Tag: rain tax

Lots of guv news

It worked out that something came to my attention from all four gubernatorial candidates in the last few hours to couple days, so I decided to go through them in polling order.

This mean’s Larry Hogan‘s comments about our state’s moribund economy lead things off. In response to a U.S. Bureau of Economic Analysis report that Maryland’s state GDP did not budge over the last year, Hogan said:

Today, the Federal Government confirmed what Marylanders have long known:  Our economy is dead in the water.  The tax and spend policies and mismanagement of the Martin O’Malley and Anthony Brown years have destroyed jobs and are driving residents and employers out of state.  It’s time to end one-party rule and get Maryland’s economy moving again.

The state’s economy was all but stagnant in 2013, essentially unchanged from 2012. Only the District of Columbia and Alaska did worse, as both of those went into a statewide recession. And while it can be argued that the government shutdown had a negative impact on the region – as noted, the District of Columbia lost economic ground and Virginia only eked out 0.1% growth – it just points out the need for Maryland to diversify its economy and not just be the home for government workers along the I-95 corridor.

Meanwhile, David Craig attempted to shore up support in western Maryland by announcing an endorsement from former Congressman Roscoe Bartlett, who called Craig:

…the only candidate for governor that has a record of accomplishment. He has cut taxes, cut the size of the government, and vigorously opposed gun control legislation as a member of the General Assembly, which has earned him an “A” rating from the NRA. No other candidate has fought for our conservative values like him. No other candidate has the experience to lead our state like he does. I am proud to endorse David Craig for Governor, he will be our voice in Annapolis.

Bartlett has gained a lot of respect from voters in that region of the state over the years, so this isn’t a bad thing to have in your pocket. Of course, it’s not going to make up all of the ground David needs to gain on Larry Hogan, but it helps shore up a portion of the state which is somewhat up for grabs as it has no favorite son in the race.

The Charles Lollar camp took heart in Dave Brat’s Virginia win on Tuesday night:

You just saw it in Virginia: Eric Cantor outspent his opponent by 40-to-1 and was defeated in a landslide in yesterday’s primary.

Why? Because Cantor was out of touch with the Republican base, and because Dave Brat’s volunteers were passionate – just as you are!

Don’t let Establishment Republicans in Maryland steal your victory from you for a few dollars.

They’ve also touted endorsements from several minority groups:

I was thrilled last night at the reception I was given at the First Baptist Church of Glenarden, one of the largest churches in Prince Georges County.

And this came right after Ken and I were endorsed by the Business & Clergy Partnership of Prince Georges County, a group that represents 300 predominantly black churches and small businesses.

Now the latter becomes interesting after I found this item. Perhaps the Prince George’s group is making an endorsement in both primaries, but the Maryland branch endorsed Doug Gansler first. Charles may do well in Prince George’s County, but unless he was handing out lots of voter registration change cards prior to the June 3 deadline, there may not be a Lollar on the November ballot for whom to vote.

And then we come to Ron George, who is definitely pulling out all the stops here. He’s also jumped on the Dave Brat bandwagon by making a late issue of illegal immigration by pledging to restore a lawful presence requirement for driver’s licenses. Said Ron:

Maryland cannot afford to once again be giving driver’s licenses to those unlawfully present in the state. The current two-tier system offers no protections. A driver’s license is the recognized ID card throughout the United States. The second tier may help to keep someone out of federal buildings, but it does nothing to protect Marylanders from criminals and others who are unlawfully present.

A terrorist or even a sexual predator on the national registry can come here under a new name, and we do not check their status. Our proximity to Washington, D.C., as well as our airports, harbor, tunnels and bridges means Maryland needs a governor who will lead. The George/Aloi Administration will get Maryland back to lawfully present secure driver’s licenses and observe the federal and state rule of law.

I don’t quite get the last sentence (perhaps he needed the quotation marks as written below) but the idea is sound. Ron also provides some helpful background:

Ron George won a three year fight for “Lawfully Present, Secure Driver’s Licenses” in 2009, but O’Malley, Busch and Miller overturned it in 2013.

In 2008 and 2009, Ron George proved Maryland had handed Driver’s Licenses to MS 13 gang members. When terrorists were caught in other states planning attacks on military bases, they had Maryland drivers licenses. Prince George’s Emergency Hospital System was going under from the large influx of undocumented immigrants who didn’t pay for services and hundreds of millions were spent to keep it afloat. There were lines around Motor Vehicle Administration locations (MVA’s) everyday.  Now, once again, we have an enormous backlog of applicants at the MVA.

And then we have this from the Ron George “grooveyard of forgotten favorites”:

Hey, it got a little bit of media love from the folks at Rare – but still has fewer than 700 views. It’s the kind of thing he could have used back in April – maybe things would have turned out differently.

And this is just a couple days’ worth. But don’t forget – in a couple hours early voting begins around the state. And if I may be so bold as to make a campaign plug – and yes, there is an authority line on this website – Wicomico County GOP voters should make sure they get to page 2 on the ballot. Central Committee is the final office listed, and my name is second-to-last this time (in 2006 and 2010 I was listed last.) Whether you “bullet vote” just one or select nine, I’d appreciate it if my name was among those you select. And spread the word!

Slings and arrows: criticizing a “timid” approach

I wasn’t sure just what I was going to write on tonight, but thanks to Charles Lollar I have some blog fodder. It’s the kind of thing that happens when the race establishes a front-runner and those who aren’t king of the mountain try and climb up the hill.

Here’s what Charles Lollar had to say regarding Larry Hogan’s comments, quoted in the Washington Post, about his plan for “prudent” tax cuts:

All the Democrat candidates agree with Larry on this, that we should be “timid” in cutting taxes and putting government on a diet. Lt. Governor Anthony Brown has said the state “can’t afford” even a modest reduction in the corporate tax.

Ken and I believe on the contrary that the time is over for Republicans to advocate tinkering around the edges of our bloated state budget, our confiscatory tax policies, and our corrupt and inefficient state government.

It is time for bold reforms that go to the core of our problems here in Maryland. That is why Ken and I turned to Dr. Art Laffer, who helped turn around our national economy in the 1980s, to vet our plan to eliminate the state income tax.

We have looked at the numbers, and we know we can achieve this step by step over the next five years, without putting at risk the services Maryland citizens expect their state government to provide.

Government is overhead on the economy. When you tax income, you reduce economic activity. Our objective is to restore economic vitality to Maryland, so families and small businesses will want to come here, invest, and grow.

Lollar and Timmerman are also vowing to eliminate the “rain tax,” the death tax, and the latest increases in the gasoline tax. So let’s look at what is at stake.

It’s difficult to quantify what chucking the “rain tax” would actually save because it does not affect all Maryland citizens equally. Sitting in Wicomico County, I pay no “rain tax” because our county hasn’t been forced to adopt one. Annual rates for counties which were mandated to adopt the fee range from one penny to $170.84, depending on location. Of course, we could go into why we are forced to come up with this when other states in the Chesapeake Bay watershed successfully fought the mandate, but that’s for another time.

