Bob Ehrlich – Page 2

A quick lesson in narrative

I don’t want to write a long post tonight – fortunately, I don’t think I’ll have to. Let’s take a look at what’s become an all-too-common assumption from the media, thanks to today’s Baltimore Sun.

The lead from writer Erin Cox states:

Maryland Gov. Larry Hogan said Thursday he will ask the General Assembly to grant “modest” tax cuts to working families, small businesses and retirees.

But the Republican governor offered no details on his proposed cuts nor on how he would pay for them. (Emphasis mine.)

First of all, I seriously doubt the budget will actually be reduced in real dollars – although that would be nice. No, a “cut” is now a situation where spending is less than the increase assumed to be granted. Back in the O’Malley (and Ehrlich) eras it was not uncommon for the annual budget increase to be between three and five percent, so each line item was figured as increasing by a commensurate amount. If you spent $1 million one year, you figured the budget for the next would be $1.05 million.

So when Hogan came along and nearly level-funded the budget last year with an increase of barely one percent, this was considered a “cut” because instead of the $5,000 increase the mythical agency expected, they “only” received $1,000. They got more than the previous year but $4,000 less than they thought. It’s why we spent the most on education ever yet Democrats whined about “cuts.”

But more important to this lesson is how easily the writer makes the implication that government spending less money is something that has to be paid for. We who are on the outside, with our incomes limited by how much skill and worth we have to our employers or customers, indeed have to worry about how we have to pay for expenses both expected, like rent or insurance, and unexpected, such as the extra heating oil you need. But we don’t think of cutting our family vacation out of the budget as paying – to us, it’s spending less money so that income and expenses come closer to evening out.

So if Larry Hogan wants to spend less on particular line items in the budget, these don’t have to be “paid for” because the tax dollars are already coming in. And it’s not like there’s not a long list of secondary items to consider such as paying down the state debt that O’Malley dramatically hiked or making up for raiding the pension funds.

Now that Larry has had a year to consider a budget, instead of being forced by the vagaries of the political calendar and state law to have one ready just days after taking office last year, we will see just how fiscally conservative he really is. Pushing it back under $40 billion may be a pipe dream, but since he has the most executive power over the budget of any governor in the country he may as well use it for good and point the state back toward fiscal sanity.

What do you think the narrative pushers will say about that?

A look ahead: 2016 in Maryland

Now that I made my thoughts on the fate of Wicomico County next year known, it’s time to expand the focus to the state as a whole. After the runup to the 2014 campaign and the transition of last year occupied the state over the last two years, it seems that the political class has settled in as we enter the second year of Larry Hogan’s term. His honeymoon was extended to some degree by his cancer diagnosis, but with a clean bill of health I suspect the gloves will be coming off as far as statewide Democrats are concerned. They need to position themselves for both the 2018 state election and, in some cases, the 2016 election as well. The surprise retirement announcement from Senator Barb Mikulski placed several Congressional Democrats into the race to succeed her, with House members Donna Edwards and Chris Van Hollen leading the charge. Elijah Cummings is also considering the race as well.

Of course, having these vacancies means ambitious state politicians are eyeing a move from Annapolis to Washington. So far five Democrats are considering the move, which in turn could create some vacancies by year’s end as it’s likely some of them emerge victorious. But on a policy note, these Democrats aren’t going to run from the political center so look for a serious turn to the left from the General Assembly this year – particularly if they succeed at overturning some of Larry Hogan’s 2015 vetoes in the opening days of this year’s session.

One place where Hogan can make a difference, though, is on the regulatory front. He doesn’t always need the General Assembly to make progress toward his goal of a more business-competitive Maryland, so look for him to try and do some pruning through his department heads.

With the economy recovering ever-so-slightly and the state addressing the structural deficit to the degree that it ran a small surplus this fiscal year, another bone of contention will be how the state’s budget is set up when it comes out next month. Having reached $40 billion last year, even the $500 million reportedly in surplus only allows the state to increase spending by a little over 1 percent – of course, the Democrats have a wish list twice that large and then some. Being used to the 4 to 5 percent annual budget increases common during the O’Malley era, Democrats consider Hogan’s smaller increases as cuts and that attitude is already in effect as we get ready to see the FY2017 budget.

Conservatives, though, probably aren’t going to see a lot of progress toward cutting the O’Malley excess on other issues. Short of a rejection to Maryland’s 2013 gun law in federal court (not likely), Hogan isn’t going to push very hard to restore Second Amendment rights or bring more school choice to the state. In year one, Hogan hasn’t really used his bully pulpit very much – granted, he was ill and undergoing cancer treatment for a large portion of the year but if you’re expecting Hogan to be another Ronald Reagan you may be disappointed. Besides the toll and fee decreases we were given last year, there’s not been much of a push for overall tax relief either thanks to the continuing structural deficit that Hogan’s predecessors have granted to him.

