Losing momentum?

The big news around these parts today was the announcement that Labinal Power Systems would be closing its Salisbury plant and consolidating operations in Texas. Gone will be an estimated 600 jobs as the plant phases out operations over the next two years.

On top of that, there are rumors that both of the April tourist draws to Salisbury – the annual Salisbury Festival and Pork in the Park – have been scrubbed for 2015. While another local blogger swears this is not true and the Salisbury Festival is simply being repositioned to the fall, one has to ask how that would fit into an October already crowded with other local events. (As for Pork in the Park, my understanding is that it was a money loser as the county had to plow too much into it up front for its continued survival.)

Salisbury’s downtown has been doing well with the increased popularity of 3rd Friday, a successful New Year’s Eve event, the upcoming opening of Headquarters Live – an entertainment venue which is the remodeled former Fire Station 16 – and a popular Thursday – Saturday night trolley service connecting these venues with nearby Salisbury University, but other parts of town haven’t done as well over the last year. The closing of Labinal decreases further the traffic to a once-booming part of the outskirts of Salisbury that formerly boasted the old Salisbury Mall, torn down several years ago for a development that never got off the ground.

Everything is cyclical, of course, and one example is the development around the SU campus. But losing these Labinal jobs would be a major blow to a county already on a long losing streak when it comes to year-over-year jobs. And the problem with such a long transition to a shutdown (almost two full years) is that lag time is going to be longer than some potential employers want to wait for the facility.

We all better hope that Maryland becomes a lot more business-friendly over the next two years. It’s ironic that Senator Mikulski made a big deal out of a large federal contract secured for the facility just weeks before the announced move to Texas. Call it Rick Perry’s revenge.

Who’s out may be as important as who’s in

Recently I’ve posted about three likely entrants into the 2016 Presidential race – Jeb Bush and Dr. Ben Carson on the Republican side and Jim Webb representing the Democrats. Naturally with an open seat the interest in the job increases, since there’s no incumbent with his built-in advantages to contend with. This opens the field to a lot of potential contenders who passed on the 2012 race for various reasons. Recall that many of those who ran in 2012 on the GOP side are still active in the political arena – Newt Gingrich with his production group, Rick Santorum with Patriot Voices, Mitt Romney with endorsements and help with financial support, and Rick Perry with his RickPAC, among others.

Obviously Democrats were silent in 2012, but it’s been known that grassroots movements have sprung up for Hillary Clinton and Elizabeth Warren (who’s trying to tell her supporters “no”) while Martin O’Malley began his own PAC for 2014. Joe Biden claims he “honest to God hasn’t made up my mind” about running.

On the GOP side, these aforementioned contenders have one thing in common: except for Perry, who did not seek another term and leaves next month, they are not currently serving in office. (On the other hand, among the Democrats only Webb and Clinton are out of office, although O’Malley joins that group January 21.) Yet the GOP has an extremely deep bench of current governors, many of which are in their second term and have national name recognition: in alphabetical order, the group includes Chris Christie of New Jersey, Bobby Jindal of Louisiana, John Kasich in Ohio, Mike Pence of Indiana, and Scott Walker in Wisconsin.

In recent years, our presidents have tended to be former governors: George W. Bush, Bill Clinton, Ronald Reagan, and Jimmy Carter all came from that background. Obviously their tenures in the Oval Office were a mixed bag of success, but Americans tend to be more confident that those who ran a state can run a federal government. (The only recent exceptions to this were 2012 with Mitt Romney and 1988, where Vice-President Bush defeated Michael Dukakis. Maybe being governor of Massachusetts works as a disqualifier.)

With the large potential field of governors, it may be just as important to know who’s out. When you have a state to run for another four years, the excuses for trips to Iowa and New Hampshire are fewer. It’s not to say that governors who want the brass ring won’t try and make that effort, but as we’ve seen with Martin O’Malley and his frequent journeys to New Hampshire and Iowa in his second term, there is the potential for losing focus on your real job. It was enough to cost his anointed successor his election, for the dubious gain of polling at 1 percent or less in most 2016 Presidential polls.

There are perhaps 15 to 20 figures in national politics who could potentially run for President on the Republican side – far more than the Democrats boast. Of course, only one can win a party’s nomination, but beyond that there are only three or four who can be in the top tier and raise the money necessary to wage a national campaign. (It’s something that Martin O’Malley is finding out firsthand on the Democrat side, since he’s not one of those.) It’s been claimed on a grassroots level that the last two Republican campaigns were decided when the “establishment” settled on one candidate before the activists did – that group split their allegiances and votes several ways until it was too late. By the time Rick Santorum outlasted Gingrich, Perry, et. al. he was no more than the highest loser because at that point the nomination was just about sealed for Mitt Romney. Romney may have been the best candidate for 2012, but he wasn’t good enough to get the nearly 3.6 million who passed on voting for Barack Obama a second time to come on board.

People like to keep their options open, but since the announcements of who’s in seem to be receding farther and farther from the actual election, it may help those of us on the Right who would like to select a candidate to know who won’t be running. Obviously there will be a few ardent supporters who will pine for that candidate to reconsider – as far-left populist Democrats are finding with Elizabeth Warren – but we could save a lot of wasted money and effort by finding out who won’t make a half-hearted attempt at an early date.

A dose of economic reality

Bear in mind the following words are written by a Democrat in Maryland. It’s an extremely long blockquote of an entire release but I thought readers deserved full context.

We convene today to write down our already cautious revenue projections for Fiscal Years 2015 and 2016 by more than $405 million. Far more important than what a $405 million shortfall means for the state budget is the painful reality that it indicates for the budgets of Maryland families and small businesses.

We’re writing down individual income tax receipts – the largest individual source of state revenue – by over $350 million, between the shortfall in individual income tax receipts carried over from Fiscal 2014 and our write down of expected revenues for Fiscal Year 2015.  Six years removed from the economic collapse, and far too many families and small businesses are still waiting for the recovery they keep hearing about.

