Tag: Delaware

Mission impossible?

Consider this an open letter to the 16 or 17 Republican presidential campaign teams.

From the sound of it, we are planning to do our Wicomico County Lincoln Day Dinner in early November. Originally we wanted to get Larry Hogan as our speaker, but so did everyone else and then he announced he’s fighting stage 3 non-Hodgkin’s lymphoma. Given the length of the course of treatment, it’s not likely he’ll be doing a great deal of traveling and public appearances during that time – however, should he decide to drop by the door is certainly open. I’m sure Larry would be gracious, even if it wasn’t his endorsee Chris Christie doing the talking.

Yet it’s always been puzzling to me as to why we in Wicomico County can’t get a better “name” speaker. After all, we are the “crossroads of Delmarva” and that has to count for something, right? Not only that, we have a wonderful venue at Salisbury University that we have used for several years – the food is always good.

So I look at this as a great chance for a presidential candidate who wants to think a little bit outside the box and perhaps swipe a few votes with some retail politics. We’re not all that far from New Hampshire and there are several attributes the schedulers may want to consider:

  • Between Maryland and Delaware there will be 54 Republican convention delegates (38 for Maryland, 16 for Delaware.) Even though Iowa and New Hampshire have a more advantageous position on the primary calendar, they only account for 53 delegates between them.
  • There is a potential audience of 102,793 Republicans within the four counties that make up the Lower Eastern Shore of Maryland and Sussex County, Delaware. That doesn’t count unaffiliated and crossover Democrats who are desperate to not vote for Hillary.
  • All of them are within the Salisbury media market, and it’s not like the news in Salisbury has a lot of content. You may get wall-to-wall coverage if you show up.
  • We have a pretty good fundraising scheme in place which we used for the Patriot’s Dinner with Lt. Col. Allen West last year.
  • Lastly, not every Lincoln Day Dinner actually has a Lincoln. We do. He might even bring some Union troops along.

Generally our Lincoln Day dinner gets between 100 and 150 people – but I see no reason we couldn’t get 300 to 400 with the right candidate. The optics of a sold-out venue would be a shot in the arm for any campaign, so why not take advantage? You can’t let Donald Trump be the last one to show up at a Maryland event.

Back in 2012, the all-but-lost cause of Newt Gingrich came to Salisbury and drew plenty of regional attention, so here’s my earnest plea on behalf of the good Republicans of Delmarva: retail politics may well go a long way here. Do it while you’re still in the race this November and it may pay off in a year’s time.

Besides, isn’t the old adage “ask and you shall receive?” I’m asking nicely.

A First State failure

As a person who now has a job created in Delaware, I’m taking more of a vested interest in what goes on in the First State. I’ve been on the mailing list of the 9-12 Delaware Patriots for some time now, and today they sent out an update from the state’s Senate Republican Caucus. (Like Maryland, the Senate GOP is on the short end of the stick insofar as numbers are concerned, but the deficit is closer as it’s only a 12-9 Democrat majority there.)

The one thing I found interesting was a twist on the trend of states becoming right-to-work states. In Delaware, Senator Greg Lavelle had the thought of creating small “right-to-work zones” encompassing specific employers. I’ll let the Delaware Senate GOP pick it up from here:

The Senate Labor and Industrial Relations Committee declined this week to release a bill aimed at revitalizing Delaware’s manufacturing industry.

By not releasing Sen. Greg Lavelle’s (R-Sharpley) legislation to create right-to-work zones in Delaware, the Democrat-controlled committee has essentially killed the bill.

Under the measure, workers within these zones could not be forced to join or financially support a union as a condition of employment. It would also exempt manufacturing businesses adding at least 20 new workers from paying the Gross Receipts Tax for five years.

During Wednesday’s hour-long public hearing in Legislative Hall advocates of the bill, including representatives from several business organizations, argued such an initiative would create a more competitive environment, attract new businesses to Delaware and generate more jobs.

Sen. Lavelle identified multiple Delaware locations where the idea could take root, such as the former General Motors Boxwood Road plant near Newport, as well as other existing facilities in New Castle, Kent and Sussex counties.