To the extent that Maryland has a large majority of Democratic voters, perhaps the best a conservative can expect is to slow down the leftward slide into the abyss. Bringing real change to the state is perhaps a multiple-term effort – not just the two Hogan may be fortunate enough to receive, but also with the hope that he paves the way for a more conservative successor. With the exception of one Bob Ehrlich term, the state has shifted leftward more or less continuously for decades so it will take time to undo the damage.

With the national election and the real prospect of conservative change in mind, the Maryland Republican agenda should be one of working the state away from its reliability on Uncle Sam as both employer and provider of funding. Since the Democrats are going to make 2016 about laying some ticking time bombs to go off just in time for them to come save the day in 2018, the GOP needs a plan to defuse them.

Maryland probably won’t make the same kind of news in 2016 as it did in 2015 – given the Baltimore riots and tremendous murder rate, we sure hope not. But the year has a lot of potential for this state, in my opinion more so than we’ve had in a decade. Leadership will be the key: if Larry Hogan emerges as the leader, we should be all right. But Heaven help us if it’s one of those on the loony left.

Report: High wages aren’t the issue with manufacturing

As you surely know, I have taken an interest in rebuilding manufacturing within our nation in general and this region in particular. While much of our local economy takes the form of manufacturing in an agricultural sense, either through grain farming or its primary purpose of assisting in the raising and processing of chickens, the advantages to the local and national economy if America began to make things again is beyond dispute.

So when I was sent a link to a manufacturing report by the union-led Alliance for American Manufacturing (AAM), I wanted to see what the perspective would be. Up front, it was clear that the AAM had their eggs in one basket.

“American factory workers are the solution, not the problem,” said Alliance for American Manufacturing President Scott Paul. “Instead of scapegoats, America needs a manufacturing strategy. That strategy should be built on balancing trade, investing in our infrastructure, enhancing our training programs, and rebuilding our innovation base.”

This report, with the lengthy title “Exchange rate policies, not high wages, are why U.S. lags China and Germany in export performance,” comes from the liberal Economic Policy Institute (EPI). Paul’s interpretation of the report:

“The idea that high wages in the manufacturing industry are causing job losses is common, but incorrect,” (report author Robert E.) Scott said. “Pushing manufacturing jobs into the low-wage, non-union south is a race-to-the-bottom strategy that should be rejected. Instead, we need to fight currency manipulation by countries like China and take a page from Germany and Europe to rebuild American manufacturing.”

His is a truncated summary of the last bullet point solution offered in the EPI report:

The strategy of pushing manufacturing into the low-wage, nonunion southern states is a race-to-the-bottom strategy that should be rejected in favor of high-road strategies: fighting currency manipulation and doing more to rebuild American manufacturing, taking a page from the German and European models (with supply-side policies that benefit and support the manufacturing sector, including increased spending on research and development as a share of gross domestic product; support for “stakeholder capitalism” in which boards of directors include an equal number of representatives of workers and managers; and heavy investment in training and job creation).

Obviously there is a certain appeal to some of getting back to the conditions we had circa 1960, when American manufacturing was the undisputed heavyweight champion of the world, workers brought home a salary that could support a family while Mom stayed home to take care of the kids, and Big Labor had its own corner of the political table. Five decades later, we have ceded that crown to China for a number of reasons. But I don’t think currency manipulation is the primary reason.

The EPI’s worry that manufacturing jobs are flocking to the “low-wage, non-union south” is in and of itself a tacit admission that wages and benefits are an important factor in site selection. China got to be a manufacturing leader because they have a very inexpensive workforce of semi-skilled laborers – the same sort of workforce that illegal aliens bring to the table in this country, although it depresses wages here in a different manner. Given the equality of other factors nationwide such as the federal regulatory regime and abundant cheap energy, those who do site selection tend to choose the places where they can get the biggest bang for their buck.

By the same token, willing local governments which assist these manufacturers with providing new infrastructure and greenfields for development tend to have more success than those urban areas with problematic old systems and brownfields that require remediation. But that’s not the only reason nice plots of available land sit empty in regions of the country outside the South.

Here in Maryland, we are saddled with a state government that refuses to even consider right-to-work legislation and has gone out of its way to punish large non-union employers. A decade ago when I began this site, the largest state issue was the (so-called) Fair Share Health Care Act and whether the Maryland General Assembly would override Governor Bob Ehrlich’s veto, which they did. The bill was narrowly tailored to affect just one employer: Walmart. And while correlation is not causation, the fact a proposed Walmart distribution center in Somerset County was placed on a continuing hold was blamed on the unfriendly climate for non-union businesses in Maryland. (The bill itself was later struck down in court as an ERISA violation, something I thought improper at the time.)