We can classify a year or two outside the ordinary as simply abnormal. But more than a half decade later, we need to accept that sluggish growth and challenging economic conditions have become our new normal. It feels like we sit at these meetings every quarter, hopeful and determined that ‘next year will be the year’ when the recovery takes hold and is felt broadly throughout the economy. Yet, another year has passed, and ordinary families and small businesses haven’t even recovered to where they were before the financial collapse, much less made up for the wages they’ve lost over the past six years. We need to recognize that hope is not an economic strategy.

The same challenging conditions I’ve discussed in past meetings haven’t substantively improved. Wages and salaries are essentially stagnant. Local, independent businesses are struggling to meet payroll, cover their costs and turn a profit. Working families have cut back their spending because they just don’t have the money, they’re scared of losing their jobs, or, in many cases, both.

In a consumer-driven economy, it should come as no surprise that when consumers are struggling, businesses inevitably feel that pain, particularly in an environment where margins have often already been trimmed down to the bone. Add that to Maryland’s unemployment rate – traditionally a major strength – not keeping pace with improvements seen in the country as a whole.

Maryland’s 6.4 percent unemployment rate is higher than the national rate of 6.1 percent – something we’ve only experienced twice in the past three and a half decades – during the tech boom of the late 1990s and the 1980 recession. In terms of wages – the oxygen working families need to survive – Maryland’s average wage growth was just 0.4 percent in the first quarter of 2014, far below the rate of inflation for the same period.

Essentially, workers perceive that their take-home pay is headed in the wrong direction and the purchasing power for Maryland families is, in reality, diminishing. The housing market has failed to rebound in a sustained and meaningful way, particularly with Maryland second worst in the nation in home foreclosure rates.

Combined, these economic indicators led to a Maryland economy that didn’t grow at all last year – with a 0 percent GDP growth for 2013. As we know, an economy that isn’t growing is actually retracting. This all means uncertainty for families and businesses. They are unsure about their prospects and, as a result, unwilling to make the purchases and investments our consumer-driven economy needs to grow. As great a state as we are and as robust an economic system as we have, uncertainty serves as a serious deterrent to economic growth.

Whether it’s sequestration, unpredictability in the tax and regulatory environment or an inability to make long-term federal budgeting decisions, most of the uncertainty is based on political problems and decisions, as opposed to global economic conditions. While the federal government has always been and certainly remains a major economic advantage, our over reliance on the public sector carries significant risks. We can embrace our proximity to Washington as a strength without depending on it as our sole basis for economic stability.

We simply can’t assume that we’re around the corner from returning to the way it was, and back to the decisions we could afford to make in Maryland as a result. The fact remains that we’ll only see the economic growth we’re accustomed to when we get the private sector economy growing. We can only make that happen if we provide a sense of predictability for Maryland families and small businesses.

As state policymakers, we need to be smart in how we spend taxpayer dollars, recognizing that to invest in the things we need, we have to forego many of the things we simply want. We have to be more forward-looking about how we borrow money as a state.  We simply can’t sustain our current patterns of debt accumulation without provoking actions that could do further harm to an already fragile economy — amplifying the significant fiscal and economic challenges we already face.

As we all know, a sustained economic recovery is going to come down to jobs, both here in Maryland and throughout the nation. As long as we see continued weakness in wages and job growth, consumers will inevitably pull back, causing businesses to struggle and the economy to underperform.

We simply cannot create any unnecessary road blocks that would make employers reluctant to invest, grow and hire. But if we maintain a cautious mindset and provide a sense of predictability to Maryland families and small businesses, our economic bones are strong enough and our people are resilient enough to withstand this write down and the economic challenges it represents. (All emphasis mine.)

That’s the entirety of a press release put out by state Comptroller Peter Franchot as the Board of Revenue Estimates calculated our state would yet again be short on revenues to the tune of $405 million, or slightly over 1% of the current budget.

But let’s read between the lines, in the passages I highlighted.

(W)e need to accept that sluggish growth and challenging economic conditions have become our new normal.

No we don’t. What we need to do is realize our policy prescriptions over the last eight years or so have done little to help the local economy. States are succeeding in this country, whether it’s through ambitious exploitation of energy resources like North Dakota or smart, pro-business policy such as the sort Texas seems to use. (Heck, Rick Perry even encouraged Maryland businesses to relocate to his state.) To attain growth, it has to be encouraged and the only thing we’re encouraging the growth of in this state is government.

The same challenging conditions I’ve discussed in past meetings haven’t substantively improved. 

Peter Franchot became Comptroller in the same 2006 election we elected Martin O’Malley as governor. Perhaps that should give an indication as to why these conditions persist.

Essentially, workers perceive that their take-home pay is headed in the wrong direction and the purchasing power for Maryland families is, in reality, diminishing.

This is reflective of national conditions, since real household income has declined since reaching a peak anywhere from 7 to 15 years ago, depending on income quintile. And with wage-earners having to string together a series of part-time jobs to make ends meet thanks to the impact of Obamacare and a higher cost of living, the budgets of Maryland families are indeed stretched to the breaking point.

(M)ost of the (economic) uncertainty is based on political problems and decisions, as opposed to global economic conditions.

Families continue to wait for the other shoe to drop. Spend over $100 million on a botched website? Don’t worry, we’ll make up the shortfall by figuring out some new revenue stream. This is the state that experimented with the “tech” tax some years ago before the computer business threatened to bolt, so they decided to tax millionaires instead – and watched many move out of state. Even taxing rain to supposedly help clean up Chesapeake Bay has become a boondoggle as different counties decided on different approaches, while a select few counties (including Wicomico) figure they are next on the firing line to be stuck with the “rain tax” like 10 other Maryland counties.

While the federal government has always been and certainly remains a major economic advantage, our over reliance on the public sector carries significant risks. We can embrace our proximity to Washington as a strength without depending on it as our sole basis for economic stability.

This is a very prescient statement, but Franchot is only looking at it in terms of tax revenue from federal workers. Surely he’s less inclined to speak out about the fact that it’s actually Uncle Sam – not income tax receipts – that is the largest source of state revenue. I know the unsuccessful campaign of Charles Lollar made overtures about slaying that beast, but it’s just as bad to be dependent on the federal government for operating revenue as it is to make it as much as a significant economic driver as it tends to be for the Capital region. Meanwhile, jobs which create real value – whether it’s extracting natural gas in Garrett County, making steel in Baltimore, or growing chickens on a rural Somerset County farm – get short shrift from an administration which has tried to thwart that sort of growth at every turn.

