began by praising the club for being a group of workers and doers when it came to advocacy, with the optimistic view that “this is our time…Governor Hogan is turning the state around.” But that was a process which would take at least eight years, said Mary Beth. As an aside, she also believed that Kathy Szeliga was “the candidate that can win” the U.S. Senate seat, which would also lay the groundwork for Larry Hogan’s re-election campaign.

Both she and Eckardt, added Carozza, were in the position to support the budget thanks to their respective committees. They could succeed making suggestions for “walling off” funds for supplemental budget proposals, of which there were two or three each year. And while this budget allowed for what Carozza termed “a well-rounded tax package,” only a minor tax break for Northrop Grumman made it through. But the “good news” out of that was that it was making Mike Busch and Mike Miller talk about tax relief, making it a stronger possibility we may see some in 2017.

As for some of her priorities, Carozza was happy to see the bomb threat bill she sponsored make it through the General Assembly in its second try. (A similar proposal was introduced by then-Delegate Mike McDermott in 2013, said Mary Beth.) She commented about how the broad community support, combined with the “sense of urgency” provided by a series of bomb threats making the news earlier this year, allowed the bill to pass easily. Another bill she was happy to shepherd through was the ABLE bill, which allows the disabled to save money for dealing with their medical-related expenses without jeopardizing their means-tested benefits.

She also stressed that killing bad bills was a part of the job as well, citing the defeat of the poultry litter and “farmer’s rights” bills where she praised Delegates Carl Anderton and Charles Otto as they “led the charge” against those measures. Mary Beth also took the unusual step of personally testifying against the assisted suicide bill and worked to amend the sick leave bill to exempt more seasonal employees. On that bill, she predicted “we’re going to see it again next session.”

Even after hearing all that information, we had some business to do, like the treasurer’s report and Central Committee report that Dave Parker delivered. He called the recent state convention the “get over it, people” convention, noting the party seemed pretty well unified afterward. Even local radio host Don Rush had difficulty finding disunity among a group of Republicans who were his guests last Friday, Parker added. On the other hand, “Hillary can’t close the deal” on the Democratic side.

I added my two cents about the convention to his report, pointing out the National Committeeman race was perhaps the biggest bone of contention and that was relatively minor. But the Fall Convention may be interesting because we will be electing a new Chair, and the question is whether it will be someone who will work more for Larry Hogan’s re-election or to bolster the GOP numbers in the General Assembly. A Hogan win, I added, would make redistricting the key focus for the second term – personally, I think we should strive for single-member districts and Eckardt agreed based on its impact to minorities.

Shelli Neal updated us on the Greater Wicomico Republican Women, who would be holding their next meeting June 16 at Adam’s Taphouse. They had two tickets to the Tawes Crab and Clam Bake in Crisfield to raffle off as part of a membership meeting for the newly-christened organization.

Another fairly new creation was the Wicomico Teenage Republicans, which had “a great start of a club” according to Nate Sansom. While their next meeting was slated for this coming Friday, they planned on taking a summer break and reconvening in August once school started back up. With a group of “passionate people, happy to be involved,” Sansom believed his group would focus on statewide campaigns like Kathy Szeliga’s as well as the local We Decide Wicomico campaign for an elected school board.

Representing the statewide College Republicans, their Chair Patty Miller was hoping to reach each county Central Committee at one of their meetings over the next few months and “see what they need from us.” Her first stop will be this week in Calvert County.

Jim Jester reminded us the Crab Feast would be September 10, but stressed the need for more volunteers – particularly to handle admissions and the silent auction.

Shawn Jester pointed out the WCRC Scholarship winners had a brief story in the Daily Times. But, since the subject was volunteering, he was also looking for people to help out at Third Friday, which we missed this month because no one was available. On that note, a signup sheet was passed around. (We will also need help for upcoming events such as the Wicomico County Fair, Good Beer Festival, and Autumn Wine Festival.)