If you assume my overall argument is in favor of this “race to the bottom,” you’re forgetting a simple fact: a little bit of something is better than a whole lot of nothing. There are many paths to prosperity our nation, state, and city have available to us but it seems to me the best one is where we add value to the goods and services everyone needs. This is why our chicken industry succeeds, since we take that which is available to us to raise and process chicken for a world market and have developed an expertise that competitors have a hard time matching. Granted, not everyone in the industry makes a ton of money but that’s a function of the value placed on chicken by the market. Chicken is a very useful food product but people also like and can choose beef, pork, seafood, or vegan as well. On the other hand, there’s a reason oil is called “black gold,” to use another useful commodity for an example. The resource has a very high value thanks to its functionality, relative scarcity, and lack of alternative products.

America as a whole needs to again become the place where the most value is added, and once we get there we will all succeed because of it. (That will be the point where trade takes care of itself as well.) Back in 1960 we were the leaders in adding value, but now we’re not because we let others take our place. Re-establishing our manufacturing base will help us get that crown back, even if some parts of the country do more to help themselves in improving their economic state.

The expected return

It’s not that I haven’t expected Rich Douglas to jump into the Maryland U.S. Senate race. But after a steady diet of discussing foreign policy, Rich made the leap with a populist appeal:

Today, millions of American workers — hourly, salaried, union, non-union, or jobless — face an unprecedented crisis: Congress has become their adversary rather than their defender. A Congress too compromised or indifferent to restore the American workforce to a place of honor on our nation’s priority list undermines the liberty, livelihood, and security of us all.

In Congress, sheltered Maryland incumbents have thrown American workers to the wolves. Some of these Maryland career politicians even applauded in April when U.S. Rep. Luis Gutierrez said that Marylanders who are worried about uninvited foreign workers are ‘enemies of the community.’ Americans deserve better. They deserve unswerving loyalty from Congress. I am announcing for the Senate because too many Maryland incumbents are disloyal to voters.

Larry Hogan’s 2014 victory set the stage for improvements in Maryland to American worker conditions. To move ahead, Maryland requires a new team on Capitol Hill. I am convinced that Maryland has the wherewithal to overtake Texas in job creation, unless the political machine which brought Maryland rats, riots, and the rain tax smothers urgently-needed reform.

In 2016, voters have the power to challenge that machine. Maryland can send a seasoned, common-sense Republican veteran to the Senate who is eager to challenge career politicians making American workers outcasts in their own country.

So instead of dwelling on the numerous foreign policy failures of the Senate and Obama administration, Douglas is going with a blue-collar persona. Among the items on his issues page is a statement, “Marylanders losing their homes at tax auctions aren’t thinking about ISIS.” It seems to me he’s learned from his 2012 run, but again he’s probably going to face a younger, more dynamic opponent in Chrys Kefalas. Douglas is 58, Kefalas is 35.

Kefalas is also counting on a populist appeal, stressing his work for the National Association of Manufacturers over his work in government for the Justice Department and Ehrlich administration. Obviously more will enter the race, but most of them will be the common rabble who fill out the ballot every two years. It’s not uncommon for GOP voters to see ten or more names on the ballot, but the burning question is just how many of them will be elected officials running from cover.

Like last time, the key for the top two contenders will be how they deal in their opponent’s arena. Douglas takes the advantage in foreign policy, so how the candidates deal with pocketbook issues will be the subject of scrutiny.

The fallback position?

In the day since Governor Hogan announced his Phosphorus Management Tool regulations and I wrote my original take on them, I’ve had a chance to see what some of the involved players have to say.

I should preface this by noting I’m not a farmer; however, I have a rural background to the extent that I lived on acreage partially surrounded by woods and cornfields and went to school with kids who were honest-to-goodness members of the Future Farmers of America, complete with the blue corduroy jackets. And seeing that this is a predominantly rural area which depends on agriculture and my interest is in its economic success, I tend to favor the views of farmers over those who think that chicken comes from Whole Foods.

Anyway, the reaction I saw from the major agricultural players was somewhat disappointing, considering the dramatic effect those around here will feel from the PMT regulations. I begin with Delmarva Poultry Industry.

Post by Delmarva PoultryIndustry, Inc.

Statewide, the Maryland Farm Bureau echoed the inclusive approach.

Post by Maryland Farm Bureau.

To me, these farm groups are exhibiting the same attitude that’s expressed by the saying, “the beatings will continue until morale improves.” Perhaps I’m just wondering what happened to the Larry Hogan who promised the Maryland Farm Bureau back in December:

The first fight [when I take office] will be against these politically motivated, midnight-hour phosphorus management tool regulations that the outgoing administration is trying to force upon you in these closing days. We won’t allow them to put you out of business, destroy your way of life or decimate your entire industry.