Whether Peter Franchot wants to admit it or not, the damning economic statement made by a Comptroller who still endorsed the candidate who most represents this failed status quo in Anthony Brown makes the case that a new broom needs to sweep Maryland politics clean. If you haven’t heard about GOP candidate for Comptroller William Campbell, it’s time you did.

And Anthony Brown? I’m sure he knows that Franchot is pretty much correct in this assessment, which is why he’s trying to paint Larry Hogan as a Republican extremist (there is no such thing) and not talk about his own accomplishments or plans. “More of the same” just won’t sell for a large number of Maryland’s working families.

The life of one (soon to be) former Delegate

While we have to wait and see what November brings, the chances are pretty good that there will be an additional few dozen Marylanders walking around with the unofficial title of “former member of the General Assembly.” Some, like outgoing Senator Nancy Jacobs or Delegate Donna Stifler, decided well in advance, while our local Delegate Rudy Cane cynically waited until after the filing deadline to insure no one would oppose his apparent choice for successor, Sheree Sample-Hughes.

And then we have the handful who lost in their primary – among them was Delegate Don Dwyer, whose well-documented personal struggles and legal issues, along with redistricting, made his an uphill battle. But as he wrote a few days back:

I simply couldn’t walk away without committing to continue my efforts in regaining liberty and true freedom. I believe as many do, that the one best solution to federal tyranny is the doctrine of NULLIFICATION under the 10th Amendment of the US Constitution. I would like to introduce the States Rights Foundation and new blog The Rightful Remedy.

Washington will not fix itself. Our intent is to partner with other groups and people who are dedicated to advancing the 10th Amendment movement. It is the solution to the out of control Federal Government. If enough States say NO, the Federal Government will be unable to enforce its unconstitutional laws, lacking the resources to do so without aid by the States.

Whether intentional or not, The Rightful Remedy was officially launched on Bastille Day, July 14.

As has been his modus operandi in the past Dwyer is holding a gun raffle to raise funds for his project, which he explains further:

As a Maryland State Delegate, I introduced several bills considered Nullification Legislation, by which the State of Maryland would refuse to comply with Federal “laws” for which the Federal Government has no Constitutional authority to impose. The legislation essentially prohibits the State to use any resources to assist the Federal Government in taking action against Maryland Citizens who are not complying with any Unconstitutional Federal Act. The result, should such legislation pass, profoundly affects the ability of the Federal Government, which rely (sic) heavily on resources from the state, such as police, to effectively enforce their “laws.” (Emphasis in original.)

Nullification is an intriguing practice, although it’s not often tried (here’s one example.) It brings arguments about whether it should be up to the states or left to the judiciary to decide what is in accordance with the Constitution.

But states are generally reined in under the federal judiciary’s interpretation of the Supremacy Clause (such as the case with Arizona’s SB1070 in 2010) as well as the prospect of losing needed federal funding if they don’t perform a particular action – examples I’ve often used are the .08 blood alcohol level standard and legal drinking age of 21, for which the lack of acceptable state law resulted in a deduction of federal highway funding. It would take a state willing to endure the penalties of perhaps defying the Supreme Court (as in a fictional example I recently reviewed) and losing a significant part of its federal funding to openly adopt nullification, and I can tell you Maryland politicians are way too gutless to try either. (Given his go-it-alone attitude, I daresay Rick Perry and Texas might come the closest to using the approach.)

Yet there is a logical argument to non-enforcement as well. We’ve often heard about the prospect of gun confiscation, but there’s an open question as to whether law enforcement – particularly in rural areas like the Eastern Shore – would be willing to go on what’s been described as a “suicide mission.” At the time, Dwyer was calling for the formation of a “voluntary militia” in each county. On the other hand, we have constant complaints about the federal government not enforcing certain other laws, such as the ones dealing with illegal immigration – a backhanded form of nullification unto itself.

I guess the problem is who decides which laws to not enforce, and if they’re not enforced, are we still a nation of laws? A stricter adherence to the Tenth Amendment and Constitution in general would help, but for that we need to clean out our judiciary swamp. I think an equally productive avenue for Dwyer to pursue with his States Rights Foundation would be to work for repealing the Seventeenth Amendment, which has been argued in some circles for several years and is something I’ve advocated for on both a federal and state level as well. That would help to assure the interests of the several states are represented in Congress, so nullification may not be as necessary.

Border security, VA among chief concerns at Harris Salisbury townhall

It was a fairly packed house at the Veterans of Foreign Wars Post 194 in Salisbury as Congressman Andy Harris held the second of four proposed town hall meetings in the district. After speaking in Easton on Wednesday, many of those same topics came up last night.

But the first order of business was recognition. After pointing out that unemployment among veterans was higher than the average – “I can’t figure that out,” Harris said – Andy presented a Congressional Citation to Chris Eccleston, who operates Delmarva Veteran Builders, a local construction firm which specializes in giving veterans job opportunities upon return to civilian life.

Once that presentation was out of the way, Harris introduced his “three things of great concern.”

As opposed to past negativity about the situation, Andy considered the declining deficit as a piece of good news, noting that federal spending had been fairly level for the last three years. The annual deficit is down $550 billion from its peak, although the aim of the House is to eventually bring the budget back to balance. Andy, however, conceded that the “House’s goal is to balance the budget in ten years.” So while it was still important, Andy wasn’t as concerned about this as he was the following three.

He also said there was “good news on the energy side,” pointing out we now produce more oil than we import and should be the leading world producer of both oil and natural gas by year’s end. The oil production was helped by technology which allowed what he called secondary and tertiary production from existing wells, as opposed to the primary production from new drilling.

On the other hand, Harris believed that, “in terms of immigration, the system is broken.”

