Another tribute to greed and power

I bet you thought I was going to write about Donald Trump – but not this time.

Instead, I’m looking to point something out. You know those highway projects we never could seem to get done around here? Things like replacing the old Dover Bridge between Talbot and Caroline counties, widening the remaining seven miles or so of U.S. 113 that is still a two-lane road, or repairing the bridges that were first built with the U.S. 13 bypass decades ago? I wasn’t crazy about increasing the gasoline tax (and still believe the sales tax component should be eliminated, as well as the automatic indexing to inflation) but at least this administration is using that money as it was intended, to improve and maintain roads and bridges. (With the exception of the Purple Line, of course.)

Millions of dollars are being spread across Maryland to fix and enhance the transportation needs of residents who don’t have a handy bus line and don’t live a stone’s throw from the Metro stop. So leave it to those who are close to bus lines and Metro stops to make a bid to game the system their way with this legislative proposal currently in committee.

In a nutshell, the Maryland Open Transportation Investment Decision Act of 2016 (MOTIDA) creates a scoring system that critics charge gives too much weight to projects in urban areas with mass transit. The point scale has a total of 800 points, and it’s subdivided into eight parts: safety and security, system preservation, quality of service, environmental stewardship, community vitality, economic prosperity, equitable access to transportation, and cost effectiveness/return on investment. The latter two are new; the first six are already addressed to some degree with existing transportation plans.

MOTIDA further breaks this point scale down, and what I will do is list the items given in order of their point rank. To me it’s very telling about the priorities of the sponsors, who seem to have gulped down the so-called “smart growth” Kool-Aid:

50 points apiece:

  • reduction in fatalities among all affected modes of transportation
  • expected change in cumulative job accessibility (based on a 45-minute commute – 60 minutes for public transit)
  • enhancements of access to “critical intermodal locations”
  • enhancements vs. per capita costs

40 points apiece:

  • increases lifespan of affected facility
  • advances state environmental goals
  • increases cumulative job accessibility
  • increases job accessibility for the “disadvantaged”

30 points apiece:

  • increases functionality of facility
  • renders the facility “more resilient”
  • promotes multiple transportation choices
  • revitalizes and enhances low-income communities
  • promotes economic development in low-income communities
  • enhancements of access to “critical intermodal locations” – this is counted twice, for a total of 80 points.
  • limit or reduce emissions
  • avoids impact on state resources
  • furthers state/local economic development strategies

25 points apiece:

  • compliance with “complete streets” policies
  • reduce vehicle miles
  • increase usage of walking, biking, or transit
  • enhances existing community assets
  • furthers community and state plans for revitalization
  • supports compact development and reduces sprawl

20 points:

  • cumulative job accessibility for the “disadvantaged” – similar to a 40-point bullet above, so call this 60 points

Then there’s the kicker: not only is the points system biased toward mass transit projects, but then there’s a multiplier involved where scores are increased by a factor of taking the population of the affected area and dividing it by the state’s population at large. Naturally most of the Montgomery County delegation likes this because it adds up to 138 “extra” points on their score while Wicomico County could only get an additional 13. (Poor Kent County can only pick up 3.) Never mind we’re helping MoCo to build their boondoggle of a Purple Line, although to Hogan’s credit he is insisting the county help out more.

Because Hogan is very popular among the voters – in part because he’s working for the whole state, and not just the handful of Democratic strongholds which propelled his predecessor to victory – the Democrats in the General Assembly are doing their level best to tie Hogan’s hands. But the question is whether this bill can get out of committee, and it’s likely the legislators who represent the areas outside the urban cores are working hard to kill this bill. It’s the individual counties and legislators who know what the priorities are in their areas, and considering the last administration balanced its budgets on the backs of those Maryland drivers who fill up their gas tanks it’s time to do that maintenance that’s long been promised.

This bill needs to find a desk drawer someplace and stay there until May.

Update: As is often the case, the bills that need to die live on. According to Delegate Christopher Adams (and verified moments ago) the amended bill passed committee on a party-line 15-8 vote.

About that TEA Party…

My “10 from 10” post this morning regarding the 9/12 Rally back in 2009 got me to pondering where the movement has gone in the intervening years.

If you’ve been a reader around here for a long time, you may recall that I covered a significant number of TEA Party-related groups that sprung up in the local area over the next couple years. Not only did we have the TEA Parties themselves that went on in both 2009 and 2010, but also groups like Americans for Prosperity and the Wicomico Society of Patriots. They went on for a couple of years but essentially died off from a lack of interest. (On the other hand, we still have the Worcester County TEA Party and 9-12 Delaware Patriots.)

Having been involved to a limited extent with the Wicomico groups, I can tell you that some of the players who remain active have gone “establishment” to the extent they remain active in the local Republican Party. Three of those most heavily involved have served on the Central Committee – unfortunately, that’s the only election where some of the TEA Party leaders have found success. While many in the area take TEA Party values to heart, they seem to vote for the names they know.

This erosion of the brand is also reflected on a national level. I used to write quite a bit about the TEA Party Patriots and expressed hope that the TEA Party Express would bring some of its star power to the region. In the last few years, though, the national movement has suffered from infighting as well as a concerted media effort to impugn the brand. I don’t hear nearly as much from the group these days, as their function has by and large been superseded by SuperPACs that fight for specific candidates or causes.

If you consider the high point of the TEA Party as the 2010 election, where the political landscape dramatically shifted in a more conservative direction in the wake of two consecutive leftward shifts as well as the adoption of an unpopular Obamacare entitlement program, then the nadir came two years later with Barack Obama’s re-election. A conspiracy theorist could point out that the 2010 election results put the Obama campaign on high alert, meaning they pulled out all the stops to ensure re-election with a little help from a compliant media. But one could counter by noting the movement wasn’t strong enough to topple frontrunner Mitt Romney and they shot themselves in the foot by staying home on Election Day. (As it was, though, Romney did get more votes than John McCain did in 2008.)