After all that discussion, and seeing that we had a legislative update where the topic wasn’t addressed, I added one thing to the conversation. General Assembly Democrats sponsored a large number of bills this year that mandated spending. To me, this is an effort to handcuff Larry Hogan when it comes to budgeting but also leaves less room for tax reform. Many of these bills may become law without Hogan’s signature, but they will be law just the same. It’s an issue that I think needs a strategy to address, perhaps a reverse BRFA to eliminate mandates.

We are going to try and get the guys who didn’t show up this month to come to our June meeting, so stay tuned. It will be June 27.

Scraping the bottom

Earlier this week the Tax Foundation released its annual State Business Tax Climate Index. Despite Governor Hogan’s insistence on improving business climate and efforts to adopt some of the Augustine Commission’s reforms, Maryland once again has the dubious distinction of being a bottom-10 state.

Yes, that sickening orange color tags us as a state to avoid insofar as business taxes are concerned. In truth, we’ve only dropped one spot from the 2015 index so while we could have made a few minor improvements other states are improving at a faster pace. (Maryland seems to tread water – over the last four years we have oscillated between #40 and #41.) Moreover, we still lag behind all of our neighbors with Delaware again leading the region. The First State maintained its #14 ranking.

There is one important caveat to Maryland’s decline which could push them out of the bottom 10 next year. Late last month Governor Hogan announced a significant cut in the unemployment insurance tax, which is one of the factors (albeit the least-weighted) the Tax Foundation uses to determine its rank order. But other states are trying to push the envelope more quickly by reducing corporate and individual tax rates, something Maryland has talked about but not acted upon. (The Tax Foundation’s weighting process is explained on page 16 of their full report.)

While reducing regulations doesn’t always require legislative approval, the tax nut is a harder one to crack. The requirement to balance the budget means that revenue no longer extracted from corporations and small businesses alike can’t be used for profligate spending. At a time when government getting an increase that’s less than expected brings screams about draconian cuts from the left side of the aisle, heads truly explode when less real money is allocated. Even if you get 97 cents when you used to get a dollar, liberals act as if you just shot their unicorn with a scary-looking AR-15.

There’s a reason I bring up 97 cents as a particular figure. According to the state’s FY2016 budget, the corporate income tax accounts for 3% of the revenue; thus, eliminating it entirely would mean a corresponding budget cut. (We’ll leave aside the obvious competitive benefit to the state, which would eventually attract more business and increase revenue via other means such as income and sales taxes.) While it’s true that having a poor corporate tax ranking doesn’t completely eliminate the good – Delaware’s #50 ranking in corporate taxes only drags its overall rank to #14 – eliminating the tax would make it plain that Maryland is indeed “open for business.”

Eliminating the tax would also eliminate what’s become an annual debate about combined reporting. Proponents of its adoption, mainly Democrats, claim large businesses are not paying their fair share because they use the accounting trick of claiming their income arises from low-tax states. They may make actual profit in Maryland but don’t report it because they have operations in other. more tax-friendly states. The most recent iteration of the idea came last year, with the tradeoff that would have eliminated filing fees for small (less than 10 employee) businesses. In that respect it was a money-loser for the state; however, the research showed in better economic times the effect would be beneficial to state coffers.

Interestingly, Salisbury has a new mayor that epitomizes the opposite end of the chicken-and-egg approach: last week in the Salisbury Independent, Jake Day was quoted as noting:

“Economic development isn’t what it used to be,” he said. “It includes more activities. It’s now about culture. About quality of life issues. The arts and people. Parks, bike trails, bike lanes. And if you don’t get those right, don’t even talk about workforce development and industry and business development efforts, because you have to have those things to attract anyone.”

This portion of Delmarva boasts a lot of natural beauty along its rivers and coastlines, a well-regarded university, and a proportionate share of arts and culture. Perhaps the traditional bricks-and-mortar manufacturing or legacy service industries won’t come to Salisbury, but it’s been obvious over the last ten years that the beauty, academics, and culture isn’t exactly making this a hotbed of economic activity either. There needs to be a more balanced approach to development because it takes a fair amount of money to create and maintain parks, bike trails, and bike lanes – particularly if the money is granted from the state as it often is. We may be competitors to certain other urban areas around the state, but development somewhere else in the state or even another state, depending on the grant source, is paying the lion’s share for the bike lanes to be installed here. (In some cases, local gifts have helped.) Funding will also be required to maintain parks and develop new ones like Pirate’s Wharf along the Wicomico River.