“The border is just not being enforced,” he added, noting that Texas Governor Rick Perry has called out his state’s National Guard to assist with border security. In legislation recently passed by the House, added Harris, funding was included for governors who, like Perry, decide to call up their National Guard to address the situation.

“We can’t afford to have a border that’s not secure,” explained Harris.

The news was equally troubling on the foreign policy front. “The world is more dangerous now than it was six years ago (before Obama took office),” said Harris. It wasn’t just the Middle East, either – Andy touched upon the Chinese carriers now patrolling the South China Sea, well outside their territorial waters.

And while we were reaping the effects of our decrease in defense spending, Andy continued, we were also suffering from a lack of trust. Our allies could now doubt our sincerity based on recent actions.

After expressing his main concerns, Andy took questions from the audience. As my editorial license, I’m going to cluster them into areas of concern – on top of the list was our most recent crisis.

Immigration. Many of the questions dealt with various aspects and concerns from those attending about the situation on our southern border and the resettlement of “unaccompanied children.”

Much of the problem could be traced to the passage of a 2008 bill intended to counter human trafficking. Andy noted that the law as written provided the assumption that children from certain Central American countries were being brought for the sex trade, which was a problem at the time. It was estimated that perhaps 2,000 children a year would be affected, with the idea being that these children would get a hearing to ascertain their status.

Unfortunately, the crush of those claiming status under this law and the DACA order signed by Barack Obama in 2012 means that the waiting period for these hearings is anywhere from 18-60 months – and only 46% of those called show up, Andy said. One third of them are “granted status,” he added.

“We should close the loophole,” said Harris. “I don’t see how you get out of the problem without changing the law.” We also needed more judges on a temporary basis to expedite the hearing schedule.

A solution the House could offer to rescind Obama’s order would be that of defunding the executive action, for which there was a bill. And while some were pessimistic about such action given the Senate, Harris stated that the Senate could agree to “a compromise deal over a much larger package.” My concern would be what we would have to trade away.

Andy also pointed out that the resettlement of these children was more or less being done without telling local officials, noting when the Westminster facility was being considered the word came down late on a Thursday afternoon in a week the House wasn’t in session on Friday. It eventually led to the question about those being placed in Maryland.

When asked how many were in the First District, Harris conceded he had “no idea…nobody’s telling us.”  But he continued by saying, “your school system will be affected,” adding that many of these children can’t read or write in Spanish, let alone English.

And the fact that these children aren’t necessarily being screened, vaccinated, or quarantined if necessary was also troubling to Harris. “The CDC is cognizant of it,” said Harris, who had spoken himself with the CDC head. Of course, the children are but a small portion of those crossing – perhaps 10 percent, said Harris.

“The real solution is you have to secure the American border,” concluded Harris. Rapid hearing and swift repatriation would send the message to parents in the host countries that it’s not worth the expense and risk to send children northward to America.

The VA situation. Given that the town hall meeting was being held in a VFW hall, there were concerns aplenty about the state of the Veterans Administration and its health care.

As part of a VA reform bill which recently passed and the VA has 90 days to implement, veterans who live over 40 miles from a VA facility are supposed to have the option of a private physician to address their needs. But Harris pointed out there was some interpretation involved based on whether the VA would extend that standard to an appropriate facility for the type of care needed – for example, something only handled in Baltimore. Harris hoped the interpretation would allow veterans on the Lower Shore to use closer local facilities, for which our local regional medical center could be a substitute provider, rather than make them travel to Baltimore because there was a VA clinic inside the 40-mile range but it couldn’t address the need. “They regulate, and we have to watch them,” said Andy.

The ultimate goal was “to make the VA system compete,” said Harris.

Entitlements. On a related note, one questioner asked about protecting Social Security and Medicare.

Andy believed that “you can’t change the law retroactively,” meaning that the status quo should prevail for those 55 and older. On the other hand, those in the younger generation “don’t expect all of it,” so the time was now to begin the discussion on preserving what benefits we can. The question was no longer if we got to zero in Social Security and Medicare, but when – Social Security tax receipts peaked two years ago and were now slowly declining . “We know the figures,” added Andy.

The system is “not sustainable…shame on us” in Congress for not addressing it.

Foreign policy. There were a couple questions which dealt with this topic, one on Ukraine and one on defunding Hamas.

Regarding Ukraine, one piece of “bad news” which could affect us locally was Russia’s decision to halt chicken imports from America. Their preference for dark meat nicely complemented our love of white meat, so while it wasn’t a large market it was an important one.

But in the geopolitical sense, Harris was relatively blunt. “We let it all go too far (and) should have put a stop to this in Crimea.” Andy pointed out that Ukraine gave up its nuclear weapons in the Budapest Memorandum, which we were a party to along with Great Britain, Russia, and Ukraine. As expected, Russia violated its end of the deal, but Harris noted “I don’t know where it ends.”

As for defunding Hamas, the House did so in its FY2015 budget. In it is a provision that states if Hamas is included in a Palestinian Authority government, we would withhold funding from them.

Andy added that he was “disappointed” in the administration’s lack of Israel support, and blasted Hamas for “purposefully aiming (their rockets) into civilian areas – that’s terrorism.” He added, “The war was started by Hamas…Israel has to end it.”

Impeachment/lawsuit vs. Obama. It actually started as a comment from the audience while Harris was explaining his answer to the immigration issue and Westminster situation.

“I think Obama is an enemy of the country,” it was said. And when Andy pointed out he was duly elected as President, stating, “nobody is claiming (Obama) wasn’t elected fair and square,” the audible murmur in the audience indicated otherwise.

But Andy believed suing Obama over his lack of adherence to the Constitution was the best choice. “Let the Supreme Court decide,” he said, as the proper procedure for changing law was supposed to lead through Congress. He would not vote for impeachment, but would rather the lawsuit run its course. I don’t think that was the popular sentiment of those assembled.

Term limits. This was actually the first question out of the chute, and Andy was clear about the questioner’s desire to see them enacted: “I couldn’t agree with you more,” said Harris. He bemoaned the lack of co-sponsors to a Joint Resolution he introduced last year holding both Senators and members of Congress to 12-year limits. “Part of the problem is that people view it as a lifetime job,” said Andy. Most agree term limits are necessary, so Andy held out hope that the 2014 campaign will bring out a new “Contract With America” promising a vote on the issue.