So while you can credit TEA Party principles for winning the day in 2014, the actual movement itself seems to be receding to a low tide. Since TEA is an acronym for “taxed enough already” it’s been pointed out by the Left that taxes really aren’t that bad, at least in comparison to the rates in place for administrations from Hoover to Carter. (This is a neat little chart to see the differences.) Ronald Reagan dropped rates twice: from 70% to 50% in 1982 and eventually down to 28% with the Tax Reform Act of 1986. It had been over 50 years since the top rate was less than 50%.

But that only considers income tax. Certainly as a 100-year body of work our current rates are on the low side, but back then we didn’t have the maddening plethora of taxes and fees we do now. Some are consumption-based taxes like sales tax on goods purchased or per gallon of gasoline, while others are considered some sort of “sin” tax like additional levies on cigarettes or alcohol, a combination that Marylanders endure to a larger extent than several of their neighbors. Even speed cameras could be regarded as a sort of “sin” tax, since supposedly the only ones who pay it are the ones who are speeding well above the posted limit. (Try as they might to convince us that it’s about safety, we all know they need the Benjamins. Why else would they have to install cameras in more and more dubious “school zones”?) Nor does that consider property tax, which tends to be the preferred vehicle for raising money for the public schools. In most states where districts have taxing authority, it’s not uncommon to see a school district seek three to four additional property tax levies a decade as they strive to raise funds for buildings and operations. (Maryland is different because counties pay for their portion of school funding from their general funds, so there are no ballot issues to deal with property taxes.) To make a long story short, we still consider ourselves taxed enough already.

As far as a formal movement goes, though, for the most part we are back to where we were around 2008. There is a lot of frustration with the direction of both parties, but this time rather than a movement without a leader people are going the route of a looking for a leader for what they consider their movement – hence, political outsiders Ben Carson and Donald Trump have been ahead of the Republican field for most of this campaign. (As further proof, the other side is still believed to be behind Hillary Clinton.) Carson is cast as the Godly, principled man who would quietly and reverently lead our nation in need of healing, while Trump comes across as the brash general who would kick butt and take names, restoring America to its top of the heap status.

Conversely, those who are conservative but came up through the standard political channels have fallen out of favor this cycle. In any other cycle, we would look at governors like Rick Perry, Scott Walker, or Bobby Jindal as frontrunners – instead, all three are out of the race. In terms of political resumes, the front-runners on both sides have even less to go on than Barack Obama did, and that’s saying something.

So it’s hard to tell where the TEA Party trail runs cold. I think a number of them have coalesced behind Donald Trump despite the fact The Donald is not a movement conservative. One recent rumor is that a Trump/Cruz ticket is in the works, which would perhaps appease the true believers. Trump’s success has belied the predictions of TEA Party leaders that he will be a flash in the pan.

But it appears the days of rallies like 9/12 are behind us. Such a pity.

A ‘loophole’ is only bad if the government thinks it’s being stiffed

For what is being described as “financial stakes (that) are small, (yielding) just $3 million to $4 million annually.” the Washington Post sure has its collective panties in a wad over the prospect Larry Hogan may veto the “travel tax.”

When I did my last look at the idea, I didn’t really know how much the difference was to the state. Now that I know it’s only a rounding error in a $40 billion budget. the prospect of Democrats (and, sadly, a handful of Republicans) trying to fill in this supposed budget hole looks to me like a “gotcha” moment set up by General Assembly Democrats who will turn around and bash Hogan for enacting the “travel tax” in four years – after all, if they can perpetrate the fiction that school funding was cut this year (never mind the increase of over $100 million) they can make up anything to tell unsuspecting voters that the sky is falling.

But it’s really funny to me that the Post considers this a “travel agent loophole” and “undeserved windfall” when it’s actually a legal transaction. Even the Post admits it:

Rather than collect sales taxes from the agencies based on the actual prices they charge customers for hotel rooms, most states have accepted a reduced payment based on bargain room prices the agencies manage to negotiate with hotels.

That’s as it should be, so it sounds to me like General Assembly Democrats have some sour grapes. The transaction in question is at a reduced rate – why should the state collect the sales tax on the full rack rate if the place of lodging offers the rooms first to a reseller at a lower price? There is no gun being placed at the proverbial head of the hotel or motel to sell the rooms to an online travel agency; they can go it alone and try to market themselves without a middleman. (Hence, loyalty programs and other perks provided by hotels who prefer to keep bookings in-house.)

But it’s obvious that many hotel chains prefer the assurance of knowing they would get something – a “something” that is about 60 to 70 percent of full rate – for a room which will be paid for many times over before the paint dries on the renovation or new construction based on future reservations already on the books. Chances are your room rate is really paying for the employees who check you in and take care of the rooms moreso than the bricks, mortar, and furnishings in the facility, and that factor can be adjusted easily by management. (To use a local and somewhat extreme example, just drive through Ocean City in January and note how many hotels and motels shut down completely for the winter. No one is there to pay for the bricks and mortar, so no employees save a caretaker and maintenance are needed.) So even getting a reduced rate from a travel agency which reserves the rooms just in case isn’t a bad thing. It’s just a cause for complaint by a state which hasn’t completely given up the attitude that “what’s mine is mine, and what’s yours is mine, too.”

Conversely, to use another traveler analogy, you won’t hear the Post (or any of their liberal allies) tut-tutting if gasoline prices go up and the state collects more sales tax as a result – no one there would consider that an “undeserved windfall” for the state. I’ll explain.

Should the per-gallon tab for gasoline go up another 50 cents (as it has over the course of the last few months, from about $2 locally to north of $2.50) the state will make up the $4 million “lost” by vetoing the “travel tax” in no time. A 50-cent per gallon increase, as we have already had, nets yet an extra half-penny to the state per gallon come July as an additional 1% gasoline sales tax increase takes effect then. Just based on that 50-cent gas price increase alone coupled with the 1% increase (to 3%) – hence, the half-penny – and assuming the state consumes 7 million gallons per day (probably still in the ballpark despite these old statistics), they will make an “extra” $4 million from what they could have anticipated receiving when 2015 dawned in less than two weeks.

Yet the Post will not throw a pity party for motorists – I guarantee it. Ignore their whining and leave the hotel room rate system be.