There are thousands who have moved here over the decades as adults, and for the most part they came here for one of two reasons: they came to school or they came for a job. And if they came for school, there’s no guarantee they will stay if jobs or entrepreneurial opportunities aren’t available.

Simply put, Maryland has a long way to go in overcoming the poor reputation they have for growing and attracting businesses. It’s a lot easier for those on the Western Shore to prosper when there’s a ready-made source of confiscated wealth in close proximity. (If all those people had to find honest work Maryland would be just like West Virginia, with high unemployment. Because it’s well away from that honey pot of confiscated largess, the lower Eastern Shore already is in that same high-joblessness boat.)

I learned the other day that the Augustine Commission determined 1/4 of Maryland’s GDP comes from the federal government. If we can rightsize the federal government over the coming decades, Maryland will be negatively affected in what would be of overall benefit to the nation. It’s time to wean our state off the opioid of living off the federal employees and make strides in diversifying our economy. For that reason, making our state more business-friendly simply has to occur.

WCRC meeting – November 2015

November 24, 2015 · Posted in All politics is local, Delmarva items, Maryland Politics, Politics · Comments Off on WCRC meeting – November 2015 

We didn’t have the biggest crowd on a Thanksgiving week, but Delegate Christopher Adams made his points during the final scheduled WCRC meeting of 2015.

Adams was down the agenda this time, as we chose to do our usual opening routine with the exception of me giving the treasurer’s report for the absent Deb Okerblom. We slotted the Central Committee report first, which meant Mark McIver could detail the “huge success” of the Lincoln Day Dinner.

McIver chalked up the success to a couple factors: good profit from the silent auction and the use of several database lists – and 150 hand-written personal invitations – to target our advertising.

Briefly going over the state convention, McIver detailed how we heard from the three leading Republican U.S. Senate candidates. Ann Suthowski chimed in that Muir Boda was mentioned twice during the convention for his success and Mark Edney did a good job explaining the succession by-laws amendment. The Salisbury University College Republicans were also mentioned as part of the state CR report for co-hosting the Lincoln Day Dinner.

McIver also announced he would host a joint club and Central Committee Christmas Party next month.

Finally, we heard from Delegate Adams. He was pleased to see the change in government in Salisbury, which he said has more sway than he does locally.

Adams noted that with $20 trillion in debt, it was likely the GOP would win this year’s election. He suggested they make cuts to the “fourth branch,” as cost-saving measures.

In Maryland, Adams continued, the Augustine Commission determined that federal spending accounted for 25% of the state’s GDP, so government cuts would affect Maryland disproportionately. The state needed to develop an “entrepreneurial ecosystem,” he added.

Most of Chris’s message dealt with legislation he was introducing to allow counties to opt out of sprinkler system requirements once again. It’s something they’ve been asking for, Adams added, but they were up against a powerful firefighter lobby. Adams noted he had a meeting slated with the state!s deputy fire marshal.

Yet the $5 to $7 per square foot cost for a small, affordable home was one that couldn’t be added to the value. Mandates like this are putting new homes out of reach for young families,

He explained that the 2012 International Residential Code had this mandate, but prior to last year counties were allowed to opt out. Taking back local control “has to be a grassroots effort,” said Adams, and it requires action on a local level.

Adams was asked if many new home builders voluntarily put in sprinklers, but few did. He added that some states prohibit the mandate, including several neighboring states.

Mark McIver noted that the state was “taking away the American Dream…it’s bankrupting the younger generation.”

Adams was also asked about sprinker systems affect insurance rates. He believe they made little difference in the rates, because alleviating the fire risk was balanced against the leaking and water damage potential.