The regulations are essentially unchanged in this rendition with the exception of promises of more resources for affected farmers and an extra year to deal with the mandates. But over 1 in 5 local farmers will have to stop their fertilizing practices immediately when the regulations take effect.

And the step toward environmentalists has apparently been met with defiance. Both the Maryland Clean Agriculture Coalition and Chesapeake Bay Foundation are skeptical. CBF’s Alison Prost notes:

We are pleased the governor recognizes that excess manure application on farm fields in Maryland is a serious issue, just as scientists have been noting for years.

(snip)

We learned general information about the proposal Monday afternoon, and are hoping to obtain a copy of the actual proposed regulation as soon as possible. Without such details, we are withholding judgment. Once we are able to review the full proposal we hope that the Hogan Administration will allow the environmental community a chance to help shape this policy. In the meantime, we fully support SB 257 and HB 381 which are intended to solve the manure crisis through legislation. (Emphasis mine.)

In other words: nice try, but we are still after the whole enchilada.

Honestly, I don’t know if this measure is an attempt to placate the center by throwing farmers under the bus or if it’s part of a grand gambit where concessions on this issue will be traded for relief from the “rain tax.” I don’t trust the Democrats to follow through on any such deal because they come with the attitude that their time out of power is a fleeting, temporary one. It worked in ousting Bob Ehrlich after one term.

Perhaps Larry Hogan doesn’t have it in him to be Maryland’s answer to Scott Walker. But this relatively rapid concession on an issue important to the rural voters who supported him by margins of 70-30 or better in many counties is troubling. Had he waited until we knew the fate of the General Assembly bills – which he could have chosen to veto and perhaps not have to deal with until next session – he could have positioned himself as more of the fighter we were looking for when we dispatched Martin O’Malley’s heir apparent and selected Larry to lead the state.

By their words today, the environmental lobby proved they have no intention of working with Larry Hogan – none whatsoever. There was enough of a broad outline presented yesterday that these groups could have embraced the Agriculture Phosphorus Initiative, but they did not.

Of course, I sort of figured it would be this way all along but people keep reaching across the aisle and keep getting their arms bitten off. The only solution is to make the statist side concede by having superior numbers, and we can’t finish that job until 2018.

Creating his own outlet

To be perfectly honest and up front about it, I have not listened to the subject of this post, as my life and items are still in some disarray after our recent move. (This includes my headphones, which are in some box somewhere.)

But last week Dan Bongino released the second of what is now a weekly series of podcasts. And given the fact he’s used the political world and running for office twice in the last two federal cycles to make a name for himself in the media world, I wanted to use this post to ponder whether if we would see Bongino go three-for-three with the 2016 U.S. Senate race or a rematch with John Delaney in Maryland’s Sixth District.

Let’s look at a little history first. At this time four years ago, no one outside of the world of the Secret Service and law enforcement knew who Dan Bongino was. But in the spring of 2011 he made the decision to begin his political career with a run for the U.S. Senate seat in Maryland, and with an engaging personality and conservative stands on many issues, Bongino made enough of a name for himself to win a crowded primary and the right to face incumbent Ben Cardin. While Bongino had some good fortune in the fact no former candidate like Eric Wargotz or Michael Steele, regionally known officeholder like Pat McDonough, or former governor Bob Ehrlich decided to jump into the race, it’s likely he weighed all these possibilities and had an idea they would skip the race before he got in.

Something Bongino succeeded in doing with his 2012 Senate race, though, was nationalizing his effort. In most northeastern states, a Republican running for a statewide office against long odds would attract little notice outside the state, but Bongino made waves with his race once he received a Sarah Palin endorsement. His 2014 Congressional effort continued on the same path.

But something else we learned about Bongino was that he was a natural at broadcasting. Over the last few years he’s graduated from occasional guest to guest host, taking over for both Sean Hannity and Mark Levin on occasion. If he ever lands a spot sitting in for Rush Limbaugh we’ll know he’s in the big leagues.

So it brings up the question for a multimedia player like Bongino: what’s in it for him to make a 2016 run?

Bongino is in a spot in Maryland similar to the one which Sarah Palin occupies nationally. Dan’s support for a candidate is looked upon with approval from a large number of conservative voters in Maryland, just like a Palin endorsement appeals to a particular subset of voters nationwide. Both, however, are becoming more well-known in media circles than for accomplishments in office (which is a shame on Palin’s part, since she has been elected several times.)

If Bongino runs again and loses again, will that tarnish his standing among conservatives who can’t point to electoral success on his part? On the other hand, will he feel that the media exposure he’s gaining is going to put him over the top? With just a few hundred plays on his Soundcloud (I cannot discern how his iTunes podcasts are doing) it’s a nice outlet but not one which gets him a lot of exposure like a guest-hosting slot would give.