Taking less of a toll

It wasn’t completely unexpected. but just in time for the height of tourist season travelers around the state will retain a little extra in their pockets when they cross one of Maryland’s toll roads or bridges, including the Bay Bridge. Yesterday Governor Hogan announced a toll reduction he claimed would save Marylanders $270 million over the next five years. For those coming to the Eastern Shore, it will save them $2 on the trip – not much, but the symbolism is strong.

Commuters, though, will get more of a break as their tolls drop from $2.10 to $1.40 per trip. Factor in the elimination of the EZPass service charge – which cost Maryland drivers $1.50 a month and probably drove some of that business to other states which don’t charge a service fee – and you’re closing in on a $30 per month break. That’s the same as getting a 15-cent an hour raise.

Of course the Maryland Democratic Party found fault with this:

Today, Larry Hogan announced that tolls at the Bay Bridge would go down.

Meanwhile, the cost of in-state tuition at State Universities went up 7%.

Despite his campaign promises, Marylanders are paying more under Larry Hogan.

Since I don’t go to an in-state university but occasionally use the Bay Bridge, this is yet another desperate attempt at spin by Democrats. It’s also worth pointing out that July 1 will also see a 2.5 cent per gallon increase in the gasoline tax – an increase Democrats failed to stop when they had the chance this term. This will decrease the benefit for commuters who use the Bay Bridge and other toll facilities and take more from the pockets of the rest of us, to the tune of a dollar or two per month.

The complaint I’m waiting for from the mouths of Democrats is the one where they will begin to complain about the prospect of neglecting maintenance on these toll roads and spans. But Hogan’s Secretary of Transportation was confident the money will be there:

“I have thoroughly reviewed the toll-reduction plan, and I’m confident the MDTA will continue to maintain its sound financial footing and commitment to safety and quality services,” said MDTA Chairman and Transportation Secretary Pete K. Rahn. “A lot of hard work went into the development of this proposal, and I’d like to thank MDTA board members for their careful analysis and approval of this toll-reduction plan.”

Another gripe sure to come from our tax-and-spend friends on the left is that the O’Malley fare increases for mass transit weren’t cut as well – I can see the carping by representatives in areas dependent on mass transit. That, however, is a money pit as farebox revenue comes nowhere close to meeting the expenses of those services.

This all leaves one other transportation shoe to drop, and advocates for the Purple Line are pressing for Hogan to keep the rail line going. However, if Hogan pulls the plug on that and the Red Line in Baltimore most of the justification for the O’Malley gas tax and farebox increases is gone, or the funding could be used for more important projects like some I’ve detailed before, such as completing the intended route of I-97 with Virginia’s help or improving the U.S. 13 corridor through Delaware with their assistance.

So I consider this news to be a pleasant surprise in a situation where input from the General Assembly majority was not needed. When the chips are down, though, it seems the Republicans are the only ones we can count on to truly help the working family.

Local Democrats make big claims to receive handouts

Fresh off a shellacking where their statewide standard-bearer had his doors blown off locally by 30 points and only two of their eleven state race contenders won – one by just 30 votes locally and the other in an ostensibly non-partisan race – the Wicomico County Democratic Party finds itself in somewhat desperate financial straits. So in order to raise a little money, the party is making some claims which have to be seen to be believed – and I’m going to show you.

Let’s go through this a little bit at a time, shall we?

Maryland voters decided to “Change Maryland” last November, with the election of Larry Hogan as Governor. However, with only a month in office, Hogan is already proving himself to be just another Tea party Republican.

Perhaps the idea was to indeed elect a TEA Party Republican, rather than four more years of the O’Malley/Brown debacle? We certainly were due for a change.

And as far as the TEA Party goes, it’s worth recalling that TEA is actually an acronym that stands for “Taxed Enough Already.” We heard for three-plus years about all the tax increases put in place by the O’Malley/Brown administration so people naturally decided enough was enough.

But they continue:

Here are just a few of his first actions:

  • Slashing education funding – $1.9 Million from Wicomico County alone
  • Recklessly raiding over $2.5 Billion from our Transportation funding
  • Eliminating programs that help to keep the Bay clean

Apparently I’m supposed to take their word about these so-called cuts, since there’s no context or backup information provided.

I will not profess to be an expert on the state budget; however, I did look under public education and on all three line items I found for Wicomico County:

  • “compensatory education funds to local school systems based on Free and Reduced Priced Meal Eligibility counts” goes from $37,322,878 actual in 2014 to $38,615,082 for 2015 estimated – an increase of $1,292,204.
  • “additional support for students with limited English proficiency” goes from $3,092,879 actual in 2014 to $3,407,287 for 2015 estimated – an increase of $314,408.
  • the automatic supplement to counties “which have less than 80 percent of the statewide average wealth per pupil” goes from $3,670,117 actual in 2014 to $4,579,323 for 2015 estimated – an increase of $909,206.

By my count that’s an increase of $2,515,818. It appears the Hogan administration is well taking care of those things it needs to, prioritizing at a time when the state had to address a $750 million structural deficit.

I still haven’t figured out where the $2.5 billion “raid” to transportation funding is – the repeal of the automatic gas tax increase would save consumers nearly $1.56 billion over the next five fiscal years. We know Democrats own tax increases, so perhaps they bemoan that “lost” revenue to the state.

As for the elimination of programs for the Bay, I’d like to know precisely what they are referring to. They’re getting the PMT regulations so they should be happy.

Anyway, let’s continue.

And the story is the same in Wicomico County where Larry Hogan’s Tea Party partner, Bob Culver, is becoming the anti-education County Executive by refusing to fund a new building to replace the clearly antiquated West Salisbury Elementary School and scraping (sic) completion of the Bennett High School athletic complex.

Obviously the WCDCC has little concept of debt service. It would be one thing if the county could reach into its pocket and fish out $40 million for a new elementary school but the idea of pulling out the county’s credit card to put yet another multi-million dollar expenditure on it doesn’t appeal to the new County Executive. Just like they did in electing Larry Hogan, county voters wanted a change in direction from the former administration.

