CAR/Salisbury Independent forum part 3: District 38

Since I’ve now covered the county and District 37 races, it’s time to focus on the last political subdivision involved, District 38. The turnout for this one was disappointing because they failed to get the two Senate candidates, nor did they cover District 38C (although Democrat contender Judy Davis was in the audience.) On the other hand, District 38A received part of the billing despite the fact the district no longer covers Wicomico County.

So there were just four candidates to deal with: Delegate Charles Otto and former Crisfield mayor P.J. Purnell in District 38A and Delegate Norm Conway and Delmar, Maryland mayor Carl Anderton, Jr. in District 38B. I’ll start with the race that pits Otto, who was elected in 2010 after surviving a four-way Republican primary and rolling up 62% of the general election vote, against Purnell, who served as Crisfield’s mayor for the last eight years before not seeking re-election this year.

Their initial question concerned the wind turbine farm slated for Somerset County, but placed in jeopardy for a time due to objections from the Naval Air Station at Patuxent River, who was concerned about effects on their radar equipment from the spinning blades. Otto said he had committed to the developers about being neutral toward the project although he objected to the renewable energy portfolio. He believed, though, the project was sited in an “appropriate place” to alleviate health concerns, and would rather see wind turbines than solar panels that directly affect the environment.

Purnell spoke about his experience with wind turbines in Crisfield, where he secured a $4 million “green grant” to build a 750 kilowatt turbine to service the town’s sewage treatment plant. “If it doesn’t work it will be Purnell’s Folly,” he said. But he felt the electricity savings would benefit the city by allowing other items to be funded.

It led into a question on unemployment, and Purnell stated the obvious: “Unemployment is tough.” But he looked for anything he could to create jobs, including grants. “Economic development is a tough process,” said Purnell, who added that we needed to be prepared.

Otto used the aborted Walmart distribution center to point out how the state’s business climate affects job creation – on the very day Somerset County was to reopen discussions with Walmart about the site, the state passed its minimum wage law. Minimum wage and tax structure were the cause of many of our job creation problems, although the toll increase which makes it $1 per mile from the Bay Bridge to Salisbury for a truck doesn’t help either.

In terms of helping the realty industry, Otto blasted the Septic Bill he opposed as part of the “war on rural Maryland.” He vowed, “I’ll continue to defend property rights” in Annapolis.

On the other hand, Purnell believed “sustainability is the root of all our problems on the Eastern Shore.” He predicted we won’t be able to build in five to ten years.

In his closing statement, Purnell pointed out he’d cut Crisfield’s workforce, and made the case he believed smaller government was the answer. Otto talked about the state’s increasing spending and told the gathering, “I was taught to pay for it when I bought it.”

Again, this was a case where the Democrat in the race tried to convince the audience he was just as conservative as the Republican. It wasn’t so much the case in the District 38B race, which places a Delegate who has represented the area in Annapolis since 1986 (and was a Salisbury City Council member for a dozen years before that) against a mayor elected in 2011, who spent six years before that as a member of their town commission.

I noted the other day in my initial report that Anderton apologized for a mailing which depicted Conway as a masked criminal. But Carl was critical when he was asked the question about what he would do differently than Norm.

“Communication is key,” said Carl, who gave the crowd his cell phone number as a way of promoting access. He also noted that “I haven’t seen my Delegate in my town hall” during his entire tenure in Delmar government, reinforcing his belief that “we’re such an underdog in representation.”

Unlike the other participants, Norm had a different question regarding highway user revenues. Conway said that the Transportation Trust Fund had been repaid, but as for the lost highway user revenues it was his claim that the approach was the preference of MACO (the advocacy group for Maryland’s counties.) But “no one knew” the depth of the recession or the extent of the cuts needed, argued Conway.

Norm was asked then about tuition costs, noting they’d maintained a 3% level of increase while other states had done far worse. But he also bemoaned the fact that many students take much longer than four years to graduate, accumulating more debt along the way.

Anderton was asked about how to bring job opportunities here, but pointed out that Wor-Wic Community College, the site of the debate, won’t have its funding restored to previous levels until 2023. “The things that go on in Annapolis have to change,” said Carl. “We have to be fundamentally different (and) we have to do better.”

Something Carl wanted to address for the realtors was the tax differential, although he also spoke helping to create the success of the Heron Ponds development. Conway agreed the differential needed a review or discussion, but felt that eventually Sussex County, Delaware, with its extremely low assessed rates, “will have to face reality.” Norm also praised those moving into downtown Salisbury, calling it “a real plus.”

In his closing statement, Norm talked about how he had always set goals for himself. But Anderton stressed a different approach: “it’s all about teamwork.”

This was an interesting part of the forum because the two candidates answered mostly different questions, which made it difficult to compare and contrast. Obviously Carl wouldn’t have the same voting record as Norm has, but one thing which stuck out at me was that both of Norm’s questions touched on appropriations – how much money it would take to hold tuition costs at 3% increases or how best to cut to fit a budget. Some of that was out of his hands, but I would have really loved to have Norm answer how he could create jobs when things have gone steadily south during his last couple terms. There are reasons Sussex County is so appealing at the moment and advantageous assessments is just one.