His feeling after the meeting was that while the bill may be dead, the idea is not.

“For me, what came out of the meeting was that this was the first formal discussion that we’ve had about this issue in Delaware,” he said. “The fact is, coming out of the recession, where many other states have added manufacturing jobs, Delaware has lost another 3,000. So the conversation on how to turn that around has to continue. And judging from the many comments we heard in committee supporting this bill, there’s no doubt this conversation will continue.”

Worth pointing out is that Delaware has lost many of its manufacturing jobs over the last decade, declining from 33,800 such jobs in 2005 to 25,500 a decade later. That’s a 25% decrease, meaning for every 4 manufacturing jobs the state once had one was lost over the last decade. If you were the unlucky one to lose your job, it means you either had to relocate out of state or change careers, with the unfortunate byproduct of that choice being that skills gained atrophy over time.

This is a different approach than the one tried in Maryland, where Delegate Warren Miller has annually introduced a statewide right-to-work bill where the compelling arguments in its favor unceasingly fell on deaf Democratic ears in the Economic Matters Committee. Personally I think the way to go about it is a piecemeal approach, beginning with the Eastern Shore. Far from what Big Labor critics believe, Indiana – a recent convert to right-to-work – added 50,000 union jobs last year as part of an overall surge in employment growth. We can use the Eastern Shore as a petri dish for a right-to-work experiment, because Lord knows they try to impose everything we don’t want on us (tier maps, onerous septic regulations, and the PMT, to name a few.)

One big difference between Maryland and Delaware is the fact that over half of its Senate will be at stake in the 2016 elections – it is possible for the GOP to gain a majority by winning 6 of the 11 contested seats. The state GOP should make this an issue in trying to decrease joblessness – after all, a union does you little good if you are not working and over 8,000 onetime factory workers are doing something else because the state lost its competitive edge.

Delaware has always had a reputation of being business-friendly, but in this changing employment climate they have to step up their game. Going into an election year, an issue has to be made of how the state will compete going forward – after all, my job depends on it.

The question about Common Core

My friends up in Delaware are blessed to live in a relatively small, easy-to-get-around state. While its national reputation is that of a reliably Democratic state, they have a significant conservative grassroots presence and one subpart of that group, the 9-12 Delaware Patriots, is trying to spread the word about a Common Core Workshop to be held at the University of Delaware Saturday morning. It’s a free event but you have to follow the link to get a seat. While it may be somewhat Delaware-centric, other surrounding states are in on Common Core as well.

The event is sponsored by the Mid-Atlantic Education Alliance, which has some interesting opinions on Common Core, and is set up to be a debate between those who support and oppose the Common Core concept. It’s good to see the 9-12 Delaware Patriots involved because they are an activist TEA Party group (witness their recent pro-police rally I spoke about earlier this month) which stands up for that which they believe.

But I also wanted to focus on one aspect of Common Core that is bothersome to me, and that’s the role of crony capitalism. While the goals of Common Core were admirable when the concept was introduced in 2008, it’s come to mean a nationalized approach to schooling – ironic when one of the original goals of Common Core was to note:

A number of studies… have found that students perform better in systems that give schools greater freedom to hire and reward teachers, purchase supplies and make other school-specific budget allocations, and choose curriculum materials and teaching methods. Those studies also show that decentralization works best when it is combined with various forms of accountability. According to one team of researchers, the positive impact of school autonomy coupled with choice and accountability amounts to more than one-and-a-half grade-level equivalents on the PISA assessment.

Instead, we seem to be saddled with a one-size-fits-all approach, perhaps because it’s a really lucrative market with a captive audience. This has led to questions about motives and who actually controls the system (hint: it’s not our Board of Education, whether elected or appointed.)

So because one group, formed by government and financially backed by a wealthy philanthropist, decided the United States lagged behind the world academically we had to adopt new standards in the name of competing in a global marketplace. Wouldn’t it be better to let each state pick and choose the methods which work best for their children?