Common Core: It was actually asked as an awareness question regarding the new AP history framework, to which Harris could only promise to “look into this.” But there was language being considered for the appropriations bills which stated the federal government couldn’t provide incentives to adopt Common Core, as they did for Race to the Top federal funding.

Transportation/energy. Answering a question about bringing light rail to this area, Harris opined it was “some of the least efficient ways to transport people.”  He preferred a surface transportation system, such as busses, because they’re more flexible – if the development doesn’t follow the rail system, there’s no chance of adjusting it to suit.

On the related subject of energy, Harris believed it was easier to produce fossil fuels while researching the next generation of energy harnessing, such as fusion or hydrogen cells. At this point, “fossil fuels are the coin of the realm,” Harris said.

Maximizing our resources also provides us an opportunity to counter Russia’s “ability to use energy for bad ends.” He also warned that Canada would either send its crude to us through the Keystone XL pipeline or ship it to China.

Manufacturing. Finally, we’ll get to the question I asked about making things in Maryland and America.

Andy began his answer by referring to the practice of tax inversion, which has made news lately. He blamed our “horrendous” corporate tax rates for being an incentive for companies to stray offshore, or even just across the border to Canada (which has a 15% corporate tax rate compared to our 35%.) “We live in a global environment,” said Andy, so the obvious solution was to cut our corporate tax rates.

Rather, Washington was thinking about trying to make the practice more difficult. Harris feared it would encourage more inversions.

Other steps to getting things made in America were to continue promoting cheap energy – as methane is the basis for many plastic products, having an abundant supply would be crucial in that area of production. We could also work on scrapping some of the over-regulation plaguing our job creators.

After the hourlong forum, Andy stayed around for more questions and answers. I thought the give-and-take was excellent, and it’s a shame more local media wasn’t there.

Carson for 2016?

It’s become a rite of passage for presidential hopefuls on both sides – the formation of a political action committee to gauge fundraising prowess and begin to collect IOUs for later political favors. So after a long runup where his name has been floated as a possible Republican contender, Dr. Ben Carson has taken that PAC creation step, dubbing the new organization the One Nation PAC. It builds on an unofficial online draft effort which has gone on for about a year.

Terry Giles, a businessman who would be Carson’s campaign chairman if he runs, told the Washington Times Thursday that the PAC was to “explore and analyze and engage in homework to determine what the political landscape would look like and how it might materialize for a Carson for President campaign.”

So a guy who back in December said he “thought when I retired I was going to play golf and learn how to play an organ” may instead make a bid for the highest office in the land. Quite honestly, I think the minority outsider part of the dance card might still be filled by Herman Cain; however, Carson has even less political experience than Cain did because Herman at least ran for a Senate seat from Georgia in 2004 before trying for the brass ring in 2011.

Having Cain to blaze the trail could be to Ben’s advantage, though. As he told The Weekly Standard in May:

I know how vehemently the left will come after you, try to destroy you, try to destroy your family. But at the same time I recognize that people like Nathan Hale – he said, ‘My only regret is I have but one life to give to my country’ … And if everybody runs for the hills because they’re afraid that somebody is going to attack them or their family, then [the left] will have won.

As the 2016 campaign will be for an open seat, like 2008’s was, there will be no shortage of Republican hopefuls vying for a place on the ballot. Rumors abound about everyone from the familiar names of Romney and (Jeb) Bush, to TEA Party favorites like Ted Cruz, Rand Paul, or Sarah Palin, to a list of governors which includes Rick Perry, Bobby Jindal, Scott Walker, John Kasich, Mike Pence, and Chris Christie.

But with the exception of Rand Paul and Ted Cruz, Carson beat all those others at the CPAC Straw Poll in March. So there are a number of voters out there looking for a true political outsider.

I believe this step is the prelude to setting up the exploratory committee, regardless of how the fall elections go. No one wants to get in the ring this soon because many of those who are considering a 2016 bid have to make it through this year’s election first. Once the election and holidays pass us by, I would expect Carson to make a go of it.

A monoblogue year in review

Having a holiday schedule based on Wednesday holidays seems to play havoc with the news cycle, as there’s not much going on with Maryland politics right now. By the time the holiday hangover is done, it’s the weekend.

So over the next four days I’m going to provide for you a look back and look forward. As part of that, tonight’s post will be the look back, with some of the highlights of my political coverage – and a couple other items tossed in for fun as well. This is the first time I’ve tried this, so I’ll see how it goes.

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The year began, as it always does, in January. As will be the case even moreso this year, political fundraising was in the news as there was a surprise leader in the gubernatorial money race on the GOP side. Another highlight of the month was a spirited and enlightening discussion of state issues at the Wicomico Society of Patriots meeting – something all too infrequent this year, unfortunately.

But the highlight of the month was my two-part coverage of the Turning the Tides conference in Annapolis. which had a plethora of good speakers and discussion. It was so good I had to post separately on the morning and afternoon events.

In February my attention was turned to several topics, particularly providing coverage of the financing and the events surrounding the Salisbury municipal elections, for which the primary was February 26th. A key issue brought up was a state mandate for the city to help pay for cleanup of Chesapeake Bay, to the tune of $19 million a year.

Another state mandate took center stage in February, as the Wicomico County Council held a Tier Map forum to find out citizens weren’t exactly enamored with the idea. As part of that I read from my written testimony on a Tier Map repeal bill, which wasn’t the only testimony I wrote – I also put in my two cents on the gun grab bill.

We also found out that month that the Maryland GOP would get new leadership following the resignation of Chair Alex Mooney.

March found me continuing my coverage of the Salisbury city elections, but only backing one candidate. More important were local developments on the state level, where the Second Amendment was a hot topic for a local townhall meeting and our county’s Lincoln Day Dinner.

But the highlight for me, by far, was my day at CPAC. That turned out to be a two-part set of posts.