As far as eliminating the “death tax” goes, according to the fiscal note for this year’s House Bill 739, which set in motion a four-year process to recouple Maryland’s estate and inheritance taxes with federal law, these two taxes combine to create approximately $200 million a year in revenue for the state – a significant amount, but barely 1/2% of the state’s FY2015 budget. In short, we could easily eliminate this as a rounding error.

The gasoline tax, however, is another matter. By the end of Lollar’s first term, the increased tax is expected to bring $685 million in annual revenue, not counting the roughly $700-800 million the existing tax has taken in annually over the last decade. The intent of increasing the tax was to build light rail in Baltimore and metro Washington – note that by FY2019, O’Malley’s budget projected the Maryland Transit Authority would be allocated nearly as much as the State Highway Administration receives (page 33 here). Currently the MTA gets about 56 cents for every dollar that goes to SHA; by FY2019 it would be 92 cents. Just keeping the MTA at its current 56 cent rate to SHA for FY2019 would save about $405.5 million; reducing them to the 25 cents per dollar MTA/SHA rate exhibited in the FY2007 budget (Bob Ehrlich’s last, see page 19) would save $752.7 million. Guess what? There’s your gas tax increase.

In looking at the two example budgets, which happen to be the final ones presented by the respective governors, it’s remarkable that income tax has remained a fairly constant portion of the revenue. Its share was 23% of Bob Ehrlich’s $29.6 billion FY2007 budget and 22% of Martin O’Malley’s $39.3 billion FY2015 proposal. (In terms of real money, though, the income tax increase is $1.999 billion, from $6.552 billion to $8.551 billion.) Over time, we have to figure out what to cut and how to grow the economy to backfill $8.551 billion in revenues if the state income tax goes away.

But let’s assume we can hold the budget where it is, rather than grow it at a 5% annual rate as Martin O’Malley has been doing for the last few years – a trend we could easily assume Anthony Brown would continue. Rather than looking at a $47.8 billion FY2019 budget, $8.5 billion higher than today’s, we would be in a position where other revenue sources could indeed grow to obviate the need for an income tax. Even as people prosper and have more income, the state would get a cut from increased sales tax revenue and perhaps even additional property taxes as housing becomes more valuable in a growing, thriving state.

Yet all of this is academic to a degree. Even if Republicans split 50-50 on all the contested races this year in the Maryland General Assembly, they would remain the minority by 91-50 in the House of Delegates and 29-18 in the Senate. Most of the Republicans who won would be replacing the centrists of the Democratic delegation, so those remaining Democrats would be farther left than ever. We would need Reaganesque leadership to shepherd tax cuts through that body, particularly after those aggrieved Democratic constituencies begin taking a haircut on the budget. (If you thought the grumbling about the “doomsday budget” from the Left was bad, the caterwauling on this would be deafening.) If Charles Lollar (or, for that matter, David Craig, who is also suggesting the elimination of the income tax) can get it done, the prospects are there for voters to further reward both them and the Republicans in general in 2018 – an important election because the winners will draw the next set of redistricting lines.

So I would prepare to be a little disappointed if you’re expecting our income taxes to magically disappear the moment Charles Lollar is sworn into office. However, he makes a good point in that we should be making bold initiatives, because being cautious isn’t really getting us anywhere. If you’re going down, go out with your guns blazing and don’t spare any bullets.

Dossier update number 1

Back in December, once I finished the original dossier series, I noted this would be an ongoing process. To that end, here are further statements made by the three contenders at the time, with the addition of items from Larry Hogan.

Each of these subcategories will be revisited, with changes in score noted.

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The 2014 monoblogue endorsement will be based on the following formula:

Election/campaign finance reform (3 points)

Larry Hogan: As a practical matter, seeking public financing made sense for Mr. Hogan, who entered the Republican primary race relatively late and was unlikely to raise as much privately as he may qualify for publicly. But he also noted that his decision ‘sends a great message’ about his grass-roots efforts. (Baltimore Sun, February 4, 2014)

Ron George has also talked about taking public financing, although he’s made no formal decision on the matter. He had no points anyway, nor will Hogan receive any.

Illegal immigration (5 points)

No candidates have made significant public pronouncements on the subject, so no changes and no points for Larry Hogan.

Dealing with Obamacare (7 points)

David Craig: Craig has previously called on O’Malley and Brown to stop wasting money and hindering access to health care and to promote direct enrollment options through insurance carriers and brokers. The Administration then took a modest step in that direction by working with insurance industry leaders to develop a telephone help line. (press release, February 10, 2014)

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Craig, the Republican gubernatorial candidate, said the O’Malley administration should instead be helping people get coverage directly through the insurers. He wants to reallocate $150 million, originally earmarked in part to market the problematic exchange, toward promoting alternative enrollment options.  (Fox News, January 7, 2014)

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Craig’s proposal would seek an HHS waiver to re-program funds to launch a public awareness campaign informing consumers of their right to obtain health insurance directly through carriers. A complimentary awareness campaign would inform people of their rights to utilize Maryland insurance brokers who are licensed and experienced in helping individuals with health insurance. Utilizing call centers for those needing assistance with the website would remain in place. Craig, however, would re-examine the navigator model in which people having problems with the website must set appointments with temporary workers disbursed among several organizations.

As for the vexing issue of low-income individuals seeking subsidies, Craig supports U.S. Sens. Ben Cardin and Barbara Mikulski’s proposal to HHS to enable a direct data hub allowing people to obtain financial assistance without going through an exchange. (citybizlist, January 7, 2014)

Charles Lollar: Lollar advocates making hospital costs “much more transparent” by posting the prices. “Until we control the costs we’re not going to get our arms around the health care issue.”

“I’m all for a moratorium on the Affordable Care Act.” (Fox 45 debate, January 16, 2014)

I had previously chided Craig for not offering up solutions (although he had done a nice job identifying the problems) but I’m not sure I like much of the approach he’s taking besides the idea about promoting alternative enrollment options. I’ll give him 1.5 points, up from none.

Lollar seems to have a better idea as far as approach, although it’s still very vague. The moratorium alone, though, is worth 2 points (he had none as well.)

Larry Hogan hasn’t addressed this, so no points.

Energy policy (8 points)

No candidates have made significant public pronouncements on the subject, so no changes and no points for Larry Hogan.

Education (9 points)

Ron George: He acknowledged that a repeal of Common Core “ain’t going to happen in the state” of Maryland. But he argues for putting the educational focus back on what he calls a “local locus of control” rather than a one size fits all federal mandate. George also believes it is important to teach entrepreneurship and financial literacy in schools in an effort to help minorities and low-income Marylanders understand how to be successful in a free enterprise system. (In The Capital, January 15, 2014)

Charles Lollar: Lollar wants to stress internships for high schoolers, with the help of corporations. (Fox 45 debate, January 16, 2014)

Let me talk about Ron George first. It’s interesting that he has gone from “I intend to fight it with all my energy” in September to “(repeal) ain’t going to happen” just four months later. I have a problem with that change of heart because if you’re elected as governor you have an automatic bully pulpit.

Look at how we were saddled with gay marriage. It didn’t happen until Martin O’Malley decided to burnish his 2016 credentials and made it an issue in 2012 (with an assist from Barack Obama, who needed the gay vote.) If you want to get rid of Common Core, you browbeat the legislators who oppose you until you get your way. So I took him down from 4 points to 3.