Much as we try to teach down to a bland sameness, drug down the mischievous tendencies of boys through medication to calm them down, and wring our hands about every manner of politically incorrect social interaction, we need to remember that all kids are different and learn certain things at their own paces, which can vary from subject to subject. The girl who may struggle with math could master five languages or the boy who can’t tell you the concepts behind a particular book may be adept at vocational skills and excel at robotics.

While other nations may have more of a top-down approach, Americans pride themselves on local control and that’s a significant reason why Common Core has had trouble being accepted. Add in the large gobs of federal money dangled as incentive for state governments to adopt Common Core and you get a distinct “us vs. them” mindset.

For the most part, parents want their children to be well-rounded, well-mannered, and well-educated. Unfortunately, there are too many who don’t care or can’t be there to assist their offspring and that leads to poorly-educated, poorly-prepared kids who drop out of schools that they cause trouble in before they leave. Common Core does nothing to address that problem because that is a cultural divide and not an educational one. In fact, throwing money at the issue can even make it worse.

Yet there is a bucket load of taxpayer dollars involved, so the advice is the same for this matter as it is for almost everything else: follow the money. It may have started out with good intentions, but it seems to me that Common Core is just another scam being perpetuated on unwitting taxpayers and fattening the coffers of well-connected groups.

Supporting the thin blue line

Update: the event has been bumped back to Saturday, January 10 due to the predicted weather.

First of all: a happy new year to all my readers, near and far.

I’m going to be curious how well this does. It’s not often I talk about events from “north of the border” but the 9-12 Delaware Patriots are holding a rally to support law enforcement:

The statewide 9-12 Delaware Patriots, a grassroots, non-partisan, Constitutionalist group has voiced concern with recent developments across the country concerning race relations and law enforcement, said Executive Director Karen Gritton.

On January 4th this community group will show their support for the Rule of Law and for those who protect and defend our Constitutional rights by organizing a peaceful rally on Route 13 just south of the Dover Mall. Citizens are encouraged to join the 9-12 Delaware Patriots and other like-minded groups to show their support for local law enforcement. Participants will assemble at 1 p.m. until 4 p.m. and signs of support are encouraged. Many will be wearing blue to show their support.

The 9-12 Delaware Patriots focuses on protecting the individual Constitutional rights of all people regardless of their differences and will use this opportunity to show their appreciation for the dedication and bravery of local law enforcement. The 9-12 Delaware Patriots encourages an open dialogue between religious leaders, community leaders, and local law enforcement toward peaceful progress and improved race relations.

Regular meetings of the 9-12 Delaware Patriots are held the first Tuesday of the month in Dover, DE and the second Thursday of each month in Millsboro, DE.

Something tells me this will indeed be a relatively peaceful protest, unlike those who disrupted the Salisbury Christmas Parade to make their point (and were arrested for their trouble.)

Yet here we are again, talking about a divide in society as I complained about last year. And this 9-12 Delaware Patriots demonstration comes at a time when police are openly being targeted for assassination after the New York incident where two police officers were murdered in cold blood by a Baltimore man, who also shot his ex-girlfriend before going to New York and eventually killing himself after gunning down the police officers. Simply put, there’s little respect for the law (or societal mores, as these incidents demonstrate) anymore in some quarters.

Yet a good deal of that lack of respect for law enforcement comes from the libertarian side, too. While the group Cop Block has gone out of its way to note they don’t support the murder of police officers, it’s painted as representative of a segment of society which undermines the authority of law enforcement officers. Naturally, there are some who abuse their privilege as officers of the law and too many times lately tragedies have occurred. But the first rule of a police officer is simply to make it home alive, and being on hair trigger alert because some in aggrieved communities talk openly about “putting wings on pigs” is probably going to lead to many more innocent lives lost.

Figuring out whose hands the blood is on is important to the families who lost loved ones, but for the rest of us it’s a matter for a legal system that is already far too overburdened. So let’s see if we can make this the year we all take a couple steps back from the brink, inhale a deep breath, and try to begin fixing the real problems: respecting authority while making authority worthwhile of respect. Both sides need a crash course.

The exodus – will it increase?