Instead, the county will improve the school in the areas where the need is greatest, with the list compiled through a consultation with experts and school officials. It may not be the “new” West Salisbury Elementary, but it will be an improved one. Perhaps that approach would have saved the county a lot of money with the former Bennett High School.

As for the Bennett Middle situation, completion of the athletic fields would not be “scrapped” (as the letter should have said) but simply placed in a different area of the site. The former Bennett Middle would be repurposed for office space, allowing the opportunity for the county to consolidate some of its operations. The change still needs the approval of County Council.

Picking back up, with the sad trumpet appeal for funding:

This isn’t the change I voted for in November, and I know you didn’t vote for this, either. We need your help to fight back. We cannot elect more Democrats in 2018 without your support over the next four years. Every dollar you donate to the Wicomico Democratic Central Committee goes to funding our efforts to recruit and help good local candidates.

Most importantly, your donation goes to helping us communicate our party’s values to the voters… personal responsibility, educating all of our children, cleaning up the Bay, protecting our agricultural community, equality for ALL, supporting local businesses, and protecting the Middle Class… and we need your support!

Actually, I did vote for some of this change. Unfortunately, I couldn’t change enough members of the General Assembly to make the total difference that’s needed – although my personal representation in the House of Delegates got a whole lot better.

But if the WCDCC wants to elect more Democrats in 2018, those Democrats can’t be in the tax-and-spend, socially liberal mode. Not in this county.

And after reading that Democrat screed, I realized it’s really conservatives who advocate for all those things the Democrats claim to stand for. That’s not to say a Democrat can’t be conservative but they are fewer and further between, even in this area.

So how would I, as a conservative, respond to their letter? I’ll go through what they claim to represent.

We believe that personal responsibility begins with keeping more of the money you earn by taking advantage of the opportunities a capitalist system creates.

We believe that money should follow the child so you can choose the best educational opportunity for your children, whether in public or private school or through a homeschooling regimen.

We believe in cleaning up the Bay through a balanced approach, beginning by addressing a proven detriment in Conowingo Dam and not punishing farmers who have been trying their best to address the issue.

We believe in protecting the agricultural community by allowing farmers the option to do as they wish with their land, not arbitrarily shutting off development options to them.

We believe in equality for all, not discriminating for or against anyone. But we also know our nation was founded on Judeo-Christian values which have stood the test of time.

We support local businesses by allowing them more freedom to do what’s productive and less time to have to deal with governmental edict and regulation. Small businesses are the backbone of our economy, and we want to encourage them to grow and prosper for the community’s sake, not as a cash cow.

We want to protect and grow the middle class – not at the expense of the upper classes, but by allowing the conditions where those on lower rungs of the economic ladder can climb their way up through hard work and ingenuity.

The jury is still out on this, but I think all the Democrats have is rhetoric. We will have to keep an eye on the GOP to make sure they deliver the results their philosophy should yield.

So if you are a local Democrat who received this letter, there’s only one thing to do: go to the Board of Elections and request the change of registration form to become a Republican. It may be your best chance to influence election results in the future.

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.

The state of our state: an ambitious agenda

Now that the shoe is on the other foot for the first time in eight years, thousands were interested in how newly-inaugurated Governor Larry Hogan assessed the state of our state. And it didn’t take long for him to assess that:

But while our assets are many, and our people are strong and hopeful, their state is simply not as strong as it could be – or as it should be.

Yet in reading through the speech, I didn’t see it as a negative in any way. Instead, Hogan proposed a number of solutions which, instead of spending money or growing government, generally worked in the opposite direction. Breaking the laundry list into eleven parts, it’s easy to summarize the Hogan plan for year one:

  • Analyzing and enacting portions of the upcoming Augustine Commission report on business competitiveness. The idea here is to make Maryland more business-friendly and hopefully wean the state’s economy off a long-term dependence on federal government jobs.
  • Restructure government to be more efficient and effective, using the new faces placed at many of the Cabinet-level departments.
  • Legislation repealing the “rain tax.” This may get some serious opposition from the environmentalist groups who believe this is a fair way to pay for Bay restoration efforts, even though the fees were set by county and only affected ten of 24 county-level jurisdictions.
  • Legislation proposed to exempt military, police, fire, and other first responder pensions from state income taxes. Eventually Hogan would like this to cover all retirement income. It’s an effort to improve Maryland’s dismal standing and reputation as a place not to retire.
  • Legislation to exempt the first $10,000 of personal property from taxation, a move Hogan claims would eliminate the tax for half of Maryland businesses.
  • Legislation to repeal the automatic gasoline tax increases baked into the Transportation Infrastructure Investment Act of 2013.
  • Restoring the local share of Highway User Revenues, a sore spot among the state’s rural counties in particular.
  • On education, strengthening the charter school laws. More controversial will be the oft-tried BOAST tax credit, which gives a tax credit to those who contribute to parochial or private schools. Hogan noted previous iterations have passed the Senate only to fail in the House.
  • Hogan has already shelved the Phosphorus Management Tool, and called for farmers and environmentalists to work on a better, more equitable solution. He also promised to address the “long-ignored impact of upstream polluters,” including the problems at Conowingo Dam.
  • An executive order to deal with the heroin epidemic. Lieutenant Governor Boyd Rutherford has been tasked with this issue.
  • Reinstating the Fair Campaign Financing Act fund by bringing back the checkoff on the tax returns, and also establishing a commission to examine the state’s redistricting process via executive order. If I have the time, I’d love to serve on that one because we really do need to reform the system.

Certainly it’s not the strongly conservative agenda some may prefer, but I would consider it a good first step. Much of the reform will have to go through the General Assembly, and perhaps the strategy is that of picking off just enough Democrats on various issues to build an ever-shifting coalition with the Republicans. The fifty Republicans in the House and 14 in the Senate would be joined by one group of Democrats who consider education reform a must, but may not agree with Hogan’s approach to cleaning up the Bay. Yet some Democrats may like that idea, but won’t budge on changing the gas tax – and so on and so forth. Just as long as Larry gets 71 votes in the House and 24 in the Senate, the means do not matter.

