A good message, but who will see it?

Do you trust your government? Ron George doesn’t.

It’s an interesting commercial, although given the cuts and canned applause it’s obvious the spot was done in a studio.

But look at the message it conveys. We all know the government rarely deserves our trust in this day and age, and Maryland is a prime example. The waste and fraud run rampant in this state, and decades of one-party rule encourages the spigot to remain full-on. We all know this.

So it was interesting that the question was teed up for him in such a way. The commercial is a “genuine fake” in the sense that it wasn’t recorded at the original debate at which Ron uttered those words, but restating it in the better setting is somewhat creative. Unlike the Larry Hogan radio commercial where I found the message is somewhat cluttered by the crowd noise (because it was recorded live) this works rather effectively.

Of course, the question is who will get to see it? Needless to say, I’m giving Ron a little bit of earned media from this but I’ll bet I’m one of the few bloggers who will because others are backing other candidates. With only a modest amount in the bank and no prospect for public financing, the buy will probably be a limited, cable-only buy – if there’s any commercial space left available between the plethora of state and local candidates who may be in their own primary battles around the major media markets.

Now there is a little bit of good news – in my opinion, the audio from the ad can work as a radio ad as well, with a little bit of work and addition of a spoken authority line. It’s a money-saving measure and by all accounts Ron desperately needs to get the most bang for his bucks.

A pre-primary crop failure for two GOP candidates

I know those involved in one of the two campaigns involved were optimistic about making the deadline, but the Washington Post is reporting that neither Ron George nor David Craig collected enough “seed money” to qualify for public financing before the June 3 primary deadline. Because of that, Larry Hogan will pick up an additional $275,000 monetary advantage over his fellow contenders, and that’s big when the three others combined don’t have $275,000 in the bank between them right now:

  • Charles Lollar – $17,999.87
  • Ron George – $28,943.61 (includes $18,000 in loans)
  • David Craig – $144,058.54

Conversely, Hogan has $389,206.92 in the bank, an account which includes $500,000 in loans to himself and over $100,000 in additional in-kind contributions, donations from related LLC entities, and so forth from his personal coffers. But he spent enough on fundraising to secure the $258,642 in seed money to qualify for public financing.

There’s no question that this will help Hogan, who had burned through $342,007.24 in the preceding six weeks before financial reports were due last month. The Hogan campaign announced a fortnight-long bus tour yesterday, and the extra money can make this a two-pronged final push for him between television ads and the bus tour. Even with all that, Larry should comfortably remain short of the $2.6 million primary limit imposed by public financing.

Of course, each campaign is going to spin this different ways – for example, Lollar’s running mate Ken Timmerman touts the campaign’s “grass roots army”:

You see, other candidates plan expensive advertising campaigns, with air-dropped TV and radio spots that tell you nothing about their character or their plans.

Charles and I are proud to fight at the grassroots, where we are already preparing the way for victory in November by working with Democrats who share our concerns over the future of this state and who share our conservative values and non-partisan solutions.

It’s a nice sentiment, but time after time I’ve watched the candidate who raises the most walk away with the nomination or election over the others who pretend grassroots can carry them. In a local election grassroots goes a long way, but it’s hard to gather that many volunteers to effectively spread a message like media can for a statewide bid. Of the four, Charles was the only one eschewing public financing but his fundraising totals have always trailed the pack regardless.

For their part, George and Craig have (and rightfully so) questioned the extent of collaboration and coordination between Change Maryland and Hogan’s campaign. I’m concerned about the timeline between the January 21 official announcement (remember, the one which was snowed out) and the February 3 beginning of Hogan campaign records. What did Change Maryland spend money on in the interim?

Of the remaining candidates, Craig probably has enough money to adequately compete in the primary but would have to get cracking on seed money collections for the general election, for which he has until September 15 to qualify. But losing out on an extra $15,000 or so a day until the primary could be a damaging blow for those who were hoping to take advantage of the former checkoff.

The great debate

Last night (because by the time I finish this it will be Sunday) the four Republican gubernatorial candidates got together at Salisbury University to discuss their vision for the state, an event which was televised locally and will be made available statewide at a future time.

With only one hour to discuss issues, a 2-minute time limit on answers, and questions written by the local Chamber of Commerce – the event was moderated by their executive director, Ernie Colburn – the questions were somewhat predictable given the bread and butter of these campaigns deals with their perception of the state’s sluggish economy. The time constraints only allowed for five questions after a two-minute opening statement and prior to a 70-second close. The five questions had to do with the tax increases and structural deficit, creating a business-friendly tax code, addressing the challenges in attracting jobs, a seat at the table for the Eastern Shore, and restoring highway user funds. I would have liked one more directly addressing agriculture, but we didn’t get the opportunity to write the questions.

One other weakness with the format of the debate is that the candidates were placed in alphabetical order, which is fine, but initial responses were not properly rotated. Charles Lollar either answered questions first or last, as did David Craig, while Ron George and Larry Hogan had the benefit of hearing at least one answer. In this narrative, I will discuss the candidates in order of their opening statement, which happens to be alphabetical order beginning with the Harford County Executive.

First of all, David Craig perhaps had the best-organized presence there, which included running mate Jeannie Haddaway. Some of Craig’s blue-clad staff were there, but many others had Craig lapel stickers advocating his support of concealed carry. They all sat in one section of the audience, a section which I sat immediately behind. They also had an event close by the University beforehand, so David made a day of it.

In his opening statement, Craig made sure to mention his running mate and her ties to SU, from which she graduated. “Jeannie and I are very much alike,” said Craig, referring to their respective families’ long history in Maryland. “I want the twelfth generation (of Craigs) to still live in Maryland,” said David.

He stressed his experience in balancing nine budgets when addressing the structural deficit, pointing out that he had reduced taxes and cut spending during his tenure. Craig would not kick pension or health care benefits down the road as he implied the current administration has done, instead proposing more “paygo” projects funded from existing revenues rather than bonding, specifically noting casino proceeds as one source. (It bears noting that it would take a legislative act to do so, as casino proceed percentages are set by the General Assembly and the plurality of nearly 50 percent is supposed to go to education. So this could be construed by others as “cutting education.”)

In adopting a more business-friendly tax code, David pointed out we shouldn’t be taking the dollars in the first place. He proposed slashing the business tax rate from 8.25% to 4% in stages, but also explained that many businesses such as S-corps use a personal tax form to report their business income. He also wanted to address the sales tax, gasoline tax, and tolls.

Craig also remarked that Harford County had gained 8,000 jobs at a time the state was losing them, but his focus wouldn’t be so much on bringing jobs in as it would be keeping them here. “Just 25 percent of businesses are hiring” right now, said Dave, and he would address this by getting a more proactive Department of Economic Development and expanding broadband capabilities. We would not be Silicon Valley, said Craig, but we could be “Silicon Bay.”

In terms of giving the Eastern Shore a seat at the table, Craig played up his decision to secure Jeannie Haddaway as his running mate. “The Craig-Haddaway ticket is going to have someone (from the Shore) who will always be on the second floor, not just at the table.” He continued by saying Haddaway gave up a safe seat in the House of Delegates to try and benefit her region.

Craig also vowed no money to the Red Line or Purple Line and promised that counties will get their highway user funds back in the first year of a Craig administration.

He closed by taking a subtle jab at opponent Larry Hogan, saying that we didn’t need to change Maryland, “just change what’s on the second floor.” Between him and Jeannie Haddaway, they were 14-0 in beating Democrats, he concluded.

Overall, I thought Craig gave a solid, steady performance. He rightfully played up the presence of Haddaway on the ticket, although I suppose if you were watching from other parts of the state it could be seen as pandering to some extent. Yet of all the running mates, she’s probably the most qualified to succeed David if the unthinkable should happen.

Ron George was blunt in his opening statement: “This is about the economy…the other side has not solved one problem.” The facts were ominous, as he told us about 73,000 unemployed Marylanders and a manufacturing sector “still stuck in the recession.” He was a working man, with a career and business he interrupted to serve his fellow citizens.