It’s funny – I was at a bit of a loss to find something to write about today when Kim and I received a letter in the mail from a friend of hers. In it was the note which said “Miss you but I love Florida!” The friend in question moved down there a year ago to take a job in her industry.

Admittedly, there is a lot to love about Florida in terms of weather. The one year I spent Christmas down there I was sitting on my parents’ porch in shorts because it was 80 degrees out. That was somewhat of an anomaly for the season, but the fact is the Sunshine State doesn’t see a whole lot of snow and cold. Florida in 2014 is sort of like southern California in 1964, as millions moved there for the perpetually sunny and nice weather as well as the chance to create opportunity for themselves.

That got me to thinking about how many people I know have left this area, many for Florida or the Carolinas. Sometimes to me it’s a wonder that people stay around here given the broad litany of complaints people make about the region. On the surface I think it has many of the same qualities which attracted me in the first place – although last winter’s snow and cold made me think I was back in Ohio again.

But there is an economic side, and that factor has influenced the decision of many who have left the state to go to areas where taxes are lower and business opportunities more plentiful. Job creation hasn’t seemed to be job one for those in charge of the state because we’ve lost jobs while other states have picked up the pace.

Over the last few days I’ve talked quite a bit about the state’s budget shortfall, particularly in terms of what it means for the governor’s race. Sadly, I would estimate there are probably 20,000 Hogan votes that have left the state during this last cycle because they couldn’t hang on any longer or found better opportunities. On the other hand, ask yourself: if you lived in another state, what would you move to Maryland to do? About the only answer I could come up with was be in government, whether for Uncle Sam or a local branch office thereof. Even those who like the region seem to be moving to Sussex County, Delaware – it grew at a faster pace than the state of Delaware as a whole over the last three years while all nine Eastern Shore counties were short of Maryland’s (slower) overall growth rate, with three counties of the nine declining in population. A lack of local good-paying jobs is a complaint we’ve heard here for years.

I think the fear among many in my circle of friends – many of whom were raised here and care deeply about the state – is that another four to eight years under the same sort of governance will seal the state’s doom, much like the economic basket case that is California. That was a state which had all sorts of advantages in terms of attracting families but has squandered many of them away through their treatment of job creators. Like Maryland, it’s a state that seems attractive on the surface but living there is another thing, from what I’m told. (I’ve never visited the state, so it’s all second-hand knowledge on this one.)

Electing Larry Hogan could be the start of a comeback, but the problem isn’t just something which can be solved by a single chief executive. Rooting out the entirety of the issue would take a generation of conservative leadership with a General Assembly re-purposed to solving problems rather than protecting turf or enacting worthless feelgood legislation. But if nothing, not even the first step, is done this time, the exodus is sure to continue and increase.

The drive to be Delaware

As you can see, the state of Maryland is once again exhibiting its generosity by not charging sales tax this week on clothing and certain other goods. (I took the picture at my local Walmart, actually to send to Kim as a reminder.)

I’ve often advocated for the reduction or elimination of the sales tax – at least for those counties on the Eastern Shore – as a way to compete with nearby Delaware, which charges no sales tax. However, unlike my recent idea of ridding ourselves of the corporate income tax, which raises about $1 billion annually, I realize it would be a lot more difficult for the state to rescind the sales tax entirely. The state expects over $4.4 billion a year from the sales tax – about 11% of revenue – so getting rid of that would be a lot less likely. The sales tax is the third-largest revenue stream for Maryland, behind the individual income tax and the 27% of our revenue we receive from Uncle Sam.

But would it be a bad thing to make the Eastern Shore a tax-free zone? Obviously I can hear from here the wailing and gnashing of teeth from those of you on the other side of the bridge, but when you think about it the chances are pretty good those from the Western Shore have to pay a toll to get over here anyway. So why not give yourselves that break?