Because of the nature of how our state’s political process, the honeymoon for Hogan was barely existent. He had to have a budget mere hours after taking office, and some legislation he probably wouldn’t support was already being discussed in the General Assembly. Obviously Larry was working in a shadow government of sorts as he awaited inauguration, but once he took the reins that horse quickly accelerated to full gallop.

So while it’s not necessarily less government, at least Larry is working on making things more efficient and streamlined. Hopefully we can get it to such a level that it wouldn’t be missed when the reductions occur. That’s the next logical step.

186,000 reasons to smile (and one to worry about)

In the quest to get America back to making things, it was good news to find that manufacturers added 17,000 jobs in December. That brought the 2014 growth in that sector to 186,000, continuing the steady growth in that sector since the job market hit bottom there in 2009-10. When you consider that 2012 predictions saw the manufacturing sector losing jobs through this decade, having a very positive number nearly halfway through is a good sign.

Naturally Barack Obama tried to take some credit for this during a speech at a Ford plant near Detroit last week. As I noted in a piece I wrote for the Patriot Post, it’s ironic that the plant was idled due to slow sales of hybrids and small cars built there, but the auto industry has played a part in the resurgence of manufacturing jobs in America. This is particularly true in the construction and expansion of “transplant” auto plants in the South by a number of foreign automakers.

But there has been criticism of Obama from his political peers. As a carryover from my American Certified days I often quote Scott Paul, the president of the Alliance for American Manufacturing, because his organization is strongly influenced by Big Labor and presumably supported Obama in both his elections. Yet Paul is none too happy with Obama’s progress:

Manufacturing job growth slowed to 17,000 in December, which portends some of the challenges an overly strong dollar, weak global demand, and high goods trade deficits may bring in 2015. While President Obama is touting factory job gains and our Congressional leaders are looking for ways to rebuild the middle class, what’s missing for manufacturing is good policy.

Congress and the president need to hold China and Japan accountable for currency manipulation and mercantilism, and invest in our infrastructure. New innovation institutes are a good thing, but their presence alone won’t bring manufacturing back. And as the president enters the final half of his second term, he’s falling way behind his goal to create one million new manufacturing jobs.

The innovation institutes Paul refers to are public-private partnerships being created around the country in various fields, in the most recent case advanced composites. But Obama lags behind on his promised 1 million new manufacturing jobs for this term as it nears the halfway mark as he’s created just 283,000. It’s great if you’re one of those newly employed workers, but his policies are leaving a lot of chips on the table. In fact, National Association of Manufacturers economist Chad Moutray frets that:

…manufacturers still face a number of challenges, ranging from slowing global growth to a still-cautious consumer to the prospect of increased interest rates. With the start of the 114th Congress, manufacturers are optimistic that there will be positive developments on various critical pro-growth measures, including comprehensive tax reform, trade promotion authority and a long-term reauthorization of the Export-Import Bank, and focusing on important infrastructure priorities like building the Keystone XL pipeline and addressing the solvency of the Highway Trust Fund.

While manufacturers would like to see these measures, attaining some of them may be tough sledding in a conservative Congress. There are a number of representatives and conservative groups who don’t want to give the President fast track trade authority, wish to see the Export-Import Bank mothballed out of existence, and will not consider increasing the federal gasoline tax – an action for which Moutray uses the euphemism “addressing the solvency of the Highway Trust Fund.” These actions may benefit the large manufacturers but won’t help the bread and butter industries solely serving the domestic market like the 24-employee machining shop or the plastics plant that employs 80.

Turning to the state level, our local manufacturing (so to speak) of poultry has a big week coming up. On Wednesday morning, the final deadline to submit new regulations to the Maryland Register for the January 23 printing will pass. You may recall that the December 1, 2014 Maryland Register featured the new Phosphorus Management Tool regulations as proposed (page 1432 overall, page 18 on the PDF file.) The new regulations were not in the January 9 edition, so January 23 may be the last chance to get these published under the O’Malley administration due to the deadline being set in MOM’s waning days.

Yet I’m hearing the rumors that a legislative bill is in the works, to be introduced in the coming days by liberal Democrats from across the bridge. Doing this legislatively would perhaps buy a few months for local farmers because such a bill would probably take effect in the first of October if not for the almost certain veto from Governor Hogan. If Democrats hold together, though, they would have enough votes to override the veto in January 2016, at which time the bill would belatedly take effect. Still, it will be difficult to stop such a bill given the lack of Republicans and common-sense Democrats in the General Assembly. To sustain a Hogan veto would take 57 House members and 19 Senators, necessitating seven Democrats in the House and five in the Senate to join all the Republicans.

We haven’t received the data yet to know whether the installation of Bob Culver as County Executive was enough to break an 11-month job losing streak year-over-year here in Wicomico County, but his task would be that much tougher with these regulations put in place.

The start of something good?

Last week, Mark Green at the Energy Tomorrow blog posted a critique of the proposed fracking regulations Maryland may adopt in the waning days of the O’Malley administration. In his piece, Green stressed that Maryland needed to adopt “sensible” restrictions but feared Maryland would go too far. It was echoed in the Washington Post story by John Wagner that Green cites.

But the money quote to me comes out of the Post:

“In the short term, as a practical matter, the industry will probably choose to frack in other states than Maryland where the standards are lower,” O’Malley said. But in the longer term, he said, “it could well be that responsible operations may well choose to come here.”

Or maybe not, which seems to have been the goal of O’Malley and Radical Green all along. It’s funny that they don’t seem to have the objections to wind turbines dotting the landscape despite their own health issues. Certainly no one studied them to death.

Being a representative of the energy industry, Green naturally argues that “sensible” regulations are similar to those already in place in states which already permit the practice. As he notes:

Hydraulic fracturing guidelines developed by industry – many of them incorporated into other states’ regulatory regimes – offer a sound approach proved by actual operations.

I can already hear the howling from Radical Green about the fox guarding the hen house, and so forth. But is it truly in the interest of industry to foul its own nest?

