Denying the market

To be honest, I’m not sure if I was sent this to provoke a comment or if I just happen to be on a list that gubernatorial candidate Heather Mizeur doesn’t use all that often. I think most observers know I have an interest in energy issues, and this definitely falls into one of them. You just have to ask yourself why Mizeur counts herself among the Democrats are so insistent on denying the opportunity for shovel-ready jobs and investment – I thought that was what they were all about.

First of all, this is what Mizeur had to say about the proposed Cove Point LNG export facility.

(Yesterday), Delegate Heather Mizeur (D-Montgomery), candidate for governor, called on Governor O’Malley to join her in opposition to the Dominion Resources liquefied natural gas (LNG) export facility at Cove Point in Calvert County. She made the announcement during a speech at the Stop Cove Point Rally in downtown Baltimore City earlier today.

“I am calling on Gov. O’Malley to take a stand with us today to reject Cove Point,” Mizeur told the audience. “You cannot leave a legacy on addressing climate change and be silent on Cove Point. It’s time for Gov. O’Malley to break the silence and join us in saying no to Cove Point.”

The rally, which was attended by 500 people, was organized by climate, health and anti-fracking activists from across the state, and was one of the largest environmental rallies ever in Baltimore City. It came as the state Public Service Commission begins official hearings on the project.

Mizeur is currently the only gubernatorial candidate to state her opposition to the project. When she announced her opposition in December, both Lieutenant Governor Brown and Attorney General Gansler – the two other Democratic candidates in the race for governor – expressed a desire to build the project without environmental damage, but failed to explain how such a plan would be possible.

Dominion Resources, a Virginia-based energy company, is pursuing the construction of a $3.8 billion facility to serve as a collection point for fracked natural gas from throughout the Mid-Atlantic region, where cargo tankers would then ship it throughout the world.

But the Cove Point facility would release 3.3 million tons of carbon dioxide and other harmful greenhouse gases into the air annually, making it a serious setback to achieving the state’s goals on fighting climate change, including a plan for a 25% reduction of greenhouse gases by 2020.

Mizeur has also called on Dominion Resources to invest $3.8 billion – the construction cost of the proposed facility – in the state’s renewable energy sector. According to the U.S. Department of Energy, clean energy investments create more permanent jobs than exporting fracked gas.

Obviously Mizeur is an adherent to the religion of manmade climate change, a belief system which fails to address why none of the climate models have predicted the lack of warming this century. The fact that they managed to get just 500 people to a climate change rally shows how small the cadre of believers really is – a good Second Amendment or TEA Party rally can rustle up similar numbers without really trying. If this is “one of the largest environmental protests in state history” then we really are letting a tiny minority dictate policy.

But let’s say these guys are really serious – I suppose living in a state foolish enough to believe that artificially limiting its carbon emissions will have an effect on our overall global climate will do that to you. Even if the point source of 3.3 million tons is correct, it doesn’t take into account the reduction in emissions at destination points abroad. Natural gas is cleaner burning than coal, and until we figured out that fracking was a way to supercharge the moribund domestic natural gas market it was a fossil fuel environmentalists weren’t uncomfortable with. To show how the market has changed, the Cove Point facility was originally built in the 1970s as an import facility because the domestic natural gas market was thought to be in an irreversible decline.

On the other hand, the point source investment of $3.8 billion will have a positive effect on the regional and state economies. Last year, in announcing its filing, Dominion claimed the project will create up to 4,000 jobs during the construction phase and perhaps over 14,000 jobs overall, not to mention billions in royalty payments. Because most of the supply would come from regional producers, the entire mid-Atlantic area would benefit (except Maryland and New York, which currently have bans on fracking.) The facility would also provide a needed boost to our export tally to address a persistent American trade deficit, as the LNG is already contracted out to distributors in Japan and India.

Finally, Mizeur complains that the $3.8 billion Dominion is willing to invest in the project could be better spent in the renewable energy sector. Does the name “Solyndra” ring a bell? Despite its best efforts to create a market for offshore wind, companies aren’t willing to make the investment in that area – remember Bluewater Wind? In the area of solar energy, it took billions in taxpayer-guaranteed loans – and mandated renewable energy portfolios such as the one Maryland is saddled with – to get that market off the ground, yet it still produces but a tiny fraction of our electricity needs at a cost several times the going rate for electricity produced from coal or natural gas.

And it’s funny that Mizeur worries about the cost of natural gas going up due to exports, but had no problem with raising the gasoline tax on a perpetual basis. So much for supporting hard-working Marylanders.

So the choices are either zero or $3.8 billion; that’s reality. We can take advantage of proven resources we already have or listen to alarmists whose real goal is to foster dependence on government under the guise of saving the planet. It’s just too bad our little sandbar is energy-poor, unless you deign to call chicken manure an energy gold mine, and even the proponents concede its not as efficient as natural gas.

WaPo poll: Hogan lead cut to 4

Just a couple days after its Baltimore competitor unveiled an OpinionWorks poll which showed Larry Hogan with a six-point lead over David Craig and the others in the quest for the Republcan nomination for governor, the Washington Post put out its own survey which captured the views of 290 randomly selected GOP voters and leaners. In their survey, undecided was again the clear winner with 56%, with Hogan at 17%, David Craig at 13%, Charles Lollar in third at 10%, and Ron George pulling 5%. As I did the other day, extrapolating results leaves me with this breakdown:

  • Larry Hogan – 38%
  • David Craig – 29%
  • Charles Lollar – 22%
  • Ron George – 11%

The survey, though, has a large margin of error of 7% for Republicans, compared to 5.5% for Democrats. On their side, Anthony Brown has a 19-point lead over Doug Gansler, who in turn leads Heather Mizeur by seven points. The survey was conducted Thursday through Sunday.

Unlike the Sun poll, there are a wide variety of crosstabs available in the WaPo survey. Most of them favor Hogan, but the independents surveyed backed Craig by a 16-14 margin. David also scored well with Baltimore-area voters and with college graduates, both categories where he ran even with Hogan.

Another interesting facet of this poll was favorability ratings for each candidate. I’ll go from highest among all candidates to the lowest.

  • Anthomy Brown – 30% (16% unfavorable, +14)
  • Doug Gansler – 22% (17% unfavorable, +5)
  • Larry Hogan – 15% (8% unfavorable, +7)
  • Heather Mizeur – 13% (9% unfavorable, +4)
  • David Craig – 11% (10% unfavorable, +1)
  • Ron George – 8% (7% unfavorable, +1)
  • Charles Lollar – 6% (9% unfavorable, -3)

So it appears Hogan’s very non-specific campaign has attracted notice without driving up unfavorables. Note this was done before David Craig put out a program to eventually phase out the state’s income tax.

Making a RealClearPolitics-style average of the results so far, we get the following on the GOP side:

  1. Larry Hogan – 14.4%
  2. David Craig – 9.3% (-5.1)
  3. Charles Lollar – 7.5% (-6.9)
  4. Ron George – 5.1% (-9.3)

Doing the same for Democrats:

  1. Anthony Brown – 34.5%
  2. Doug Gansler – 14.4% (-20.1)
  3. Heather Mizeur – 9.1% (-25.4)

While it appears that George is slipping just beyond the margin of error, the other two are still within striking distance. On the Democratic side, it’s Anthony Brown’s race to lose. Note that the foibles of Maryland’s health exchange aren’t affecting Brown among the base.