Finally, Adams was asked about last year’s bill, introduced by Delegate Jeff Ghrist, to address this. He noted it was late-filed, so it never got a hearing. His bill is pre-filed.

Christopher concluded by announcing he has a unique fundraiser at the OC Hilton December 12 and 13. You would get 2 nights’ stay and lunch with special guest Bob Ehrlich for one price.

Since we had a number of other state legislators in attendance, we got brief updates.

Carl Anderton spoke with Delaware officials, trying to get their perspective on agricultural issues. He also has a fundraiser coming up at the Delmar VFW on December 3.

Johnny Mautz believed “this year will be different than last year” in the General Assembly, with “a lot of activity.” Federal campaigns will drive some of that activity, so it would be up to Eastern Shore Republicans to kill bad bills as they could.

Addie Eckardt thought it would get “testy,” with pressure to spend our new-found surplus on items that were cut from last year’s budget. The idea was not to let ourselves get splintered, she concluded.

All in all, it was a nice little pre-session update – and timely, since we won’t meet again until after the session starts in January. To be exact, the WCRC will reconvene on January 25, 2016.

Regulatory reform comes to Maryland

July 10, 2015 · Posted in All politics is local, Business and industry, Delmarva items, Maryland Politics, Politics, State of Conservatism · Comments Off on Regulatory reform comes to Maryland 

I harbor no illusions that my post from the other day regarding the declining optimism of Maryland business owners goaded him into action, but today Governor Hogan announced the formation of a Regulatory Review Commission (RRC), charged over the next three years with “(f)ixing our burdensome antiquated, broken and out-of-control regulatory environment in Maryland.” The ten members of the RRC are volunteering their time to “focus like a laser beam on these issues”, said Hogan.

It’s interesting that the Democrats are claiming the Augustine Commission (which was created in the waning months of Martin O’Malley’s second term) was intended to address these issues and saying Hogan shouldn’t need three years to address the problem. How soon they forget that Larry’s Change Maryland organization was convening business summits over the last three years to gain the business perspective, not to mention the fact it was their administration which put out a number of these job-strangling regulations in the first place.

To me it’s just sour grapes. Ask yourself: had Anthony Brown won, would curtailing regulations be a priority? Thought not. The Augustine Commission report would have been filed and ignored.

But I hope the RRC has the latitude to go beyond just regulations and into other areas like taxation and, more importantly, looking into where other states succeed. Take a state like Texas, where hundreds of thousands of jobs have been created (as a net gain over jobs lost, not as a one-for-one swap) over the last decade. What attracts these entrepreneurs and leaders, and what assets can Maryland use to emulate their gains? Granted, a good portion of the Lone Star State’s gain came from abundant energy resources that Maryland can’t match, but there are other areas we may be able to do as well or better if we make that a goal. Unfortunately, over the last eight years our state took its cues from states like California and New York, places where capital and population have been fleeing.

Another question is just how cooperative these Democrats, who are already trying to take credit for the little bit done in 2015, will be to the RRC’s agenda as they submit their findings.

Take the “rain tax” as an example – a Democrat introduced the vastly watered-down bill that eventually passed, so they will surely henceforth try and take credit for ending the “rain tax.” But the mandate for affected counties to have a watershed protection and restoration fund did not go away (page 4 here) – it’s just up to the county to fill it, and most will likely retain some version of the “rain tax.” The actual repeal of the “rain tax” on this Hogan-sponsored bill was killed in committee by the Democrats therein on a straight party-line vote. (I used that vote as one of the committee votes on the monoblogue Accountability Project.) So it’s a fairly safe bet the Democrats are only paying lip service to the issue of regulations now because to them more is better – that’s how they’ve run Annapolis for most of the decade I’ve lived here and probably my whole life before that.

So the RRC can’t just exist in a vacuum. Now that Larry Hogan has experienced the way Democrats in the General Assembly basically gave the finger to his mandate, he will need in the coming months and years to take a page from the Reagan handbook and go straight to the people. Democrats may claim the last election was about “divided government” but the motivation was clearly behind a more conservative direction for the state.

