WCRC meeting – January 2014

It’s a new year, and apparently people are pent up with political desire. Benefitting from this enthusiasm in particular were Comptroller candidate William Campbell and District 37B hopeful Dr. Rene Desmarais, both of whom were our featured speakers tonight.

So once we handled the usual opening of reciting the Lord’s Prayer and Pledge of Allegiance and introducing the growing number of distinguished guests, we heard mainly from Campbell and Desmarais about their proposals if elected. We began with the second-time Comptroller candidate, who ran for the same post in 2010.

The reason he ran, said Campbell, was that he met the incumbent. But Comptroller was the “second most important vote you’ll make” behind the governor’s race. The Comptroller, Campbell continued, acts as the watchdog over the “rapacious” actions of our governor and legislature.

He also has a vote on the Maryland Board of Public Works, and if Republicans are elected to both the governor and comptroller posts they could “end the lunacy” in Maryland’s spending.

Chief among those flaws was pension funding. Campbell explained that a program which was fully funded just 12 years ago was only 65% funded when he ran in 2010 and is down to 60% now – although William argued that new accounting standards could prove that number to be closer to 50% funding. It’s a $40 billion unfunded liability.

Finally among the Comptroller’s chief duties is regulation of alcohol, fuel, and tobacco in the state of Maryland.

He went on to outline his qualifications, which were more than sufficient for the job: 9 years as chief financial officer of the United States Coast Guard, a stint as CFO of the Department of Veterans Affairs – where he oversaw a $65 billion budget and 225,000 employees; figures which dwarf the state of Maryland – and two years at Amtrak, which is still a money pit but “lost less money with me.” His planning to address the shortfall enabled Amtrak to buy locomotives for the first time in decades.

After leaving Amtrak, he did pro bono work for NASA, making their books auditable for the first time in years. Campbell did it for free because “I believe in good government.”

Speaking to his 2010 run, he conceded that he started late and ran a campaign with no more than 4 figures in the bank and 30,000 miles on his truck. Yet he outpolled U.S. Senate candidate Eric Wargotz, who spent far more money, garnering 691,461 votes and only trailing Bob Ehrlich by about 85,000 votes (Ehrlich had 776,319, which translated to 3% more.) He learned that you have to get voters to know you, like you, and trust you, so he started running last year for 2014. “I know the things to fix,” concluded Campbell.

When asked about how he would deal with Annapolis Democrats, Campbell’s initial inclination would be that of “quiet persuasion,” but it would escalate to that of a bully pulpit if needed. “I see a lot of ignorance in Annapolis,” said Campbell.

He was also asked if marijuana would fall under his supervision if legalized. It would, but the $150 million projected annual revenue was “a rounding error” in a budget of $40 billion. More important was the lack of attention to the pension fund, which should ideally be replenished to the tune of $500 million a year but was getting $350 million or less under Martin O’Malley. He charged current Comptroller Peter Franchot with “not living up to his fiduciary responsibility” by his handling of the pension funds, including coming in way short of the 7.5% annual return projections are based on.

Turning things over to Dr. Rene Desmarais, he began by stating the obvious: “Health care is a mess.” If elected, Desmarais added, he would be the only Republican doctor in the House of Delegates.

Desmarais was more brief, given a tighter time constraint, but spoke about three distinct themes: vision, connection, and opportunity.

The lack of vision in Annapolis was apparent in that there was no help in getting from point A to point B – government was just asked to solve the problem. This was true, not just in health care, but in a broad array of subjects like education, phosphorous regulations, and even the Second Amendment, Desmarais argued.

Connections abound from health care to a number of political topics, added Rene, but he spent part of the time discussing the connections to Obamacare, which has “22 missing things” and “done harm to people.”

Yet we also have opportunity because of a unique hospital payment system which can be the foundation to making needed changes. It would take a “message of clarity”for Republicans to succeed overall, but it can be done. Moreover, Maryland “can push the reset button” on the health insurance market, providing a better alternative than the current system where Eastern Shore residents get to choose from a whopping two insurance providers through the state exchange.