Larry Hogan is spinning this, using an unreleased “internal poll” to note:

(I)nternal polling by a respected national pollster gives Hogan an excellent chance to win in November. Hogan has a 30% better chance of beating Brown than Gansler has, and the polling also shows Hogan has a 36% better chance of winning than Bob Ehrlich had when he was elected governor in 2002.

Obviously without context it sounds great, but one has to ask if Brown would be as weak of a candidate as Kathleen Kennedy Townsend was in 2002.

There is generally one more poll which comes out around this time of year, but I have no word on whether a new Maryland Poll will come from Gonzales Research anytime soon. Back in October, Brown had a 41-21 advantage over Doug Gansler, with 5% preferring Heather Mizeur.

Hogan leads in first inning

At last we have a scientific poll to determine who is the top dog among Republican voters, and the big winner is…undecided.

I know that belies my headline, but an OpinionWorks poll for the Baltimore Sun found 68% of Republican voters hadn’t made their mind up yet. Of those expressing a preference, the poll looks like this:

  • Larry Hogan – 13%
  • David Craig – 7%
  • Ron George – 6%
  • Charles Lollar – 5%

Doing some quick math and extrapolating the numbers, the primary would come out like this:

  • Larry Hogan – 42%
  • David Craig – 23%
  • Ron George – 19%
  • Charles Lollar – 16%

In other words, I would be pretty close to my 60 percent statement from the other night.

According to the Sun, the poll was taken from 1,199 likely Maryland voters over last week (Saturday through Wednesday.) 499 of them were likely Republican primary voters, with 500 likely Democratic primary voters backing Anthony Brown by a significant 21 point margin over Doug Gansler, with Heather Mizeur just 4 points back from Gansler. (40% are still undecided, though.) Margin of error on both polls is 4.4 points, so in actual terms all four GOP candidates are within the margin of error at this point.

OpinionWorks is the Sun‘s resident pollster, and they recently did a poll suggesting an additional $1 per pack tobacco tax would be acceptable to state voters. (They didn’t call me, or the “no” would have been larger.) Based on their body of work, they would seem to be a more left-leaning pollster, sort of in the same vein as Public Policy Polling. At this point, though, there’s no real reason to suspect they would have their finger on the scale of the Republican race.

Of course, we didn’t get any direct polling of possible matchups, such as Brown vs. Hogan, which is unfortunate because there’s no way to find out whether Larry’s more or less populist, anti-establishment message is selling. He’s been good at criticizing the current lieutenant governor for both actions and inaction, but Hogan hasn’t completely spelled out an agenda on key issues like education and the environment. Does he tack to the center and risk alienating a large portion of his base like his former employer did?

There’s also the aspect of name recognition. Back in November I wrote about a Goucher College poll measuring how well-known the various candidates were. It still seems to track well, given that the Democrats were more well-known at the time and now have far fewer undecided voters. Indeed, a current 28-point difference in undecideds matches up well with November’s 31.7 point name recognition gap between Anthony Brown and David Craig. (Larry Hogan was not part of the November poll.) Once people begin to pay attention to who the players are, the polls will start moving up for the various candidates.

My last observation is wondering whether Hogan’s success is akin to a “convention bump” because he’s announced so recently. A poll taken in March or April will help to determine this. I think Larry is indeed the leading contender, but I don’t think he’s really getting nearly twice as many votes as any of the others in the field – this is why I compared the results to giving up a 3-run homer in the top of the first. As people begin to get to know Larry Hogan on the campaign trail, he will either break the game open or allow the opposition to catch up.

More payola intrigue

Do you remember a guy named Ron George? You know, he’s this guy who actually jumped into the gubernatorial race back in June and had steadily plodded through the campaign, in part because he’s serving in the House of Delegates as is Democratic hopeful Heather Mizeur. In the straw poll I wrote about yesterday, George was second to Charles Lollar with 24% of the vote, beating both Larry Hogan and David Craig, but in the internecine sniping over the last couple days between supporters of two of those aforementioned camps you’d have thought Ron had dropped out of the running.

But on the heels of his call for a special counsel to investigate the Maryland Health Exchange Board, George today revealed more information through his research. The statement (below) is accusatory, but George backs it up by putting the pieces of the puzzle together.

The Maryland Health Exchange Board should never have been granted special procurement powers which resulted in the rewarding of political allies. The administration continued to favor a vendor who has a flawed history with Maryland and deep fundraising relationships to both Governor O’Malley and Lt. Governor Brown. We need a special counsel with the authority to investigate the procurement practices of the Health Exchange Board.

It appears the administration was in favor of rewarding their political supporters despite serious legal concerns relating to this same vendor’s work with state foster children and a troubling history collecting child support payments in Baltimore. The problem with one-party control is the people in power get to make the rules even when they are inappropriate and can lead to waste, fraud and corruption. I demand a full and thorough investigation into the contracts approved by the Health Exchange Board and their adherence to transparent and impartial government.

This is the same vein that Larry Hogan’s Change Maryland mined with his own accusations of pay-to-play which came out last month. Seems like we have a pretty corrupt set of people running Annapolis.

One thing which needs to be addressed when the Republicans take over state government is the procurement procedure. It’s certainly the conservative ideal that as many government functions as possible be transferred to the private sector, and generally this is accomplished through a bidding process with the lowest and best bid which meets the specifications prevailing. Most people associate the process with construction projects, but much of government –  including the contract for customer service call centers George refers to – is done this way. On the surface, it’s a good idea to allow a private company with some expertise in the field to replicate their service for government rather than hire a group of workers to duplicate efforts needlessly.

Yet there are flaws in this approach which make it exploitable, and I believe what George wants investigated is how the process of selecting Maximus came to be. For example, were the specifications written in such a way to make Maximus into the only company capable of doing the contracted work? Much as the 2005 Fair Share Health Care Act was written to punish just one company – Walmart – the rules and specifications for awarding a job can be tailored to make it so just one bidder can feasibly secure the work. (If you forgot about what Fair Share was, it was an early topic of conversation in my blogging career. Check out this blast from the past.)

Perhaps more sinister yet would be the idea of getting insider information as the process was going along. In my architectural days, we had to be scrupulously careful that any changes made – whether clarifications of questions asked by bidders, revisions by the client, or the occasional error or omission on our end – were transmitted to all bidders to make sure no one received an unfair advantage. But if someone has a thumb on the scale, they may get a little bit of advance notice on changes or otherwise gain a leg up on the competition.

As it stands, though, it appears that $325,000 investment by Maximus paid off with a $36.5 million return. Of course, there’s nothing illegal about donating money to a political candidate and many companies play the field by donating to both Republicans and Democrats. (There was an anecdote I heard about the Maryland GOP accidentally getting both checks from a corporate donor, noting the GOP amount was far smaller than the Democratic one.) Just a look at a website like Open Secrets or Follow the Money will show most corporations embrace the practice.

So Republicans will have to walk a fine line when they take over in Annapolis. It’s almost impossible not to benefit a business which made a political donation, particularly if they shower both sides with campaign cash, but there needs to be some transparency in the process and a way to write specifications to maximize participation rather than funnel business to one or two well-connected bidders. Reducing the size and scope of government should be the primary goal of conservatives, but levelling the playing field for those who wish to provide needed services from the private sector should be a close second priority.