On the other hand, I think Lollar’s idea is pretty good so I bumped him from six points to seven.

Second Amendment (11 points)

David Craig on Rodricks show tells Dan Yes I SUPPORT concealed carry! (Facebook page, February 10, 2014)

Larry Hogan is a strong supporter of the Second Amendment and is opposed to SB 281. He will work to keep guns away from criminals and the mentally ill. Hogan supports tougher mandatory sentencing for criminals who commit crimes with a gun, but he is against taking away the rights of law abiding citizens. (Facebook page)

I added a half-point to David Craig (from 8 to 8.5) for the clarification. Conversely, I think Hogan’s canned response is somewhat wishy-washy and political. He may be opposed to SB281, but will he repeal it? The time for opposition is over – the word is “repeal.” So he gets 4 points of 11.

War on Rural Maryland (12 points)

Charles Lollar: Leadership in Annapolis needs to craft a regional solution to this problem that requires all states that pollute the Bay to “pay their fair share” to keep it clean. We must not allow legislators in Annapolis to “hurt Maryland first” by bankrupting hard-working farmers with a “Chicken Tax” and putting the future of Maryland’s number one economic industry at risk. (press release, February 5, 2014)

Lollar picks up a half-point for this, from 5 points to 5.5 points. It’s pretty easy to oppose the chicken tax but Lollar did it quite forcefully.

Role of government (13 points)

Larry Hogan: Job one will be to get the government off our backs and out of our pockets so we can grow the private sector, put people back to work and turn our economy around.

Every decision Larry Hogan makes as governor will be put to a simple test – Will this law or action make it easier for families and small businesses to stay in Maryland and will it make more families and businesses want to come to Maryland?

If something comes across Hogan’s desk as governor that doesn’t pass this test, he’ll veto it. (campaign website)

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We’ve got to be able to run the government, provide the services that are important and necessary to people as efficiently and cost-effectively as possible, so it’s not like let’s lop off this department or stop providing these services – I think it’s just looking at zero-based budgeting and doing outside audits of every state agency and saying how do we use those tax dollars more effectively.

I think we need to focus on – these aren’t Republican problems or Democrat problems, these are serious problems that our state has. We’ve got to reach across the aisle and work together between the parties to come up with common-sense solutions to solve these things. (NewsTalk with Bruce DePuyt, January 21, 2014)

Charles Lollar: A government should serve its citizens, not burden them. It must also provide for citizens truly in need without trapping them in an endless cycle of dependency on government programs that erode their self confidence, human dignity, and a chance to live the American dream.

The answer is not to grow bigger government.

The answer is to empower people with the skills and opportunity to grow a better future for themselves, and not allow government to stand in the way of these goals. (Facebook page, January 12, 2014)

Okay, as far as Larry Hogan is concerned, I get it. You want to work with Democrats. Good luck with that, because we will likely have four years of gridlock unless the voters of Maryland come to their collective senses and elect a Republican majority in the General Assembly. You will have a LOT of vetoes otherwise.

I have yet to be convinced there is such a thing as a broad centrist coalition, since to me all it means is we walk further away from truly being a Free State rather than sprint headlong as we are now. But I will allow 4 of 13 points for the smell test and the zero-based budgeting.

Lollar loses one point for that answer, from 6 to 5. Where is it government’s role to provide for those truly in need? Shouldn’t that be more of a function of the faith-based community? The very definition of government standing in the way is to have government programs one can become dependent on – to me the continuing spiral of unemployment benefit extensions is a perfect example.

Job creation and transportation (14 points)

David Craig: I think that each individual county should establish its own minimum wage. It just makes sense that local officials make laws and the State doesn’t simply dictate what should be done. (Facebook page, February 11, 2014)

Ron George: We must focus on expanding opportunities for entrepreneurs and technical training for our unemployed to protect and grow our middle class for generations to come. (Press release, January 23, 2014)

Charles Lollar: Of course we want better opportunities, better modes of transportation – a diverse collection of different ways to get back and forth to work. Liveable, workable, playable communities where you can actually live, work, and play in the same place and have a legitimate conversation with yourself in the morning whether to walk or drive your bike to work and get there on time.

I think (the Purple Line) is absolutely doable. The question is – is it affordable? If it is, let’s push forward. (2014 gubernatorial candidate transportation forum, February 18, 2014)

The idea David Craig has is a good one, and would have raised him a full point if he had allowed counties to do away with the minimum wage altogether. Yes, this would be a fight with the federal government but it’s a Tenth Amendment fight worth having. I’ll give him a half-point so he goes from 9 to 9.5 points.

Ron George already had a very solid approach, so there wasn’t a lot of room for imporovement there. The statement is a little bit generic.

Suddenly, though, I think Charles Lollar caught his populist, pandering disease at an inopportune time. I know Red Maryland nailed him for one statement (which brought this gem to my attention) but I remembered that Lollar was opposed to the Purple Line last September – now he says it’s “absolutely doable”? He wasn’t pushing the bus alternative in front of that crowd.

And the phrase he was looking for insofar as “livable…communities” is (so-called) Smart Growth. Don’t encourage the idiots, Charles. I took off three points, from 7 to 4.

Hogan misses out on this category so far.

Fiscal conservatism/taxation (15 points)

David Craig: Under Craig’s plan, tax brackets would be lowered across the board to 4.25 percent as of 2016. Couples now pay a basic rate of 4.75 percent on most of their income. Wealthier Marylanders pay a higher percentage on a sliding scale that tops out at 5.5 percent on income above $300,000.

Craig said he would couple that with an increase in the personal exemption from $3,200 to $5,000. He said that will provide relief to middle-class that would help offset the face that the greatest benefits under his plan would go to the higher income brackets, which would see the highest percentage drop.

In the second phase, Craig said he will call for a further reduction to a maximum rate of 3 percent — with a bump in the exemption to $6,000.

Craig said a third phase in his plan, which would come sometime in what he hopes will be his second term, would eliminate the tax entirely. He said his proposal would not affect county piggyback income taxes, which the state would continue to collect.

According to Craig, elimination of the income tax would put Maryland in the company of nine states that have no income tax, including Texas, Florida and Tennessee. (Baltimore Sun, February 18, 2014)

Ron George: When asked what policies he will put in place to foster job creation, George said lowering the corporate tax rate is a necessary first step. “We have to lower the corporate tax rate,” he said. “I would like to get it down to 5.75 percent and I think that sends a strong message out there that we’re open for business.” This, he argues, will help bring businesses back to Maryland thereby expanding the tax base and creating more revenue for the state. (In The Capital, January 15, 2014)

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In addition to the expansion of jobs, George is planning on cutting income tax by 10 percent, building a tax base in Baltimore, and putting in place what he is calling the “Buy Maryland Program.”

In this program, if Maryland residents itemize purchases over $100 on their tax returns, then they will receive 20 percent back. That way, George said, people will have a lump sum in the spring that they can then use for a down payment on a house or car. (Easton Star-Democrat, January 9. 2014)

Larry Hogan: When Hogan is governor, we’ll repeal the rain tax. That’s one change you can count on.