While I would have preferred a more rapid formation for the RRC, this is a definite feather in the cap for Larry Hogan. Let’s hope that it’s not just for show but instead gives us an agenda even the Democrats can’t stop.

Is the Hogan business mojo wearing off?

It’s only one survey of 280 small (perhaps micro-scale) businesses in Maryland, but a recent poll conducted by a company which should be familiar to regular readers calls into question the effectiveness of Larry Hogan’s efforts at improvement in Maryland’s business climate in his first few months in office.

In cooperation with the Kauffman Foundation, Thumbtack.com has done annual, quarterly, and now monthly surveys of small business sentiment around the country. (I’ve written about their surveys on business friendliness in the past.) While it comes in a more graphical form than I can readily share here, some items I gleaned from the most recent Maryland and national data follow:

  • In terms of revenue and overall financial outlooks, Maryland businesses are less positive than the rest of the nation in the former and fall right at the national mean for the latter. The good news, though, is that over 70% of these businesses have a positive outlook over the next quarter.
  • Less than half, however, rate their financial situation as “very good” or “somewhat good.” Maryland’s total is 45.9% compared to 48.1% nationwide.
  • Maryland businesses are more pessimistic about profitability than their national peers; still, over 60% think they will do better. On the other hand, their perception on business conditions is actually better than the national average – 53.4% in Maryland think they will be better in three months’ time, while only 51.9% nationally share that outlook.
  • Finally, 24% of Maryland micro-businesses anticipate hiring over the next three months, while just 22.1% do nationwide. But while only 2.1% of businesses nationwide thought they would need to furlough workers, that percentage was 2.5% in Maryland.

As I noted above, this data was compiled at different intervals. Until March, this was done as a quarterly survey; now it is monthly. But one asset of this approach is that I can go back to the beginning of the year, and in their release accompanying the information Thumbtack.com noted:

In June, respondents nationwide indicated reduced optimism about the economy for the third month in a row, though sentiment about current and future conditions continues to be higher than that reported one year ago.

Key findings for Maryland include:

  • Maryland small businesses reported a sharp decline across each of the metrics tracked by Thumbtack, with the strongest declines coming in their expectations about future financial conditions and the economy.
  • Maryland experienced one of the largest overall business sentiment declines in the country in June; the state is now below the regional and national averages for small-business sentiment and ranks 30th overall nationwide.
  • Sentiment is still higher than it was one year ago, reflecting a broad-based increase in perceptions of economic conditions by small businesses across the country.
  • For the second month in a row, small businesses nationally expressed increasing pessimism about future economic conditions, which have been the largest contributors to the decline in overall sentiment.

Thus, it sounds like Maryland is reflective of a national trend.

But it’s also worth noting that the 2015Q1 survey showed broadly higher numbers across the board – revenue outlook has declined 10.9 points, financial outlook 5.2 points, profitability 11 points, and business conditions 8 points.

In addition, those who thought they may be hiring declined from 26% to 24.1%. Only the respondents’ assessment of their financial condition stayed relatively unchanged, declining just 1/10 of a point.

Unfortunately, these were the types of numbers we came to expect in the O’Malley administration. Obviously Hogan apologists would argue that their guy has been in office less than six months and it takes time to turn the ship of state around. And they would be correct, as the Augustine Commission agenda sailed through the General Assembly with its effective date in October.

Yet to me much of that was a simple rearrangement of deck chairs on the Titanic. While we can’t do a whole lot about the national economic climate, one thing Maryland could have done was allow these entrepreneurs to keep a little more of their money by reducing personal income tax rates; meanwhile, they could accommodate the entire elimination of corporate taxes with modest budget cuts of 3% or less. (The corporate tax brings in just over $1 billion of a $40 billion budget.) This would encourage larger businesses to consider Maryland for their growth and create more spinoff work for these micro-businesses.