The newest ticket

There is an older lady I’m familiar with from various political functions who is a David Craig supporter. During this campaign, since Craig was the first to announce, she would ask “has anyone else announced yet?” And once Craig selected Jeannie Haddaway as his running mate, she would then ask “Well, does so-and-so have a running mate? You need one to file.”

Well, lady, the answer to the latter question is now “yes” in Larry Hogan’s case. As part of his delayed gala announcement he’s selected former Ehrlich Administration official Boyd Rutherford as his ticketmate.

There’s no question that this will lead to the portrayal of Larry Hogan as the lost second term of Bob Ehrlich, since both members of the Hogan/Rutherford team have served in his administration as secretaries. After leaving the Ehrlich administration at the behest of President George W. Bush in 2006, Rutherford has tried his hand at some other enterprises.

This certainly presents a study in contrasts with some of the other tickets: Anthony Brown, whose background is mostly legislative aside from serving as Martin O’Malley’s caddy for the last eight years, selected a county executive with a large campaign warchest. Doug Gansler, who came up through the legal ranks, picked a legislator, and Heather Mizeur, a Delegate, selected someone outside of politics entirely, an activist minister. Fellow Republican David Craig, a career politician, looked to a youthful but experienced Delegate.

Rutherford described his role simply:

Accordingly, my pledge to you is simple:  When Governor Hogan assigns this Lieutenant Governor a policy initiative to implement, I will question and I will monitor, and I will safeguard the spending of your tax dollars every waking hour.

That statement had to be a dig at Anthony Brown, who trumpeted his heavy involvement in the Maryland Health Connection until it flopped like a dying flounder. Suddenly he wasn’t as responsible.

Also interesting to me is the fact that Hogan is now beginning to flesh out his campaign and his positions. Obviously he has his priorities in order, although I don’t understand the emphasis on “middle class.” I like to think of people as apriring to get beyond middle class.

This also puts the pressure on the other two in the race to find their lieutenant governor candidates. With less than a month before the filing deadline, and with a significantly weaker financial standing than the others in the race, Ron George and Charles Lollar will need to convince someone to join their campaign.

So six months or so after I thought he should have entered, the evolution of Change Maryland to Larry Hogan campaign team is complete. And while Hogan enters as the candidate with the most hype, the question is whether there’s more substance than sizzle.

Campaign 2014: a look at finance

This is the piece I promised you the other day. Originally I was going to lay this out one candidate at a time, but then decided it may be more to the point to compare and contrast all of the gubernatorial candidates in one place. It’s a lot of numbers, but I’ll try and make it interesting.

For each category, I’m going to do a rank order among the six gubernatorial contenders who have filed a campaign finance report covering 2013. There are a few other candidates who have filed or seem to be raising money – on the GOP side they are Brian Vaeth and Meyer Marks, while the Democrats have perennial candidates Ralph Jaffe and Charles Ulysses Smith. Except for Marks, all have turned in an Affidavit of Limited Contributions and Expenses, better known in our game as ALCEs. Marks has an active account but no report, which is a no-no.

To begin this comparison, it helps to know how much was raised during the 2013 period, which is about a week off the actual calendar since it ended January 8, 2014.

  1. Anthony Brown (D) – $4,019,803.13
  2. Doug Gansler (D) – $1,487,704.79
  3. Heather Mizeur (D) – $493,173.55
  4. David Craig (R) – $249,808.75
  5. Ron George (R) – $130,159.00
  6. Charles Lollar (R) – $65,329.67

Another piece of this puzzle which interests me is trying to figure out an average contribution. But rather than count the actual number of line items, I decided it was easier and far faster to assume there would be a certain number of contributions per page. This is the number of pages of contributors each report had.

  1. Anthony Brown (D) – 358
  2. Heather Mizeur (D) – 202
  3. Doug Gansler (D) – 125
  4. David Craig (R) – 58
  5. Ron George (R) – 46
  6. Charles Lollar (R) – 36

So, assuming 17 contributors per page, the average donation per contribution comes out like this.

  1. Doug Gansler (D) – $700.10
  2. Anthony Brown (D) – $660.50
  3. David Craig (R) – $253.36
  4. Ron George (R) – $166.44
  5. Heather Mizeur (D) – $143.91
  6. Charles Lollar (R) – $106.75

Something I found intriguing, particularly in Lollar’s case, was the fact that several contributors were serial repeaters. Some campaigns seem to have a feature where a donor can use an automatic monthly withdrawal, but in Lollar’s case it appears to be through PayPal and a large share of his backers tended to use that feature. That made for dozens of pages of expenditures on individual PayPal fees, which don’t seem to be a very efficient use of what turns out to be hundreds of campaign dollars a few pennies at a time, particularly on a $10 monthly donation.

Now let’s look at where the overall take came from. In all cases, the overwhelming majority of funds came from individual donations. But Charles Lollar took the cake there.

  1. Charles Lollar (R) – 100%
  2. Heather Mizeur (D) – 99.53%
  3. Ron George (R) – 98.12%
  4. Doug Gansler (D) – 97.5%
  5. David Craig (R) – 93.19%
  6. Anthony Brown (D) – 91.65%

I think there is a glaring mistake in Lollar’s totals, though, as I think the $6,000 transferred in from Blaine Young’s shuttered gubernatorial campaign probably should count as being from what the Board of Election calls “Maryland candidates or slates” and not as an individual contribution. Based on overall 2013 totals, that would actually put Lollar near the bottom of the list. But he’s not the only one who made mistakes, as I found PAC money interspersed with individual contributions on a number of reports, along with missing addresses and the like.

Without changing the Lollar numbers, here’s the percentage of contribution some of these six receieved from other candidates or slates.

  1. Anthony Brown (D) – 3.27%
  2. David Craig (R) – 0.64%
  3. Doug Gansler (D) – 0.52%

The others received none.

But how about state PACs? I would have thought they comprised a much larger share of the pie, but none of the candidates received more than a tiny percentage of PAC money.

  1. Anthony Brown (D) – 3.13%
  2. David Craig (R) – 2.8%
  3. Heather Mizeur (D) – 0.44%
  4. Doug Gansler (D) – 0.42%

Neither Ron George nor Charles Lollar were beneficiaries of PAC money. Obviously in terms of actual dollars there’s a huge difference between Brown and Craig, but percentage-wise they are fairly even.

Oddly enough, though, Ron George leads in the percentage coming from political clubs. I think it’s based on one contributuion.

  1. Ron George (R) – 1.88%
  2. Anthony Brown (D) – 0.21%
  3. Heather Mizeur (D) – 0.04%

Again, it’s a matter of scale – Brown’s largesse from political clubs is nearly fourfold more in actual dollars. The lieutenant governor is also the sole beneficiary of federal committee money, to the tune of $69,000.

Since individual contributions are such a large part of the game, though, I wanted to take a closer look at where they came from. To that end, I decided to categorize appropriate donations into one of five categories, if they fit – most did not, while some fit more than one.