Ron would address the structural deficit by combating waste through independent audits and putting together a Spending Affordability Commission that doesn’t paint such a rosy outlook – they predicted 4.5% GDP growth in FY14 and 6% next year. “These rosy forecasts have got to stop,” said Ron. He would also address the state’s bond situation, where debt service costs the state over $1 billion a year.

But he was realistic enough to realize “I can’t go in there as a king,” meaning he can’t just change government overnight. But what we could change, he would – “I’m guaranteeing you the things I’m saying,” said George. Yet he made an excellent point about the challenges to attracting jobs by asking why we look down on the tradesman, instead emphasizing the four-year degree? There’s no focus on that sort of education, Ron added. Being a guy who has an interest in “made in America,” this was one of the two highlights of Ron’s night insofar as I was concerned, with the other coming in the next question.

After Ron talked about the Eastern Shore being “in my blood,” he addressed such items as more state money for tourism (with a proposed slogan – “the Maryland Eastern Shore: life as it should be” – bringing back the canning business, protecting farms, expanding broadband, and reducing sales tax on this side of the Bay. But the best idea went back over 50 years, to a time when each Eastern Shore county had its own State Senator. “I think we need to have a Constitutional Congress in this state and go back to something that makes it fair for the Eastern Shore and the rural areas,” said Ron. And while I said 48 Senators (two from each county) I still think it’s an outstanding idea.

Ron used the highway user fund question a little differently, making the case that he would be “a governor for all of Maryland” and that helping Baltimore City would assist the rest of the state. But he would repeal the automatic increases in the gasoline tax and instead of a “reactive” transportation plan his would be proactive.

He concluded by promising to be a “hard worker” as governor and to treat all fairly, while also mentioning a little about running mate Shelley Aloi, who was also at the event.

Something I’ve observed about Ron, though, is that he comes across as ill at ease in a public speaking situation. He also rattled off a lot of numbers in his presentation, and perhaps sealed his image as a policy wonk because he’s also the only candidate who wears glasses. I noticed him looking down reading a lot, instead of looking at the camera. He also had very little presence at the event, which led to his only getting a smattering of applause after questions rather than a rousing ovation. I have no doubt he would be a hard-working governor – and as a policy wonk type myself I loved a few of his ideas and goals – but he’s going to have to overcome a lot to get there.

I was surprised that Larry Hogan didn’t have a larger presence there as well. In his opening he alluded to three recent visits to Salisbury University before settling into the familiar bromides of not desiring to be something, but to do something and being fed up with politics as usual. He also brought back the oft-repeated refrain of the state being on the wrong track and the emphasis on jobs, the middle class, and restoring the economy.

Of course, in the first question Larry brought up the $9.5 billion in new taxes, but pointed out that he worked for an administration which finished with a cash surplus that’s now once again a structural deficit eight years later. He would cut spending first, then roll back taxes where he could. Recently, Hogan added, he put out a plan to address $1.75 billion just by enacting existing recommendations.

Another familiar Hogan theme was that of our state being 41st of 50 in business-friendliness. Our corporate tax rate was “not competitive,” personal taxes were too high, and regulations too stringent. He would eliminate the hostile attitude and vowed “Maryland will be open for business again.”

After another regular reprisal of those things we’ve lost in terms of businesses, Larry made the case that there’s been “no discernible response” from Annapolis. He asked how an administration could be pro-jobs yet anti-business?

As far as the Eastern Shore goes, Hogan called the current administration “openly hostile” to the Shore, adding that he spoke to Jim Perdue, who told Larry he “feels like they are attacking our business.”

“There’s been a war on rural Maryland,” Hogan added.

Larry then made a statement some have already jumped on, saying “I agree with David; I think Jeannie (Haddaway) is terrific. I actually appointed Jeannie to the legislature and if I’m lucky enough to be governor then I’d think she’d make a terrific ombudsman and maybe liaison for the Eastern Shore.” He then added that the Shore is “not the only place neglected.”

In that respect, Larry is probably correct because each area of the state has needs not being addressed, But as a whole our part of the state is the poorest and tends to have higher unemployment. It could easily be argued we’re already in a recession.

He then promised to restore the highway user fund cuts that were “devastating” to local governments, perhaps by chopping away at the 53% of transport dollars spent on mass transit.

Hogan warned in his close that this was the “last chance to turn this state around,” this being “a fight for Maryland’s future.”

As a whole, Hogan’s performance came across to me as “meh.” The problem is that I’ve heard it all before, and this particular debate format and questioning lent itself to Hogan’s perceived strengths. Yet he never hit anything out of the park.

Although he appeared a little tired and troubled, Charles Lollar spoke with the most passion, generally motioning with his arms as he spoke. (Since I couldn’t watch the feed, I don’t know if this was seen at home.) Once he made the case that the state is going in the wrong direction, he mentioned that even the Democratic strongholds of Montgomery and Prince George’s counties and Baltimore City believe “the course is wrong.” He claimed his economic plan had the approval of Dr. Arthur Laffer and his health care plan won favor from Dr. Ben Carson, but vowed to “aggressively look for non-partisan solutions.”

So when Lollar stated that spending had jumped 36% over the last eight years (including $2.3 billion this year), he announced his intention for a taxpayers’ bill of rights (or TABOR) law to hold spending in check and to phase out the income tax in five years. “How would you love to wake up in five years, in 2019 in Maryland, and not have a personal income tax that you have to pay?” he asked.

He repeated the Laffer endorsement in his next answer, as well as the TABOR reference, but added that our legislature and governor doesn’t understand business. “We have a governor who hasn’t had a job in 28 years,” Lollar quipped. But he also dropped a bombshell on the group by proposing term limits. “It’s time for us to get rid of the career politicians,” he opined. Me? I love the idea, but it also has to come with the discipline of keeping the non-elected regulatory state in check.

Lollar pledged his running mate, Ken Timmerman, would address the challenge of attracting jobs by using his investigative skills to focus on waste and the 84 new taxes and fees. He also made the case that the biggest challenge to business is simply staying in business.

Charles wanted to “make the Eastern Shore a priority,” noting that we don’t get a good return on our tax dollars and would rather just be left alone by regulators. They’re “tired of being picked on,” said Lollar. He also brought up the Hudson lawsuit.

As for the highway user funds, Charles promised to stop the Red and Purple Lines, which were enacted under “reckless leadership.” He also wanted an “enforceable lockbox” over the funding.

Lollar got the last word in the debate, saying the job calls for real leadership. So he urged voters to “think this thing through” and that he had “found nonpartisan solutions…and already has ‘Democrats for Lollar’ organizations in Montgomery, Prince George’s, and Baltimore City.”

I’m sure Charles may have gained himself some converts around the state with his performance, which was surprisingly strong. Unlike Ron George or even Larry Hogan, Charles seems to thrive in a debate format such as this because he is a passionate speaker. He did fall into the Hogan trap of repeating some points several times, but overall it was a strong, compelling performance.

However, there were a few issues with Lollar’s day today. I happened to be sitting amid a few Lollar backers and they were disappointed by the lack of local support at his earlier gathering. Others I spoke to earlier today bemoaned his campaign’s lack of direction. But he’s the only one who has brought concepts like a TABOR and term limits into the conversation – these are broad-based conservative points of view, as is lowering the income tax to extinction.

So as for who “won” the debate, I would say it’s Lollar and Craig who did best, with George and Hogan lagging behind. But now I’m a little closer to determining who I will endorse and it will probably be made public in one week.

The problem with Lollar

There are a lot of people who are sticking a fork into Charles Lollar’s gubernatorial campaign. Some have been doing it for several months, while others are more recent converts. Assuming the latter piece by Jackie Wellfonder is true – and there’s no real reason to believe that it’s not – it’ll be interesting to know who will pay for Lollar’s pre-debate event tomorrow.

