Last year I did this in three parts, but to me that may be overkill this time around. Consider that 2017 is not an election year, so if anything we will not see much on that front until the latter stages of the year as the campaigns for 2018′s state elections ramp up. And because all but one of our local officials are first-term representatives in their respective offices, it’s likely they will wish to continue in office. Bear in mind, though, on the Senate side longtime House member Addie Eckardt will be 75 and Jim Mathias (who is in his second term as Senator after one-plus in the House) will be 67 by the time the next election comes around, so they are likely closer to the end of their lengthy political careers than to the beginning. And thanks to Wicomico County voters who passed the referendum this past November, 2017 will be the year we formally set up the elections which will net the county its first fully-elected Board of Education in late 2018.
Speaking of the local BOE, we still have an appointed board until that election and the two members whose terms expire this year are both Democrats who are term-limited. I suspect the local Democrats will try and send up names of people who will run for seats in 2018 to gain that incumbency advantage – as envisioned, though, these will be non-partisan elections. And the final say goes to the state Secretary of Appointments, who over the years hasn’t always been kind to those we preferred, either. Or, conversely, since the incumbents serve until their successors are appointed, we may see a long stalling technique, too. It will be interesting to see how that plays out, but I’ll bet those who are appointed will use that tenure as a springboard for eventual election.
Elsewhere in Wicomico County as 2016 comes to an end, it appears the city of Salisbury and Wicomico County are working out their issues rather well. The biggest sticking point remains fire service, and it’s relatively likely the city is going to see more of a reimbursement from the county when it comes to that – perhaps to the tune of up to $2 million a year. It’s possible there may be something to cut to make up for this, but as the county has increased its debt in the last few years to build several schools it leaves less room for spending cuts to make up the difference. If the city receives $2 million annually that would equate to about a 3 or 4 cent property tax increase for county residents. There’s also the chance that a tax differential or rebate may be on the table in order to reimburse city residents, as they pay the same tax rate as county residents. Wicomico is one of only three counties in the state that choose not to provide a tax differential to their municipalities.
But there is another factor to consider. Back in June the number of people working in Wicomico County set an all-time high of 52,010, eclipsing a mark that had stood for nearly a decade (July 2006.) That record lasted a month, as July came in at 53,668. While the number of jobs has finally reached where we were a decade ago, bear in mind the labor force is about 1,000 larger – so unemployment is in the 5.5% range rather than 4%. Even so, that extra number of people working – a number which year-over-year between 2015 and 2016 has fluctuated quite a bit but usually comes in at 1,000 or more additional workers in 2016 – means there’s more revenue to the county from income taxes so paying the city of Salisbury may not be such a heavy lift. The question for 2017 will be whether these economic conditions continue and whether Wicomico County will want to spend every “extra” dime on items which are unsustainable in rougher economic times.
That same question goes for the state, but the trend there has been for more spending. Democrats in the General Assembly added millions in mandated spending to the state budget and it’s a sure bet they will try again this year. Add to that the general belief that year 3 of a Maryland political cycle sees the most ambitious agenda put forth – it’s time for those incumbents to bring home the bacon and burnish their re-election chances the next year – and you can bet that paid sick leave will pass, Radical Green will have its day (perhaps with a fracking ban, which would devastate Western Maryland), and any Hogan veto will be promptly overridden. It’s certain that they will leave enough time in passing these controversial bills to do so. We’ve already seen battle lines drawn with the counter-proposal from Governor Hogan on paid sick leave and the social media-fueled drive to repeal the “Road Kill Bill” that Democrats passed over Governor Hogan’s veto in the spring of this year.
The wild card in state politics, though, comes from national politics. It’s not because we had the well-publicized answer to an extremely nosy press – if only they paid as much attention to some of Martin O’Malley’s foibles and scandals! – that Larry Hogan wasn’t going to support his (nominally at best) fellow Republican Donald Trump, but the idea that Donald Trump may actually do something to cut the size and scope of government. (Military contractors, particularly, have reason to worry.) And because Maryland’s economy is so dependent on the federal government, to a shocking and sickening degree, we know that if Trump begins to make cuts it will hurt Maryland the most. Given the typical bureaucrat CYA perspective, it explains perfectly why four of the five jurisdictions Trump did worst in - the only five which came in below his 35% statewide total – were the four counties closest to the District of Columbia (MoCo, PG, Charles, and Howard. Baltimore City was the fifth.) While I am entirely a skeptic on this, there seems to be the belief that Trump will take a meat cleaver to the budget and thousands of federal and contract workers will be cast aside because of it.