  • percentage from LLCs, LLPs, trusts, and other similar financial arrangements
  • percentage from law firms, as I could reasonably ascertain same (inexact, to be sure)
  • percentage from unions, although most give as PACs and I didn’t track those this time
  • percentage from businesses
  • percentage from out-of-state – in contrast to a federal race where out-of-state money is to be expected, it struck me that some campaigns leaned heavily on donors outside Maryland

I’ll start with the LLC category, which is being addressed for the next election cycle. Some believe it’s too easy to skirt contribution limits by maxing out a donation as an individual then shelling out more under the guise of an LLC. Each candidate got some LLC money, but some more than others.

  1. David Craig (R) – 25.16% of individual contribution money
  2. Anthony Brown (D) – 17.58%
  3. Doug Gansler (D) – 14.2%
  4. Ron George (R) – 4.69%
  5. Heather Mizeur (D) – 3.56%
  6. Charles Lollar (R) – 0.58%

Heather Mizeur is low on some of these categories because individual contributions from certain entities, like LLCs and businesses, could not be counted toward her matching funds for public campaign financing.

I sort of expected this result from law firms, although percentages were lower than I figured on.

  1. Doug Gansler (D) – 3.6%
  2. Anthony Brown (D) – 0.73%
  3.  David Craig (R) – 0.6%

They were the only three receiving contributions from what I reckoned were law firms. Even if I was wrong on a few, Gansler took that category with ease.

The same was true of unions, where Democrats Anthony Brown (0.59%) and Doug Gansler (0.07%) were unsurprisingly the leaders.

And if you thought pay-to-play was the rule in Maryland, well, you may be correct. The individual share from businesses went like this.

  1. Anthony Brown (D) – 17.38%
  2. David Craig (R) – 15.33%
  3. Doug Gansler (D) – 12.6%
  4. Ron George (R) – 5.09%
  5. Charles Lollar (R) – 2.85%
  6. Heather Mizeur (D) – 0.17%

Maryland may have one of the worst business climates in the country, but the big, established players must like the way competition is curtailed in the state. Some of the largest businesses in the country gave big checks to Brown and Gansler, with health care businesses propping up Brown and some large technology firms backing Gansler.

Finally, I thought it was telling who got support from out-of-state. This may be controversial because I counted Washington, D.C. addresses as out of state and surely some business people who are Maryland residents wrote checks based on their place of business. But I had to draw a line somewhere and the results are telling to me. These figures represent the percentage of individual contribution money drawn from out of state.

  1. Heather Mizeur (D) – 36.63%
  2. Doug Gansler (D) – 32.67%
  3. Anthony Brown (D) – 25.55%
  4. Charles Lollar (R) – 7.09%
  5. Ron George (R) – 4.11%
  6. David Craig (R) – 3.87%

In the cases of Brown and Gansler, it seemed like much of their out-of-state take came from the District of Columbia, while Mizeur’s came from all over the country. Yet if you considered Takoma Park and Silver Spring as part of another state (sometimes we here on the Shore consider them another country) I believe Mizeur would have been over 50 percent. Does everyone in Takoma Park have an extra Benjamin to spend on her race? Seems like it.

This final category shows that Maryland Republicans can’t seem to nationalize this statewide race as they could recent federal races with Dan Bongino and Andy Harris, for example. This is a pity because what better encouraging message to conservatives than a Republican winning in Maryland?

To be a Republican in this state, though, it almost always means being outraised and outspent. But I find it interesting that Democrats have to pull so much money in from other states or corporate entities to produce these war chests. Sure, in Maryland we have our share of those who would dream of purchasing access via political contribution but it is encouraging that four of the six in the race still rely heavily on the grassroots. Sadly, though, they are the four who don’t have seven-figure bank balances.

So when you see the inevitable campaign commercials building up one candidate or tearing down another, consider where the money came from. The reports are somewhat dry reading, but you might find out the business you patronize donates to the wrong side.

Over the next few weeks I’ll look at some other races, including a couple local ones. Bet I find a few surprises.

Update: It’s probably been priced into the market anyway, but Brian Sears reports that Second District Congressman Dutch Ruppersberger is, as most have come to expect, skipping the 2014 gubernatorial race to make another Congressional run. So the fields will probably not get any larger, although I wouldn’t be shocked to see a dropout on the GOP side.

(Some of) the numbers are in

If you were wondering how the various gubernatorial campaigns fared in 2013, today several filed their campaign finance reports. As I write this, I have not been able to access the reports for either Anthony Brown or Doug Gansler on the Democratic side; however, the close of business for today was extended to one minute before midnight so they may be waiting until the last minute. Of course, there’s no shortage of special interest money out there to prop up their campaigns, and even the longshot Democratic gubernatorial bid of Heather Mizeur is sitting on over $215,000 after raising nearly a half-million in the last four months of 2013.

But I’m interested in the GOP side, and although their numbers were classified as “weak” by the Baltimore Sun, they should be noted in context with each other. Having a June primary means more opportunity to gain ground, as opposed to the former September primary which was just eight weeks before the general election.

I’ll begin with the all-important cash on hand number. As of the reporting deadline, here’s how the contenders stacked up:

  1. David Craig – $154,577.02
  2. Ron George – $15,449.89
  3. Charles Lollar – $5,731.35

There is no doubt that, if the GOP had to run a campaign based on those numbers, it would be exhausted inside a week – or maybe even a day. More importantly, Larry Hogan now can determine that lending himself over $300,000 – as he did in his abortive 2010 run – would be more than sufficient seed money to jumpstart a campaign and put him at a financial advantage.

Yet there’s also the question of fundraising prowess. How much did each of these men raise in 2013?

  1. David Craig – $249,808.75
  2. Ron George – $130,159.00
  3. Charles Lollar – $65,329.67

In essence, Craig raised twice as much as George, who raised twice as much as Lollar. Granted, Charles officially announced three months later than the other two but raised funds throughout the year during his “draft” stage.

Over the coming days I’ll begin to dig deeper into these reports, but several initial conclusions can be drawn.

In strict financial terms, this is a two-horse race at the moment: Larry Hogan vs. David Craig. If either Ron George or Charles Lollar goes the public financing route, it may assist them in the primary but it will likely be meaningless in a general election. Ron George may be able to draw the seed money required for public financing, but I’m not sure Charles Lollar would either participate in the idea or raise enough to qualify. For Lollar’s part, I understand money is fungible, but if not for the $6,000 the shuttered Blaine Young campaign gave him there would be nothing on hand.

Ron George has the added disadvantage of lagging in fundraising at a time when he can’t legally raise funds (unless he chooses the public financing route.) But his other problem is that he’s a businessman hailing from Anne Arundel County who doesn’t have the personal wherewithal to match another businessman from Anne Arundel County. While the backgrounds of Hogan and George are not exactly alike, they’re not as completely dissimilar as the profiles of the others in the race.

Yet there is another complication as well, which probably affects Lollar the most. By February 25 George, Hogan, and Lollar all need to select running mates in order to file. The question is: who would agree to take a chance on a race which seems unwinnable on a primary level, meanwhile forfeiting their opportunity for election – or re-election? Obviously the plum spot for a Republican is already taken by Jeannie Haddaway. who wouldn’t be hurt by missing an election cycle because she’s relatively young and has served capably in the House of Delegates. If Jeannie’s LG bid is unsuccessful, she still would be the natural successor in 2018 to her State Senator, Richard Colburn, who’s already filed for another term but is approaching retirement age. Because of this, I would look for the others to choose a running mate who is either a local elected official or perhaps comes from a non-political background.