As I think I said in a previous rendition, I think this forum would have been far better spread out over a couple nights. It was also disappointing we didn’t get to hear the exchanges between Jim Mathias and Mike McDermott for the District 38 Senate seat or Judy Davis and Mary Beth Carozza for District 38C – which, ironically, is the district Wor-Wic lies in. It went on for over 2 1/2 hours, but with 15 participants there was only time for three questions apiece, plus the opening and closing statements.

Overall, I don’t think anyone crippled their chances for victory so we’ll have to hang on for another couple weeks to see how it goes.

District 38A House: Purnell vs. Otto

It’s such a low-key race that one participant filed affidavits of limited contributions and expenditures for much of the cycle, while the other didn’t spend a dime on his campaign until three weeks before the primary. The total sum spent and collected would barely qualify as pocket change in some other races – welcome to political life in rural Worcester and Somerset counties. (link.)

Yet there are some interesting quirks in these campaign reports. For example, as one might expect the lone PAC contribution is from the Maryland Farm Bureau PAC to Charles Otto, the incumbent Republican. Otherwise, Otto has a nice mix of business and personal contributions with some also coming from LLCs. That $900 from the Maryland Farm Bureau, though, has been enough to cover Otto’s entire spending from the reporting periods, since he seems to be reusing campaign signs and, quite frankly, doesn’t have a large number of media outlets in the geographically largest sub-district of District 38. 38A is a district which tickles Berlin with its panhandle but primarily takes in the southern half of Worcester County and all of Somerset – from end to end it’s about an hour’s 50-mile drive.

Former Crisfield mayor P.J. Purnell has spent more money on many of the same things, basically signage and printing to build his name recognition in other parts of the district. In that respect, both have some work to do as Otto’s district lost the southern part of Wicomico County and now extends eastward to cover people formerly represented in District 38B, particularly by Senate candidate Mike McDermott.

But Purnell also loaned his campaign $4,000 to start, accounting for about 40% of his total. He also picked up a $2,500 contribution from Victor Sulin, which stuck out as an unusually high amount to give in a race like this. Sulin’s employer is listed as the Maryland Democratic Party and is apparently a former Delegate himself. Another contribution of $1,500 comes from Sue Heath, whose family owns a crab pot business. It’s large but appropriate, since I see their wares every time I go down to the Tawes Crab and Clam Bake. The loan and those two contributions make up nearly 80% of what Purnell has collected so far in his campaign. (While it’s from his initial 2010 campaign, it’s fair to point out Otto loaned his effort $17,500 that year.)

Looking forward, it’s worth noting that, despite the 2-to-1 advantage in cash on hand Otto enjoys, in real terms it’s less than $5,000 and it’s certain the Democrats are eyeing this seat as a potential Eastern Shore pickup given Otto’s comparatively weak fiscal position. It may not be a campaign like 2010, which tends to be somewhat of an apples-to-oranges comparison because Otto had to survive a four-way primary and needed to spend more in the Salisbury market because the district lapped up to the southern outskirts of the city, but one has to consider that Otto spent over $63,500 to win the seat last time.

To spend as much in the race this time, both campaigns will have had to begin making money the moment the last reports dropped. We’ll find out soon enough if they succeeded.

Campaign 2014: a District 38 look at finance

Yesterday I looked at District 37, which encompasses the heart of the Eastern Shore, but now I work to the Shore’s southern end and District 38. The district takes in the eastern part of Wicomico County and all of Somerset and Worcester counties, touching both Delaware and Virginia. One change in recent redistricting was the formation of three separate sub-districts: House Districts 38A, 38B, and newly-created 38C. This was important because the two Republicans who currently represent the area in the House of Delegates were gerrymandered into a single district.

As a result, Republican Delegate Mike McDermott decided to enter the District 38 Senate race against Democratic incumbent Senator Jim Mathias. At this point, they are the only two who have filed for the race, and they provide an intriguing financial story.

Mathias, as the incumbent and popular former mayor of Ocean City, has a significant financial advantage over McDermott, who also boasts mayoral experience in the town of Pocomoke City. Although his bank account balance is listed as zero, Mathias boasts an astonishing $207,875.92 cash balance compared to the $20,562.22 McDermott reports as a bank account balance. Moreover, in 2013 Mathias raised $142,795 compared to McDermott’s $13,285.

So the question becomes: where did the money come from? In the case of Mathias, his breakdown is as follows:

  • Ticket purchases: 66.78%
  • Maryland PACs: 25.7%
  • Total individual: 5.28%
  • Maryland candidates/slates: 1.65%
  • Non-federal out-of-state committees: 0.53%
  • Other: 0.07%

There were just 24 individual contributions made to Mathias, while 315 ticket line items were entered, resulting in an average contribution of $421.22. That’s a chunk of change! I take ticket purchases to mean attendance at one of Jim’s frequent fundraisers, for which he uses a Bel Air-based company called Rice Consulting, LLC. They even feature “incumbency protection” services. Out of $39,595.91 Mathias spent in 2013, Rice received $24,423.96 for its various enterprises from Mathias.