In rough terms, the Eastern Shore is 1/10 of the state’s population, so in theory it would cost the state $440 million a year to exempt the Eastern Shore from the sales tax. I’ll assume we do a little better than that given the tourism attraction of Ocean City and several close outlet malls, so call it $500 million. Certainly the state can figure out a way to excise 1% or so from its budget, with the additional income and jobs created for people on this side of the Bay making a significant dent into that perceived loss to the state. That’s borne out in part by what Comptroller Peter Franchot told the Daily Times – lost revenue from exempt items is partially made up by extra non-exempt items purchased. By that same token, the sales tax loss would come back in the form of extra gasoline tax collected, more income tax from increased employment, and other revenue from enhanced economic activity.

We’ve tried to exempt ourselves from the sales tax increases before, but all those General Assembly members from the other side of the Bay want us to pay our fair share – never mind we are already taxed, regulated, and dictated to death over here. We carved out certain parts of the state to pay a “rain tax” so why not go the other way and allow some counties the economic relief?

When Larry Hogan is trying to figure out some of the taxes he can cut to assist hard-working Marylanders, why can’t he do those of us who have to compete with Delaware a favor and make this part of the state a sales tax-free zone? You just might bring some business back from Delaware as a bonus.

Crunching some numbers

In terms of determining just how massive the potential ticking time bombs of state debt and dependence on federal government subsidy are, there are few groups as useful as State Budget Solutions. The advocacy group recently released two studies to which those who run for office in Maryland should be paying particular attention.

First of all, SBS annually calculates the total amount of state debt each state labors under as it tries to get the financial house in order. While Maryland’s debt is nowhere near as unmanageable as that of other states like California – which is nearly $800 billion in the long-term hole – their $94.2 billion unfunded liability is nothing to sneeze at. Of that $94 billion, SBS determined that $68.3 billion was unfunded public pension liabilities, $16.5 billion was outstanding bond debt, and $9.4 billion in what they call OPEB liabilities, described as “mainly retiree health care.” Considering our latest budget proposal for FY2015 is just a shade under $40 billion, the debt we are carrying could theoretically take our entire state budget for the next 29 months or so.

SBS slices and dices up these numbers for every state, and in comparison to some others Maryland doesn’t look that bad – while their overall debt is 14th in the country, it’s only 20th per capita. We rank just ahead of Virginia on the overall debt, but Virginia’s per capita debt is just 41st. On the other hand, while Delaware’s overall debt is 43rd by virtue of its small size, their per capita debt ranks ahead of Maryland as Delaware is 17th.

The second study comes at a time when federal influence in state budgets is at an all-time high. The good people at SBS determined that the average state received 31.6% of its budget in the form of transfers from Uncle Sam. Surprisingly, Maryland is just a little below that mean as they only get 30.25% of their money directly from Washington, D.C. Obviously this doesn’t tell the whole story because so many of Maryland’s workers are employed by the federal government so they get the transfer from a middleman who might be a lowly clerical employee or a high-ranking Cabinet officer – as long as they reside in Maryland, the state derives some of its revenue indirectly from the federal government that way.

All this is made more interesting by the fact that Virginia received the third-lowest share from the federal government, with just 23.53% of state funds being federally-supplied. Delaware was also very low in the rankings, getting only 24.46% from the federal government. (The highest was Mississippi at 45.35%, lowest Alaska at 19.98%.)

But imagine the nation trimming its sails to Alaska’s level: we would save about $51 billion annually.

Of course, the idea of block-granting various functions to the states using federal money has strong appeal to conservatives who believe the states could best determine how to spend their money. All that is true, but I never cared for the idea of government as pass-through conduit. To me it would be better just to have the state do all the work.

I’m hoping the four gubernatorial candidates on our side are familiar with this group’s work because they could all stand to benefit from the insight.

Yes, it’s still “drill, baby, drill”

I ran across an interesting piece of polling thanks to the Energy Tomorrow blog. Their American Petroleum Institute parent group commissioned a Harris Poll of likely voters in four states – Florida, South Carolina, North Carolina, and Virginia – and asked them a series of questions to gauge their support for offshore drilling. As I would expect, the topline numbers showing support for the practice are quite solid, ranging from 64% in Florida to 77% in South Carolina. (Virginia weighed in at 67% and North Carolina at 65%, so it worked out to roughly 2/3 overall.)