On the other hand, the success of fracking and other domestic exploration may create an interesting situation. Even back in October, when oil had declined to $90 a barrel from a June peak of nearly $115 a barrel, analysts were speculating on the effects the drop would have on the budgets of OPEC member nations. Now that oil in closing in on $60 a barrel, the economic effects on certain nations will be even more profound, and contrarian economic observers are already warning that the oil boom is rapidly turning into a bust with a ripple effect on our economy.

Even the revenue scheme by which Maryland would collect a sales tax on gasoline depended on gas prices staying somewhere over $3 a gallon. Assuming the price of gasoline stays at about $2.70 per gallon through the first of the year, the predicted 8-cent per-gallon rate will only be 5.4 cents. (The sales tax on gasoline is slated to increase to 2% on January 1.)

In any case, there is a price point at which non-traditional oil extraction such as fracking or extraction from tar sands – the impetus for the long-stalled Keystone XL pipeline – becomes economically non-viable. I had always heard that number was $75 per barrel, which was a number we had consistently hovered above for the last half-decade. Now that we are under that number, the question of exploration in Maryland may be moot for the short-term, although the price of natural gas is only slightly below where it was this time last year so that play is still feasible.

Whether the decline in oil prices is real or a manipulation of the market by a Saudi-led OPEC which is playing chicken with prices to try and restore its bargaining position by outlasting domestic producers, it may be yet another missed opportunity for Maryland as it could have cashed in during a difficult recession and recovery if not for an administration which believed the scare tactics and not what they saw with their own eyes as neighboring Pennsylvania thrived.

The truth about ‘Liberal Jim’

For several years I’ve done the monoblogue Accountability Project for this very purpose – disseminating the truth about how members of the Maryland General Assembly really vote when the rubber meets the road. There are few races with as clear-cut of a difference as the 38th District Senate race between incumbent Democrat Jim Mathias, whose mAP score as a Delegate from 2007-10 was a 15 (out of 100) and Senate lifetime score from 2011-14 has been 28 (out of 100) and Republican Delegate Mike McDermott, who replaced Mathias in the General Assembly and has a lifetime rating of 84.5 of 100. (The 2014 version of the monoblogue Accountability Project is here.)

But what does this mean in terms of issues? I went back and researched the common votes taken by both men. Since 2012, I have set up the mAP to use bills which received votes in both the House of Delegates and Senate – out of 25 votes, 22 of these would be common. (The other three were committee votes for the respective bodies.) So 66 votes over the last three years’ worth of sessions were placed in front of both men.

In 2011 I hadn’t changed the rules yet, so while I had standardized the number of votes at 25, only 9 were common. Yet of those 9 common votes, Mathias and McDermott only voted the same on two. In total, out of 75 possible votes, Mathias and McDermott differed a total of 45 times while agreeing on 27 occasions. (Mathias was absent for three votes in that time period.)

Eleven of those 45 votes of disagreement were budgetary. Year after year, Mathias has been a rubber stamp for the annual spending and debt increases put in by the state. It’s not just the operating budget but the creation of more and more state debt and all the legerdemain that goes into each year’s BRFA. The only agreement between the two: Mathias voted against the original 2012 BRFA.

But in 2011, Mathias also voted to force home care providers into paying union dues, which created an unearned estimated benefit to Big Labor of over $430,000, the crony socialism of the InvestMaryland Act where the state ate its seed corn of future receipts, state law conformity with Obamacare, and the gerrymandered Congressional districts which took effect for 2012.

Mathias also had a hand in some dreadful 2012 legislation, voting for the state health exchange that’s only enrolled about 1/3 of the expected number of people at a wasted cost of over $125 million. Some guy named Anthony Brown was taking credit for that until it tanked. On a related front, Jim also voted to establish so-called “health enterprise zones,” which was something requested by minority legislators. Wouldn’t it make more sense to lift all boats?

But that’s far from all of it. Remember that “flush tax”? Mathias voted to double it. Jim also voted to burden the nascent state natural gas industry with the presumption of guilt in well contamination, mandate expensive fire sprinkler systems in new homes, adding thousands to the cost, and punished cellular customers with an expansion of the USTF surcharge. And again, Mathias did a favor to unions by expanding their reach among state employees.

And remember the “doomsday budget”? In that 2012 special session, Mathias voted for the measure that transferred teacher pensions to the counties and forced Wicomico County to raise its income tax and maximize its property tax increase to stay eligible for a $14 million lower maintenance of effort payment. Thanks for the higher taxes, Jim.

2013 was the year with the most departure between the two, as they differed on 15 of 22 votes. Several of these were bills dealing with the state’s implementation of Obamacare – including Medicaid expansion which is purportedly covered by federal funds (for now) – but there were other differences. Mathias supported provisions permitting voting by mail and, beginning in 2016, same-day registration during early voting. Both are invitations to voter fraud.

Mathias also voted in favor of the $18 annual surcharge residential customers start paying if offshore wind becomes a reality. (This may be hundreds of dollars annually for commercial customers and thousands annually for industrial users.) Jim also allowed the Maryland Stadium Authority to fund the construction of schools in Baltimore City. I’m not sure what sort of precedent that sets, but is Somerset County any wealthier of an area? Why is Baltimore City getting this new source of debt?

Nor were Jim’s union friends left out. In 2013 he voted to enact so-called “service fees” at five state universities and statewide for public school employees.

But the most interesting vote was on the Transportation Trust Fund “lockbox.” While it’s supposedly in place to prevent the annual raid of the TTF by a governor who can’t suppress his appetite for spending, the key to unlock is laughably weak: a 3/5 majority of both houses of the General Assembly. At this point Democrats by themselves could allow the transfer with 13 House votes and 6 Senate votes to spare. Those lucky Democrats, likely in swing district’s like Jim’s, would have the pass to go against their party while knowing passage is safely in the bag. I sense that Mike McDermott knew this when he properly voted no.

(That Constitutional Amendment is on the 2014 ballot as Issue 1, and I would encourage a vote AGAINST it. Make the General Assembly come up with a real lockbox – either a blanket prohibition or a 3/4 majority, which would require at least some Republicans to buy in – 106 House votes and 36 in the Senate.)