As the area began to wake up from a winter slumber in April, so did the political world as it turned from the General Assembly session to the 2014 campaign. The Salisbury city elections went as expected, so I turned my attention to the race for state party chair. Interim Chair Diana Waterman ran a campaign which was at times embroiled in some controversy, but prevailed on enough supporters to make it through the lengthy grind of campaign forums (including one in Cambridge on the eve of the state convention) and win the remainder of Alex Mooney’s unexpired term. But even the convention itself had its share of ups and downs, particularly a chaotic ending and a rebuff to new media.

While that was happening, the 2014 election was beginning to take shape, with familiar names both trying their luck again and trying for a promotion. Others had interesting endorsements as feathers in the cap.

But it wasn’t all political in April. The outdoor season began with two local mainstays: Pork in the Park and the Salisbury Festival. I also found out I was immortalized on video thanks to Peter Ingemi, better known as DaTechGuy.

Those things political slowed down in May, with just a little reactionary cleanup to the state convention to begin the month, along with other reaction to the recently-completed General Assembly session. In its wake we also had turnover in Maryland House of Delegates GOP leadership.

But one prospective candidate for governor announced other intentions, leaving another to confirm what we knew all along.

On the fun side, I enjoyed Salisbury’s Third Friday celebration with some friends and stopped by to see them at another barbecue festival, too.

June began with a visit from gubernatorial candidate David Craig, who stopped by Salisbury and in the process gave me an interview. And while he didn’t make a formal tour, fellow Republican Ron George made sure to fill me in on his announcement and establish tax cutting bonafides. We also picked up a Republican candidate for an important local seat and found out political correctness pays in the Maryland business world.

A local doctor gave us his perspective on Obamacare and our area celebrated the chicken in June, too. I also learned of a special honor only a handful of political websites received.

As is often the case, our wallets became a little lighter in July. In the aftermath, we found out who David Craig picked as a running mate and welcomed both of them to our Wicomico County Republican Club meeting. I also talked about another who was amassing a support base but hadn’t made definite 2014 plans at the time.

On the other side of the coin, we found the Democratic field was pressing farther away from the center, a place the GOP was trying to court with the carrot of primary voting. Meanwhile, the political event of the summer occurred in Crisfield, and I was there.

There were some interesting developments in the new media world as well – a plea for help, a shakeup in local internet radio, and my annual monoblogue Accountability Project all came down in July.

The big news in August was the resignation of State Senator E.J. Pipkin, and the battle to succeed him. And while one gubernatorial candidate dropped out, another made his intentions formal and stopped by our Wicomico County Republican Club meeting as well. Even Ron George stopped by our fair county, although I missed him.

It seemed like the gubernatorial campaign got into full swing in September – Charles Lollar announced in an unusual location, the Brown/Ulman Democratic team came here looking for money, Ron George tangled with Texas governor Rick Perry and showed up to make it three Wicomico County Republican Club meetings in a row with a gubernatorial candidate, and Doug Gansler decided to drop by, too. On the other side, Michael Steele took a pass. I also talked about what Larry Hogan might do to fill out the puzzle.

Those up the Shore made news, too. Steve Hershey was the survivor who was appointed State Senator, and I attended the First District Bull Roast for the first time. I’ve been to many Wicomico County Republican Club Crab Feasts, but this year’s was very successful indeed.

September also brought the close of our local baseball season. As is tradition I reviewed the season, both to select a Shorebird of the Year and hopefully improve the fan experience.

October was a month I began considering my choice in the gubernatorial race. That became more difficult as Larry Hogan took an unusual trip for a businessman and Charles Lollar’s campaign worked on self-immolation, while Doug Gansler needed his own damage control.

I also had the thought of going back to the future in Maryland, but a heavy dose of my political involvement came with the tradtional closing events to our tourist season, the Good Beer Festival and Autumn Wine Festival.

Most of November was spent anticipating the Maryland GOP Fall Convention; in fact, many were sure of an impending announcement. Honestly, both may have fallen into the category of “dud.” But all was not lost, as the month gave me the chance to expound on manufacturing and share some interesting polling data.

Finally we come to December. While the month is a long runup to the Christmas holiday, I got the chance to again expound on manufacturing and come up with another radical idea for change. We also got more proof that our state government is up for sale and those who are running for governor place too much stock in internet polling. My choice is still up in the air, even after compiling an 11-part dossier on the Republicans currently in the race.

Locally, we found a good candidate to unseat a long-time incumbent who has long ago outlived his political usefulness. And the incumbent will need to watch his back because Maryland Legislative Watch will be back again to keep an eye on him and his cohorts. I’ll be volunteering for a second year,

And while I weighed in on the latest national diversion from the dreary record of our President and his party, I maintained two December traditions, remarking on eight years of monoblogue and days later inducting two new players into the Shorebird of the Week Hall of Fame.

You know, it was fun going down memory lane for 2013. But tomorrow it will be time to look forward, beginning with the local level.

Hershey appointed to District 36 Senate seat

The word came down last night from the victor himself:

I just received a call from the Governor’s office appointing me as the new Senator for District 36 – I am both thrilled and humbled by all the support I received during this appointment process. I am looking forward to serving the 36th District in this new role. Thank you again to all those that offered support, prayers and well wishes this was truly a humbling experience.

Steve Hershey wasn’t the longest shot, but going in he may not have been the favorite, either. Yet he secured the votes of two Central Committees in the four-county district and that was enough to forge a tie with fellow Delegate Michael Smigiel and throw the fate of the seat into the hands of Governor Martin O’Malley. Given Smigiel’s forceful opposition of O’Malley’s onerous gun law package this spring, you knew he would be punished by not getting the appointment he sought.

So Hershey gets the seat vacated by the resignation of former Minority Leader Senator E. J. Pipkin, who followed Rick Perry’s advice before the commercials even came out and moved to Texas. Now the scene shifts to the battle over Hershey’s vacated Delegate seat. As I recall, it cannot be filled by a resident of a county already represented in the district, so residents of Cecil County (Smigiel) and Kent County (Delegate Jay Jacobs, who did not seek the Senate post) would be excluded – but their Central Committees would have a vote.