But before you assume this is going to be another shill for offshore drilling (which I indeed support) I wanted to point out a glaring flaw in the poll methodology. For example, read through the Virginia polling data and see if you can figure out what’s missing. I’ll give you a second.

The first piece of the puzzle I would have liked to see would be a breakdown of support in coastal areas vs. inland. Using Virginia as an example, it would be nice to know how the question did in the 757 area code, which covers the Norfolk area and the Eastern Shore of Virginia. I would bet that support in that particular area was closer to 50-50, if not slightly negative.

But the key omission was the question: “Would you support offshore drilling off the coastline of your state?” The API’s point is that much of our coastline is off-limits to drilling because of shortsighted policies which ignore the overall safety record of the industry as well as the “peak oil” hysteria helped along by those same environmentalists who wouldn’t mind putting aquatic birds at risk with offshore wind turbines. But their point would have been buttressed even better if they had a clear majority of Virginians (or any other affected state) indicate that drilling off their coastline was an acceptable practice.

While these particular states were probably selected due to the length of their coastline, I wonder how Maryland and Delaware would feel with the same question posed to them. Granted, between the two there’s just 59 miles of Atlantic coastline but they indeed have oceanfront within both states so they could be hosting oil exploration and extraction in their waters someday. My guess is that they would still fall in the 60 percent range as far as drilling support, but only run 30-35% for drilling off their coastline. (A large part of that might be because so much of it is state- or federally-controlled parkland.)

Certainly it’s reassuring that offshore drilling still enjoys support after all its bad press over the last half-decade, but I’m not convinced the impetus is there yet for much motion on the issue. Fortunately (or unfortunately), the question is pretty much moot until 2017 at the earliest so we have time to create the necessary shift in public perception.

Maryland treads water in two key reports

Crossposted from Watchdog Wire – Maryland.

In a nation where each state can (somewhat) determine its own destiny through the laws and regulations they adopt as well as the promises made to its citizens, two reports that came out this week determined the Free State needs a lot of improvement in both present and future policy.

The 2014 edition of the Tax Foundation’s State Business Climate Tax Index showed Maryland in a familiar position: lagging in the bottom ten of the country alongside a roster of states which mainly share the similarity of Democratic-controlled governments. For the second straight year, Maryland ranked 41st overall, with its lone bright spot an 8th-place rank in the sales tax category. While Maryland has a 6 percent sales tax rate, higher than several surrounding states, the complex calculations performed by the Tax Foundation give our state a better score. Ironically, applying the sales tax to gasoline, which the state began collecting on July 1st, may have proven politically unpopular but bolstered the state’s ranking in the eyes of the Tax Foundation.

As the report points out, however, a state can assist itself practically overnight. Despite its 44th place ranking, upcoming changes in North Carolina promise to vault the state into the top twenty in coming years:

While not reflected in this year’s edition, a great testament to the Index’s value is its use as a success metric for comprehensive reforms passed this year in North Carolina. While the state remains ranked 44th for this edition, it will move to as high as 17th as these reforms take effect in coming years.

One can speculate, then, that if a governor came to office willing to decrease the state’s corporate income tax – as many candidates promised to do at a recent manufacturing summit – and could make other key changes to the system, Maryland could place itself into a position at least competitive to its neighbors. While Delaware remains a top contender at #13, other surrounding states are in more pedestrian positions: West Virginia ranks 23rd, Pennsylvania 24th, and Virginia – somewhat surprisingly, given Martin O’Malley’s grudge against all things Bob McDonnell – is 26th.

Maryland may need to look into changing its anti-business policies soon, since another study from State Budget Solutions regarding unfunded public employee pension liabilities found that Maryland is staring at over $110 billion in promises made. This report, entitled “Promises Made, Promises Broken – The Betrayal of Pensioners and Taxpayers”, found that just 34 percent of the various pension programs (in Maryland’s case, these are the State Pool and Municipal Pool of the State Retirement and Pension System along with the Transit Authority Pension Plan) are currently funded. In actual dollars, the unfunded portion is just over $73 billion.