Over the next few months, the 2016 races will begin to take shape. I would expect at least a couple members of the Maryland General Assembly to run from cover for federal positions but not to announce their intentions until later this summer. Those who have less name recognition will probably start in the next month or so since the primary is less than 14 months away – depending on how the Presidential race shakes out, we may see more attention paid to the downticket races like U.S. Senate.

If I were to take my educated guess, I think Dan is going to pass on 2016 unless the Senate seat becomes open through the retirement of Barb Mikulski. With 2016 being a Presidential year, turnout will be more like the 2012 turnout and that tends to favor Democrats in this state.

On the other hand, 2018 creates a host of possibilities on both a state and federal level, giving Dan more options should he decide to jump in a race.

Once I get my stuff together I will take about 45 minutes and listen to what Dan has to say – chances are I will enjoy it. But my thoughts always work to the next cycle and all the possibilities within. If the question is whether Dan Bongino will be in the mix, I think the answer is yes. I’m just not sure where one of the many young guns the Maryland GOP has will fit in.

The Democrats’ house of cards starts a-tumblin’

I hope you enjoyed my fellow contributor yesterday; I’ve had mostly positive reviews. But I’m back in the saddle and look forward to Cathy’s next post.

You may have seen this piece in the Baltimore Sun by Michael Dresser; a tome which claims that much of Larry Hogan’s agenda is DOA. In it, House Speaker Michael Busch is quoted as saying, “No matter how many times (House Republicans) stood up, you couldn’t count to 71.”

Well, I wouldn’t expect many Democrats to stand up, and truth be told most of the Democrats who might have are working elsewhere now because their electorates decided conservative-lite wasn’t good enough. Granted, 50 is not 71, but it’s better than 43 or 37 where we have been the last two terms.

In an enhanced edition of tit-for-tat, Senate Democrats decided to play political games with several of Hogan’s appointees. Ironically enough, two of the five appointees being held up were Democrats, although both had previously served under Bob Ehrlich. But it goes to show you: when you reach out the hand of bipartisanship to Democrats, many will rip off the arm and beat you with it every time. Once again, they are proving that their interest is in maintaining power and not helping the working family by granting a little bit of tax relief at the gas pump and in the property tax bill. And all the caterwauling about the budget Hogan produced reminds me of the 2012 budget fight where the budget “only” went up $700 million instead of the $1.2 billion they desired.

In short, Maryland Democrats are ignoring the election results and acting like Anthony Brown was elected instead of Larry Hogan. So it’s time to remind them just who they work for.

If you want a review of the State of the State speech Democrats are upset about, I briefly outlined his eleven points in the wake of the speech last week. To me, it sounds like the Democrats are having a cow about Hogan’s plans for repealing the “rain tax” and giving a tax break to specific retirees, and dumping the Phosphorus Management Tool regulations at the last possible minute. So we know what to push the recalcitrant legislators to do as the squeaky wheels get the grease.

Two people I really haven’t heard much from in the wake of the State of the State address are the local Eastern Shore Democratic delegation, namely Delegate Sheree Sample-Hughes and Senator Jim Mathias. Given the counties they represent went heavily for Larry Hogan, I would expect them to be Democratic leaders in getting his agenda passed. While the extent will vary, the ideas Hogan promoted will benefit their districts as well. They need to be the leaders in getting the Hogan agenda to 71 and 24 in the House and Senate, respectively.

It’s what the state voted for, so let’s get this done.

Yet another candidate, by George

As proof that the 2016 presidential contest is wide open on the Republican side, I give you the newest entrant: George Pataki.

Many of you are probably saying, “George who?” But as evidence that some people are more than just getting their name out there, Pataki served three terms as the governor of New York, actually establishing a period of sanity before the circus that was the Eliot Spitzer administration, which led to the David Paterson tenure before yielding to current Governor Andrew Cuomo. (Pataki, ironically, succeeded Cuomo’s late father Mario.)

But Pataki fits into the mold that Mitt Romney vacated: a more moderate Northeastern governor. Yet one has to wonder why he didn’t make a bid at the top of his game in 2008, just after leaving office. And at 69 years of age (he’ll be 70 later this summer) he would be older than many in the field. (He’s two years older than Hillary Clinton but almost three years younger than Joe Biden.) Granted, the current President is panned for his relative inexperience at the age of 53 so age may not be so much of a factor in Pataki’s case.

Like many governors, Pataki is running against Washington and has created his own superPAC called “We the People, Not Washington.” He’s also heading to New Hampshire to introduce himself to voters, perhaps believing he can make more of an impact in a state closer to home with an early primary.

But I look at this announcement with the realization that political analyst Larry Sabato has Pataki as a “seventh-tier” candidate – along with another blue-state Republican governor who you might know, Bob Ehrlich – correctly pegs Pataki’s chances. Their similarities include a long near-decade out of office, although in Ehrlich’s case it was thanks to two straight electoral defeats. As I noted yesterday, the list of GOP governors who are considering a run is very long because our side has a deep bench to turn to. Sabato lists close to a dozen possible current or former governors who are thinking about it.