Now we know the financial situation of most involved, and based on prior history I can take an educated guess on where the other contender would stand. More than ever, the Maryland GOP needs to elect a candidate we can all unite behind because it’s almost certain the other side will have plenty of special interest money to spend.

Update: Thought I added this but I guess not. For context, here are the Democrats’ COH numbers:

  • Anthony Brown: $4,079,502.76
  • Doug Gansler: $6,106,763.78
  • Heather Mizeur: $215,629.92

 

A comment worthy of a response

If you didn’t read my piece on public financing the other day, you may have missed Ron George’s response in the comments section. Since I set my links to open up in a new window, you can easily leave the post up for reference.

The upshot of what George argues – repeatedly – is that “public financing” is somewhat of a misnomer because no tax dollars are used; the funding was from a line item where taxpayers could add a contribution to their tax payment. In looking at recent tax forms, though, the last year that option was in effect was for tax year 2009. In 2010 it was replaced by a solicitation for the Developmental Disabilities Waiting List Equity Fund. So I’m quite surprised Martin O’Malley didn’t empty the campaign financing fund during the interim.

Anyway, it’s money collected from the people of Maryland and placed in a fund maintained by the state government. Personally I think people would have been better off keeping their cash but it is what it is.

The other point Ron makes comes with this statement:

As a delegate, my ability to fundraise will be limited so I accept limits in the amount I will raise and I receive some money while concentrating on the session.

Obviously this makes a lot more difference during a campaign season where the break between the end of session and the primary is compressed to just 10 weeks, as opposed to the old calendar where there were five months between session and primary. Given Ron’s argument that the Virginia election took valuable resources – perhaps tenuous; then again look at what the Maryland-based Conservative Victory PAC did – it’s likely that fundraising could pick up and this is Ron’s opportunity to keep the lights on and concentrate on his job serving the people of his district for one last session.

Yet one still has to ask why the state (and eventually, counties) should be involved in the process. I can understand the “political machine” argument, but the problem with public financing is that it’s just as likely a donated dollar can go to a politician I disagree with as it can one with whom I’m foursquare. I have no control over the recipent as I would with a direct donation. So I would encourage counties not to adopt the practice, and judge Heather Mizeur and Ron George (if he chooses the option) accordingly.

A novel fundraising approach

Because the General Assembly session begins next Wednesday, a number of local and statewide politicians who cannot legally raise money during the session are cramming fundraisers into the last few days before the session begins. Originally I was going to focus on a luncheon fundraiser being held in Ocean City by Delegate (and Senate candidate) Mike McDermott on Monday which will feature Congressman Andy Harris.

But at the same time at the BWI Marriott, Delegate (and gubernatorial candidate) Ron George will host what he calls a “Pre-Session Business Legislative Luncheon” with Anirban Basu of the Sage Policy Group. As is the case for McDermott, Ron’s hosting a fundraiser, and an important one. While others in the gubernatorial race on both sides can still raise funds through various means, Ron would be stymied for 90 days – unless he went through an unusual route, one which fellow Delegate Heather Mizeur is already taking.

A loophole in state campaign finance laws allows guberatorial candidates who accept public financing to raise their “seed money” during the legislative session, and Ron is reportedly considering the idea. It would place a spending cap on his campaign (as it would Mizeur’s) but where Mizeur would be dwarfed in spending by her Democratic primary counterparts who already have millions to spend, George wouldn’t be overwhelmed by the amounts his competitors are expected to raise in the primary.

Campaign finance of a different sort has grabbed the headlines of late, but while Ron George is within his legal right to do so why does he feel like he’s perhaps forced to dip into taxpayer funds to run a campaign? The flip side of pay-to-play – besides limiting the government in an effort to starve the beast – is that I think there should be no restrictions on political giving except one, that being rapid disclosure. This would eliminate the artificial wall of separation between a politician in session and fundraising – do you honestly think a large donor isn’t going to expect his back scratched whether he gives on September 1 when the legislature is off or on March 1 during session?

Interestingly, the campaign finance reform George sponsored last year will allow counties to have their own public campaign financing (see page 39 here). So we may be dealing with more taxpayer financing of campaigns in the future, and not less. Yet we’ll still be stuck with the slow campaign finance reporting process where, for example, a contribution made January 1, 2012 isn’t reported until mid-January the next year. Granted, the reporting pace is faster during election years but still runs weeks to months behind.

We have an internet – why not use it and put campaign treasurers to work supplying us information we can use in a timely fashion?

A look ahead: 2014 in Maryland

Yesterday I looked at how 2014 looks in Wicomico County, but much – too much, as I see it – of their decision-making is truly made in Annapolis. And with current governor Martin O’Malley attempting to burnish his credentials for a position inside Hillary Clinton’s administration – oh wait, he’s supposedly running himself, isn’t he? – it’s important to him that he establish himself with the progressive crowd.

What this means for us is that no tax increase is off the table, but it’s more likely we will see renewed efforts at green energy, gun control, and salvaging the failed Obamacare rollout in Maryland – but if worse comes to worse, it’s Anthony Brown who will be thrown under the bus. In the decision between a Maryland legacy and a White House bid, well, no lieutenant governor has succeeded his boss anyway.

Brown is probably the conventional wisdom favorite to succeed O’Malley and become Maryland’s first black governor; of course there are other main contenders on both sides. Attorney General Doug Gansler seems to be the Democrats’ backup plan but has endured a rocky start to his campaign; meanwhile Delegate Heather Mizeur seems to be the one establishing a number of truly far-left issues in the campaign – witness her idea for marijuana legalization.

On the Republican side, three top contenders seem to be out to appeal most to the conservative crowd, with a fourth joining the field in January. Harford County Executive David Craig obviously has the most well-rounded political resume, but Delegate Ron George represents a more populous area around Annapolis. Charles Lollar is running the most populist campaign, but he may receive a run for his money once the social media-savvy Larry Hogan formally enters the race next month. His Change Maryland Facebook page claims over 70,000 supporters of all political stripes – in a four-way Republican race, 70,000 votes might be enough.

There are only two other statewide races this year, since there’s no Senate race this cycle. With Attorney General Gansler abandoning his post to try for governor, there are four Democratic members of the General Assembly out to succeed him – Aisha Braveboy, Jon Cardin, Bill Frick, and Brian Frosh all seek the seat, and all but Cardin have officially filed. No one has yet filed on the GOP side, but 2012 U.S. Senate candidate Richard Douglas seems to be leaning toward a run, allowing the Republicans to avoid the ignominy of whiffing on a statewide race for the second cycle in a row.

Things are shaping up as a rematch of 2010 in the Comptroller’s race, as Republican William Campbell is again challenging incumbent Peter Franchot.

With so many members of the General Assembly attempting to move up to higher offices, it creates a cascading effect in the various General Assembly races. While the GOP is probably not going to see a General Assembly majority in the 2015-18 cycle – and has the headwind of being redistricted in such a manner to try and cut their minority – being on the wrong side of a lot of issues may make it tricky for Democrats to not lose seats. Republicans have a goal of picking up seven Senate seats, giving them 19 and allowing them to filibuster, and wouldn’t be unhappy with picking up the four House seats required to possibly bypass committee votes on key issues.