This year’s agenda was somewhat less ambitious, but there were still major differences. Mathias dodged a bullet when the bridge-eligible assistance program he voted for proved to not be too expensive (although there was no final expense tally at the point this was updated) but he also kept adding more Obamacare provisions to state law while paying for a needle exchange program in Baltimore city.

On the educational front, Mathias supported a pre-K expansion which will be of dubious benefit (except to public school unions) and supported a workgroup of yes-men studying how to better implement Common Core, which they don’t call Common Core anymore. And not only did he once again support a bloated budget, he tacked on a $10 additional fee for pesticide registration. Granted, it’s an aggregate of about $130,000 a year but it’s yet another burden for businesses.

Aside from the budget bills, though, the supporters of Jim Mathias would probably point to the bills both voted for as evidence of his moderate stance.

In 2011, both voted against the supplemental 3% alcohol tax and in-state tuition for illegal aliens. 2012 brought several points of agreement: voting against a prohibition of arsenic in livestock feed, enactment of same-sex marriage, the “rain tax,” the Septic Bill (with a caveat as I’ll get to momentarily), and even requiring helmets for moped riders. In the first Special Session that year both voted against the income tax increase.

When I revisited the Septic Bill, though, I noticed there were two Third Reading Senate votes – one for the Senate bill and one including some changes from the House version which passed, which had to be voted on again as amendments to the Senate version. Oddly enough, on the first iteration Jim voted yes but on the final product he was a no vote. Apparently Jim was for tier maps before he was against them?

Anyway, 2013 brought a lot of disagreement but Mathias and McDermott voted alike on some key issues: the gas tax increase, death penalty repeal, driver’s licenses for illegal aliens, and the SB281 gun bill all drew their opposition. Credit Mathias with unsuccessfully trying to place a sunset date on the gun law. This year they both fought the minimum wage increase as well as prevailing wage applicability, helped to decrease the estate tax (a rare win for conservatives) and the “bathroom bill.”

One thing I noticed in my research, though, is that Mathias rarely offers any floor amendments, whereas McDermott has several per term. Obviously that stage seems to me the one point where Republicans get in their say, giving Democrats more opportunities to be on the record as opposing common sense.

So while it’s true that Jim will “stand up to his own party” on some limited instances where tax increases are too obvious, he gives the game away by voting for each budget. I suppose the question is who is really fighting for the district, and in part two of this post I’ll look into where McDermott is fighting the other side.

Slings and arrows: criticizing a “timid” approach

I wasn’t sure just what I was going to write on tonight, but thanks to Charles Lollar I have some blog fodder. It’s the kind of thing that happens when the race establishes a front-runner and those who aren’t king of the mountain try and climb up the hill.

Here’s what Charles Lollar had to say regarding Larry Hogan’s comments, quoted in the Washington Post, about his plan for “prudent” tax cuts:

All the Democrat candidates agree with Larry on this, that we should be “timid” in cutting taxes and putting government on a diet. Lt. Governor Anthony Brown has said the state “can’t afford” even a modest reduction in the corporate tax.

Ken and I believe on the contrary that the time is over for Republicans to advocate tinkering around the edges of our bloated state budget, our confiscatory tax policies, and our corrupt and inefficient state government.

It is time for bold reforms that go to the core of our problems here in Maryland. That is why Ken and I turned to Dr. Art Laffer, who helped turn around our national economy in the 1980s, to vet our plan to eliminate the state income tax.

We have looked at the numbers, and we know we can achieve this step by step over the next five years, without putting at risk the services Maryland citizens expect their state government to provide.

Government is overhead on the economy. When you tax income, you reduce economic activity. Our objective is to restore economic vitality to Maryland, so families and small businesses will want to come here, invest, and grow.

Lollar and Timmerman are also vowing to eliminate the “rain tax,” the death tax, and the latest increases in the gasoline tax. So let’s look at what is at stake.

It’s difficult to quantify what chucking the “rain tax” would actually save because it does not affect all Maryland citizens equally. Sitting in Wicomico County, I pay no “rain tax” because our county hasn’t been forced to adopt one. Annual rates for counties which were mandated to adopt the fee range from one penny to $170.84, depending on location. Of course, we could go into why we are forced to come up with this when other states in the Chesapeake Bay watershed successfully fought the mandate, but that’s for another time.

As far as eliminating the “death tax” goes, according to the fiscal note for this year’s House Bill 739, which set in motion a four-year process to recouple Maryland’s estate and inheritance taxes with federal law, these two taxes combine to create approximately $200 million a year in revenue for the state – a significant amount, but barely 1/2% of the state’s FY2015 budget. In short, we could easily eliminate this as a rounding error.

The gasoline tax, however, is another matter. By the end of Lollar’s first term, the increased tax is expected to bring $685 million in annual revenue, not counting the roughly $700-800 million the existing tax has taken in annually over the last decade. The intent of increasing the tax was to build light rail in Baltimore and metro Washington – note that by FY2019, O’Malley’s budget projected the Maryland Transit Authority would be allocated nearly as much as the State Highway Administration receives (page 33 here). Currently the MTA gets about 56 cents for every dollar that goes to SHA; by FY2019 it would be 92 cents. Just keeping the MTA at its current 56 cent rate to SHA for FY2019 would save about $405.5 million; reducing them to the 25 cents per dollar MTA/SHA rate exhibited in the FY2007 budget (Bob Ehrlich’s last, see page 19) would save $752.7 million. Guess what? There’s your gas tax increase.

In looking at the two example budgets, which happen to be the final ones presented by the respective governors, it’s remarkable that income tax has remained a fairly constant portion of the revenue. Its share was 23% of Bob Ehrlich’s $29.6 billion FY2007 budget and 22% of Martin O’Malley’s $39.3 billion FY2015 proposal. (In terms of real money, though, the income tax increase is $1.999 billion, from $6.552 billion to $8.551 billion.) Over time, we have to figure out what to cut and how to grow the economy to backfill $8.551 billion in revenues if the state income tax goes away.