But there is something I want to bring up regarding how Charles has conducted his campaign; not in a financial sense but the target audience. There have been several occasions where I’ve heard Lollar talk about the locations he’s campaigned, and they’re not Republican strongholds. Places like Baltimore City or Prince George’s County, where the minority populations rarely hear a GOP viewpoint because they’re areas written off by the strategists. Yet we often hear that on certain issues, particularly school choice, the minority audience is very receptive to the GOP viewpoint – unfortunately for Republicans they tend to reflexively vote Democrat.

There are many who feel that Lollar has wasted his time in such areas, but I think he’s provided a good service to the party as a whole. Certainly he’s probably not in a position to secure the GOP nomination because he’s not going to reach many voters with a positive message when all the news about him seems to be bad, but it behooves us to act in such a manner to keep him on the team if he loses. I have no idea how well David Craig, Larry Hogan, or Ron George get along with Charles, but hopefully it’s well enough to both to allow him to remain unified with the eventual primary winner and keep the Lollar supporters on the Republican team in an election where all hands are needed on deck. Unfortunately, I keep hearing that if one particular candidate wins, a fair number will stay home or leave the gubernatorial ballot blank in November. Remember, it’s very likely that our nominee will be elected by plurality based on polling results.

When the smoke clears on June 24, there will be three losers and just one winner when it comes to the nomination. Everyone believes they have a path to victory, but in reality it’s probably a two-man race at this point. As always, the trick with contested primaries is to make sure the losers stay unified with the winners. If the supporters of the losing Democrats want to take their ball and go home, that’s up to them, but I want to win as many elections as possible in Maryland for the conservative team.

So Charles should be commended for his work taking the message to places where it’s not normally heard. Win or lose, I hope he keeps on doing so.

Hogan: coordination allegations “absurd and false”

This was a pretty quick response to an accusation over three years in the making. I’ll begin with fellow candidate Ron George’s perspective, which is reflected in statements within from David Craig’s campaign:

Today, the Ron George & Shelley Aloi for Maryland campaign joined the Craig-Haddaway for Maryland campaign in filling a complaint with the Maryland Board of Elections alleging illegal coordination between between Change Maryland, LLC and Larry Hogan’s various campaign committees.

“These actions by Change Maryland, LLC and Larry’s campaign committees represent an egregious breach of the public trust and utter disrespect for the law. We expect candidates for public office to hold themselves to a higher standard. These laws are designed to promote transparency,” said David Craig.

“The public should know where contributions are coming from and where they are going; It’s a matter of public trust. Furthermore, they should expect those who want to make more laws follow the laws we already have,” said Delegate Ron George.

On January 31, 2014, Change Maryland, LLC filed its most recent contributions and expense report for the period of January 1, 2013 through December 31, 2013 listing total contributions received of $145,995 while expending $213,040.

“We believe that all current and prior activities of Change Maryland, LLC appear to be directed by Larry’s campaigns and those activities should be considered part of his gubernatorial campaign for reporting purposes. With this complaint, we are asking the State Board of Elections to investigate. If the Board of Elections doesn’t, we can expect organizations in the future to skirt campaign finance laws to hide where their money comes from and where it goes. I hope the Board of Election agrees with us that the process should be transparent and uphold the integrity of law,” said Paul Ellington, campaign manager for Craig-Haddaway for Maryland.

Hogan responded, almost immediately:

“The entire premise of these allegations by two desperate campaigns is utterly absurd and patently false.  Had David Craig and Ron George bothered to do even a cursory check, they would have seen that the “about” page at Change Maryland’s Facebook page (https://www.facebook.com/ChangeMaryland/info) and website (www.changemaryland.org), clearly states Paid for By Hogan-Rutherford to Change Maryland.   In short, Larry Hogan for Governor owns Change Maryland and has since he became a candidate.

Unlike David Craig’s campaign which has already been found guilty and fined for violating campaign laws, our campaign has worked closely with the Maryland Board of Elections to ensure from day one that we comply fully with all state laws.”

Background:

Before starting his campaign for governor, Larry Hogan’s team sought guidance from the State Board of Elections on whether or how Change Maryland, a 527 political organization, could interface with a campaign for governor, also a 527 political organization.  The guidance received was that Hogan for Governor could purchase the assets of Change Maryland much like campaigns purchase mailing or contact lists from any other organization.  Immediately upon registering as a campaign for governor, with the SBE, the campaign entered into a purchase agreement for all of Change Maryland’s assets at fair market value.

Obviously there’s the question of how they determined what “fair market value” was, but we’ve known for three years that Change Maryland could be a handy vehicle to keep Hogan’s name in circulation after his abortive 2010 campaign. The question came up on one of his first interviews  as Change Maryland leader, with Maryland Reporter‘s Len Lazarick.

As far as the market value, if you look at the first Hogan financial statement the apparent “fair market value” for Change Maryland is $18,164.05, which is listed as an “asset purchase” made April 7. It was about 2 1/2 months after the campaign was formed, and the “contact list” pales in comparison to what the campaign had paid to date for mailings – for that purpose, the Hogan-Rutherford campaign spent nearly $121,000 employing a New York-based firm called SCM Associates during the initial months of its campaign. It was almost as if someone thought at the last minute, “hey, we better cover ourselves on this one.”

I’ll admit I’ve had campaign finance questions about my unusual situation of being a blogger and candidate for which I’ve sought advice from the Board of Elections, but $18,000 seems to be a lowball estimate for an organization whose 527 clearly states it churned through over $350,000 last year, raising over $140,000 by itself in a year when only one of the opposing candidates did as well.

So we have found out that the “perpetual campaign” is not just a Barack Obama phenomenon. Obviously he wasn’t going to admit it publicly, but all along many have suspected that Change Maryland was simply the lead-in to the 2014 Larry Hogan for Governor campaign – after all, why bring up a past campaign if you’re not running, as this archived Change Maryland page shows – just as any number of PACs created by particular failed candidates were formed as a way to keep their name in the limelight and (more importantly) create a donor database.

The beauty of Change Maryland, though, was that contributions to it didn’t count against a contribution limit to Hogan for Governor, and there’s little doubt that list is being mined again. In one respect, it’s a stroke of genius and perhaps there’s some sour grapes from the others about not coming up with the idea themselves. After all, we could speculate back in 2011 when Change Maryland was formed that David Craig and Charles Lollar were probably going to run in 2014, along with perhaps Brian Murphy and maybe even Michael Steele. (The entry of Ron George was a little bit more out of left field.)

These accusations, however, served to blunt the news that Hogan had reached the seed money threshold required to qualify for matching funds.

By qualifying for matching funds, the Hogan campaign is guaranteed $2.6 million immediately after the primary.  The Hogan campaign has received contributions totaling over $600,000 from more than 3,000 contributors since formally entering the race in late January. By reaching the matching funds threshold, will also receive over $260,000 in Fair Campaign Finance Act matching money.  In all, by qualifying for the match, the campaign says it will spend over $4 million “taking on the political establishment.”

Obviously Hogan has to win the primary to cash in, and that’s by no means certain when “undecided” has such a big share of the electorate. Classifying his opponents as desperate seems a little premature, and it may be a pretty tense couple days before the party’s unity rally slated for June 26.

I don’t think anything will come of this, but there is the potential for an October surprise if Hogan wins the primary and the Board of Elections indeed decides there’s some fire among all the smoke. I trust the other side about as far as I can throw them.

Halfway there

I was talking the other day about how some candidates were doing better financially than others, but Ron George is halfway to joining the air wars – here’s his TV debut:

They crammed a lot into thirty seconds; in fact, to me they almost talk too fast to understand it all. And while there’s a lot of time (and some expense) to get a thirty-second spot in, the harder part will be getting the money together to spread it out. Given that there will be a Democratic primary sucking up a great share of the airtime, the better bet may be hitting the cable networks in certain markets. At least that’s how I interpret this:

With every contribution of $250 or more, we can get this video in front of tens of thousands of voters across Maryland. Please also forward this email to all your family, friends and colleagues to let them know that Ron is the strong conservative candidate who can win in Maryland in 2014. Thanks again for your incredible support, and please join me in Building a New Maryland.