Out of the original field of 14, all but three hailed from either Queen Anne’s County or Caroline County, which is the lone Maryland county without a resident Delegate. Not all of the remaining ten would seek the Delegate seat, but several probably would and they may be joined by a few others – one being Caroline County commissioner Jeff Ghrist, who made a lengthy plea on Facebook which I excerpt here:

Governor O’Malley will soon be selecting our new District 36 Senator and subsequently one of two House of Delegate seats will become available. This will require someone to fill a Delegate seat. Caroline County has been without a resident of our county representing us in Annapolis for nearly two decades. While I sincerely enjoy being a Commissioner in Caroline County…I would love to take my passion and experience for limited and efficient government to Annapolis.

(snip)

The first goal is to build a concensus (sic) throughout the district that I am the best appointment for Delegate. Not only do I have a strong legislative and executive track record but Caroline County deserves resident representation.

Ghrist has been seeking higher office for awhile; he briefly campaigned for Congress in 2009 before withdrawing and endorsing Andy Harris.

So we will probably have much the same circus we did for the Senate seat, with the real possibility of another split vote and Martin O’Malley breaking the tie.

Meanwhile, Hershey’s tenure may be short-lived. Former Delegate Richard Sossi is actively planning a run for the seat, as is 2010 U.S. Senate nominee Eric Wargotz. The same sort of situation may occur in the District 36 Delegate race next year, with several jockeying for position to be the top vote-getter in a particular county.

Long-term, the solution to that issue may be to enact 141 separate House of Delegate districts, instead of the confusing mishmash of having some three-person districts as well as a handful which are split in a 2-1 configuration. But in the meantime, the political races on the Eastern Shore may be some of the most interesting in the state with the District 36 openings, a primary challenge to the incumbent in District 37A, the opening in District 37B thanks to the selection of Delegate Jeannie Haddaway-Riccio to the David Craig gubernatorial ticket, the forced move of Delegate Mike McDermott to a challenge for the District 38 Senate seat due to redistricting, and a brand new District 38C with no incumbent.

George vs. Perry

Subtitled, Don’t Mess With Move To Texas.

Speaking in a radio commercial aimed at Maryland businesses, Texas Governor Rick Perry blasted the state’s business climate and invited commercial entities to consider his state, an effort interpreted as a slap at Martin O’Malley and his 2016 hopes.

In response, Republican gubernatorial candidate Ron George exhorted Free Staters to fight, not switch:

Delegate Ron George, Republican candidate for Governor, has a simple message for Maryland voters. “Don’t Move, Vote.”

Delegate George is asking Marylanders to reject Texas Gov. Rick Perry’s advertisement seeking to lure Maryland businesses to the Lone Star State.

“This is a response to the failed business policies of the O’Malley/Brown administration that have led to Maryland losing over 93,000 private sector jobs from 2007 to 2011,” George remarked. “While private sector jobs continue to disappear under O’Malley, we can still turn our state around.”

Delegate George will be releasing the results of an internal campaign investigation Thursday morning to illustrate the statewide impact of the O’Malley/Brown administration’s disastrous tax and budget policies. This investigation will highlight the huge disparities in job growth and education both within Maryland and compared to the rest of the nation.

Today is Friday; in reality I’m writing this late Thursday evening. Unless Ron is talking about next week, I haven’t seen this internal investigation nor has he mentioned it on his social media.

But aside from that unforced error, let’s examine both what George is alluding to and what Perry’s real aim is.

It’s no secret that certain parts of the state have basically full employment while others often flirt with double-digit figures. The closer you get to Washington, D.C. the more likely it is you have a job, because right now – even with the dreaded sequestration – the federal government is fat and happy. The nation’s capital is almost a perfect black hole of tax dollars, but just enough escapes the vortex to prop up the regional economy around the Washington/Annapolis area. So they have no incentive to change and don’t mind paying a little more to insure their overall well-being, coerced from taxpayers around the country.

On the other hand, once you get outside commuting distance to the Beltway corridor you’ll find the rest of us grasping at economic straws. I’m thinking that Ron’s campaign team has found a way to harvest the data which shows that we are far from being one Maryland, and I’ll be interested to see if I’m correct.

As for the Perry radio spot: in finding that video (which was also posted in the Mark Newgent Watchdog Wire post I linked above) I found that the originator of the video’s YouTube Channel (apparently a woman named Jennifer Beale, listed on LinkedIn as the communications manager for the state’s economic development and tourism office) has also done videos tailored to other states, specifically Missouri and New York, along with a more generic piece featuring onetime Dallas Cowboys running back Emmitt Smith. In that respect, what Perry and his state are doing isn’t a whole lot different than the commercials I see touting the state of New York’s new attitude toward business or the tourism ads they run. The state of Michigan also seems to be a heavy local advertiser in that respect (“Pure Michigan.”) Even Maryland does the same thing for their job creators, but only with certain selected environmentally-correct businesses.

Still, the idea that Ron George is pleading with the business community to give him time to get elected is an interesting one. Obviously he has some “skin in the game” as the owner of a jewelry business; moreover, getting a business to pull up stakes and relocate to Texas is no small feat, regardless of the size. On the other hand, individuals can easily move – and they have, many to Virginia, Delaware, the Carolinas, or Florida; in fact, according to the group Change Maryland, Virginia and North Carolina were the destinations of choice for many who have already left. Texas wasn’t high on the list, but it was good enough for a recently-departed state senator.

Until this state straightens out its priorities, though, don’t be surprised if other successful governors come a-callin’.

Primary crystal ball predictions

Just for the heck of it, I’m going to do my set of predictions on some key races locally and around the state. In the past we did this among ourselves at the Central Committee meetings but we didn’t discuss it last night. So tell me what you think, and if I turn out to be wrong – well, don’t laugh too much. Most of this is a (somewhat) educated guess.

I’m going to begin with the Presidential race, on a statewide level. There have already been several polls on this, so there’s a little bit of cheating involved; then again, the polls actually pretty much mirrored my gut instinct all along.