And in looking at the political landscape Pataki would have to run in, he almost has to hope for a New Hampshire miracle where they embrace the populist message that government doesn’t have to be smaller, just run better. That’s not a direction the TEA Party wants to go.

Whether it’s a serious run or a last gasp at relevancy, you can’t fault a guy who had a pretty good twelve-year run as governor for trying. I just don’t know if he’ll succeed beyond the end of this year.

Differing transportation thoughts

Last week at Blue Ridge Forum, regular author Richard Falknor stepped aside for a two-part series by writer Peter Samuel, a specialist in writing about toll roads. In part one, Samuel advocated for a reduction in tolls and license fees, which was good, but in return we would have to endure this:

Fairness and efficiency will be best served by moving toward transport systems that self-finance with user fees: more precisely, fees-for-use roads should finance themselves with fees based on the cost of providing road service, road use fees, or tolls based on the distance traveled, the scarcity of road space, and the costs the vehicles impose.

Unfortunately, this raises the prospect of abuse by the state. Imagine portions of U.S. 50 and Maryland Route 90 becoming toll roads from the Bay Bridge to Ocean City, such as the bypass around Salisbury and any future routes around Easton and Cambridge. Sure, you could avoid the tolls and go through town but the traffic would become the same issue it was before the current U.S. 50 portion of the Salisbury bypass opened a decade or so ago. This would also be discouraging for truck traffic.

Maybe the best example of the problem with this philosophy is the Inter-County Connector between Montgomery and Prince George’s counties. The ICC, as it’s called, was in the pipeline for decades before finally becoming a reality under Bob Ehrlich, with Martin O’Malley finishing it last year. But the ICC isn’t popular with drivers because of its lower speed limit and heavy enforcement of traffic laws, so it hasn’t met revenue projections.

It’s likely Samuel is thinking more of the urban areas with their existing HOT lanes and other means to divide express traffic heading to the suburbs and local traffic which may hop on the highway for a couple exits. But Samuel’s second part discusses the fate of the Red Line in Baltimore and Purple Line in the Washington suburbs.

In that case he is correctly diagnosing the problem with mass transit solutions such as these:

Project advocates list all the jobs created during construction, but this is only a measure of cost, and avoids the real question: what value are they creating?

In any enterprise there is positive net value if the users are paying sufficient user fees (fares) to both cover operating costs and provide a competitive return on capital (ROI).

To the extent fares won’t cover costs plus return on capital, we have a clear measure that the value to users falls short of costs, making the project a net loss to any operator.

Rail transit in Maryland presently collects in the ‘farebox’ less than 30 cents on the dollar spent on operating the system and, of course, makes no return on capital invested. Light rail is the very worst with lower farebox recovery (currently under 20 cents per dollar.)

Some of those results could be improved, but almost no rail system in America come close to the black (100 on the dollar + ROI).

If you read further, Samuel likes the concept of the Red Line but is concerned about the construction cost and likelihood of overruns. On the other hand, his thought on the Purple Line is that it should change its form and become a bus-only route. The construction would be far cheaper and the schedule could be more easily adjusted to suit the needs of consumers. That’s an approach which makes more sense, although one has to ask why automotive traffic couldn’t utilize the route then.

At the end of part two, Peter also adds a map of proposed changes, including a westward extension of the ICC which crosses over into Virginia and provides another Potomac crossing west of Washington, as well as an eastbound addition which connects to U.S. 50 near Bowie. Also noted is a “new span Bay Bridge.”

What I would propose, though, is a truly new span Bay Bridge that’s several dozen miles south and connects Dorchester County with Calvert County. There’s no question the environmentalists (and some of the locals) would scream bloody murder, but they would for any attempt at progress anyway.

I think this bridge would encourage more tourism from the Washington area and, if combined with an extension of I-97 to its original destination near Richmond, could open up the Eastern Shore as a new tourist destination as travelers seek an alternate route around the traffic presented in Baltimore and Washington. Adding a bypass around Easton and cutoff between U.S. 50 and U.S. 301 through Queen Anne’s County (paralleling or upgrading the existing Maryland Route 213) could make this route even more desirable. Samuel could even get the cutoff to be a toll route.

There is a lot which can be done in lieu of wasting money on the Red Line and Purple Line because both are destined to be money pits; on the other hand, investing in transportation alternatives which maximize options and freedom makes more sense. As Samuel writes:

Better mobility provides greater employment opportunities, better shopping choices, more specialized health and medical services, more social and family interaction, better education, sporting. and recreational opportunities.

Our travel is not frivolous. People don’t drive the Capital Beltway for the scenery. We travel because the trips provide value.