That concluded the portion of the program devoted to our guest speakers, but the treasurer’s report was brief and club president Jackie Wellfonder recounted a breakfast held with Delegate Addie Eckardt a week ago Saturday before yielding her time to County Council member Joe Holloway.

Holloway wanted to remind us that the County Council would meet next Tuesday evening (February 4) and discuss the recently-discovered $3;7 million revenue shortfall in the county’s budget, along with raises for various county officials and the allocation of $25,000 to the Clean Chesapeake Coalition.

In a Central Committee report which was more brief than usual, Dave Parker pointed out a candidate conference call slated for Tuesday and that the deadline for candidates was approaching quickly. “This could be a very good year for Republicans,” said Parker. We also heard plans for the Lincoln Day Dinner, which promises to be a memorable event if we can pull off getting our preferred guest speaker.

Turning to club business, we nominated new officers for 2014 – a simple process as all but one current officer volunteered to stay on. So we nominated one person to fill the vacancy and nominations were closed.

After that, we heard quickly from a number of other candidates who updated their campaign status. John Cannon, who served from 2006-10 on County Council, has decided to return to the at-large position he vacated to run for Delegate. He praised the current Council for making sure tha county didn’t tax its way out of the recession, and said his campaign would be based on business and job growth. Businesses “can’t find educated and drug-free workers in Wicomico,” said Cannon.

District 37B hopeful Johnny Mautz, Jr. invited people to a campaign kickoff in St. Michaels on February 9 from 4-6 p.m.

Matt Maciarello, our State’s Attorney, pointed with some pride to the fact that Salisbury has improved from the 4th most dangerous city per capita in the country to 52nd most over his tenure, although he was disappointed to find we were still on the top 100 list. Matt was more pleased, though, with the renovation of an old downtown building into new offices for his department along with space for the Maryland State Police, Sheriff’s Department, Salisbury city police, Children’s Services, and room for therapy for abuse victims.

Larry Dodd was another interested in a return to County Council, where he served from 2002-2006. He praised outgoing Council members Stevie Prettyman and Gail Bartkovich as being a “hard act to follow” – he’s running for the District 3 seat Bartkovich is vacating – and stressed his tenure on the Board of Education (where he’s a current member) as an advantage.

District 38B hopeful Carl Anderton, Jr. spoke about how he’s already “made a mark” in Annapolis, where the traditional introduction of the Maryland Municipal League president at the opening ceremony of the Maryland General Assembly was somehow skipped this year – coincidentally, he’s running against longtime member Norm Conway. Anderton also quipped that the state “wasted $100 million on a website that doesn’t work” but he spent $20 on his and it runs just fine. Carl’s having a meet-and-greet at Main Roots Coffee on Saturday from 11-1, added campaign manager Bunky Luffman.

Marc Kilmer, running for District 2 County Council, stated that the coverage of the $3.7 million county shortfall ignored a key fact – the budget went up by $10.9 million from the year before. We need fiscal discipline and not the “sky is falling rhetoric” the county seems to employ.

Touching on that, Joe Holloway praised local activists Johnnie Miller and John Palmer for trying to bring that shortfall to the county’s attention. “We were warned” that the county was being overly optimistic on revenue projections, Joe said.

On behalf of Christopher Adams, Jackie Wellfonder let us know he was still out knocking on doors and talking to people.

Finally, we were asked if any Democrats were in any of the races. At this point, the only Democrats who have filed are the incumbent Clerk of the Courts and Register of Wills, along with two seeking the District 1 County Council seat.

It really wasn’t a lengthy meeting, but it turned out to be chock full of information. The next meeting is February 24, with a speaker to be determined.

More pay to play, the Martin O’Malley way

Damn, I can’t wait for this report to come out. Almost makes me wish Larry Hogan would drop this governor’s business and focus on getting more of this information out because too many will dismiss it as partisan opposition research:

Change Maryland has released new information that seems to reveal the appearance of a “pay-to-play” system within the O’Malley-Brown Administration where contractors received significant benefits from the state either before or after their donations to the Democratic Governors Association during Governor O’Malley’s tenure as its chairman.