Think of it this way under my scenario – Justin relocates from New York to work at the new Maryland corporate headquarters of XYZ Company, which was attracted here by the zero corporate tax rate as well as the other benefits Maryland brings. He needs a guy to fix his laptop, someone to watch the kids while Justin and Mrs. Justin are at work, and so on and so forth. Imagine what 250 Justins can do for a community and how many extra jobs they create. (I’m sure someone somewhere has done a study on this but today I’ll work without a net.)

The point is that addressing regulation and red tape is great, but the financial incentive has to be there as well. Among states with flat corporate tax rates, Maryland ranks among the highest. On a personal income level, Maryland’s rates appear to be a little better but that doesn’t add in the local county tax. (Granted, other states may also have the same practice.)

Let’s just say this: with an agenda that includes financial incentives as well as some cooperation from thoughtful Democrats in the Maryland General Assembly, by this time next year we can have a far more optimistic business community and in a few months after that they can better enjoy the results of hard work because the state takes a smaller cut.

WCRC meeting – April 2015

We ha an unusual meeting tonight. It wasn’t devoted to club business; after we did the usual Lord’s Prayer, Pledge of Allegiance, and introduction of several distinguished guests we were a treasurer’s report away from the first of three main events of a packed program.

Our first event was the presentation of the WCRC Scholarship to Andrew Boltz of Mardela High School. Boltz is active in the community, including an Eagle Scout project involving backpacks for the homeless. Boltz plans on attending Salisbury University to begin his pursuit of an engineering degree.

Sarah Rayne next addressed the group on behalf of 1st Saturday, a “free, family-friendly” event in downtown Salisbury intended to focus on the performing arts, as opposed to the visual arts highlighted at 3rd Friday.

She noted that the event was timed to be after Saturday chores but allow for patrons to partake in the downtown entertainment venues and restaurants afterward, adding that no food trucks would be present to help with steering business to local eateries – in turn, they would be encouraged to make known their specials for the evening. It’s a “bring your own chair” event, modeled on a similar set of gatherings in Georgetown, Delaware, Rayne added.

Just as clarification, I asked if it was an all-year event. Sarah responded that 1st Saturday was “a warm-weather event” which would run April to October.

The final part of the evening was something that turned out to be a roundtable discussion of the latest General Assembly session by the Republican members of the Wicomico County delegation: Senator Addie Eckardt and Delegates Christopher Adams, Carl Anderton, Jr., Mary Beth Carozza, Johnny Mautz, and erstwhile member Charles Otto, who was redistricted out of the county.

Each representative began by speaking a few minutes about their perspective on the recently-completed session. As the one with the most experience, Senator Eckardt assessed our group as “a wonderful team…this is not a shy group.” She was pleased to have the opportunity to try and get our highway user revenues back, and called it “exciting” to have a Republican governor to work with on the budget. And while the goals of the administration were to cut spending, taxation, and regulation, the sad fact was that most of the governor’s initiatives did not pass.

Some of the budget battles that were fought included funding for the Geographical Cost of Education Index and maintaining the promised $300 million catch-up payment for state pensions. While the budget passed wasn’t fully in line with the initial expectations, Eckardt thought the governor “was in a good position going forward.”

Getting PMT regulations as opposed to statutes and repealing the rain tax law allowed Addie to declare a couple victories. “From my perspective, I was floored” with the things accomplished during the session, Eckardt concluded.

From the House perspective, Delegate Otto was rueful that Wicomico County residents could no longer vote for him, but added he still represented us as the chair of the Eastern Shore delegation – a group that was expanded to include residents in the 35th District, covering Cecil and part of Harford counties. He was pleased the budget grew by less than projected revenue growth, a departure from the previous administration.

Otto noted that “everything bad for agriculture” came out at the House this year, including the “chicken tax” bill and a measure eliminating sales tax exemptions farmers can employ.

Delegate Adams felt “blessed to be a Republican in Maryland” right now because it enabled him to stop items detrimental to our interests, especially at the committee level. One highlight to him among the bills passed was several enacting the recommendations of the Augustine Commission, which included a cabinet-level Department of Commerce. His assessment that Maryland was too dependent on federal employees made him hopeful that the business climate could be changed.