There would be value in having a second Bay Bridge as well as the other roads for which I advocated. People and goods could move more freely up and down the East Coast, avoiding the bottlenecks presented in northern Virginia and around Baltimore, while the Lower Shore would have more direct access to a route across Chesapeake Bay, allowing for easier movement west and south.

It’s time to think on a larger scale while accepting the reality that people want the freedom to be able to jump in their cars at a moment’s notice and go wherever they wish. Mass transit simply creates dependency on the provider and allows them some level of control of movement. That may be acceptable to some, but the rest of us want to get where we want to go as quickly as possible – on our terms – and this is where government can be of service to the public.

The longest 2 1/2 months

Believe it or not, there will be 78 days between the time Larry Hogan won his election and the day he will be sworn in. Those 11 weeks have seen practically every other unit of government turn over since the November election – for example, Wicomico County changed over in early December while Congress went two weeks ago and the General Assembly last week.

In that timespan we’ve seen much of Maryland turn in a decidedly more conservative direction. But as one Facebook observer pointed out, Larry Hogan has bent over backwards to appease most of the groups in Maryland with his cabinet and executive branch selections, which include at least one O’Malley holdover and several former Ehrlich staffers. The one group he has not tapped, however, is the TEA Party branch of the Republican Party.

And with most of the prime spots already taken, it looks like the Maryland government will shift rightward but only about as far as the middle of the road because there’s not going to be anyone there to really push it hard right. Likely this is by design as the perception of bipartisanship may be necessary to win again in 2018, but then I always work under the assumption that the dominant media will support the Democrats in this state so it really doesn’t matter just how much our side panders to the left. So why not try to beat back the other side with conservatism on all fronts?

Now I also know that there are people on my side and who I call friends who say that we have to work with Democrats on things we can agree on. That’s okay as far as that goes, although I think that list of agreements is a lot shorter than my more moderate friends think it is. There are some functions of government I believe are necessary, though, and to the extent that we can improve them to make them more user-friendly I can deal with it.

But then take budget items like the Purple Line. In the 2 1/2 month lame-duck gap between the election and Larry Hogan’s inauguration that special interest has taken the time and money to lobby for its very existence. History and logic would dictate that the Purple Line would be a cronyist boondoggle to build and a money pit to maintain because ridership will never pay for the cost of running the trains, but I’m detecting a softening of Hogan’s previous hardline stance. A couple billion dollars would fix a lot of bridges and potholes, but those aren’t as sexy as a rail line which proponents will claim will improve the environment – of course, that’s based on full trains which we won’t see.

Everyone who is a prospective victim of the budgetary chopping block will be out in force over the next month or so trying to plead the case that they should be spared the axe, like the state’s arts community. But catering to everyone is how we got to where we are in the first place.

Obviously Larry Hogan needed a little time to make sure he won the election and mull over those people who he will need to run his administration. But this change in government couldn’t come soon enough for those of us who would like it rightsized, and while job one of the Hogan administration has to be that of getting the state’s economy back on sound footing and moving in a positive direction, not far behind that effort should be one to have a FY2019 budget that’s no larger than the one we passed last year.

On running the state

One concern I see and hear after the surprise Larry Hogan victory is that we don’t want all of the Ehrlich retreads running the state government now that the GOP is back in charge. As it turns out, Hogan – the Secretary of Appointments for Ehrlich – selected another Ehrlich official, Secretary of General Services Boyd Rutherford, as his lieutenant governor and has tabbed James T. Brady and Robert Neill as integral parts of the transition team. Brady worked as a member of the Parris Glendenning administration and Neill is a Republican-turned-Democrat who served in the Maryland General Assembly for 18 years, sandwiching a term as Anne Arundel County Executive. Reports are that outgoing Harford County Executive David Craig, who also sought the GOP nomination for governor, is also being considered for a role.

This is all well and good, I suppose, since a stated goal of the incoming Hogan administration seems to be one of bipartisanship. But my question is how much it will build the Maryland Republican party if we tab Democrats for positions they’ve already had over the last 8 and 40 of the last 44 years? Building a farm team doesn’t just come from elected officials and I’m sure that fresh eyes in a lot of positions will do a lot of good.

The Democrats lost, so let’s act like winners and put good conservatives in charge of state departments, To do otherwise leaves the potential that we will have another opportunity to build on success slip away in 2018, dooming ourselves to more years in the wilderness. In short, let’s use the electoral broom we just received to sweep these offices clean like Martin O’Malley did. It’s the least we can do to push this state in the right direction.

A doable goal?

Yesterday we received word that the unemployment rate dropped again, with another month of job growth in the 200,000 range. It’s not the Reagan recovery of the 1980s – when we had 15 straight months of job growth in 1983-84 that would put this latest number to shame, including a whopping 1,115,000 jobs created in September 1983 – but it is a reasonably decent run.