That may be 5-10 spots depending on location and particular venue. Granted, those spots may only reach a few hundred to couple thousand people, but hitting Fox News or Fox Business isn’t a bad play to get in front of a conservative audience.

I would expect Ron to at least get a limited run of spots, leaving Charles Lollar as the only GOP gubernatorial hopeful without major media thus far. Time is a-wastin’ for these guys.

“You make less, government takes more.”

We haven’t heard a whole lot from gubernatorial candidate Ron George lately. Certainly part of the problem was a lack of campaign money to get his message out, complicated by this side job he had of being a Delegate during the session. (According to the Maryland Legislative Watch website, out of all the votes available Ron was absent for just one – albeit an important one for SB134 – on January 28. Heather Mizeur also was out one day, March 13, and missed a total of eight votes. Both should be commended for that attendance record despite the crimp it certainly put in campaigning.)

But all along George has maintained perhaps the most comprehensive platform, and to be quite honest Ron’s impressed me in the race as one of the work horses as opposed to one of the show horses.

So it was nice to see the succinct line I quoted as the title as the lede to a recent release from George:

You make less, government takes more. That is Martin O’Malley’s economic model. News broke this morning that the number of state employees making over $100,000 grew in the last year alone by 20% (Maryland Reporter, May 13, 2014). This follows a trend that O’Malley started in 2007 at the start of the recession. As the recession began, other governors such as Tim Kaine cut their administration’s payrolls and budgets, but Martin O’Malley drastically increased the pay to his staff. Over the course of an eight year recession, he has increased government spending by 36%! In his first five years alone, O’Malley decreased the private sector by a net of 73,000 jobs, yet government grew by 26,500 jobs. I know. I was there on the front lines. As your next governor, it is a trend I plan to stop.

Help me build a new Maryland. One that stops the taking and starts the growing. While others running sat wishing someday to be governor, I rolled up my sleeves, got in the fight, exposed waste, won battles for secure drivers licenses, a tech tax repeal, lower boat excise tax, and helped kill 240 of the 320 taxes proposed.

The latter portion alluded to his eight years in the General Assembly. Unfortunately, Ron missed an opportunity: it’s “O’Malley/Brown.” Have to tie those two together since they are essentially peas in a pod.

But all this – and more – is true of Maryland over the last eight years; moreover, it’s not just a fiscal phenomenon. Government in Annapolis has taken our local control of zoning matters, threatened counties which, in their belief, don’t spend enough on education – talk about bullying! – restricted our Second Amendment freedom, increased the surveillance state, and placed an unneeded moratorium on a viable and vital development for portions of our state. Would all of this have happened under an Ehrlich/name your 2010 Republican successor administration? Perhaps, but I doubt it.

And Ron must be raising a little bit of money as he retained a young man new to the region as his Communications Director. As he is a graduate of the University of Toledo, I would wager Casey Cheap is familiar with my birthplace, so that immediately piqued my interest. Perhaps a George-driven economy could bring a few more from the Midwest?

I also noticed one more thing about the George release:

Each donor will receive a call from me personally.

It seems like the “smile and dial” should really be on the soliciting end, but it appears Ron is taking a page out of the Dan Bongino playbook and calling to thank individual donors. While he’s free to call me anytime anyway, let me say that if you think Ron has a good message he could certainly use the financial support. It’s not like he’s built up thousands of Facebook likes from a vague message of “change” without a ton of substance behind it.

A few convention leftovers

Hey, if Roch Kubatko can do it, I figure I can too. There were a few things I wanted to discuss in the post-convention aftermath.

One storyline was the low number of hospitality suites and rooms there were. Generally there are six to eight separate parties going on during a typical Friday night at the convention, but in this case I think two closed up shop relatively early so the other three became the centers of action. So it seemed to me that there was a crush of people for about an hour or so, but things cleared out pretty quickly after most of the food was consumed.

But I heard a grumble that the reason there were so few suites was the high price the MDGOP was charging. But since they don’t get a cut of any of the room-sized suites, their only recourse is to charge a premium price for the lobby spaces. Gubernatorial candidates seem to be willing to pay, though: last spring it was Blaine Young taking the spacious lobby of Timonium, in November they had Larry Hogan use the main space of the Annapolis Doubletree, and this time Charles Lollar took the Bethesda Doubletree restaurant.

In November I would imagine at least one Chair candidate using a large space, but that event will likely return to the higher number of rooms common to previous conventions as various party office hopefuls try to gain advantage.

Similarly, I don’t recall there being so few vendors. Maybe it was the way they were set up, but it seemed to me that previous conventions had more tables out. Yet as I noted in my main story, there were a number of counties well under-represented – nowhere close to preventing a quorum, but Diana Waterman pointed out in her remarks that a large number had registered on Saturday morning; more than expected. She had a right to be upset, but I think with so many proxies this couldn’t be helped.

Speaking of proxies, they were blamed for Charles Lollar winning the MDGOP Straw Poll. Here’s a press release Lollar put out:

The Lollar-Timmerman team for Governor and Lieutenant Governor of Maryland won a key straw poll today at the conclusion of the Maryland State Republican Party convention in Bethesda.

Today’s straw poll at the Party’s spring convention marks the last gathering of the State GOP leadership before the June 24 gubernatorial primary. Elected representatives from all 23 counties and Baltimore City cast their votes in today’s poll in favor of the Lollar-Timmerman team.

“We are grateful for this tremendous show of support from the elected leadership of the Maryland GOP,” said gubernatorial candidate Charles Lollar, a Charles County businessman and reserve officer in the U.S. Marine Corps.

“Today’s poll results mirror the sentiment we have been hearing from grass roots supporters across the state,” Lollar added.

Conservative Carroll County Commissioner Richard Rothschild enthusiastically endorsed the Lollar-Timmerman ticket on Friday night. “Everywhere I go, people have told me they are supporting Lollar-Timmerman,” Commissioner Rothschild said. “Those are the only names I hear.”

Both Lollar and Timmerman were attending other events on Saturday, but delegates at the state party convention erupted in cheers, jumping to their feet when they heard the results.

This latest straw poll victory from central committee members from across the state follows on the heels of a victory at the annual convention of the Maryland Federation of Republican Women in Calvert County.

The Lollar-Timmerman team has also won three successive Montgomery County GOP straw polls, including one on March 26 following the only debate where all four GOP gubernatorial candidates showed up.

“Ken and I thank you for your support and we will not let you down as we march to victory in November,” Lollar said.

I don’t recall the “jumping to their feet” part, but it was somewhat of a surprise to hear Lollar won. However, he didn’t mention that it was far from an overwhelming victory – if all the undecideds came down for third-place finisher David Craig, he would have won. The only one who finished poorly was Ron George; coincidentally or not, he was barely visible at this convention. Shelley Aloi was well-meaning and worked hard, but Ron’s table was unstaffed and volunteer sheet almost blank when I saw it Saturday.

We do know, though, that the party faithful who care enough to come to the convention have much more decisiveness about the race than a group of relatively random respondents selected for the St. Mary’s College Maryland Poll. The big winner in that poll was Mr. Undecided – nearly seven of ten hadn’t made up their minds yet. In that poll Larry Hogan leads by a somewhat comfortable margin, but at just 16 percent of the vote – a total of 43 votes out of 270, which wasn’t much larger than the room full of party activists.

Put another way, even Charles Lollar or Ron George has to convince just 34 more voters out of that remaining sample than Larry Hogan does to prevail. If either can start raising money, it’s doable.

