Taking less of a toll

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

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

Of course the Maryland Democratic Party found fault with this:

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

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

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

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

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

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

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

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

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

Quotable tax quotes

Yesterday Maryland wallets got a little bit lighter as travelers over most of Maryland’s tollways had to dig a little deeper into their wallets, and those motorists unfortunate enough to need to fill up their gas tanks chipped in another forty cents or so to the state’s coffers. (My travels take me to Delaware today – guess where I’ll fill up?) And those with property in nine of Maryland’s counties? They just saw a significant property tax increase. (The exceptions are the fourteen rural counties not yet covered by the state’s new “impervious surface fee” derisively known as the “rain tax” and those property owners in Frederick County who will pay exactly one penny per piece of property.)

Needless to say, a number of state Republicans weighed in on the topic:

State GOP Chair Diana Waterman: “This irresponsible taxation and the reckless spending it supports offers an opportunity for those of us who believe in good government. As Republicans, we are in a great position to remind our fellow Maryland residents why 2014 must be the year we send a loud message to the Democrats that it’s time to put people first.”

Maryland Young Republican Chair Brian Griffiths: “These taxes will hurt all Marylanders and huge sections of our economy as businesses are forced to raise prices to cover the costs of these new taxes, the costs of which will invariably be passed on to the consumers. At the end of the day, just these three tax increases will likely cost each Marylander over $1,000 a year that could be better spent to stimulate our economy and create job growth.”

Several other state Republican leaders were quoted on the Maryland Politics blog, part of the Baltimore Sun. Writer Michael Dresser quoted the group as calling this a “virtual downpour” of tax increases.

Candidates for Governor weren’t missing the opportunity, either.

David Craig: “(W)e are witnessing yet another example of how the one-party monopoly in Annapolis is working for itself and not for you. With the increase in tolls and the first of multiple increases in the gas tax, Maryland families are being forced to give more of their hard earned dollars to a failing and ineffective government.”

Craig also put together a brief video with a similar message. (Shouldn’t it have an authority line, though?)

On the rain tax, David added, “Stormwater-related costs necessary to comply with EPA mandates are projected to cost county taxpayers a staggering $6.3 billion through 2025. If you wanted to open a business with a parking lot, would you want to come to Maryland and figure out this new tax?”

Ron George: “O’Malley/Brown now are stealing from your summer vacation funds. Since they robbed and misspent what was needed for transportation, they are now grabbing your money through tolls, rain and gas. As you look at the bay bridge behind me, it is an example of what is happening around Maryland. More and more people on the Eastern Shore, which has lost manufacturing jobs, have to drive to Washington and Virginia for a job, if they have a job. Less and less people on the Western shore will drive to doctors and businesses on the Eastern Shore.”

“This is not how you build an economy.”

Charles Lollar: “To think that just a few weeks ago, Lieutenant Governor Anthony Brown stated that Maryland had a ‘great session’ makes me wonder what great accomplishment they had. Was it the Rain Tax that punishes citizens when it rains because of how much ‘impervious surface’ they have on their property? Was it the fee increase for tolls up to $6? Or was it the gas tax increase that pretty much goes up year after year?”

Even though he’s not a candidate, it’s no surprise that Change Maryland had some reaction as well.

Larry Hogan: “Your family trip to the beach just got a lot more expensive. Today, the second round of O’Malley toll increases took effect and the gas tax increase kicked in at the same time. While you are sitting in traffic at the Bay Bridge for the 4th of July weekend you can thank Governor O’Malley and the monopoly in Annapolis for the 140% increase in tolls, and for giving us the most expensive gas in the region.”

“Governor O’Malley says he’s ‘Moving Maryland Forward’. But if that’s moving Maryland forward, I say maybe next year, we’ll just have to take Maryland back!”