“This additional data further suggests a disturbing pattern of behavior that, at the very least, is unethical and inappropriate,” said Larry Hogan, Chairman of Change Maryland. “I think the public has a right to know the truth about these practices. Did the governor and/or others in his administration solicit large contributions from contractors, then reciprocate by rewarding those donors with huge state contracts, contract extensions, or other special favors or decisions in return?” he added.

Obviously this has serious implications and gives the appearance of the potential for decisions being influenced by millions of dollars in “donations.” Recognizing the inappropriate and unethical nature of these relationships, state law currently prohibits state contractors from making contributions to an elected official’s campaign account. This evidence indicates the possibility of a deliberate, coordinated effort by this administration to circumvent the intent of the law by soliciting huge, unlimited contributions to a federal, rather than state, account.

The report released today by Change Maryland shows that healthcare services company Express Scripts received a $2.3 billion contract despite serious concerns about the company’s legal issues in Maryland and 28 other states. In 2008, the company paid over $9.3 billion in settlement costs to these states.

From March 2011 to February 2012, the Maryland Board of Public Works was deciding whether to approve the lucrative contract to Express Scripts to provide prescription drug services to state employees. In March 2011, two of the three members voted to postpone a decision out of concerns about the company’s legal issues and several flaws in the procurement process. Governor O’Malley was the lone vote to move forward with the contract.

During this same time, Medco – a company looking to merge with Express Scripts – donated a combined $225,000 to the DGA. In fact, their first contribution came just six days after Governor O’Malley cast the lone vote to move forward with the drug contract.

In late January 2012, the Board of Public Works again voted to delay the contract award, drawing significant criticism from Governor O’Malley at the time who complained about the endless delays. One month later, the BPW reversed course, awarding the contract to Express Scripts in a two to one vote. On March 27, 2012, Medco made their second and final donation to the DGA: $125,000. Medco and Express Scripts received final Federal Trade Commission (FTC) approval for their merger on April 2, 2012.

“Maryland’s working families deserve better from their elected leaders,” Hogan said. “This is what happens when you have an arrogant monopoly that feels they can get away with anything. What Maryland desperately needs is a healthy and competitive two party system, open and honest debate, and some real checks and balances to keep some of these outrageous abuses from taking place.”

In addition to this most recent research, Change Maryland released other questionable contributions from state contractors to the DGA.

Update: I was informed by a representative of Express Scripts that the correct settlement figure is $9.8 million (not billion.) This is incorrect in the original Change Maryland release, so I left the release as is and opted to clarify here.

Hogan’s group seems to be taking the Chinese water torture approach, leaking information on this report a drop at a time to both make the opposition wonder what else he’s got and keep up interest in the runup to the release.

This series seems to leave me torn as well. I’m an advocate for unfettered political contributions, even at the risk of these apparent pay-to-play contributions. But I also want full and relatively instant disclosure, and even though these are federal releases with a more aggressive reporting schedule than state accounts – at least in non-election years – there’s still a significant lag time involved.

The allegations also raise another embarrassing question: where was the state’s major media in reporting this? Didn’t anyone wonder why the vote changed? Certainly Comptroller Peter Franchot had his reasons for maintaining his vote against the issue; the vote which changed was treasurer Nancy Kopp – interesting, because hers is not an elected post. (The transcript of that meeting is painful to read because the state really seemed to drop the ball on a $2.3 billion contract, dropping a Maryland-based provider for the aforementioned Express Scripts.)

What I’m afraid of is that this Change Maryland report will be both the tip of the iceberg and dismissed as “old news” because Martin O’Malley isn’t running for anything in Maryland and Anthony Brown will escape culpability because Larry Hogan is now a political opponent instead of an honest broker.

We need to clean out the swamp, it’s true, but in order to clean it we have to secure the tools to do so first. I think it would also be a good idea for Change Maryland to reveal where it gets its funding, just to show leadership. That’s my two cents.