Yet just as manufacturing didn’t share in the Reagan-era gains as much as other sectors did (in fact, it lost some ground), the second Obama term has also fallen well short of manufacturing growth goals. I’ve discussed this group and its job tally before both here and on my former American Certified site, but the Alliance for American Manufacturing tracks progress toward the one million manufacturing jobs Barack Obama promised in his second term.

AAM’s president Scott Paul isn’t all that pleased about it, either.

The good news is that manufacturing jobs have grown over the past few months. The bad news is that they haven’t grown fast enough. I’m very concerned that a surge of imports from China and a paucity of public investment in infrastructure will continue to hamper the great potential of the productive sector of our economy.

Hopes of achieving the White House goal of 1 million new jobs in the Administration’s final term are fading fast. Without some progress on the trade deficit and a long-term infrastructure plan, I don’t see that changing. No doubt the economic anxiety that many Americans still feel is compounded by stagnant wage growth and diminished opportunities for middle class careers.

Two of the key issues AAM harps on are, indeed, currency manipulation and infrastructure investment, although they also took time recently to praise Obama’s manufacturing initiatives and chastise Walmart for their ‘buy American’ effort because much of it comes in the form of produce and groceries. Around these parts, we don’t really mind that emphasis because we produce a lot of American-grown poultry so if Walmart is willing to invest in us we’re happy to provide. (Then again, that promised distribution center would be nice too.) Of course, AAM is backed in part by the steelworkers’ union so one can reasonably assume their view is the center-left’s perspective.

Even so, the group is useful because it makes some valid points. And I think we should have some focus on creating manufacturing jobs in Maryland, as the defunct gubernatorial campaign of outgoing Delegate Ron George tried to do.

Thus, I think the incoming Hogan/Rutherford administration should make it a goal to create 50,000 new manufacturing jobs in Maryland over his first four-year term – if he succeeds, you better believe he deserves a second. According to BLS figures, as of September an estimated 103,000 people are employed in manufacturing in Maryland. But if you look at past data, it’s not unprecedented to have 150,000 (as late as November 2002) or even 200,000 (as late as June 1990) working in the field. And when you take the confluence of a state that is supposedly #1 in education and combine it with the proximity to both major markets and inexpensive energy sources, there’s no reason we should have lost 30,000 jobs in the manufacturing sector under Martin O’Malley – or 16,000 under Bob Ehrlich, for that matter.

But how do you turn things around in four years? Maryland has to make people notice they are open for business, and there are some radical proposals I have to help with that turnaround.

First of all, rather than tweak around the edges with lowering the corporate tax rate, why not just eliminate it altogether? The revenue to the state from that toll is $1.011 billion in FY2015, which is far less than the annual budgetary increase has been. Would that not send a message that we are serious about job growth and immediately improve our status as a business-friendly state?

The next proposals are somewhat more controversial. To the extent we are allowed by the federal government and its environmental regulations, those who choose to invest in the state and create jobs should have an easier path to getting environmental permits and zoning approvals. Even if a moratorium is temporary, making it easier to deal with MDE regulations would encourage job creation. Most of Maryland’s towns and cities already have industrial sites available, but we shouldn’t discourage construction in rural areas if a job creator needs more space.

We’ve also heard about the construction of the Purple Line in Montgomery and Prince George’s counties and the Red Line in Baltimore – combined, the two are expected to fetch a price tag of $5.33 billion. For that sum, it seems to me we could build a lot of interstate highway – even if this $4 million per mile figure is low (and it would be 1,267 miles of highway based on the combined cost of the Red Line and Purple Line) we could do a lot to assist in moving goods through and from Maryland, whether by finishing the originally envisioned I-97 through to the Potomac (and with Virginia’s assistance, to I-95 near Richmond) or enlisting Virginia and Delaware’s help in improving the U.S. 13/58 corridor to interstate standards to provide a secondary route around Richmond, Washington, and Baltimore.

Once we eliminate the onerous restrictions proposed for fracking and begin to open up the western end of the state for exploration, and (dare I say it?) work on making Maryland a right-to-work state like Virginia – or even creating right-to-work zones in certain rural counties like the Eastern Shore and Maryland’s western panhandle – the potential is there to indeed create those 50,000 manufacturing jobs – and a lot more! It just takes a leader with foresight and the cajones to appeal to the Democrats in the General Assembly as well as a Republican Party unafraid to take it to the streets in the districts of recalcitrant members of Maryland’s obstructionist majority party.

But even if we only create 40,000 or 25,000 manufacturing jobs through these policies, the state would be better-positioned to compete for a lot of other jobs as well, and the need is great. For too long this state has put its economic eggs in the federal government’s basket and there’s a changing mood about the need for an expansive presence inside the Beltway. Rightsizing the federal government means Maryland has to come up with another plan, and this one has proven to be a success time and time again across the nation.