But let’s assume we can hold the budget where it is, rather than grow it at a 5% annual rate as Martin O’Malley has been doing for the last few years – a trend we could easily assume Anthony Brown would continue. Rather than looking at a $47.8 billion FY2019 budget, $8.5 billion higher than today’s, we would be in a position where other revenue sources could indeed grow to obviate the need for an income tax. Even as people prosper and have more income, the state would get a cut from increased sales tax revenue and perhaps even additional property taxes as housing becomes more valuable in a growing, thriving state.

Yet all of this is academic to a degree. Even if Republicans split 50-50 on all the contested races this year in the Maryland General Assembly, they would remain the minority by 91-50 in the House of Delegates and 29-18 in the Senate. Most of the Republicans who won would be replacing the centrists of the Democratic delegation, so those remaining Democrats would be farther left than ever. We would need Reaganesque leadership to shepherd tax cuts through that body, particularly after those aggrieved Democratic constituencies begin taking a haircut on the budget. (If you thought the grumbling about the “doomsday budget” from the Left was bad, the caterwauling on this would be deafening.) If Charles Lollar (or, for that matter, David Craig, who is also suggesting the elimination of the income tax) can get it done, the prospects are there for voters to further reward both them and the Republicans in general in 2018 – an important election because the winners will draw the next set of redistricting lines.

So I would prepare to be a little disappointed if you’re expecting our income taxes to magically disappear the moment Charles Lollar is sworn into office. However, he makes a good point in that we should be making bold initiatives, because being cautious isn’t really getting us anywhere. If you’re going down, go out with your guns blazing and don’t spare any bullets.

Martin O’Malley’s (not-so) greatest hits – how about a new song?

Returning once again to a familiar role of thorn in the side and burr under the saddle, Change Maryland and Larry Hogan took the occasion of the final legislative session under Martin O’Malley to remind us of his underwhelming record of “accomplishments” over the last long eight years, wrapped up in one release. All we needed was the bow, as Change Maryland remarked that:

  • They broke promises to state workers by diverting $200,000,000 from pension funds to plug their budget gap.
  • They’ve eviscerated local arts funding to hike the film tax credit for Hollywood millionaires.
  • They raided the Transportation Trust Fund then raised gas taxes to pay for mass transit.
  • They hiked income taxes on families, small business and large employers.
  • They blew $125,000,000 of our tax dollars on a health exchange website that still doesn’t work and was never needed in the first place; today, more Marylanders lack health insurance than when O’Malley-Brown took office.
  • More than 73,000 residents have had their health insurance policies cancelled and tens of thousands more have seen massive increases in their premiums and deductibles.
  • They put the teacher union bosses that bankroll their political machine ahead of students, parents and classroom teachers.
  • They’ve badly mismanaged the education budget, as a result inner city schools are falling farther behind, state SAT scores are down and elementary school reading aptitude is flat. And, even the teacher union said their rollout of Common Core was a mismanaged “train wreck.”
  • Their job-destroying tax hikes on the so-called rich and small businesses – those individuals earning $100k or more – backfired, missing revenue projections.
  • Some entry level jobs will pay a little more but there will be fewer of them.
  • There’s a federal investigation into the Anthony Brown Health Exchange but state lawmakers aren’t issuing their findings until well after the primaries.
  • Thousands of employers are now “paying their fair share” in taxes albeit to Virginia and the Carolinas; about 6,500 companies have left Maryland taking with them more than 100,000 jobs.
  • Likewise, more than 31,000 Maryland residents left for more affordable states, taking $1.7 billion each year out of our economy; among these were thousands of seniors on fixed incomes who can no longer afford to retire near their families.
  • It costs you more when it rains and more again when you drive to the beach.

Describing the O’Malley era as one where, “(i)n nearly every quality of life measurement our state is worse off than it was seven years ago… even areas that showed modest improvement came at a horrendous financial cost due (to) Martin O’Malley and Anthony Brown’s mismanagement and one-party rule in Annapolis,” it’s clear that Hogan isn’t too enamored with the last seven years.

But while Hogan strives to “get the government off our backs and out of our pockets so we can grow the private sector, put people back to work and turn our economy around,” we’re more or less supposed to take his word for it. Obviously some of these items he complains about from the outside will be ones he may well find useful when he takes over the governor’s chair. For example, he (or anyone else for that matter) will have to figure out how to backfill the pension funds, live with the increasing minimum wage (which, for all his charms, he won’t be able to get the General Assembly Democrats to rescind), and roll back taxes and fees to previous levels yet keep the budget in balance. That aspect may actually be the easiest because he would set the budget. Unfortunately, we’re stuck with Obamacare for at least the first two years of anyone’s term, and probably longer.

However, I have a prediction for you. If the budget gets smaller – or even if it’s level-funded – you will hear a howling like you’ve never heard before from the special interests, press, and Democrats (but I repeat myself) who will be out marching in the streets against the heartless Republicans. Remember why we had a Special Session a couple years ago? It was because we passed a “doomsday budget” that was “only” $700 million higher than the previous one, and despite GOP objection we ended up raising spending another $500 million. Again, that was with a budget increase! Heaven help us if we actually proposed spending less money!

So those we elect in 2014 need to be ready and be stiff of spine because those Annapolis fat cats are going to come after us. We threaten their existence on the government teat and they know it. Having a $125 million boondoggle of a health exchange isn’t helping, which is why that scandal is being swept under the rug just as fast as the broom can collect the dirt.

In this part of the state we have some opportunities to chip away at the Democrats’ overall advantage. We’ll have to wait until 2018 to win back the District 37A seat – which will be held for the time being by a woman who I predict will have the same reliably far-left voting record as her predecessor – but aside from that we can speak our piece by ejecting two members of the General Assembly who will occasionally vote the right way when they get the hall pass to do so, but can be replaced by two members who we know will stand up for our interests. We can confound the Democrats’ cynical redistricting ploys by elevating Mike McDermott to the Senate and getting the fresh new ideas of Maryland Municipal League president Carl Anderton, Jr. into the House of Delegates.

Changing the state means pulling our weight, and the Eastern Shore can do most of its part by leaving just one Democrat east of the Chesapeake for the next four years.