In Maryland, I see the race like this:

  1. Mitt Romney – 41%
  2. Rick Santorum – 28%
  3. Newt Gingrich – 16%
  4. Ron Paul – 11%
  5. Fred Karger – 2%
  6. Rick Perry – <1%
  7. Buddy Roemer – <1%
  8. Jon Huntsman – <1%

The polls seem to have Romney winning bigger (Rasmussen has it 45-28) but I think Mitt’s people will tend to figure he’s got it in the bag and turnout will be better in certain areas where Gingrich and Paul may run a little stronger.

How about Wicomico County? This is more of a crapshoot but I think the top 4 results will be a little different:

  1. Rick Santorum – 35%
  2. Mitt Romney – 33%
  3. Newt Gingrich – 18%
  4. Ron Paul – 13%

The voters here tend to be more conservative than the state at large.

The other statewide race is for U.S. Senate. Now I’m really going to go out on a limb here, because there aren’t any polls I’m aware of (aside from the sure fact campaigns have internal polling I’m not privy to) but my gut is telling me we may have a barnburner on our hands:

  1. Dan Bongino – 36%
  2. Richard Douglas – 34%
  3. Robert Broadus – 8%
  4. Corrogan Vaughn – 5%
  5. Joseph Alexander – 4%
  6. David Jones – 4%
  7. William Capps – 3%
  8. Rick Hoover – 3%
  9. John Kimble – 2%
  10. Brian Vaeth – 1%

In Wicomico County, I suspect the top three will be Bongino (42%), Douglas (36%), and Broadus (8%). None of the others will be over 3 percent. Incumbent Ben Cardin will be the opponent, with the over-under line for me being 70% of the statewide vote.

And how about the Sixth District race? It’s the most talked-about Congressional primary since the 2008 First District primary, with the added benefit of mud flying on both sides.

On the Republican side, I think Roscoe Bartlett will hold on to his seat with 33% of the vote, with David Brinkley gathering 29%, Joseph Krysztforski 14%, Robin Ficker 10%, and Kathy Afzali 7%. The other three will split the remaining 7%.

What saves Bartlett’s bacon is the fact that there are so many in the race that people may just throw up their hands and go with the name they know. If there were just four or five in the race I think Brinkley has a shot, although the last-minute release of 9-1-1 tapes featuring his ex-wife may knock a point or two away from Brinkley and provide Roscoe’s margin of victory. It’s the voters on the extreme western end of the district who are likely most swayed by that because they don’t really know David that well.

On the Democratic side, I’m sensing a bit of an upset. We figured that this seat was drawn for Rob Garagiola, but I suspect the charges laid against him by John Delaney have done enough damage that Delaney will squeak out a close win, something on the order of 31-30. Milad Pooran will likely run a respectable third with 21%, while Ron Little grabs 10% and Charles Bailey the last 8%.

The Second District GOP race is also interesting, but I think Nancy Jacobs will win it with relative ease, probably with 40% or so of the vote. Larry Smith comes in around 28%, Rick Impallaria with 19%, and the other two with single digits apiece.

Meanwhile, I think John LaFerla will be the First District Democratic nominee against Andy Harris and he’ll end up just short of a majority – 49% district-wide against Wendy Rosen’s 43%. Kim Letke will get the last 8%. What puts LaFerla over the top in the primary is the endorsement of Wayne Gilchrest. What keeps him from winning in November is being endorsed by NARAL and Planned Parenthood.

GOP winners in other districts will be Eric Knowles (3rd), Faith Loudon (4th), Tony O’Donnell (5th), Frank Mirabile (7th), and Dave Wallace (8th). Wallace gets the nod because the other three candidates will likely split the Montgomery County vote just enough for him to win over Ken Timmerman. Of course, there will not be any upsets among the incumbent Democrats – all of them will get over 75% in their respective primaries.

So what do you think? Am I all wet or do I have a good chance of being correct – and why? As opposed to yesterday, I’m going to leave this up all day until results come in.

Another one bites the dust

Just two days before the South Carolina primary, Rick Perry decided at last to drop out. You may recall he was considering withdrawing after the Iowa caucuses, but instead decided to concentrate on placing well in South Carolina. Turns out he wasn’t doing well there either, so Perry decided to throw in the towel and endorse Newt Gingrich.

That’s the topline story. So what can I dredge up from between the lines?

First of all, Perry is the first notable dropout to endorse Newt. Others who were in the race either endorsed Mitt Romney (most recently Jon Huntsman but also Tim Pawlenty and Thad McCotter) or have remained silent as to who they would back. It was thought that Herman Cain would throw his support behind Newt but he made no official statement to that effect, and Michele Bachmann has likewise been mum with her choice.

This also changes the equation of the race, as it’s now down to four main contenders. In political terms among that rapidly shrinking group, Perry’s departure leaves only Mitt Romney with any sort of executive experience as a former governor and Ron Paul as the last remaining current officeholder – Newt left the House in 1998, Rick Santorum was defeated for re-election to the Senate in 2006, and Romney chose not to run again in 2006. And presumably the anti-Romney vote is now split just three ways, with conventional wisdom predicting the new weakest link to be Rick Santorum.

But let’s talk about some other factors at play here.

Continue reading “Another one bites the dust”

Maryland’s role

I was doing a quick bit of research just to see something I was interested in.

Most of you know that Maryland’s presidential primary is April 3rd. It’s key because we are among the states participating in the first set of “winner-take-all” contests – the other primaries before us are supposed to allocate delegates proportionately.

I like the system because it doesn’t automatically mean the winner of the first two or three primaries will be the nominee, since that person can’t get a large lead on the field. But after March that all changes.

Presumably Mitt Romney would be the winner here in Maryland, but that’s not set in stone. It’s also important to note that we share our date with two other states and the District of Columbia – one of them being Texas, where it would be a shock to see anyone but Rick Perry win. The other state in the mix is Wisconsin, and at the moment they’re not really focused on presidential politics because there’s a nasty recall campaign ongoing.

Also worthy of note is the fact that in the previous two weeks there are only two primary elections, one in Illinois and one in Louisiana – and neither occur the Tuesday before ours. The upshot is that we may actually have some campaigning about these parts, and that could in turn help the Republican Party here in the state.

A little food for thought.