Charles Lollar: Our plan is to take a look at every regulation out there – all 74 of them. We want to peel this thing back. People are tired, here in Maryland, with this bait-and-switch tax scheme. So we’re going to compose independent audits annually. We’ll determine how the monies are collected, how they’re being spent, and whether this spending demonstrates an efficiency of how we use taxpayer money. And this audit will be published online…In addition, I am not going to sign any tax bill that’s void of an enforceable lockbox provision. (Bill Bennett Show, January 23, 2014)

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In addition, Lollar pointed out on the Fox45 debate that this would be all taxes, not just the ones passed under Martin O’Malley.

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In a fundraiser with economist and advisor Arthur Laffer, he supported the Lollar idea for eliminating the state’s income tax but gave no details. (Press release, January 28, 2014)

David Craig followed the lead of another with his tax plan, but the timing is a little more specific. I think it’s a great idea, though, and he seems to have the understanding that, because he controls the budget, that the idea is doable. He gained three points from 11 to 14 with one (somewhat) bold move.

Ron George is restating previously noted material, so there’s no bold moves there.

Larry Hogan will repeal the rain tax. That’s a start, but really it’s only an entry-level gambit in this race so he gets just 5 points.

Charles Lollar was first to the post with the idea to eliminate the income tax, but hasn’t elaborated on the details. But because he was so close to the maximum point total already with 14, I could only bump him up to 14.5 because I think eliminating the income tax is a splendid idea.

Intangibles:

Larry Hogan: Phony political spin, questionable donations, cronyism, and backroom deals pervade the current culture in Annapolis. We need more transparency in our government, more truthfulness and tougher ethics and disclosure laws that will begin to clean up the mess in Annapolis and restore integrity to our state capital. (campaign website)

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It’s time to engage every citizen who wants to get involved in the policy process. Policymaking should not be left exclusively in the hands of an oligarchy of anointed Annapolis lobbyists and lawmakers. (Capital Gazette, January 17, 2014)

Charles Lollar: First and foremost, I would do all I can to get rid of comments like the one I just heard. It’s unfortunate, but I do take a bit of offense to that because the idea that all Republicans think the same way is probably about as similar as all blacks thinking the same way – it’s not true – or all whites thinking the same way, it’s not true. I want to be the best governor of Maryland I can be – not the best Republican governor I can be, and not the best Democrat governor I can be, I want to be the best Maryland governor I can be.

And I’m sick and tired – no matter where I go or who says it, I attack it the same – of people using partisan politics, skin color and gender, to separate us from real solutions that are at hand. (Purple Line Forum, February 18, 2014)

I’m not quoting him on anything here, but because he’s been the most open and responsive candidate to me I added one point to Ron George’s intangibles.

For Hogan’s part, I agree with the sentiments for the most part. But they are belied by the way his campaign is conducted – missing opportunities to discuss issues with fellow candidates and instead uttering many of the same campaign mantras in one-on-one interviews with generally friendly questioners. It’s not enough of a change from the current culture he decries, and until I start seeing and hearing answers on issues above and beyond the Change Maryland mantra, I have to deduct two points for intangibles.

Charles Lollar, though, has really cleaned up his campaign, and the statement I included is apt because he was responding to Democrat criticism. So he went from a -3 score to a wash – his campaign isn’t firing on all cylinders yet but it is improving.

If you’ve been keeping track, well, more power to you. But unlike other bloggers, I’m not ready to make a choice yet because there’s still a lot of information I’d like to have before making my choice.

What I can tell you is that David Craig and Ron George seem to have an edge over Charles Lollar, with Larry Hogan far behind simply because he’s not addressed many of my key issues yet. His is a one-note samba so far. It turns out that the Craig tax plan has now vaulted him slightly ahead of Ron George – very surprising because my initial perception was that David was the most moderate of the four candidates.

But above all, my main complaint is with the Larry Hogan campaign. Stop skipping debates where everyone else shows up! You may have 40,000 Democrats and unaffiliateds in Change Maryland, but there’s one problem with that: they get no Republican primary vote and you probably won’t win with 40,000 votes (assuming all Change Maryland ‘likes’ = Hogan supporters, a very dubious assumption.)

So my plan is to revisit this sometime in April, with perhaps a final decision in early June. I don’t think an early endorsement will do me a lot of good here because no candidate is standing out in this race.

Twenty bucks is twenty bucks

The “rain tax” is probably coming to Salisbury.

Eager to jump on that bandwagon, the Daily Times reports that Salisbury City Council unanimously agreed to move a bill to create a stormwater utility forward for final approval at a future meeting, a date to be determined but likely in the next 60 days. All five of the Salisbury City Council members are Democrats, as is Mayor Jim Ireton, who backs the proposal. Jeremy Cox’s story quotes City Council president Jake Day as saying “There’s no good argument for not having this in place, to have a funding system to pay for things.”

Bull.

There’s a great and very simple argument: we have no idea if what we would be doing will have any significant impact on Chesapeake Bay. As vague as the Phase II Watershed Implemetation Plan for Wicomico County is in terms of how many assumptions it makes, there are two things it doesn’t tell me: the overall impact of Wicomico County presently on the health of the Bay, and the economic impacts following the plan will have on business and our local economy. Does the $20 I would spend each year make a dent, or is it just another way for government to reach into my pocket for dubious benefit? Less than national average fee or not, it takes away from my less-than-national-average salary.

The argument by Brad Gillis also rings true. Because the state requires most new development to adhere to overly strict stormwater guidelines, those who have will still be paying the rate on top of the expense others didn’t put out. Stormwater retention isn’t cheap.

And, of course, there’s the very real possibility that the $20 of 2015 will be $35 after 2017 or $100 sometime after that. Once enacted, I’ve rarely met a fee or a tax that’s decreased and because the goal is so open-ended this just seems like another excuse to reach into our pockets in perpetuity.

This is a state where I pay bridge tolls to subsidize a superhighway I’ll probably never drive, pay a gasoline tax out here in the hinterland to prop up a boondoggle of a public transit system in the urban core (complete with pie-in-the-sky light rail lines many of those along the route don’t want), and get to watch a governor for whom I didn’t vote – twice – play whack-a-mole with expenses that pop up by “borrowing” from dedicated state funds and floating bonds to make up the difference. Why should I trust the city of Salisbury to be prudent with my money when the regulatory goalposts are sure to shift? Ask David Craig about the state and what happens when they change their mind.

Several years ago I proposed a moratorium on new Chesapeake Bay regulations so we could figure out whether all that we had put in place would work. Of course, for the Chesapeake Bay Foundation, Town Creek Foundation, and other denizens of Radical Green there’s too much money for their coffers at stake to ever agree to such an idea – and it’s such fun to figure out new offensives along our flanks in the War on Rural Maryland.

Needless to say, my reasoning probably won’t change any minds on Salisbury City Council, or that of the mayor. I know Jim Ireton, Jake Day and Laura Mitchell to a greater or lesser extent, and they’re decent enough people, but they seem to have this idea in their head that government central planning is the solution and for every need there has to be a new fee to pay for it. When the “need” is a mandate from on high, that’s where I object. Twenty bucks is twenty bucks for the tapped-out homeowner, but those who are job creators will likely pay a whole lot more and it’s just another incentive to locate elsewhere, in my estimation.