“What a strange, fun, exciting ride it’s been,” said Delegate Anderton. He urged us to ignore people who say “you can’t do it” because he did get things accomplished: the Evo bill which will add 50 jobs in Salisbury while preventing 70 others from leaving, a grant to Three Lower Counties to assist them with a new OB/GYN clinic, and money for improvements to Perdue Stadium essential to keeping the Shorebirds here. And while he was “scared” about the PMT regulations, Anderton believed we had “built a great foundation.” Overall, his first year was “an experience better than I could have imagined.”

Delegate Mautz said the Eastern Shore is “working closely together” and trying to get leverage for its legislative goals. However, he noted that watermen and seafood producers were “under tremendous pressure,” detailing abuses by the Department of Natural Resources. As it turned out, watermen, hunters, fishermen would have been the beneficiaries of many of the bills Mautz worked on, while cheese producers will get a boost.

Yet while Mautz believed Governor Hogan “controlled the debate” on fiscal issues, there was still “serious partisan divides” in the General Assembly. He predicted “a lot of legislation” in the next session.

Johnny also called the events going on in Baltimore “a major setback” for the area and state as a whole. Delegate Carozza picked up on that, asking the group to take a moment of silence and prayer for the city, adding the National Guard had finally been sent in.

Mary Beth also believed we had a “terrific Shore delegation,” agreeing that Governor Hogan had “set the tone’ in his first session. While the budget had a smaller increase than previous years, though, she only voted for the original House budget. She voted against the conference budget because of the raids it made to the pension funds.

“We still need your help,” she added. “Divided government is really tough.” We were encouraged to express our opinions on issues like charter schools, tax relief, and regulations because opponents were relentless and having the constituents as backup strengthens our position. And Democrats “are already coming after (Larry Hogan),” she said.

She gave a couple examples of bills she worked on. One that passed with ease was a bill allowing Seacrets to move its distillery operations to Maryland – Mary Beth got support from Senator Jim Mathias and convinced lawmakers that bringing jobs back from Delaware was worth fighting for.

On the other hand, a veterans procurement bill which sailed through the Senate had a tough time in the House for several reasons, at least one of them territorial as a particular committee chair wanted to do a more large-scale procurement bill next session. She learned that she had to sometimes sell bills, and ended up with a compromise that doubled veterans procurement from 0.5% to 1%.

Once this part finished, we opened the floor to comments and questions. Naturally, a perspective was sought on why we did not get an elected school board vote and what we had to do.

“It’s an easy fix,” said Delegate Anderton. “Eliminate the excuse.” By that, he meant have the public hearings Senator Mathias sought, as two people noted he was on record as supporting the idea with public input. We also learned the Wicomico County Education Association actually supports a fully elected board.

But Senator Eckardt added we “need both Senators in agreement” to get the bill through.

A related question came about school vouchers, which weren’t brought up in this session. Rather, a lot of discussion went toward charter schools because it was the governor’s initiative, said Delegate Carozza. Delegate Adams added charter school reforms enjoyed bipartisan support, while Senator Eckardt noted the BOAST tax credits had been introduced again – these would allow private businesses to direct funding to private and public schools.

On that same front, it was asked if a Religious Freedom Restoration Act-style bill was introduced, and none was to their knowledge.

Turning to taxation, Senator Eckardt stated that few tax rollbacks were surviving the Ways and Means subcommittees.

Farming issues were the subject of a couple queries, and the industry as a whole was considered “low-hanging fruit” by environmentalists, said Delegate Adams. Even though 27 percent of Chesapeake Bay’s phosphorus could be traced to the silt behind Conowingo Dam – according to the Army Corps of Engineers, a fact which came out in a hearing on one of the PMT bills – environmentalists still demanded more regulations on agriculture.