On another subject, perhaps Don Murphy was right when he remarked that local candidates should have been out knocking on doors rather than at the convention. There were a handful of such candidates there who were pressed into service as Central Committee members or proxies, but I saw few General Assembly members about Bethesda over the weekend. Maybe they showed for the dinner, but they weren’t even there Friday night for schmoozing so they were likely following Murphy’s advice.

We also found out the next convention will be December 5-6 at Turf Valley, the site of our Fall 2012 convention/wake. Let’s hope for Maryland’s sake history doesn’t repeat itself.

2014 Maryland GOP Spring Convention in pictures and text (part 2)

In case you missed part 1, which dealt with Friday night, you can catch up here.

I was in bed reasonably early for a convention, in part because there weren’t a whole lot of hospitality suites to be found and in part because I wanted to cover breakfast with this immediately recognizable guy.

The former GOP national chair is always a welcome guest at MDGOP proceedings, and as a breakfast speaker he set a good mood for the day by predicting “we’re going to be back in our winning ways this year.”

But his message went back a few years, to when Michael took over the national party, which had become too “comfortable and cozy.” He saw his mission as one “to rebrand a party which had become moribund,” one where the gap between rhetoric and principles had become so large it snapped. “I’m so sick and tired of people blaming our principles for their failure to lead,” said Michael. “What we believe in is time-honored and true.”

Similarly, Steele noted that the state party had gone through its share of “definitional moments” and was ready to do so again. We needed to avoid being a party defined by what we are against and not what we are for, as we’ve “often found ourselves at odds with the very people that we want to represent.” We need to “talk about freedom but connect it to life.”

Taking that to a more local level, he noted that people are expecting leadership from the Central Committee members in the effort to “turn the elephant.”

“We’re not looking back, we’re looking forward,” said Michael. “Revolutionizing the (Maryland Republican) Party is our number one priority.” People are hungry for authenticity, leadership, and vision, he added. He got a token of our appreciation, too.

The wine is a Maryland red wine from Linganore called Black Raven. Diana thought it was a “providence” that she was thinking about how to thank our speakers as she drove by the winery. I had a shot of the bottle but, alas, I was too close and it came out way too bleached out. After breakfast, I had to gather my things and check out as well as make one other stop.

Instead of having a Friday evening suite, Larry chose to host a breakfast suite with Chick-fil-A items. Of course, all I was hungry for was information, so I spoke to Hogan about his experience on the Eastern Shore with our farmers. I found he has a fairly good idea about what they stand to lose should phosphorus regulations go through, so that was a plus. And I added to my weekend collection, a shot which included Larry’s wife Yumi.

It’s a bit askew because I was looking at two cameras at once. So I grabbed a Hogan-labeled bottle of water as I walked out and headed back down. With the stops, I missed much of what – from the part I did hear – was an interesting panel discussion by conservative black Maryland Republicans.

After that finished, I checked out some of the displays in the lobby. This one was new that morning.

As I understood it, my Worcester County cohort was selling “Benghazi bracelets,” which will be gray and black. Obviously that’s still on the minds of many people to whom it does make a difference. I also spied a more modest display that morning from the Lollar team.

I was remiss in not getting a photo of Ron George’s table, although I think it’s visible in the lobby photo in part 1. Of the four candidates, though, Ron had the least presence with just the table. Craig had a table and suite, as did Lollar, while Hogan had his breakfast suite, a folder at each table place, and hallways festooned with these.

In due course, you’ll understand why I thought it was important to make that comparison. Once that mini-tour was complete and I was checked out, it was time to begin the convention proper.

The first report was a legislative report from Delegate Gail Bates, who’s now running to become a Senator. She pointed out we don’t get our way much, but did achieve some good things: recoupling the estate tax to federal law, pieces of election reform – particularly on voter rolls – and straightening out the pit bull mess to place responsibility on dog owners regardless of breed. These, however, were outweighed by a litany of bad: a budget which continues a pattern of overspending revenues, increasing the minimum wage despite outcry from small business, decriminalization of marijuana, the “bathroom bill”, and the health exchange, said Bates.

We next received the bad news of the treasurer’s report from Executive Director Joe Cluster. The one positive note was that we were “right on course to meet our goals this year” after a slow start. This wasn’t her convention podium, but I wanted to show a shot of Party Chair Diana Waterman to signify her Chairman’s report.

She had one key announcement:

She also recounted recent events like the Reagan Ball and Johns Hopkins gubernatorial forum, but her message stressed the needs for turnout on Election Day and unity after the primary.

In an extension of the forum he moderated, Tony Campbell decried the lack of credibility the party had built in the 16 years he had been involved, and stressed that we needed to find issues that people connected with. This election was the combination of time and opportunity we had been waiting for, though.

Brian Griffiths gave a brief Young Republican report mainly focused on upcoming events, while the College Republicans gave no report because their incoming president, Christine McEvoy of Johns Hopkins, was studying for exams. Thus, the morning continued with National Committeewoman Nicolee Ambrose and her visual aids.

While Ambrose talked briefly about what the national party is doing, her focus has been on grassroots work in Maryland, particularly the Super Saturday program. Next Saturday, May 3rd, that program comes to Ocean City just in time for Springfest. A second one is in the works for June 21 in Montgomery County. Further ones for the fall will be determined over the summer, as there is an application process. She also stressed that every county should be looking into an absentee ballot program, particularly the larger ones.

But I thought this slide of upcoming events was cool.

It’s not just on the Eastern Shore, though, it’s right here in Salisbury. Do we need a better excuse to have a Super Saturday for Wicomico County? After all, the good Lt. Col. West shouldn’t arrive until the afternoon.

Louis Pope piled on to what Ambrose said as he gave his National Committeeman report, but also believed the June primary was an advantage to Central Committee members – those who win have a four-month period to learn the ropes, while the returning/retiring members could mentor the newbies.

Turning to the 2014 election, Pope quipped, “if you liked 2010, you’ll really like 2014.” The national GOP’s goal was to take the Senate, and with the recent Florida special election showing “it’s all about turnout,” coupled with the McCutcheon decision by the Supreme Court, the potential was there for a great year.

On a state level, Pope believed Wisconsin is a “model” for us – similar size, and a state controlled by Democrats until the last cycle. It all comes down to turning out Republicans.

Finally, we were through most of the reports, and we found out we had a quorum of 236 of 303 members present. But it was troubling that several counties were well short of their allocation. We’re used to this from Baltimore City, which, try as they might, has a hard time getting people to serve. But there were over half the members absent from Allegany, Calvert, Caroline, Dorchester, and Talbot counties as well. Granted, it was the last convention of the term and not much was on the docket but that’s still a concern to me.

The last item we dealt with before lunch was a resolution condemning the introduction of House Bill 1513, sponsored by both the Harford and Baltimore County Central Committees. Thanks to a parliamentary maneuver, the resolution passed by unanimous consent in a voice vote.

We were actually well ahead of schedule, even with lunch, so Diana Waterman added two speakers to the agenda: Attorney General candidate Jeffrey Pritzker and Comptroller hopeful Bill Campbell.

Pritzker was blunt: “Maryland is in trouble.” He reminded us he was the first to call for a special prosecutor in the health exchange debacle – a position Doug Gansler would prefer to do away with. “The people need a lawyer,” Jeff said. He promised to create a task force to address the laws, seeking to prune away the unnecessary and redundant.

Campbell made the case that we needed to go to places where we were uncomfortable in order to win. For example, he addressed the Maryland State Education Association – not expecting their endorsement, but to make his case nonetheless. Reportedly he got 40% of the teachers’ votes, which Bill considered to be very good impact.

We also had the Executive Director’s report from Joe Cluster, who told us to focus on four numbers: 6, 19, 48, and 16. These weren’t for Powerball, they were 6 of 10 County Executive seats, 19 of 24 county councils or commissions, 48 Delegates, and 16 Senators. “It would make us relevant in this state” if we achieved all these milestones, said Cluster. Joe continued by pointing out both Barack Obama and Martin O’Malley had approval numbers under 50 percent. “People are tired of what they’ve done to taxpayers,” Cluster said. “I don’t see any incumbent Republican losing.”