However, when compared to the rest of the country, Maryland fares a little more toward the average. While their 34 percent funding ratio ranks in a tie for 30th among the states, the percentage of GDP represented is 19th overall. Despite itself, Maryland has the potential to grow out of the problem if corrective measures can be taken. Indeed, $73 billion is certainly a lot of money – by comparison, the entire FY2014 state budget weighs in at just over $37 billion – but consider that Ohio, with roughly twice Maryland’s population, has a hole of $287 billion to fill. (Ohio’s funding ratio, however, is just about equal to Maryland’s 34 percent figure.)

Across the country, the amount promised to pensioners by states is staggering: over $6.7 trillion is pledged to retirees, with only $2.6 trillion in the bank to cover them. But it’s a small ticking time bomb of debt when added to the arsenal of unfunded federal liabilities that may be over $100 trillion.

It will take a lot of tax reform and GDP growth to make good on those demands.

George vs. Perry

Subtitled, Don’t Mess With Move To Texas.

Speaking in a radio commercial aimed at Maryland businesses, Texas Governor Rick Perry blasted the state’s business climate and invited commercial entities to consider his state, an effort interpreted as a slap at Martin O’Malley and his 2016 hopes.

In response, Republican gubernatorial candidate Ron George exhorted Free Staters to fight, not switch:

Delegate Ron George, Republican candidate for Governor, has a simple message for Maryland voters. “Don’t Move, Vote.”

Delegate George is asking Marylanders to reject Texas Gov. Rick Perry’s advertisement seeking to lure Maryland businesses to the Lone Star State.

“This is a response to the failed business policies of the O’Malley/Brown administration that have led to Maryland losing over 93,000 private sector jobs from 2007 to 2011,” George remarked. “While private sector jobs continue to disappear under O’Malley, we can still turn our state around.”

Delegate George will be releasing the results of an internal campaign investigation Thursday morning to illustrate the statewide impact of the O’Malley/Brown administration’s disastrous tax and budget policies. This investigation will highlight the huge disparities in job growth and education both within Maryland and compared to the rest of the nation.

Today is Friday; in reality I’m writing this late Thursday evening. Unless Ron is talking about next week, I haven’t seen this internal investigation nor has he mentioned it on his social media.

But aside from that unforced error, let’s examine both what George is alluding to and what Perry’s real aim is.

It’s no secret that certain parts of the state have basically full employment while others often flirt with double-digit figures. The closer you get to Washington, D.C. the more likely it is you have a job, because right now – even with the dreaded sequestration – the federal government is fat and happy. The nation’s capital is almost a perfect black hole of tax dollars, but just enough escapes the vortex to prop up the regional economy around the Washington/Annapolis area. So they have no incentive to change and don’t mind paying a little more to insure their overall well-being, coerced from taxpayers around the country.

On the other hand, once you get outside commuting distance to the Beltway corridor you’ll find the rest of us grasping at economic straws. I’m thinking that Ron’s campaign team has found a way to harvest the data which shows that we are far from being one Maryland, and I’ll be interested to see if I’m correct.

As for the Perry radio spot: in finding that video (which was also posted in the Mark Newgent Watchdog Wire post I linked above) I found that the originator of the video’s YouTube Channel (apparently a woman named Jennifer Beale, listed on LinkedIn as the communications manager for the state’s economic development and tourism office) has also done videos tailored to other states, specifically Missouri and New York, along with a more generic piece featuring onetime Dallas Cowboys running back Emmitt Smith. In that respect, what Perry and his state are doing isn’t a whole lot different than the commercials I see touting the state of New York’s new attitude toward business or the tourism ads they run. The state of Michigan also seems to be a heavy local advertiser in that respect (“Pure Michigan.”) Even Maryland does the same thing for their job creators, but only with certain selected environmentally-correct businesses.

Still, the idea that Ron George is pleading with the business community to give him time to get elected is an interesting one. Obviously he has some “skin in the game” as the owner of a jewelry business; moreover, getting a business to pull up stakes and relocate to Texas is no small feat, regardless of the size. On the other hand, individuals can easily move – and they have, many to Virginia, Delaware, the Carolinas, or Florida; in fact, according to the group Change Maryland, Virginia and North Carolina were the destinations of choice for many who have already left. Texas wasn’t high on the list, but it was good enough for a recently-departed state senator.