Easy pickins

You wouldn’t necessarily think of him as the farmer’s candidate, but Charles Lollar has at least paid a little bit of attention to how environmental factors affect one of Maryland’s top industries. Recall that he spoke at length about the Hudson case in one of his initial campaign stops, and it may not necessarily surprise you that he’s now making hay out of what’s he dubbing the “chicken tax.”

The “Chicken Tax” is another “Rain Tax” moment in Maryland history. Farmers in Maryland should be outraged. Agriculture is the number one economic industry in Maryland. It accounts for $2.3 billion in gross receipts to the economy annually and generates approximately 46,000 jobs. More than half of these jobs are on the Eastern Shore. Why are legislators willing to risk all that?

We need a balanced approach to solving environmental issues in Maryland. Keeping the Bay clean is a regional problem that involves more than controlling agricultural run off from Maryland farms. Sediment from adjacent states, like Pennsylvania, contribute to the pollution. Leadership in Annapolis needs to craft a regional solution to this problem that requires all states that pollute the Bay to “pay their fair share” to keep it clean. We must not allow legislators in Annapolis to “hurt Maryland first” by bankrupting hard-working farmers with a “Chicken Tax” and putting the future of Maryland’s number one economic industry at risk.

Given Lollar’s propensity for shrill populism, I took the liberty of reading the bill in question, Senate Bill 725. (The same bill is in the House of Delegates as House Bill 905, a common Maryland practice.) The Senate bill’s lead sponsor is Richard Madaleno, a Montgomery County senator whose experience with chicken is probably that of seeing it at Whole Foods. (He seems the vegetarian type.)

Basically the bill as proposed, called the Poultry Fair Share Act (PFSA), tries to “achieve” two things: raise money from poultry processors like Perdue, Mountaire, Tyson, etc. at five cents per bird and establish a bankroll to “fund cover crop activities on agricultural lands upon which chicken manure has been applied as fertilizer.” The secondary purpose of the bill is to increase the share of money going into an existing state fund to reimburse owners of failing septic systems who have to replace them with a system with enhanced nitrogen removal – currently that fund shares its proceeds with the cover crop program on a 60/40 basis, with the cover crops getting the 40% share.

Needless to say the local producers are feeling a little put upon, as would anyone subject to a bill arbitrarily deeming that it pay a “fair share.” Madaleno is probably upset because his county has to pay the aforementioned “rain tax” but no Eastern Shore county yet has to (although certain muncipalities in the region already collect such a tax.) Prominently featured on the webpage of the Delmarva Poultry Industry homepage is a series of questions about the PFSA.

So my question is simple, and it applies to any candidate, including Lollar. How many of you will put your money where your mouth is and go testify against the Senate bill when it comes to a hearing on Tuesday, February 25th at 1 p.m.? Certainly these candidates are willing to put themselves out for gun rights and stand against taxation in general, but who is going to face down the environmental lobby in this state and politely (or better yet, impolitely) tell them to do the anatomically impossible and go f–k themselves?

Writing a press release is one thing, but we need activists. Personally I’m tired of seeing the agricultural industry in Maryland – no, wait, the entire rural slice of the state in general, whether it be farmer, resident, or small business – be the featured whipping boy for groups which would just as soon see the non-urban portions of the state revert to their once-wild condition. Yes, that means you, Waterkeepers Alliance, Food and Water Watch, and even certain members of the Chesapeake Bay Foundation. I’ve only been here a decade, but I spent my teenage years in a rural area and I think we all got along just fine without you because – as they often note – farmers are the original environmentalists. We might not have liked it a whole lot when the wind blew the perfume of the pig farm down the road our way, but it was a small inconvenience for the rural living my parents desired.

I happen to think we can have it all – a great quality of life, economic growth and the jobs it creates, and water quality suitable for the recreational and aquacultural purposes we demand from Chesapeake Bay – without these environmentalists coming in and mucking up the works with overregulation and harsh taxation. Hopefully we can count on all four GOP gubernatorial candidates to stick up for the farmer in this fight.

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.

A push from the left

It’s not often I agree with the Baltimore Sun, and for good reason: their editorial stance is almost completely at odds with the best interests of the state.

So when I found out about a blog post by former Gazette political columnist Barry Rascovar chastising David Craig as being an “environment-killer” – based primarily on the information related by the Sun article by Michael Dresser – I had two reactions.

First, one has to note that Rascovar has 42 years in the political game; in other words, he had covered Annapolis since 1971. With the exception of Bob Ehrlich, one-term Republican U.S. Senator John Glenn Beall and liberal Republican U.S. Senator Charles “Mac” Mathias, Maryland has been primarily a one-party state the entire time he’s covered politics. Naturally he seems to operate under the assumption it always will be; on the other hand my aim is to break that vicious cycle of governing against our own best interests by pointing out the hypocrisy and lunacy of the liberal stranglehold on the state. So I have to question the grizzled veteran on this one, particularly since he’s an ardent supporter of the “rain tax.”

This leads to my second reaction: why do they care what Craig does anyway? We know they’ll support the Democrat in the race. Here’s what Dresser accused Craig of:

Among other things, Craig wants to scale back Maryland’s role in the Chesapeake Bay cleanup, give the state’s business department a greater voice in environmental and health regulations, and impose limits on how long low-income people can collect food stamps and other benefits — even if it means refusing federal money.

May I ask what’s wrong with that?

For one thing, our cleanup plans do not seem to account for the potential impact of cleaning up the sediment behind the Conowingo Dam, which leaches out pollutants after bouts of severe weather. And guess who’s primarily responsible for placing it there? (Hint: it’s not Maryland, and certainly not the ten counties collecting the “rain tax.”) I have said for several years that the best thing we can do going forward is take a breather from further regulations so we can see if what’s in place now is really working. Let the states upriver suffer for their part in this and quit blaming development and chicken farmers.

And let’s be bluntly honest here: do the MDE and Chesapeake Bay Foundation really want the Bay clean? If it ever became so, neither group would have a real reason for existence anymore, and as we all know power corrupts and absolute power corrupts absolutely. They know they have the whip hand over business and development in this state just as long as they keep giving out Cs and Ds on Bay cleanliness.

This goes hand-in-hand with the second point about “giv(ing) the business department a greater voice in environmental and health regulations.” Maybe the better way of putting it is to actually listen to what they have to say, since Martin O’Malley ignores their pleas. In this day and age, it’s doubtful any business wants to get caught making the same kind of mess government makes when their sewage treatment plants fail.

Moreover, Rascovar berates Craig for wanting to eliminate the state’s Critical Areas Law. So here’s my question: if a person can have a septic system as close as 100 feet from a well and have it be deemed safe to drink, what gives the state the right to regulate development 1,000 feet from tidal waters? The state should indeed junk the Critical Areas law, leaving it up to individual counties to replace it if desired. Seems like a good compromise to me as it brings power closer to the people. It also allows an uber-liberal county like Montgomery County to crank that Critical Areas restriction up to a mile; hell, just put the whole county under it. They don’t need jobs or development, but we here on the Shore could use some.