He also announced there were plans for Victory Centers in Towson for District 42, and in the District 38 area – Salisbury is in District 38, as is Ocean City. We then got to new business.

The Tweet tells you the result, but how we got there was interesting. I was one of perhaps four who spoke in favor of moving it to the floor, but by the crowd reaction to myself and other speakers I knew the effort was doomed. By the time the roll call got to Baltimore County (only fourth in) the result was obvious: just Caroline County (and its one representative), Dorchester, Howard, Kent, and Queen Anne’s favored it (Wicomico was 6-3 against) and the motion died by a weighted vote of 385-91. (In terms of bodies, it was 192-42, with one abstention.) Ten counties were unanimously against it. I thought it would get between 1/3 and 1/2 of the vote, so less than 20% was shockingly low.

But it is typical of the party’s “we’ve always done it this way” mindset.

Before adjourning, we heard yet another plea for unity and turnout from Diana Waterman, who was stalling a little bit because there was a full hour before the afternoon seminars were scheduled. But we finally received the results of the straw poll conducted at the convention.

Brian Griffiths, a confirmed Hogan supporter, came over to Jackie Wellfonder and I and huffily said, “that’s the last thing (Lollar’s) going to win.” He chalked up the loss to proxies who were in the Lollar camp.

Here are the actual vote numbers:

  • Lollar – 68 votes (29.8%)
  • Hogan – 62 votes (27.2%)
  • Craig – 60 votes (26.3%)
  • George – 29 votes (12.7%)
  • undecided – 9 votes (3.9%)

I remember looking quickly at Wicomico’s ballots before I handed them over and we split among the four candidates. I think it was 3 Hogan, 3 Craig, 2 Lollar, and 1 George.

But look at what was put into the convention by the candidates. Granted, Charles Lollar had a large and very visible party and David Craig had a lively suite of his own. All but Larry Hogan had lobby tables, with Ron George having very little other presence. I didn’t even see him there, although I did see Shelley Aloi frequently making the rounds.

Yet Larry Hogan spent a lot of money for sponsoring the programs, the folders at each seat, the breakfast suite, and the multitude of signs only to come in second by just two votes. (I have it on good authority that one Hogan supporter I know may be switching to Craig – had that person came to that conclusion a little sooner, there would have been a second-place tie.) I would have expected Hogan to get 35 or 40 percent based on the hype.

Unfortunately, my traveling companion needed to get back to Salisbury so I couldn’t stay for the seminars. It never fails – had we started at lunchtime, we would have argued the bylaws change clear through dinner. But out of the seventeen conventions I’ve now attended, this was one of the more quiet and non-controversial. I guess we’re fairly united despite the straw poll vote.

It was definitely time to go home and get to work.

Plans and schemes for jobs

One recurring theme of this site is my interest in the manufacturing sector, both nationally and regionally. I suppose the realization that much of what we buy is supplied by a nation which points missiles at us and holds trillions of our debt made me consider the need to think a little bit more about self-sufficiency.

In the generations of my 78-year-old father and my last living grandparent, who died at the ripe old age of 90, America built things. Many cite Detroit as an example of where we as a nation once were “makin’ Thunderbirds,” but we made a million other consumer products as well, all over the country. And while the Thunderbird hung on through 2005 – as did my late grandfather – many of those other manufacturers long since had abandoned us for greener pastures overseas where things could be made more cheaply and regulations weren’t nearly as strict. The latter had to be the reason that companies could spend huge amounts to ship products across the ocean in order to bring them back to our market – the market where, in many cases, these same products were once made in factories which sat shuttered and dormant.

That’s why I’m glad to see some of our gubernatorial candidates pay attention to this long-neglected sector. In doing some research for this piece, I found that just one on the Democrat side, Doug Gansler, is making an issue out of manufacturing and doing more than simply giving platitudes in addressing it. I must say some of these ideas are worth discussion and adaptation; unfortunately Doug takes the time to pander to a certain crowd in advocating for the self-defeating ideas of a higher minimum wage and additional mandated sick leave – these would only discourage manufacturers and businesses from locating in this state. Gansler doesn’t quite understand the concept of market forces with some of his proposals, but with some tweaking a few – particularly the apprentice program – could be workable as an expansion of vocational education.

On the other hand, the leader in this arena on the GOP side is Ron George. While he already had a good beginning as far as job creation goes, yesterday he expanded on his existing ideas of rebuilding manufacturing in Maryland – as he pointed out at our Lincoln Day Dinner, “I cannot cut welfare payments unless I have those entry-level, mid-level jobs.” This is what George proposes to do:

The technology and life sciences industries in Maryland have taken off in part because of significant tax credits and a Tech Services tax repeal. By trusting you to use your revenue to enhance your businesses and create jobs, Maryland has become one of the most successful regions in the country for IT, healthcare technology and biotechnology companies.

I’m proposing we make the same investment in attracting and rewarding new manufacturing firms for creating jobs in Maryland. As Governor:

I will lower the Total Effective Tax Rate of new capital-intensive manufacturing firms from today’s current rate of 31.9% to 20% by 2016.

In the short term, I will work with local and county governments to lower property tax rates and with the legislature to exempt equipment from the property tax of manufacturing firms.

By 2018, I will eliminate the business personal property tax, returning stability and certainty to the manufacturing industry.

This proposal is an investment in the perseverance and innovation of Maryland workers. We must bring manufacturing back to Maryland.

While there is an appeal to eliminating the income tax we have to bear in mind that, as currently constituted, revenues from the income tax make up 22 percent of the overall pie, while business taxes make up far less – eliminating them, one could argue, would create enough of a multiplier effect that the other taxes could eventually also be reduced (with prudent spending, of course.) Having to account for the loss of a 22 percent chunk of state revenue is the reason why all of the income tax proposals out there phase themselves in rather than eliminate the income tax in one bite. (Ever notice, though, that tax increases are rarely phased in?)

But there’s also a lot being left on the table through the short-sightedness of the current administration, and while Gansler and his cohorts on the Democratic side are (literally) tilting at windmills for job creation, we can conclusively show that one $3.8 billion project will help a portion of the state succeed long-term. Maryland was one of the first states studied in a new series of blog posts detailing the impact of the energy industry.

And while the API concedes the state isn’t a leader in the production of oil and natural gas, there’s nothing saying we can’t hold our own through a combination of Marcellus Shale exploration in the state’s panhandle, the prospect of more natural gas in the heretofore barely- or unexplored Taylorsville, Culpeper, Gettysburg, and Delmarva (!) Basins, and perhaps oil drilling offshore. Even the idea of testing the waters can have a positive economic impact on a particular area, and one major key in attracting industry is having inexpensive sources of energy. We hear a lot of complaints from industry about the cost of electricity in Maryland, but having more natural gas (and the power plants to use it) would be of assistance in drawing manufacturers.

Now if the candidates can put together a proposal of transportation structure improvements, one which includes an interstate-grade highway north from Salisbury to I-95 (with the cooperation of Delaware) and the completion of the originally envisioned I-97 across the Potomac to meet with I-95 near Richmond to save trucks from having to deal with congestion around Washington so goods could find their way to market much more easily, I’d really be a happy camper. But for now these will have to suffice.

Just as an aside, you just might be hearing a lot more from me on the subject. Stay tuned.

Campaign 2014: a (second) look at finance

If this post looks fairly familiar to you, I’ll explain why.

Back on January 22, I did the original post which bears the “look at finance” title above. Because I wanted to keep the same format while adding the newest information from Larry Hogan as a compare and contrast, I’m essentially reprising the earlier post with the additional information. If Larry Hogan can do apples-to-oranges comparisons of campaign finance, I can too. Everyone will be even with the pre-primary report due at the end of next month, but for now this will have to suffice.