And in a situation where revenues are already coming up short of forecast, a recession in the state’s biggest jurisdictions, coupled with the mandated spending Democrats keep pushing through, will make it really, really difficult on Larry Hogan going into 2018. You will be able to judge who has the most ambition to be Governor by who carps the longest about these cuts.
While the Dow Jones stalled this week in an effort to breach the 20,000 mark by year’s end, the rise in the markets echoes consumer optimism - even as fourth quarter GDP forecasts turned a little bearish, consumers still feel a little better about the state of our economy. If we can get the 4% GDP growth Donald Trump promised we may see some of these fiscal crises take care of themselves.
Yet there was also a sentiment in 2016 that the world was going mad: consider all the terror attacks, the seemingly unusual number of and extended shock over high-profile celebrity deaths, and a general turning away from that which was considered moral and proper to that which fell under the realm of political correctness, wasn’t a “trigger” and didn’t violate the “safe spaces” of the Millennial “snowflakes.” (I can’t resist linking to this one I wrote for The Patriot Post.) At some point the pendulum swings back the other way, but in most cases that takes a life-changing event like 9/11 or Pearl Harbor. I’d prefer a much softer transition but a transition nonetheless.
As I see it, the key word for 2017 will be leadership: if the current elected officials and new President have it and use it wisely to the benefit of our county, state, and nation “so help me God” things will be okay. If not, well, we’ve seen that movie for about eight or ten years already and we will continue to slouch toward Gomorrah.
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.
At the most recent Wicomico County Republican Club meeting last Monday, gubernatorial candidate Ron George briefly mentioned that our state’s debt was cycling from a five-year payback to a fifteen-year payback, thanks to the desire of Martin O’Malley to keep annual debt service down and appear to balance the budget without further vast tax increases. George further expanded on this point in a release Thursday morning:
Delegate Ron George opposes Gov. Martin O’Malley’s increase in the state’s bond limit.
“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.”
Delegate 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.
The “out of left field request” for $750 million additional bond debt was made last Monday at a hastily-called Capital Debt Affordability Committee meeting, which also ran afoul of public meeting notice requirements – not that anyone else called O’Malley out for this violation, excused with the weak pabulum of “we overlooked that.” (Some seem more interested in $1,600 a particular Republican candidate is fighting over with the state.) Granted, $750 million over 15 years will not break the state’s $37 billion-plus annual budget, but we don’t yet know what they will spend it on.
At least Ron has room to talk: with the exception of Martin O’Malley’s very first budget – which was opposed by just five House GOP members – George has been a steadfast opponent of state spending over the years.
But the more important pieces of the puzzle come in the fact that it’s the piece of our property tax we turn over to the state which pays these bills, and unlike our local government’s revenue cap the state has no barrier to raising property taxes at any rate they wish. Currently, the state rate is 11.2 cents per $100 of assessed valuation, a rate which has remained constant since fiscal year 2006. Since the state’s property tax was reformed in the 2000 legislative session, the rate has varied: 8.4 cents from FY2002-2003, 13.4 cents from FY2004-2005, and 11.2 cents since. For the owner of a home valued at $200,000, the state’s take is $224 a year – overall, the state derives around $750 million in revenue from property taxes.
By comparison, residents here in Wicomico County endured a county rate increase this year alone of 6.82 cents per $100 valuation, or $136.40 more from their pockets for a $200,000 home. In 2010, the rate was 75.9 cents per $100, now it’s 90.86 cents – in three years, the county’s increase has been higher than the state’s overall rate and is the largest increase from 2009-2013 in Maryland at almost 20 percent, despite the revenue cap. So it’s a sure bet the state can justify a nickel jump by stating it’s less than some counties fluctuate in a year’s time; this despite the fact four counties (Allegany, Baltimore City, Carroll, and GOP opponent David Craig’s Harford) have decreased their rate over the last half-decade while an additional seven have held the line.
So while Martin O’Malley can’t run a deficit in this state, he has the power to bond our children into submission and he appears to be using it to keep today’s bills paid.
Since it was Ron who brought up the subject of property taxes, perhaps a good question to ask is how he will reconcile this promise…
Grow the tax base in Baltimore, allowing other jurisdictions to keep their money home for infrastructure and education needs.
…with the fact that Baltimore City has a property tax rate over double that of any other jurisdiction in the state, even as it’s decreased slightly over the last few years. Indeed, bringing it back to parity with other jurisdictions would be a major achievement but you can bet your bottom dollar Stephanie Rawlings-Blake would scream bloody murder and demand a state handout to make up the difference. But if I’m looking at property in Baltimore proper vs. suburban tracts, the taxes alone would be discouraging for urban development.
Then again, we know what “solution” the Democrats have in mind, and it involves more from our wallets.