Needless to say, our governor didn’t look at it this way, placing a splashy graphic on his Facebook page:

These, of course, are numbers coming from the same guy who has “cut” billions in state spending yet whose budget has increased by 30% since taking office in 2007. At 9,500 jobs a year, he’s barely making a dent in Maryland’s chronic unemployment, nor is he accounting for the potential of job losses in various industries dependent on people having extra money, such as tourism. Just as a real-world example, it would take just over 22 years for O’Malley to get to full employment gaining 9,500 jobs a year (based on the Bureau of Labor Statistics unemployment estimate of 210,800 unemployed Maryland workers in May.) Obviously that doesn’t account for population growth, either.

But what slays me is the concept of building a “21st century transportation network” using the 19th century technology of the railroad. Granted, rail transport has its place in commerce and trade, but as currently practiced it is woefully inefficient for the needs of most commuters. (If it weren’t inefficient on an overall scale, why are such a small percentage of Maryland workers using it?) I think my concept of an improved transportation network – which could also include a widening of I-70 beyond Frederick, to avoid the usual bottleneck of merging I-270 traffic and allow smoother flow westward – is far more practical than the O’Malley/Brown vision.

The idea of a good transportation network is to get people and goods to where they need to go, not pretend that a light rail boondoggle which will cost billions is the panacea. I don’t think people would mind the additional transportation taxes and tolls as much if they were confident the money would be used to repair and improve our highways and bridges – instead, most of it seems to be earmarked for two rail lines and one toll road few will use.

Similarly, we all want a cleaner Chesapeake Bay, but the idea of a mandate from on high which affects some more than others and is to be used for a concept where fruition is a constantly-shifting set of goalposts (because it’s in the best interest for those who created the benchmarks to continue as a political entity if the problem is never solved) simply seems unfair to those saddled with paying this fee on top of their remaining tax burden.

That’s why we’re angry. But Democrats are wagering that all this will be forgotten in 17 months’ time, particularly as some of these transportation projects reach the groundbreaking stage, with its requisite photo-op.

But consider the relative lightness of your wallet when you see your local Democrat gladhanding at this photo-op. If we simply used proper prioritization for transportation funding, we wouldn’t have needed to raise the gas tax every year from here to eternity.

That’s the common sense woefully missing from state government.

A softened blow, but it will still hurt

Eastern Shore drivers will get a one-month reprieve from Bay Bridge toll hikes – but it’s still likely the prices will rise steeply.

As originally envisioned, Bay Bridge tolls would jump to $5 come October and skyrocket to $8 in 2013. Instead, the MTA is expected to vote next Thursday on a proposal to increase Bay Bridge tolls to $4 on November 1 and $6 in July 2013. So we’ll “only” have a 240% increase instead of a 320% increase.

Still, this will take a larger bite out of our pockets and as a percentage (with some exceptions for Baltimore-area commuters, who now pay less than $1 to cross at various Baltimore-area points) those using the Bay Bridge will see the largest increase in tolls across the system.

While we all figured a toll increase was a fait accompli, I think the grudging preference among those who testified at our hearing (aside from Norm “Five Dollar” Conway) was that increases be phased in slowly and not with such a steep incline as to increase over threefold in the span of two years. We got a little bit of modification, but it’s clear the MTA is going to rely on Eastern Shore drivers to be the cash cow for years to come – although Baltimore-area commuters have a point in saying they’ll be unfairly targeted too.

On the other hand, the newest toll highway in the MTA portfolio will still be exempt from increases as the Intercounty Connector doesn’t see a hike. That highway is a little bit different in that there is no cash toll and drivers are charged on a sliding scale of anywhere between 15 cents and $3.94 per mile depending on time of day and number of axles. Yet they won’t have to bear any additional burden, at least for the time being.

So while we can thank the MTA for apparently listening to our concerns, it’s interesting to note that a comment in response to the story by David Hill in yesterday’s Washington Times on the toll hike concluded the increase to $6 was the plan all along and the $8 figure was just in place to make us feel like we won something at the end. And it is indeed tempting to think that the O’Malley administration would have been thrilled if no one showed up to complain about $8 at the Bay Bridge – remember, the Eastern Shore hearing wasn’t originally planned but added due to popular demand.