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For each category, I’m going to do a rank order among the seven gubernatorial contenders who have filed a campaign finance report. Six of these were filed in January covering 2013, with the seventh being Larry Hogan – he announced his campaign in late January so his first report was due last week and covered the period through April 8. For the purpose of this exercise, I’m ignoring the minor candidates who did not file a campaign finance report as they are generally perennial candidates who raise little money.

To begin this comparison, it helps to know how much was raised during the 2013 period, which is about a week off the actual calendar since it ended January 8, 2014. For Hogan this runs from February 3 to April 8 – it’s a much shorter timeframe but has the advantage of being much closer to the primary.

  1. Anthony Brown (D) – $4,019,803.13
  2. Doug Gansler (D) – $1,487,704.79
  3. Heather Mizeur (D) – $493,173.55
  4. Larry Hogan (R) – $487.073.56
  5. David Craig (R) – $249,808.75
  6. Ron George (R) – $130,159.00
  7. Charles Lollar (R) – $65,329.67

Another piece of this puzzle which interests me is trying to figure out an average contribution. But rather than count the actual number of line items, I decided it was easier and far faster to assume there would be a certain number of contributions per page. This is the number of pages of contributors each report had.

  1. Anthony Brown (D) – 358
  2. Heather Mizeur (D) – 202
  3. Larry Hogan (R) – 197
  4. Doug Gansler (D) – 125
  5. David Craig (R) – 58
  6. Ron George (R) – 46
  7. Charles Lollar (R) – 36

So if you assumed 17 contributors per page, the average donation per contribution would comes out like this for the 2013 reports. In Hogan’s case, there are two provisos: his report is formatted a little bit differently so there are only about 12 per page; in addition, he loaned his campaign $100,000. So his average will be based on those revised numbers.

  1. Doug Gansler (D) – $700.10
  2. Anthony Brown (D) – $660.50
  3. David Craig (R) – $253.36
  4. Larry Hogan (R) – $206.04
  5. Ron George (R) – $166.44
  6. Heather Mizeur (D) – $143.91
  7. Charles Lollar (R) – $106.75

Something I found intriguing, particularly in Lollar’s case, was the fact that several contributors were serial repeaters. Some campaigns seem to have a feature where a donor can use an automatic monthly withdrawal, but in Lollar’s case it appears to be through PayPal and a large share of his backers tended to use that feature. That made for dozens of pages of expenditures on individual PayPal fees, which doesn’t seem to be a very efficient use of what turns out to be hundreds of campaign dollars a few pennies at a time, particularly on a $10 monthly donation.

Now let’s look at where the overall take came from. In all cases, the overwhelming majority of funds came from individual donations. But Charles Lollar took the cake there.

  1. Charles Lollar (R) – 100%
  2. Heather Mizeur (D) – 99.53%
  3. Ron George (R) – 98.12%
  4. Doug Gansler (D) – 97.5%
  5. David Craig (R) – 93.19%
  6. Anthony Brown (D) – 91.65%
  7. Larry Hogan (R) – 78.51%

I think there is a glaring mistake in Lollar’s totals, though, as I think the $6,000 transferred in from Blaine Young’s shuttered gubernatorial campaign probably should count as being from what the Board of Elections calls “Maryland candidates or slates” and not as an individual contribution. Based on overall 2013 totals, that would actually put Lollar near the bottom of the list. But he’s not the only one who made mistakes, as I found PAC money interspersed with individual contributions on a number of reports, along with missing addresses and the like.

In Hogan’s case, the $100,000 loan figures into the sum. While it doesn’t reflect in these totals, for interest of disclosure it should be noted that Hogan made another $5,000 in direct donations, $25,000 more came from LLCs affiliated with Hogan’s business interests (more on that later), and another $18,838.64 was made in in-kind donations. In all, 30.6% of Hogan’s money came from his own pocket.

Without changing the Lollar numbers, here’s the percentage of contribution some of these six received from other candidates or slates.

  1. Anthony Brown (D) – 3.27%
  2. David Craig (R) – 0.64%
  3. Doug Gansler (D) – 0.52%
  4. Larry Hogan (R) – 0.08%

The others received none.

But how about state PACs? I would have thought they comprised a much larger share of the pie, but none of the candidates received more than a tiny percentage of PAC money.

  1. Anthony Brown (D) – 3.13%
  2. David Craig (R) – 2.8%
  3. Larry Hogan (R) – 0.88%
  4. Heather Mizeur (D) – 0.44%
  5. Doug Gansler (D) – 0.42%

Neither Ron George nor Charles Lollar were beneficiaries of PAC money. Obviously in terms of actual dollars there’s a huge difference between Brown and Craig, but percentage-wise they are fairly even.

Oddly enough, though, Ron George leads in the percentage coming from political clubs. I think it’s based on one contribution.

  1. Ron George (R) – 1.88%
  2. Anthony Brown (D) – 0.21%
  3. Heather Mizeur (D) – 0.04%

Again, it’s a matter of scale – Brown’s largess from political clubs is nearly fourfold more in actual dollars. The lieutenant governor is also the sole beneficiary of federal committee money, to the tune of $69,000.

Since individual contributions are such a large part of the game, though, I wanted to take a closer look at where they came from. To that end, I decided to categorize appropriate donations into one of five categories, if they fit – most did not, while some fit more than one.

  • percentage from LLCs, LLPs, trusts, and other similar financial arrangements
  • percentage from law firms, as I could reasonably ascertain same (inexact, to be sure)
  • percentage from unions, although most give as PACs and I didn’t track those this time
  • percentage from businesses
  • percentage from out-of-state – in contrast to a federal race where out-of-state money is to be expected, it struck me that some campaigns leaned heavily on donors outside Maryland

I’ll start with the LLC category, which is being addressed for the next election cycle. Some believe it’s too easy to skirt contribution limits by maxing out a donation as an individual then shelling out more under the guise of an LLC. Each candidate got some LLC money, but some more than others.

  1. David Craig (R) – 25.16% of individual contribution money
  2. Larry Hogan (R) – 24.5%
  3. Anthony Brown (D) – 17.58%
  4. Doug Gansler (D) – 14.2%
  5. Ron George (R) – 4.69%
  6. Heather Mizeur (D) – 3.56%
  7. Charles Lollar (R) – 0.58%

Heather Mizeur is low on some of these categories because individual contributions from certain entities, like LLCs and businesses, could not be counted toward her matching funds for public campaign financing. Larry Hogan received a lot of individual contributions, but many of them exceeded the $250 allowed to be counted toward the match.

I sort of expected this result from law firms, although percentages were lower than I figured on.

  1. Doug Gansler (D) – 3.6%
  2. Anthony Brown (D) – 0.73%
  3.  David Craig (R) – 0.6%
  4. Larry Hogan (R) – 0.27%

They were the only four receiving contributions from what I reckoned were law firms. Even if I were wrong on a few, Gansler took that category with ease.

The same was true of unions, where Democrats Anthony Brown (0.59%) and Doug Gansler (0.07%) were unsurprisingly the leaders.

And if you thought pay-to-play was the rule in Maryland, well, you may be correct. The individual share from businesses went like this.

  1. Anthony Brown (D) – 17.38%
  2. David Craig (R) – 15.33%
  3. Doug Gansler (D) – 12.6%
  4. Larry Hogan (R) – 7.43%
  5. Ron George (R) – 5.09%
  6. Charles Lollar (R) – 2.85%
  7. Heather Mizeur (D) – 0.17%

Maryland may have one of the worst business climates in the country, but the big, established players must like the way competition is curtailed in the state. Some of the largest businesses in the country gave big checks to Brown and Gansler, with health care businesses propping up Brown and some large technology firms backing Gansler.

Finally, I thought it was telling who got support from out-of-state. This may be controversial because I counted Washington, D.C. addresses as out of state and surely some business people who are Maryland residents wrote checks based on their place of business. But I had to draw a line somewhere and the results are telling to me. These figures represent the percentage of individual contribution money drawn from out of state.