As I noted above, though, the key issues will be revealed once O’Malley introduces his legislative package to the General Assembly in mid-January, shortly before his annual State of the State address. Last year he got his gas tax increase to build the Red Line and Purple Line, authorization for offshore wind, and his onerous gun restrictions in the wake of the Sandy Hook tragedy, so this year’s agenda will probably pivot back to measures he believes will help the state’s economy but in reality will probably redistribute even more wealth from the productive to the slothful, growing government at an even faster pace. Many of those dollars will address perceived shortcomings in education and health care.

That seems to be how O’Malley’s last package of revenue enhancements has worked, because the state once again is facing a structural deficit despite rosy predictions to the contrary. Old chestnuts like increasing the cigarette tax or combined reporting of business income will probably jostle for primary position with new initiatives like a mileage tax, additional penalties for cell phone usage, or a higher toll for being caught by speed cameras.

It’s somewhat difficult to predict the direction of the General Assembly before it begins, as items not on the radar in early January become bills introduced late in the session, some of which pass muster. The gasoline tax in its adopted form was one of those last year, since conventional wisdom predicted a straight per-gallon increase rather than the adoption of a partial sales tax which will increase regularly. Another dynamic which will affect timing is having the filing deadline for the 2014 ballot come during session – surely some will wait and see what their path to re-election looks like before introducing certain controversial bills. In previous elections the filing deadline occurred well after the session was over.

Once we get beyond the session in April, the primary campaign will ramp up immediately because of the new experience of a June primary. The Democrats tried to change this eight years ago, fearing a bruising primary fight between Doug Duncan and Martin O’Malley, but succeeded this time because of changes in federal law requiring longer lead times for overseas military voters. Instead of pushing the primary back a couple weeks to comply, though, they decided on a full 2 1/2 months.

At this point there are three main contenders on the Democratic side, and I think that number will stay the same – my thought is either Dutch Ruppersberger will pass up the race (more likely) or, if Dutch gets in, the damaged goods of Doug Gansler will drop out. Obviously there will be more than three on the ballot but some fall under the auspices of perennial candidates who I think are just working on that line in their obituary where it says so-and-so ran for governor five times.

For the GOP, the same is true. In their case, I don’t think there’s enough money out there for four main contenders and whoever raised the least in 2013 is probably the one who exits the race after Larry Hogan makes it formal. In Hogan’s 2010 gubernatorial bid he lent his campaign $325,000 so presumably Hogan has the personal wherewithal to use as seed money; perhaps the dropout will agree to be the running mate of another contender.

It’s interesting, though, that the problems Maryland faces – at least the ones not of their own making, a category in which I’d include the overregulation of local county and municipal governments – are very similar to those faced right here in Wicomico County. Maryland has the “benefit” of being the host state for thousands of federal government worker bees, but little industry to speak of. It’s notable the campaigns are now paying lip service to the concept of re-establishing a manufacturing base, but the process will take at least a couple terms of office and will certainly be at odds with the stated goals of some among the Radical Green who desire a pristine Chesapeake Bay. Development and a reasonably clean Bay can co-exist, but if you want circa-1600 conditions that won’t happen.

And because there are so many who depend on government for their livelihood as workers – or survival as dependents – the concept of “One Maryland” is laughable on its face. The needs of Baltimore City or Somerset County residents don’t often coincide with the desires of your average denizen of Takoma Park or Chevy Chase, but supposedly they are all “One Maryland.” I think there are at least four Marylands – the energy-rich areas of the state’s panhandle, the I-95/I-270 corridors stretching from Harford County on the north to the Beltway suburbs hard by the District of Columbia and back towards Frederick, the bedroom suburbs of southern Maryland which are rapidly changing in political posture, and the Eastern Shore, where agriculture and tourism coexist, but in an occasional state of hostility. One can’t even say that their needs are similar because jobs are plentiful around D.C. but tougher to come by on the Eastern Shore and in Baltimore proper.

It’s not likely one man (or woman) can unite these areas, but the question is which coalitions will hold sway. Finding the right combination will be the key to success for the state in 2014.

2014 Maryland dossier: part 10 (fiscal conservatism and taxation)

It (almost) all comes down to this.

Perhaps the most important – and controversial – issue in Maryland is money. How much of it will the state take from your wallet?

We’ve heard the litany for the last couple years: all the tax increases, all the new tolls, and dozens of other new ways the state parts you from your cash. I don’t know about the rest of you, but if I went out and earned it, I consider it mine until I decide what to spend it on.

So let’s see what the three candidates in the race so far have to say about the situation.

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David Craig: As Governor, I will repeal, reduce or eliminate any tax or fee that is impeding job growth – rain tax, business taxes, income taxes, sales taxes, and fuel taxes for starters. I will eliminate the tax on pensions.

Under the Maryland Constitution, the Governor controls the budget.  As governor, I will use this authority to make actual cuts to the budget, and I will end the practice of attempting to fool voters into thinking spending is being reduced when it’s not.  Such budget games enable politicians to carry out their real agenda which is to grow their government with your money. As for taxes, fees and tolls, those that are the most damaging to individuals and our economy will be reduced or eliminated.

As Governor, I will support withholding funds for departments and agencies that have recurring problems uncovered in state legislative audits. (campaign website)

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Harford County Executive David Craig today called on the Maryland General Assembly to repeal the so-called rain tax in the next legislative session. (press release, July 1, 2013)

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monoblogue: But is there any chance we’re going to see some of that stuff rolled back if you’re elected?

Craig: I will look at all of them. But if somebody says “which tax first?” I’m going to look at all of them. There are certain taxes that probably haven’t been on the table that people said, would you ever get rid of this? If the state says that we’re going to make – we have a Public Service Commission to keep your BG&E rate as low as possible, why do we tax it? Why do we tax it? If we got rid of that, it gets rid of $5 on your BG&E bill every – well, it would save you 60 bucks. And guess what? You’re probably going to spend it somewhere else.

The gas tax – I do tell people I have to be cautious to (not) say I’m going to get rid of this tax or lower this right away because – I’ll have to use the septic tax for an example – when Ehrlich was governor the septics were all done through PAYGO, so he didn’t have capital projects. This governor turned it to bonding, so if I’m stuck with paying off a bond I’ve got to do that first before I can get rid of the tax. (monoblogue interview)

Ron George: Lower the Corporate Income Tax Rate by 2% to 6.25% in 2015 and lower it .25% in 2016 and 2017 until it rests at 5.75 percent, creating an incentive for businesses to come and to stay in Maryland.

An across the board 10% income tax cut. This puts more money in the pockets of working families and helps many small businesses to grow the economy.

Encourage Baltimore City in the reducing of their property tax rates.

Repeal the Gas Tax and the Rain Tax, challenging the EPA in court if necessary.

Allow Maryland residents to receive a 20% sale tax credit on all individual items bought for over $100.00 in Maryland when they file for their tax returns and supply a proof of purchase, thus creating an incentive for Marylanders to buy Maryland goods. (campaign site)

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George advocated tax cuts over tax credits, claiming that the latter is the Democrats’ way “to make you dependent.”

“You play their game, and you get a tax credit,” George said. “They’re picking winners and losers.” (Southern Maryland News, June 26, 2013)

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The photo to the left is him beaming after signing the Taxpayer Protection Pledge, a document put out as a vow between the candidate and the taxpayer, through Americans for Tax Reform. (monoblogue, June 21, 2013)

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“I agree with Comptroller Franchot that we cannot afford more bond lending,” George remarked. “O’Malley is shifting today’s debt onto our children. He cannot fund the budget with existing revenue so he has backfilled the budget with bond bills.”