Yet they will still get additional millions out of the deal – maybe not the $77 million projected annually by the original proposal, but perhaps a number in the range of $50-60 million on top of what they already make. They won’t be hurting for money, but Eastern Shore drivers might be.

Toll hearing July 14

I actually knew about this already, but I was reminded by an interesting source.

A postcard came to my mailbox today, addressed to me or the current resident. The sender: Congressman Andy Harris.

Printed at taxpayer expense, it revealed the hearing would take place on Thursday, July 14 at Stephen Decatur Middle School, 9815 Seahawk Road in Berlin, beginning at 5:30 p.m.  It also restated Andy’s opposition to the “massive toll hike proposal” that “will destroy jobs and hurt rural Maryland families” as well as “hurt businesses we count on for jobs in the tourism, seafood, and poultry industries.” (Yep, that’s the Eastern Shore in a nutshell.)

No question Andy is right, but I guarantee some crank is going to get his panties in a wad because Andy is using his franking privilege in such a manner. Yes, the piece states Congressman Harris’s opposition to the toll hikes, but that was made pretty plain by news reports when the toll increases were announced. So there’s no new news there. He also informs the public about an opportunity to say one’s piece – for all I know, someone who got the card may be all for jacking up the toll over threefold during the next couple years but had no idea a hearing would be held on this part of the Shore. I don’t believe this particular hearing was in the original schedule but was likely added through popular demand and the behest of the Ocean City and Worcester County tourism industry.

Therefore, this is one of the cases where the Congressman is performing his public service and using taxpayer money in a relatively prudent manner. (The card is a simple black-and-white postcard and not a fancy full-color four-page mailing. But it conveys the message just fine.)

In the meantime, it will be interesting to hear how this meeting goes. If my work schedule allows I may just drop in.

Odds and ends number 31

Once again I have a lot of little items that deserve a little bit of comment, so here goes.

Delegate Pat McDonough is at it again. The 2012 Congressional candidate has prefiled a bill called the Toll Fairness Act. It has three goals:

  • Declare a moratorium on all toll increases.
  • Mandate a General Assembly vote and Governor’s signature on all toll increases, for accountability.
  • Prohibit transfers to non-transportation accounts. Delegate McDonough claims almost $800 million has been “stolen” from transportation accounts over the last eight years.

While it’s doubtful such a bill will muster the votes to get out of the Democratic-controlled committee it will be assigned to, the fact that we have this measure prefiled shows that people can be good and angry about the situation. We will see on July 14, when a hearing on the toll increases will be held in Ocean City.

Speaking of the peoples’ voice, the petition drive to overturn SB167 through referendum may well be successful. But CASA de Maryland was granted a request to make copies of the petitions; a move Delegate Michael Smigiel of the Upper Shore found shocking.

Delegate Smigiel made a point which I wanted to amplify. It’s bad enough that a group who’s dead-set against the referendum will be allowed to take possession of these petitions, if only for a brief time. Luckily the potential for mischief is lessened since that cat was let out of the bag.

But I think back to the controversy over Proposition 8 in California (to overturn same-sex marriage) and what happened to those who contributed to that effort financially – a number of them were harassed by pro-gay marriage supporters, with threats to both boycott their businesses and harm them physically. Could pro-illegal groups and supporters use the petition information to do the same in Maryland? They’re playing for keeps; unfortunately for them a goodly number of people about these parts are armed and don’t much like harassment. Hopefully the folks at the ACLU and CASA de Maryland will keep this in mind.

Meanwhile, those who support the petition and wish to make sure the count is done fairly aren’t allowed into the process. A Board of Elections worth its salt would tell the state to go pound sand on that (since it’s simply a policy memorandum and not law.)