Barry also panics at the thought of the state refusing federal money, recoiling in horror at the prospect of placing a time limit on how long people can live on the dole. But wasn’t that already federal law? I realize that people can have a sweet deal living off the taxpayers, with Maryland being one of the more lucrative destinations, but shouldn’t they do something productive instead?

Besides, Barry may not be considering the long strings attached when we cash that check from Uncle Sam. I’d rather see how independent we can be, thanks.

In the end, though, the trick is how we sell these common-sense ideas to a population which, among other things, considers Rascover a learned expert. Certainly he’s covered Annapolis for about 35 more years than I have, with mine being a much more indirect basis to boot, but since when does that tenure grant expertise on the issues? He sounds like a liberal who can fit right in with those already ruining the state. Sadly, in the words of one observer:

I guess to a liberal columnist acting like a jerk to state troopers and being conservative are in the same category.

This is in reference to the foibles of Doug Gansler in the Rascovar piece, reminding us that Doug is a typical Maryland liberal who seems to believe laws and regulations are only for the unwashed masses. Ones he doesn’t agree with can be ignored. To be fair, much of the article is about Gansler’s issues, but only in the respect in which it may damage his campaign. No one really cares, since Brown is just another pea in the same pod.

I suppose the problem comes down to this line:

None of what Craig proposes is realistic. A heavily Democratic legislature wouldn’t tolerate the notions he is advancing. He’s seriously harmed his electability.

Well, there’s an easy solution: get rid of the deadwood Democrats who are impeding true progress in this state. Imagine how much better this state would be if it followed conservative principles with a Republican-led legislature.

There was a saying popular in the era in which I grew up, about a decade and a half into Rascovar’s career: question authority. I think it was probably about that time that he grew comfortable with his status in the state and decided the status quo was all right with him. Well, it’s not all right with me nor should it be with thinking Marylanders.

We definitely need a change. If David Craig wants to run to the right, it’s not “pandering to the TEA Party,” it’s exhibiting the common sense sorely lacking in this state.

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.

Getting into motion

First off, I want to wish all those dads out there a happy Father’s Day. I spoke to my dad in Florida this morning, and got a call this evening from my daughter in Ohio.

And because it’s Father’s Day, the news is sort of slow – unless you want to count sniping at Barack Obama’s Father’s Day picture with his super soaker squirtgun. Yet those who would be the Republican candidate for governor in Maryland have been busy laying out their campaigns, preparing for the grunt work of getting the word out to voters.

As one example, I got these in the mail Friday from the Ron George campaign.

These are actually fairly slick palm cards, with one flap highlighting Ron’s bio and record while the other two serve as an information collector and return envelope to the campaign. Very nice and efficient.

Meanwhile, last week David Craig put out a highlight video of his June 3-5 campaign tour, although most of it focused on day 1.

But more importantly, Craig used his connection with the advocacy group Change Maryland to highlight the fact that Maryland’s spending is out of control, projected to rise at twice the national average. It allowed Craig to assess the situation: “This government taxes too much, takes too much, regulates too much and is expanding at the expense of job creators and taxpayers.”

In comparison to several other states in our region, the data suggests Maryland looks even more like a drunken sailor.

With the possible exception of the gas tax that takes effect next month, there is no tax reviled more by Maryland conservatives than the EPA-mandated “rain tax.” (In reality, it’s an impervious surface fee, but the effect is the same: money out of property owners’ pockets.)

And even though he’s not officially in the race yet, Charles Lollar had some pointed comments about this fee, with a little praise for Frederick County Commission president Blaine Young:

(T)here is a much deeper story that is not being covered and that many folks haven’t considered.

If you all remember, last year to “balance” the state’s budget, the administration pushed much of the teacher pension costs back to the counties. This move has severely hurt county budgets as they’ve had to move appropriations from certain capital projects to cover these new pension costs. The governments across our state that are the closest to the people are often our counties. Don’t worry, our counties will figure out how to make it work, but it makes it much harder for them.

So what is this rain tax really about? In my estimation, this is just the state paying the counties back for pushing pensions down to them, using the EPA mandate as an excuse. I applaud Frederick County Executive Blaine Young for only charging the residents of Frederick one penny per ERU. The law forced him to comply but he made the right choice by mocking a laughable law.

This bill is hurting non-profits like churches and could drive them out of service. It’s going to drive up costs for malls, grocery stores, and just about everything else with a large, “impervious surface.” In the end it will drive up the costs for consumers to buy products and make it even harder for people to find jobs.

I don’t know if Charles knows something we don’t or is trying to make a subliminal suggestion, but Blaine Young isn’t Frederick County Executive. There’s a chance he may be after the election as that newly-created office will be filled for the first time, but for now he’s simply their commission president.

Regardless, Lollar brings up an interesting sidebar – one for which I have a mild rebuttal. If this were true, why didn’t all 24 counties have to pay this fee? If my memory serves me correctly, my home county of Wicomico is getting a disparity grant from the state to help with assuming the cost of the teacher pensions because we’re one of the less well off counties (and state policy seems to be that of keeping us that way by choking off development.) But at some point we will have to figure out how to pay on that mandate to the tune of $1.2 billion over 10 years – bear in mind our county budget runs in the $120-130 million range.

My hope is that whoever becomes governor will stand up to the EPA – in court if necessary – and tell them to go pound sand. Certainly a clean Chesapeake Bay is desirable, but the state budget also has to address higher-priority items like public safety, infrastructure, and education. It would be great to see a Maryland governor tell the federal government “no thanks” to unfunded mandates because, even if they chip in for a year or three to defray the state’s short-term costs, we end up being stuck with the tab.

Democrats have it easy, since all they seem to know how to do is turn the screws on hard-working taxpayers as a method of amassing money and power to redistribute, showering favored group with undeserved goodies. Unfortunately, other peoples’ money always runs out so new solutions are needed.

I look forward to a spirited debate about a new paradigm.

Ten Question Tuesday – June 11, 2013

As I noted in my original coverage last Wednesday, I received the opportunity to have a one-on-one interview with gubernatorial candidate David Craig after he concluded his public remarks. Rather than ask him strictly about his stump speech, I wanted to ask about some of the topics which may be more important to my fellow Eastern Shore residents.

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monoblogue: Just to ask you the first question, I know we’re the seventh stop or so on this tour…

Craig: Yes.

monoblogue: …so how’s your reception been?

Craig: It’s been very good. Started out good – a little rainy when we started out…

monoblogue: Yes.

Craig: …but good crowds everywhere we’ve been, the people who showed up have been very receptive (and) very happy about what was happening. Very impressive in Hagerstown, we got out there and did the walking tour of downtown and went in to see several businesses, went by the schools…a lot of people saw the bus, they saw me, and they started walking with us. Got a little reception afterward where people could just come in and talk about stuff.

We went to Silver Spring – how many Republicans are going to go to Montgomery County? But we drive through the neighborhoods and I think, “Why are these people voting for Democrats?” These people have their nice little homes, they obviously have nice jobs and stuff like that, paying income taxes…

monoblogue: Well, the problem is they may have government jobs that depend on the government being large.