Del. George also noted that it was the O’Malley/Brown administration who extended our debt service from 5 years to 15 years thus creating ever increasing future structural deficits. (press release, September 26, 2013)

Charles Lollar: One solution he advocated was a taxpayer’s bill of rights (or TABOR law) like Colorado adopted some years ago. Simply put, a TABOR law means annual spending can only be increased by the sum of percentage of population growth plus the rate of inflation. (WCRC meeting, August 26, 2013)

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Referring to the state of Maryland, Charles warned “we can’t afford our lifestyle,” claiming that $9.2 billion of a $35 billion state budget comes from various federal grants and stimulus money. We bring in only $26 billion of a $35 billion expense tab, said Lollar. (Wicomico County LDD, March 23, 2013)

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I will immediately create an attractive business environment by proposing:

Reduction of the state sales and use tax from 6%, requested by and enacted for the O’Malley Administration, back to 5%.

Repeal the Rain Tax (the “Impervious Surfaces Tax,” requested and signed into law by Governor O’Malley), which imposes a “storm water management fee” upon Maryland landowners in ten counties to collect and treat pollutants in storm water and release it to the Chesapeake Bay or its tributaries.

EPA’s decree was imposed on New York, Pennsylvania, Virginia, West Virginia, District of Columbia and Maryland. Yet, only Maryland has instituted a levy on its property owners to meet EPA’s standards.

Repeal the new 24 cent per gallon added tax, which substantially increases the costs of transportation to all Marylanders and injures the ability of those who rely on water and land transportation to operate their businesses and employ others. The new O’Malley Administration tax has been added on top of all other gasoline taxes Marylanders must pay.

Repeal the Death Tax (the “Estate or Inheritance Tax”) which essentially “robs the dead” by stealing the fruits of one’s lifetime labor upon death by taxing once again your assets, already taxed during your lifetime through income and other taxes. State and federal death taxes have a dreadful impact upon many Marylanders and family owned business and farms, causing substantial financial pain to, and often the livelihoods of, family survivors forced to sell the family farm or business to pay these taxes. (campaign website)

“I would do something a whole lot different. We would start from where we were last year, go backwards 3 percent from there – let that be a bottom-line dollar figure – and then go right back to our state department leaders and say…show me or justify why it needs to be more than that prior to this budget going forward.”

“I don’t just want to balance the budget, gentlemen, I want to send refund checks back home to the citizens here in the state of Maryland.” (blogger interview, June 24, 2013)

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“If someone with the fiscal experience that I have can step in there and write us a budget that puts us on track to a balanced budget, with no dependency on federal dollars, then I think I’ve done enough for the state of Maryland.”

“…if we pass a tax payer’s bill of rights and we mandate that your state government cannot grow any faster then the cost of living and CPI (consumer price index), then if your paychecks don’t grow more than one percent, neither should your state government. If we had that law passed, we would have sent checks home to every legalized, tax paying citizen in Maryland for the past eight years.”(interview, Raging Against the Rhetoric, July 2013)

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Lollar would institute a Taxpayer’s Bill of Rights, so that government spending and taxes would not outpace the inflation rate. He would amend the state constitution to require a referendum in order to increase taxes at a faster rate than inflation. (Real Clear Markets, September 3, 2013)

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Lollar, who lost a 2010 race against Rep. Steny Hoyer (D-Md., 5th) and is hoping for better results with his run for governor in next year’s election, said the state budget should start out with “what you have,” not “what you want,” as he said the current governor and Democratic-controlled General Assembly has done year after year.

“That policy is terrible,” he said, adding that the state budget is growing faster than Maryland residents’ paychecks. (SoMDNews, November 1, 2013)

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If you’re looking for help on the other side of the aisle, well, good luck.

One key goal of Anthony Brown’s business ideas is “enabl(ing) state and local government to adequately fund our shared priorities.” After the 70 or 80 tax increases we’ve endured over the last seven years, one would think the funding is already more than adequate.

And while Doug Gansler doesn’t address these issues directly, Heather Mizeur is looking to yet another “sin tax” by legalizing and taxing marijuana; meanwhile, she’s also itching to tax the state’s producers. While she claims the overall effect would be “revenue neutral,” we lost money the last time this was tried.

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So when I look at the candidates, I have to wonder who I think would hold the line. David Craig has a realistic view of the situation, but my fear is that we will see too much of the “look at all of them” and not enough of the repeal or eliminate. The governor has the whip hand based on his control of the budget, so it should be treated that way. The thing which worries me is that the budget will go down, but there will be the real temptation to keep the taxes to build up the “rainy day fund” or some other excuse. Out of 15 points, I can give him 11.

Ron George has the right ideas, although once again the pacing is a little slower than I’d like. While I didn’t mention it in this go-round, the auditing would be a help with the budget. It would be interesting, though, to see what his budget priorities were.

But I found it odd that he talked about tax cuts over tax credits, but proposed one for the Maryland-made goods. Honestly, that’s not going to be a great incentive for business to move here or people to buy here because it’s more paperwork they have to remember. I’d rather just cut the sales tax. So for Ron it’s 12.5 of 15 points.

The best thing any of the three main candidates have come up with is the idea of a TABOR, which Charles Lollar proposed. Its appeal is basic: there would be a spending cap for the state. Priorities would have to be set, and choices made, rather than the seemingly common belief that tax dollars will endlessly be provided. Now whether he could eliminate the entirety of the $9 billion we receive from the federal government is, to be quite honest, very questionable, but certainly getting a TABOR passed would help keep spending to a point where it’s manageable.

But the financial arena is where a populist approach works best. It’s not perfect because there are still some vague areas which need to be explored further, but this is perhaps Lollar’s strongest area and he receives 14 of 15 points.

I’m not quite done yet, though. The final part will deal with some of the intangibles I found.

2014 Maryland dossier: part 9 (job creation and transportation)

Yes, I’m going to talk jobs. Some may ask why it’s only the second-most important factor and that’s because we all work to build our own wealth and maximizing control of that wealth is key. But the best way to amass wealth is through your own toil, so why not have a governor who creates the conditions to create employment?

I add the aspect of transportation into this category becaise I believe having a comprehensive and effective system of moving goods to market while allowing people the maximum freedom of movement is also important in creating employment.

And while some who dismissed this cause have already made their endorsement decision, I’m still working it out. Fourteen points are at stake here in my 100-point competition, so away we go…

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David Craig: Economic development will be a central focus of my Administration.  As Lt. Governor, Jeannie Haddaway, and my cabinet secretaries will review every regulation harming job growth.

After we fix our tax code, our state’s economic development office will refocus on its mission of bringing jobs to Maryland – recruiting everything from warehouses, to corporate headquarters, to science labs.  Our focus will be to maintain, build, and attract businesses new and old. (campaign website)

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Reducing the individual income tax is a priority because of the importance of start-up and early stage companies that are often organized as pass-through entities.  Regulations are often conflicting and duplicative among federal, state and local governments and will be the initial focus of a broader effort to overhaul the process. (Press release, October 4, 2013)

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Asked about business, Craig intended to hold quarterly business roundtables. Because it affected local businesses in advance of consumers, we knew about the recession back in 2008, said Craig, and Harford County made budgetary decisions in a proactive fashion based on that knowledge. (WCRC meeting, July 22, 2013)

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And Craig raised questions about whether the Red Line, a light-rail project in Baltimore, should be built. (Washington Post, May 31, 2013)

Ron George: Grow the tax base in Baltimore, allowing other jurisdictions to keep their money home for infrastructure and education needs. Remove burdensome regulations.