On the other hand, all of McDermott’s take fell into the “total individual” category, and his average donation among the 82 individual items recorded was a more modest $162.01.

Sourcing out the origins of Jim Mathias’s 2013 inflow, I came up with the following:

  • LLCs and similar legal partnerships: 26.73%
  • Law firms: 1.2%
  • Unions: 2.24% (this doesn’t include their PAC money)
  • Business: 29.57%
  • Out-of-district (outside the 218xx zip code area): 34%

While I have studied others who exceed this out-of-district amount, Mathias has the largest share for an incumbent.

In contrast, Mike McDemott received 7.53% from LLCs, none from law firms or unions, 9.97% from business, and just 5.08% from outside the district. He also has outstanding obligations (to himself) of $20,662.87 and used a consultant called Campaign On out of Owings Mills to the tune of $1,390.

Checking on the House of Delegate districts, we find that Republican District 38A incumbent Charles Otto was the only one to file a campaign finance report. His Democratic challenger, P.J. Purnell, didn’t file until late January.

So Purnell should know that Otto has just $9,120.77 in the bank and raised only $2,600 in 2013. Of that amount – which came from 11 donors, averaging $236.36 apiece – 19.23% came from LLCs, none from law firms or unions, 36.54% from business, and just 9.62% from out of district. That was one $250 contribution. Otto also has $17,500 in candidate loans still outstanding from his 2010 run, which may have shown him to be vulnerable.

Both Otto and Purnell will have to introduce themselves to some new voters, as the revised Somerset-based District 38A lost its Wicomico County territory and gained what’s essentially the southern half of Worcester County. Some of that former 38A Wicomico County area shifted to District 37B but a portion was added to a reconfigured District 38B, from which the new District 38C was carved. Instead of being a two-Delegate district which took in the eastern half of Wicomico County and all of Worcester, the new single-representative District 38B curves around from the town of Delmar to Fruitland, taking in a swath of the east side of Salisbury. It’s less territory for incumbent Democratic Delegate Norm Conway to compete in, but he has drawn a GOP challenger in Delmar mayor Carl Anderton, Jr.

Once again, the Democrat holds a significant edge in cash on hand, although Anderton raised some money in the last two months of the year after filing in mid-October. Conway boasts a current war chest of $89,566.22 and gained $55,111.70 in 2013 against Anderton’s $2,450 on $2,600 raised.

But like Mathias, Conway’s fundraising profile carries a lot of interesting quirks. He doesn’t have the ticket purchases like Jim does, but only 66.99% of Conway’s income came from individual donations. 31.18% came from Maryland PACs, 1.72% came from political clubs, and 0.11% came from candidate slates. Both District 38 incumbent Democrats boast a significant amount of PAC money.

Conway’s proportions of funding differ a little from his Senate counterpart, though:

  • LLCs and similar legal partnerships: 3.03%
  • Law firms: 1.71%
  • Unions: 5.15% (again, this doesn’t include their PAC money)
  • Business: 17.26%
  • Out-of-district (outside the 218xx zip code area): 20.44%

Out of 301 individual transactions, Conway averaged $122.65 per, just a shade less than the average Anderton contribution of $136.84 among 19 transactions. But Anderton received all of his funding via that route, with just 3.85% from LLCs, none from law firms or unions, 9.62% from businesses, and only 5.77% from out of district.

And Conway “only” spent $4,361.93 at Rice Consulting.

Because it’s a new district, the 38C race has no incumbent – but it has a clear money leader among the three who have filed.

Having a carry-forward of $50,565.65, Republican hopeful Mary Beth Carozza leads in a significant way over Democrats Judy Davis, whose bank account has $1,452.59 in it, and Mike Hindi, who filed an affadavit stating he’d neither raised nor spent over $1,000 on the campaign.

Carozza’s lead is built upon some of the same formula which propelled District 37B fundraising leader Johnny Mautz, Jr. as she used connections built up from time spent in Washington to provide plenty of money. Mary Beth raised a total of $72,897 over the year, which dwarfs the $3,548 income Davis reported, in Judy’s case all from individual contributions.

The split on Carozza was interesting for a Republican, with 47.3% from individual contributions, 30.62% from ticket purchases. 13.72% from loans (Carozza loaned herself $10,000), 7.89% from federal committees, and 0.48% from candidate slates. Many of the federal committees were Ohio-based, reflecting Carozza’s previous work for the Ohio congressional delegation. Adding her 180 individual contributions with the 92 ticket sales makes for an average contribution of $208.81, compared to the 83 individual transactions averaging just $42.75 for Davis.

Carozza doesn’t have a lot of contributions from various interest groups, as she has 1.94% from LLCs, none from law firms or unions, and 3.66% from businesses. But she’s received a stunning 70.57% of her individual take from outside the district, which dwarfs Davis and her 23.82% out-of-district income. (In most areas, Davis would be the outlier.)

With just a couple weeks before the filing deadline, these races are probably pretty much set, so it will be interesting to see where the money comes from at the next reporting date in April or May, depending on the committee. By then we’ll know the players and can see what sort of advantages the challengers have gained while incumbents labor under a restriction on fundraising during the session.