Craig: Well, they may depend on the federal government being large but not us. Anyway, it’s nice neighborhoods and things like that. The one in Prince Frederick was very good, Annapolis was Annapolis (laughs)…that was fun. So they’ve all been very interesting, you see the differences –  everybody says one Maryland, but there are slight differences.

monoblogue: Yeah, well, for example I come from a rural perspective – I grew up in a rural area – and I know you talked in your speech about the lost balance between environmentalism and that. How’s that going to affect our “outhouse” out here?

Craig: (laughs) You tell people that farmers were the first environmentalists that we ever saw. Farmers are usually pretty fiduciary – they usually don’t waste money.

monoblogue: No, they’re trying to make money.

Craig: They’re trying to make money, so they’re not going to do things that are bad. What I’ve found in doing this in Harford County is I do have an executive – I have an Agricultural Economic Advisory Board and I have an Agricultural Preservation Board that I work with, and one of my deputy chiefs of staff is the agricultural deputy chief of staff. What I’ve found is the best way is to actually listen to the farmers have to say and have them come up with solutions for what they think needs to be done, and then convince the other farmer this is the best way to go – it’s not government talking to you. (They’d say) I did this on my farm, it saved me money, it did this and saved me all these rules and regulations.

But we get all these people that are in environmental services, they have this job, they’re lawyers, they’re environmental – but they know nothing. I had a situation talking with the Maryland Department of the Environment, I said give me an example of this rain tax, I have two – or septic tax. I have two farms, tell me which one’s the worst. How will I be able to determine which one – one guy’s doing the good job, one’s a bad job? And the guy looked at me and said we can’t figure that out.

monoblogue: Well, that’s reassuring. After they passed the septic bill and they can’t tell you that? I know there was a bill – and it was one of our Delegates (Mike McDermott) put it up – to rescind that entire septic bill. Now, if it does somehow get through the General Assembly would you consider signing that bill rescinding the law?

Craig: I think there are many things that have been done over the last 20 years that ought to be rescinded, particularly when it comes – what was the one Parris Glendening did? I can’t remember, it was some kind of infectious disease thing…

monoblogue: I don’t know, it was before my time.

Craig: Anyway, they came up with all these ideas – for them it’s always about what’s the headline, what’s the media going to report in the next 90 days – after it gets done, do they ever go back and evaluate what the bill did, and whether it was effective? You know, William Donald Schaefer was the one who put the Critical Areas section in – I was the mayor, I had to adopt Critical Areas legislation in the city of Harve de Grace or no building was going to be permitted. I had to actually impose a tax, I was the first one to pay it because I was the first one to go for a building permit. And they kept saying, we need 1,000 feet from the bay to be doing this. And I would say we’re not the only ones polluting this, you think it’s just us, why are you doing this to us? And does it actually solve things? If I have someone who rebuilds something and fixes it up, isn’t that better than just letting it sit there the way it is? Let’s come up with real solutions for what needs to be done. Did the critical area and the critical area tax solve the Chesapeake Bay problem?

monoblogue: No. And the problem is they keep moving the goalposts…

Craig: Yes! And they’re made up – that’s the thing, the numbers are made up. Who came up with the idea a football field had to be 100 yards? Why couldn’t it be 120 yards, why couldn’t it be 90 yards? You know, it’s like – first they make a number up, I’ll give you this example. I was the mayor of Havre de Grace, we get hit with this issue with our sewage treatment plant that we have to do this change – $9 million it costs us to upgrade the sewage treatment plant.

A week later, the rules and regulations were changed. They came back and said, this is no longer functioning the way we need it to function, now you need to do this – $47 million. Here’s the problem, the analogy I use. Let’s say you decided to redo your kitchen – new refrigerator, new stove, new microwave, you buy new ones, you put them in there, spend $4,000 – and then you come back home, no I think we need to rip the whole kitchen out and you throw away those appliances. None of that $9 million was good enough to maintain the $47 million, so we wasted the $9 million. We’re still paying – the people of Havre de Grace are still paying…

monoblogue: Salisbury has the same problem, they’re messing around with their sewer treatment plant.

Craig: Yeah, so they keep changing the concept of what’s going on, and they don’t really look at real solutions. And if someone comes up with a real solution that’s not what the government wanted, then they ignore it.

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At this point, we were interrupted by a well-wisher. When we got back to the conversation, I changed the subject.

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monoblogue: You also talked about the – all the tax increases we had. I love how you used all the Change Maryland numbers, that’s great. I said I could tell Jim Pettit’s on his staff now…

Craig: Well, we’ve got them for a variety of things but when Larry Hogan started Change Maryland we talked about it and said, you know, I might run, I might not run, but if I don’t run Change Maryland’s going to go with you. And I’d like to admit that Larry’s done a good job getting that information out…

monoblogue: He does.

Craig: …and persuading people. I think in the long run Larry realizes that he’s making more money (laughs) being a private worker…

monoblogue: Oh yeah.

Craig: …and I think ultimately he stays there. But he can he huge in helping us reform the state party.

monoblogue: Right. 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.

monoblogue: Well, that’s the idea. It’s where YOU want to spend it, not where the state wants to spend it.

Craig: You know, sales tax…I go back to that Calvin Coolidge thing with lowering the income tax, if you lower the sales tax more people would buy stuff here and it increases what gets sold. My wife’s not dumb – we live 17 miles from Delaware. You’re going to buy $4,000 worth of appliances times 6 – you do the math…

monoblogue: And seven miles from Delmar – if you go up 13 you’ll notice all the big-ticket items, furniture stores…

Craig: Yeah, look at the ads, look at the ads. I mean, I was looking at ads this morning on the TV when I was here and it was like – I forget what the particular issue was they were selling, and they go “in Delaware, no tax.” You know, it’s like – and how far away are you? Cecil County last month, in May, had twelve liquor stores give up their licenses…

monoblogue: Yes.

Craig: …and close. And they did it because, if you live in Elkton in five minutes you could be in (Delaware), you can buy your liquor, you can buy your gasoline, you can buy your cigarettes. All that tax is lower or non-existent and we got nothing. And so, I don’t know how many people but say each had three business people – so 36 to 40 jobs gone?

monoblogue: Right.

Craig: And all because “oh, it’s an alcohol tax, it’s okay to raise it.”

monoblogue: And the same thing is true (for cigarettes), because I go to Virginia for my job every week and driving back into Maryland the last convenience store I see – “Last Chance for Cheap Smokes.”

Craig: That’s right.

monoblogue: Because Virginia’s tax is, like, thirty cents and ours is two bucks.

Craig: And if I throw out the issue of the corporate income tax, people are like “oh, you’re only for the rich people.” All right, I’ll throw out other issues: Harford County, a lot of military people stationed there, when they get done they retire. They move to Pennsylvania because their military pension is taxed. We shouldn’t tax a military person’s pension, they already made their sacrifices. So let them live here in the state of Maryland.

monoblogue: I think they have tried to do that a few times, and the legislature just doesn’t go anywhere.

Craig: Well, they haven’t gone with it because they haven’t been told to go with it. If the governor had said go with it, they would have gone with it.

monoblogue: That’s true, it’s usually Republicans who bring it up.