And that’s not all from the state of Maryland. Richard Falknor at Blue Ridge Forum discusses the new “green” graduation requirement. There’s no time for teaching critical thinking or even the three R’s, but they have time to push that “smart growth” bullshit on our kids? Since the requirement appears to be only in public schools (for now) I guess I don’t have to deprogram my girlfriend’s daughter – yet – since she attends a private school.

I also learned a new word regarding this new environmentalism. In a press release from the Competitive Enterprise Institute announcing the formation of the Resourceful Earth website, a quote from Myron Ebell, the Director of CEI’s Center for Energy and Environment, caught my eye. Said Ebell, “unfortunately, many major corporations are being greenmailed into supporting these assaults on jobs and prosperity.” ‘Greenmailed,’ indeed. Do you think oil companies really want to spend millions to deal with environmental groups advocating for polar bears or caribou rather than job creation and maintaining our lifestyle? They probably add a nickel per gallon to the price.

Still, pump prices have been on the decline of late. That fact makes the timing of the decision to draw 30 million barrels down from our Strategic Petroleum Reserve very curious. Granted, there will still be nearly 700 million barrels remaining in our coffers, but there was no emergency situation to merit the release. Strife in Libya is no worse than unrest in Nigeria, another major oil-producing nation, back in 2009.

Reaction has been severe from some quarters, and seems to be the correct perception of the situation. Americans for Limited Government, for example, claims savings will be meager and short-lived:

If one is generous and assumes yesterday’s $4 drop was solely because of Obama and International Energy Agency, at best it will save consumers $.10 a gallon for gasoline.  That works out to about $1.50 per fill up, or $6 for the month the additional gasoline is available.

In other words, Obama has jeopardized national security by drawing down the strategic reserves to, at best, save consumers about $1.50 per fill up when this ‘flood’ of new gasoline hits the market.  To call this irresponsible would be an understatement.

And the real experts at the American Petroleum Institute were equally underwhelmed:

The release makes little sense for American markets. Crude and gasoline inventories are above average, and crude and gasoline prices have been trending down for weeks, despite the loss of Libyan oil, which markets have already adjusted to. The SPR was intended to be used for supply emergencies. There is no supply emergency. We don’t know what impacts this might have on markets long term. But we could and should be taking steps that would increase our own production by 2 million barrels a day or more for decades, which is possible if the government would grant much greater access to America’s ample oil and natural gas reserves. This would do vastly more to help consumers, increase energy security, create jobs and deliver more revenue to our government. It’s action that would truly strengthen our energy future, not a temporary gesture that has no lasting benefits.

30 million barrels is about what our nation consumes in a day-and-a-half. 60 million barrels (the total IEA release) is well under what the world consumes in a day.

Here’s the problem I see with this release. We have a President who doesn’t mind $4 per gallon gasoline, as long as the increase is relatively steady. He also has backtracked from allowing additional oil exploration thanks to a rare but ill-timed drilling accident in the Gulf of Mexico.

If you assume the oil which was placed in the SPR was purchased at a relatively low market price, well, we have to make that up sometime. And if you believe their line about supplies tightening up thanks to a civil war in Libya it would be my guess that oil will be more expensive. We just added 60 million barrels to future worldwide demand, and that will likely drive prices up a little bit.

In short, this is a shell game (no pun intended) to make people believe we’re doing something about a problem better solved with more oil extraction. For example, approving one pipeline would eventually make up for about half of what the world normally gets from Libya on a daily basis. Needless to say, I don’t buy the ‘peak oil’ theory. (Thanks to Jane Van Ryan of API for the pipeline info.)

And one final item. Over the last few weeks I had a PSA for the Move America Forward Troopathon which was broadcast over the internet last Thursday. They now have their tally in and were pleased to report they raised $507,843 from their efforts – exceeding their $500,000 goal.

It wasn’t as much as previous Troopathons raised, but then again we have fewer troops in that theater. Considering that being pro-military isn’t as much in vogue as it used to be I think that total is pretty good and reflects a nation that remains in a giving mood for our men in uniform.

Wow, that did a nice job of cleaning out my e-mail box. Look for more interesting stuff to come.