Until this state straightens out its priorities, though, don’t be surprised if other successful governors come a-callin’.

The tax-free year?

As an opponent is wont to do, yesterday David Craig released a criticism of the state’s tax-free week program:

Anything that gives Marylanders some tax relief is better than nothing, and it’s a recognition from a stubborn political monopoly about the need to spur the economy, but the need for a so-called ‘tax free week’ raises a broader issue. Why is it just for a week, and why do politicians decide what items qualify?

State government has collected nearly $4 billion since the enactment of a 20% sales tax increase in 2007. That is a lot of back to school clothes, and handing out some extra pocket change for shoes, shirts and pants is a sorry pittance considering this regressive, harmful tax hits working people the hardest.

Considering Craig comes from a county that’s a half-hour drive from a locality which has “tax-free forseeable perpetuity” – and isn’t afraid to trumpet that fact in every advertisement bargain-hungry Marylanders see – he raises the right question. But what is the answer?

According to the state’s latest budget summary, the sales tax raises $4.3 billion a year. So even if it were a “true” tax-free week, we would only lose about $83 million in total. Given the vast limitations on what can be purchased, I would figure the state is “sacrificing” no more than $10 million to tell the voters they care. (On a side note, the sales tax is only 12% of revenue but Uncle Sam is 27 percent, supplying $9.8 billion to prop up Maryland.)

So to me Craig’s question is valid, but I would go further and make the case that the state could do without the sales tax and be just fine. It’s 1/8 of the revenue, but consider the same budget document I refer to notes the difference between FY2012 and FY2014 spending is $3.47 billion. Just cutting the budget to FY2012 levels obviates the need for 3/4 of the sales tax revenue and I’d be pretty confident increased economic activity would cover the rest. Delaware may piss and moan about lost business, but that would be their problem. They still have an easier go of adjusting their casinos to market conditions thanks to our shortsightedness, so there’s always that.

Looking at that Maryland state budget, it’s also worth mentioning that eliminating the corporate income tax entirely would “cost” the state $1.091 billion – an amount almost exactly equal to the difference between the FY2013 and FY 2014 budgets. So maybe the sales tax stays for the interim – and remember, that $4.3 billion will likely go up somewhat because gasoline is now subject to a 1% sales tax, or about 3.5 cents per gallon – but we eliminate the corporate income tax and level-fund the budget. There are all kinds of ways to make the numbers work, with the key idea being maximizing the number of dollars in Marylanders’ wallets, not Annapolis coffers.

Of course, we know the media and Democrats (but I repeat myself) would scream bloody murder; to them I say: we tried it your way, and it’s becoming clear we have an utter failure on our hands. It’s time for the adults to take over again.

A chance to speak out

August is the time when official Washington shuts down, the tourists take over, and those who represent us return to their respective districts. Many use the opportunity to host townhall meetings in an effort to hear from and interact with his or her constituents.

But I’m fairly willing to bet that, aside from the possible exception of Andy Harris, you won’t hear a much more conservative voice conducting a townhall meeting than former Senator Jim DeMint, and you won’t have to travel to South Carolina or the fetid swamp of Washington, D.C. to attend. As part of Heritage Action and their proactive fight against Obamacare, the former Senator will be appearing in Joe Biden’s old stomping grounds of Wilmington, Delaware.

Seeing that the Eastern Shore isn’t all that far from Wilmington, this may be a good time investment for those of us interested in how some activists are combating Obamacare.

I suspect the number of former Senators will outnumber the number of current Delaware Senators at the meeting. In fact, it wouldn’t surprise me if Tom Carper, Chris Coons, and Rep. John Carney counter-program with their own meetings that night, just to try and divide and conquer the Delaware opposition, such as the 9/12 Delaware Patriots.

Too bad there’s a lot of First State residents who agree with DeMint and Heritage Action.