Craig: Well, you know, I think if enough veterans were showing up and saying – what was this whole thing about the governor pointing out and bragging about what he was doing about creating jobs for veterans, about a month ago? Remember he was changing some policies, it was going to make it easier for them to get a job?

monoblogue: Right.

Craig: Why would they want to come here and get a job and pay a higher tax on their pension that they also get and then a higher tax on their income tax? So, we need to change the income tax…(also) the death tax is ridiculous, somebody in your family passes away, they pay taxes on that money for their entire life – why are you paying a tax to inherit it? If they were smart I guess they should sell everything and give you the money before they pass away. But people leave the state all the time, go to Florida, no tax, go to Pennsylvania, don’t have to pay that tax.

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: Right, exactly. I’m sure he’s created a few mousetraps for his successor to deal with if they want to change things. It’s going to be harder to undo this Gordian knot then most people would think.

Craig: And then they brag about, oh, we’re going to do this private-public partnership, this 3P thing, it’s like – most likely that’s not going to work. If you look at something that’s going to be a good financial thing with some private company coming in and doing something, they probably could have done it if they didn’t have to pay the minimum wage, if they didn’t have to pay the union fee, if they didn’t have to deal with the minority business stuff – you could probably lower the prices of those projects by 35 percent. Stephanie Rawlings-Blake just gets a billion dollars for school construction, well, $300 million of that is going to be wasted and she could have had it – that would have done how many more schools for her?

monoblogue: Exactly.

Craig: So which is better? Is it better to have a good school for the kid, or you created this “fake” job?

monoblogue: Right. I remember, being from Ohio, when Ohio built all its schools they actually eliminated the prevailing wage for schools just to get more bang for the buck.

Craig: Yeah, that’s what you should do. Period.

monoblogue: Speaking of education, I liked how you tied in the lack of – lack of academic achievement with our so-called “number one” ranking. Now where do you – where do you prioritize your spending to bring up the actual achievement and not necessarily worry about being “number one” in the country?

Craig: A couple things. There’s a lot of duplication that we could…a lot of duplication. Here’s the situation in Harford County. Since I’ve been County Executive, the size of the school board employees has increased by 650 employees. The school population has declined by 2,500 students. Why didn’t the size of the working staff decline?

Now, if they had had 2,300 new students move in they would have come to me and said, “we need 100 new teachers.” But when 2,000 went down they didn’t say, “well, we didn’t need 100 teachers anymore.”

monoblogue: No.

Craig: So we have that situation, and I get teachers complaining to me all the time, “well, you know, the size of the class has gone up.” If you’re a good teacher, it doesn’t matter how many kids you’re sitting in the class. The first year I taught, 39 kids in the class. Second year, 42 kids in the class. Forty-two. I didn’t even have enough desks for the kids; one of them had to sit at my desk and one of them had to sit at a table. So when they say there’s 23 kids, the fact is, studies have been shown that the change does not occur until the size of the class falls below 15. So that’s what you’re going to do, if you say we’re reducing the size, we’re going from 24 to 23 – so what? If you’re a teacher, you can’t teach 24, can’t teach 25? That’s one thing.

But there’s duplication, so much duplication, in government – county government and school board government. I have a capital projects committee, they have a capital projects committee – why do we need both? I have the same guys that do the investigations, the inspections and all that stuff, I have a procurement department. I don’t buy chalk and all that stuff, but they have a procurement department. That’s duplication. I have a lawyer, a law department, they have a law department – duplication. They have a human resource department, I have a human resource department, duplication. Now, do I get rid of all those employees? No, but at least get rid of the top person. The person who’s making $150,ooo, instead of having two of them, you only have one. And you can probably merge a lot of things together and only have office – and none of that takes place in the classroom.

monoblogue: You need to think about that at the state level, and not necessarily the county level – I mean, if a county wants to do that, that’s fine and dandy, that’s their money. At the state level is where you’ll be concentrating…

Craig: Yes.

monoblogue: …I would think we need to rightsize the state Department of Education…

Craig: I agree.

monoblogue: …because the localities should control anyway.

Craig: Yes they should. Yes they should. And it has grown exponentially. And if you look at higher education, when I was in the House I was always assigned the higher education budget and you look at a college that’s got nine vice-Presidents – why? We only have one Vice-President in the country, yet nine in a college? Come on! And are they teaching? No. You know, all these different people, you have all these professors that are teaching one class, maybe two classes. I had someone, when I was doing a debate one time, who said “what are you going to do about the cost of higher – you know, how much my education’s going to cost?” We need to reduce it on our size – on our side, for one thing. We’re forced to spend this money on that, it doesn’t need to be spent.

So there’s a lot of duplication in both higher ed and elementary through high school at the state level that I agree we could change.

monoblogue: Okay, I appreciate it.

Craig: Thank you.

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Ideally, I wanted to come in about 15 minutes and with the interruption that’s about where I ended up. Hopefully this establishes some of where David Craig stands on various issues.

If you’re in for the penny, you’re in for the pound

A week or so back I referred to one of Delegate Michael McDermott’s summaries of the 2013 General Assembly session, and he’s come back with another installment today. In this one, he laments the economic effects of those “few pennies” we’ll be paying every day to the state in additional taxes and fees by reminding us that businesses will be paying them, too. McDermott concludes that:

As the government draws more money out of the economy through these new taxes and fees, taxpayers (and) consumers find themselves with fewer discretionary dollars. This always results in fewer dollars being put back into our local economy and every point of commerce suffers. When business slows, expansion is put on hold. When business suffers loss, people lose jobs.

All this seems to be basic common sense which is lost on those who inhabit the Maryland General Assembly and vote with the majority party. It somehow never seems to seep into their consciousness that business aren’t going to pay maybe $100 a year for the so-called “rain tax” or the promised no more than $2 a month for “green” energy, nor will the effects of ever-increasing gasoline taxes be minimal for them.

The problem they have is twofold:  the Maryland economy is dynamic and the geography is static. From my house I can be in Delaware in 15 minutes and Virginia in about 40. It’s worth pointing out that just four of Maryland’s 23 counties aren’t on a state border (Anne Arundel, Calvert, Howard, and Talbot as well as Baltimore City) while several border two states and Washington County touches three. Certainly it’s not like larger states where traveling to a different jurisdiction to take advantage of their business climate involves the expenditure of several hours and a half-tank of gas.

So Maryland has to compete on a playing field which is far from level, and savvy consumers know just where to go to get the best deal. It’s no wonder that neighboring states have large shopping meccas close by Maryland’s borders.

Now this isn’t all bad news for Marylanders, as some cross state lines to work just as some who live in neighboring states make up Maryland’s too-slowly growing workforce. But as critics like McDermott and Larry Hogan of Change Maryland point out, we can do better.

And don’t think Mike isn’t seeing the political reality. Note this passage in his report:

I am not sure where the disconnect lies with legislators who see nothing wrong with this tax and spend approach at governing, but I am quite sure the public is fully able to connect the dots. I was recently at a meeting of local business owners and entrepreneurs when a senator told them that what they could “conceive…the government would help them achieve.”  Sadly this was repeated so there was little doubt where he was coming from in his thoughts regarding the purpose and scope of government.

It wouldn’t surprise me if the Senator in question isn’t the person McDermott will be facing next year.