Bring back large corporate manufacturing companies to Baltimore to create entry level and mid-level jobs. Attract the import and export industry to make use of our newly expanded Port and BWI.

Bring back mid size and small manufacturing firms to the Eastern Shore, Western Maryland, and Southern Maryland small cities, towns and rural cross-roads where property taxes are lower and homes for workers more affordable.

Assist small cities such as Chestertown that have revenue saved toward broadband and other incentives, by giving them the rest of the cost they need on a pay-back basis, thus allowing these municipalities to attract small retail, IT and other businesses to areas that are more affordable to live in.

Create a true lock-box for the Transportation Trust Fund that no legislative body can draw from for other needs so all interested parties can have predictability.

Put all gas taxes toward state road and bridge creation and improvements. (note the aforementioned repeal of the 2013 gas increases and its required forced automatic increases.) (campaign website)

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“Maryland needs regional plans, for business, for economic development and for education,” said George.

He said a state grant with a payback provision makes sense, because if it spurs a local economy, it increases the tax base. If private firms aren’t stepping up, “you need a grant to close that hole,” he said. The state “awards a lot of grants we never see a payback on. The money is gone.”

At the Port of Baltimore, the city has a chance to attract import-export businesses because of improvements there. A new generation of larger cargo ships will be able to call. “They could attract import-export businesses, but they’re not doing that now,” he said.

At the same time, there must be “a different approach for the Eastern Shore, for Kent County.” (Kent County News, August 22, 2013)

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To conclude the initial portion of his remarks, Ron noted he was the Maryland Business for Responsive Government’s legislator of the year, in part for his work in capping the state’s boat excise tax, and promised that, if elected, “I will make sure (rural areas of Maryland) get their fair share.” (WCRC meeting, September 23, 2013)

Charles Lollar: Charles will promote the rebirth of construction and industry jobs through private-public investment that Maryland desperately needs – now. Charles will inspire companies to grow by creating the necessary economic and regulatory climate for companies to do so, but without hurting the state’s natural environment.

He wants to reduce the need for prisons by lowering the crime rate by creating avenues to rewarding jobs as industry and construction firms thrive and by increasing the influences of community based non-profits. (campaign website, “Platform”)

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Fix a broken system that is blocking access to opportunities with over-regulation and excessive taxes. Review all unnecessary taxes and regulations and eliminate the Rain Tax. (campaign website, “Jobs and Economy”)

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Lollar is opposed to the Purple Line, a $2.2 billion 16-mile rail project that even the richest Maryland residents are not prepared to pay for. It can only be built with substantial federal and state subsidies, as yet unappropriated: $900 million from Uncle Sam, $400 million from Maryland, and the rest from who knows where. The Purple Line is disliked by some residents because it would displace a popular walking and bike trail, but supported by developers because they think it would enhance the value of commercial property. Instead, Lollar favors small buses, which have high per-person pick-up rates. (Real Clear Markets, September 3, 2013)

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“We have something to prove. From the day I get sworn in as your governor here in Maryland, that sign that says ‘Governor Martin O’Malley’ will come down. It won’t be replaced with ‘Governor Charles Lollar,’ it will be replaced with a tagline that says ‘Maryland is open for business.’” (SUTV interview, November 13, 2013)

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So let’s look at the other side. Anthony Brown has a business plan, but it leans heavily on “forg(ing) a stronger partnership between the public and private sectors.” Under “Tax Liability” it’s worth noting a priority is that it “enables state and local government to adequately fund our shared priorities.” So taxes aren’t going down anytime soon under a Brown administration. There’s a lot of “ensuring” in his plans, which is a weasel word meaning “mandating.”

Doug Gansler is marginally better, but the problem with his approach is that it has to be the right business in the right location, with a heavy reliance on tax incentives, creating a dependence on government and their gaming of the market. Why not provide the incentives of a great location and encouraging regulatory regime instead of picking winners?

Meanwhile, Heather Mizeur would absolutely devastate job creation in the state by raising the minimum wage, instituting mandatory paid sick leave, and putting combined reporting into effect. In terms of transportation, it’s also telling that she places “investments” in public transportation – a manner of getting from place to place with the least amount of freedom – on a higher priority than fixing roads and bridges. This is exactly backwards.

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So how do the Republicans rate?

In looking at what David Craig is saying, I can’t find fault with his approach. Economic development on a state level shouldn’t be about only bringing certain, politically correct businesses. And certainly a pruning of regulations is long overdue.

While there’s been some question about Harford County’sjob creation methods, they are all within the toolbox of incentives allowed by the state.

But I’m a little leery about whether David would be swayed by politics and keep the Red Line. I really wish I knew a little more about his transportation plans, but his manufacturing plan seemed to indicate he had a pretty decent idea about how Maryland could grow. I’ll grant him 9 of 14 points.

There are two broad pieces I really like about Ron George‘s plan: it scraps the whole “One Maryland” concept put in place by the current administration, and it emphasizes manufacturing in smaller towns and cities in rural areas. My hope is that Ron takes the money he locks away for the TTF and follows through on road and bridge improvements to improve truck access.

The only quibble I might have is the grant process because if there’s a payback provision, isn’t it a loan? The other problem I have is a seeming overemphasis on Baltimore City, which is vital but not all-important. Regardless, based on the confidence business has in his voting record, I give Ron 12 of 14 points.

Once again, though, I have an issue with some items Charles Lollar supports.

First of all, the aspect of public-private partnerships that Charles is expressing his interest in usually means tolls or fees collected by the private entity, which sort of blunts the appeal of the “desperately needed” investment. Ironically, the Purple Line Lollar opposes is one such PPP. The state will pay the winning private entity back over time, so where is their risk? Chances are the performance standards won’t be too difficult to attain, depending on the political payoff to the governor at the time.

The next is my wonderment at how one can cut regulations down to size, “but without hurting the state’s natural environment.” Does that mean the Chesapeake Bay Foundation has first right of refusal? Why even put in those weasel words?

Obviously I’m for eliminating the rain tax (as are all the GOP contenders) but I’m disappointed at how vague Charles is about what he would do – for example, what defines an “unnecessary” tax? I think the corporate tax is unnecessary because it makes up a small percentage of the state budget, but would you have the courage to eliminate it?

You may replace the signs at the borders to say Maryland is “open for business” – by the way, I drove into Virginia yesterday and their signs already make that proclamation – but for someone who was charged at one time with running a “Commission for Citizens Tax Relief” this seems like only lip service. Maybe my menory is faulty, but I thought Charles had gone through the budget line by line to suggest cuts once upon a time. I would expect more in-depth issue analysis.

For these and other reasons, I can only give Charles half the points – 7 of 14.

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The final main component is taxation, which is worth 15 points. I also have a post’s worth of intangibles, which can add or subtract up to 3 points.

At that point I can assess which candidate is my favorite – at least until Larry Hogan starts spelling out his issue positions so I can compare them.