Finally, Anderton responded to a question about road funding by noting he had helped bring it back to some extent through his memory of where the money was placed last year. The state found it again, to the tune of $19 million to municipalities and $4 million for counties. However, he added, some counties were reticent about full restoration because they wanted to use it as an excuse to have their own gasoline taxes.

All in all, it was a chock-full meeting you should be kicking yourself for missing. Because the next fourth Monday of the month is Memorial Day, we next meet June 22.

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  • 2018 Election

    The Maryland primary election is June 26.

     

    Governor

     

    Republican:

    Larry Hogan (incumbent) – Facebook Twitter

     

    Democrat:

    Rushern Baker – Facebook Twitter

    Ralph JaffeFacebook

    Ben JealousFacebook Twitter

    Kevin KamenetzFacebook Twitter

    Rich MadalenoFacebook Twitter

    Alec RossFacebook Twitter

    Jim SheaFacebook Twitter

    Krish VignarajahFacebook Twitter

    Candidates for Libertarian and Green parties will be added after primary.

     

    Comptroller

     

    Republican:

    Anjali Reed PhukanFacebook Twitter

     

    Democrat:

    Peter Franchot (incumbent) – Facebook Twitter

     

    Attorney General

     

    Republican

    Craig WolfFacebook Twitter

     

    Democrat

    Brian Frosh (incumbent) – Facebook Twitter

     

    U.S. Senate

     

    Republican

    Tony CampbellFacebook Twitter

    Chris ChaffeeFacebook Twitter

    Evan CronhardtFacebook Twitter

    Nnabu EzeFacebook

    John Graziani – Facebook

    Christina GrigorianFacebook Twitter

    Albert HowardFacebook Twitter

    Bill Krehnbrink – Twitter

    Gerald Smith – Facebook Twitter

    Blaine Taylor

    Brian VaethTwitter

     

    Democrat

    Ben Cardin (incumbent) – Facebook Twitter

    Erik JetmirFacebook Twitter

    Chelsea Manning – Twitter

    Marsha Morgan

    Jerome SegalFacebook Twitter

    Rikki VaughnTwitter

    Debbie “Rica” WilsonFacebook

    Candidate for the Libertarian Party and the independent will be added after the primary.

     

    U.S. Congress -1st District

     

    Republican

    Martin Elborn – Facebook Twitter

    Andy Harris (incumbent) – Facebook Twitter

    Lamont Taylor – Facebook Twitter

     

    Democrat

    Michael Brown

    Jesse ColvinFacebook Twitter

    Allison Galbraith – Facebook Twitter

    Erik LaneFacebook

    Michael Pullen – Facebook Twitter

    Steve Worton – Facebook Twitter

    Candidate for the Libertarian Party will be added after the primary.

     

    State Senator – District 37

     

    Republican

    Addie Eckardt (incumbent) – Facebook Twitter

     

    Democrat

    Holly WrightFacebook

     

    State Senator – District 38

     

    Republican

    Mary Beth CarozzaFacebook Twitter

     

    Democrat

    Jim Mathias (incumbent) – Facebook Twitter

     

    Delegate – District 37A

     

    Republican

    Frank Cooke

     

    Democrat

    Charles Cephas – Facebook

    Sheree Sample-Hughes (incumbent) – Facebook Twitter

     

    Delegate – District 37B (elect 2)

     

    Republican

    Chris Adams (incumbent) – Facebook Twitter

    Mimi GedamuFacebook

    Keith Graffius – Facebook

    Johnny Mautz (incumbent) – Facebook Twitter

     

    Democrat

    Dan O’Hare – Facebook

     

    Delegate – District 38A

     

    Republican

    Charles Otto (incumbent) – Facebook

     

    Democrat

    Kirkland Hall, Sr.

     

    Delegate – District 38B

     

    Republican

    Carl Anderton, Jr. (incumbent) – Facebook Twitter

     

    Delegate – District 38C

     

    Republican

    Wayne HartmanFacebook

    Joe SchannoFacebook Twitter

    Jim Shaffer

    Ed TinusFacebook

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