  1. Heather Mizeur (D) – 36.63%
  2. Doug Gansler (D) – 32.67%
  3. Anthony Brown (D) – 25.55%
  4. Charles Lollar (R) – 7.09%
  5. Larry Hogan (R) – 5.65%
  6. Ron George (R) – 4.11%
  7. David Craig (R) – 3.87%

In the cases of Brown and Gansler, it seemed like much of their out-of-state take came from the District of Columbia, while Mizeur’s came from all over the country. Yet if you considered Takoma Park and Silver Spring as part of another state (sometimes we here on the Shore consider them another country) I believe Mizeur would have been over 50 percent. Does everyone in Takoma Park have an extra Benjamin to spend on her race? Seems like it.

This final category shows that Maryland Republicans can’t seem to nationalize this statewide race as they could recent federal races with Dan Bongino and Andy Harris, for example. This is a pity because what better encouraging message to conservatives than a Republican winning in Maryland?

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Now to the present day.

In going through the Hogan report, I noticed a few interesting items regarding the LLCs which contributed to his campaign: a number of them shared the same address. The worst offender: a group of LLCs which list as their address the domicile of St. John Properties. Combined, these LLCs gave $30,000 to the Hogan campaign as well as $5,500 to David Craig. And they’re bipartisan, since Anthony Brown and Doug Gansler also have contributions from that same address – it may be the nerve center of political donations in the state. In Hogan’s case, he even rents his office space from St. John.

While he has a dog in this fight as one of those who’s running for the state’s highest office, I’ve found Ron George is a good go-to expert on campaign finance laws since he helped write many of the reforms taking effect next year. So I asked him about this situation as it relates to those in the race. Replied George:

The LLC loophole allowed Brown to get around $68,000 from one guy that created many LLC’s. That will stop after January 2015, but even though we increased the aggregate total limit, there will not be one because of the recent Supreme Court ruling. The limits to each candidate will still be law but we increased the $4,000 amount.

I also wanted some clarification on how the $250 matching funds worked, and Ron had that answer as well:

All “individual” donations (in Maryland law that means those from private individuals) can only be matched “up to” the first $250. So, yes, an aggregate amount of $500 can only have the first $250 matched.

The reporting periods became law this year, thus a couple more were added. The BOE software is keeping track of the matching fund qualifying money in a separate spread sheet.

Based on the numbers I found, and even deducting for the overage on many contributions – which ranged up to the maximum $4,000 allowed and then some in one case – it appears Hogan has, or shortly will have, enough seed money to fully qualify for matching funds in the primary.

But a glaring figure stuck out at me. As of the close of the reporting period, Larry Hogan had $167,748.15 on hand. I’ll grant Larry’s spent a lot on media already, but just as a reminder this is what the others had back in January:

  1. David Craig – $154,577.02
  2. Ron George – $15,449.89
  3. Charles Lollar – $5,731.35

If David Craig simply held serve and raised enough to cover his expenses for the first three months of the year, the two are basically even going forward. Obviously Ron George and Charles Lollar lag well behind, but since he had the chance to respond to my question George added this assessment of the situation:

Hogan is still playing the perception game. Many started to think he had a lot of money so they began to back him, but even his numbers are not so good. If he did not donate to his own campaign, he would be at my levels. That puts it in perspective. My three months of not fundraising did hold me back. But people should not count me out. It is still wide open and Hogan sent many fundraising letters out when I could not. I had a responsibility to serve my oath of office to which I was elected. Many felt I should have resigned like Palin did so I could raise money, but I felt I owed my constituents that voted me in.

As a gentle correction to Ron, Sarah Palin didn’t resign as governor until after she and John McCain lost in 2008. I think he was thinking of Bob Dole in 1996.

But Ron’s assessment of Hogan’s situation isn’t all that far off if you back out the nearly $150,000 Hogan has provided directly or indirectly to his campaign. Unfortunately for George, money is fungible and right now that cash is sitting in Larry’s campaign account ready to use, along with the possible volunteers that spending nearly $6,500 on Facebook advertising can whip up. It’s also why Hogan has a fairly significant lead in the polls despite the fact he’s not been queried much (if at all) on key issues like education, the environment, the Second Amendment, and agriculture.

The campaign playing field should be leveled May 27 when all of them have to file the first pre-primary report. For all contenders save Hogan, it will cover the time period since the 2014 Annual Report was due; in Hogan’s case we can combine this recent report with the next one to show an apples-to-apples compare and contrast with all the candidates on both sides. It’s about time.

Too clever by half?

It’s unfortunate the press conference wasn’t a couple weeks earlier, because the announcement had all the makings of a great April Fool’s joke. Unfortunately, the joke has been on Maryland taxpayers so earlier today Congressional candidate Dan Bongino and gubernatorial candidates David Craig and Ron George made their endorsement of Anthony Brown for governor of the Nutmeg State, Connecticut.

Having it on April Fool’s Day may have helped with media coverage, though. The main rags of the Baltimore Sun and Washington Post didn’t give the rally any coverage aside (at least not yet) with the only mention a three-day old piece in the Sun.

Be that as it may, I get the point that the tongues were firmly in cheek this morning. Then again, people like me only represent maybe one percent of the electorate and aside from perhaps a slight thought about the monetary aspect of the money blown on the initial iteration of the Maryland Health Connection website, those who have maintained their health insurance throughout may just shrug their shoulders. We’re all used to government boondoggles. The joke may be lost on them.

In an effort to make news out of this, Ron George put out a release noting “Ron George joins Dan Bongino to Endorse Brown/Ulman for Connecticut.” The first paragraph packs most of the punch:

When Obamacare was rammed through a partisan Democratic Congress, no one was happier than Maryland Lieutenant Governor Anthony Brown. He leapt at the opportunity to get out from behind his boss’ shadow and prove why he was the most capable candidate for the next Governor of Maryland. Two years and $260 million taxpayer dollars later, Anthony Brown is dodging any and all responsibility for the failed Maryland Health Exchange and is part of an administration that is actively covering up this massive scandal. Anthony Brown’s solution to the mess he created is simply to spend hundreds of millions more in taxpayer dollars to adopt the “Connecticut” model of government-run health insurance.

Naturally, Ron didn’t mention David Craig, who was also there – as shown on his Facebook page.

Jeannie Haddaway, David Craig, and Ron George attend a rally endorsing Anthony Brown for governor of Connecticut, April 14, 2014. Photo from Craig campaign.

Honestly, I’m not sure this is more than a blip on the radar. But as time goes on, the question which really should be asked is whether the Connecticut system, which was designed for a state roughly half Maryland’s size, will fit out of the box. More importantly, where will the extra millions needed to make this work come from? We’re already a long way in the hole just to buy the original pig in the poke, so what will give? Will it be insurance rates, reimbursements to providers, or the old standby of sticking it to future generations by raiding other funds and bonding to backfill the hole?

It’s almost too bad Doug Gansler didn’t stop by to make it a bipartisan backing of Brown for governor of Connecticut. Instead, he’s choosing to spend a little money on a simple website which asks the question “did Anthony Brown come clean today?’ (It’s also handy for gathering contact information via the attached “petition.”)

If we really wanted to improve the prospects for those who rely on health insurance coverage in Maryland, how about talking about measures which could open the market up more? After all, Barack Obama allowed some to keep their “substandard” plan that they liked, so what are the standards now? Make everything available, from bare-bones catastrophic coverage on the one side to something that pays for two hangnails a month among the other elements of a “Cadillac plan” on the other, and the market will find its level. I’ll bet it doesn’t waste millions of our tax dollars, either.

Update: Added David Craig:

Today’s announcement was an opportunity to highlight the failed policies of the last seven years and Anthony Brown’s inability to successfully lead Maryland’s healthcare exchange.

Jeannie and I believe the best solution to this disaster is for Anthony Brown to resign like Kathleen Sebelius, the former HHS Secretary.