Blog
TWO SPECIAL SESSIONS IS TWO TOO MANY
Governor O’Malley has called a Special Session for the week of May 14 to raise the state income tax and begin to phase in a plan to make the counties pay a portion of the cost of teacher pensions, which is currently paid by the state. The purpose of the Special Session is to keep the so-called “doomsday” budget from going into effect on July 1. Spending in the so called “doomsday” FY 2013 budget is over a half billion dollars greater than the FY 2012 budget – a far cry from the increases proposed by the Governor.
While I continue to work for approval of a budget which freezes spending, the “doomsday” budget is far preferable than the Governor’s initially proposed budget. It would be first time I can remember that the state would be taking a step in the right direction in terms of living within its means. Indeed, to the tax and spend crowd in Annapolis-that is doomsday.
The Governor has also suggested a second special session for mid-August to take care of the unfinished business of a constitutional amendment to put a sixth casino in Prince George’s County and allow table games at all the casinos. That initiative was left unfinished when the 2012 session adjourned. In the last minutes of the session, that bill – SB 26 – died in the House, along with the legislation to increase revenues through tax increases and transfers in order to fund additional spending.
Most of the majority party wants this bill approved, so that it can be submitted to Marylanders on referendum in the upcoming Presidential election. It should be noted that many of Prince George’s County’s representatives and most of its businesses and voters do not want this casino in their midst. The state powers-that-be want us to say “yes” to a sixth casino even before the five casinos, already approved, are up and running.
Here’s where we are now. The people of Maryland are potentially going to foot a $21,000 a day bill for two special sessions that are not needed and should not be held. The people have every right to expect and demand more responsible behavior from their Governor and elected representatives. Two special sessions are two special sessions too many.
I remain opposed to convening two Special Sessions and am vehemently opposed to increasing any taxes or fees on our citizens.
Please do not hesitate to contact me on this or any other legislative issue of concern to you. I continue to encourage and welcome your input.
Conclusion of Session
For the first time in memory, the balloons and confetti that traditionally conclude the Maryland Legislative Session were not dropped. The majority party did not feel celebratory. In all honesty, I was relieved since the tax increases that all of us thought were inevitable failed to gain passage.
Saddled over the past five years with notable challenges, our state continues to struggle with job creation, budget shortfalls, and stifling taxes. And yet in the last three months the General Assembly and the Governor have tried to compound this fiscal morass, moving our State further away from responsible stewardship of state coffers.
Maryland’s Operating and Capital Budgets
Taxes loomed large this session. I voted against every new tax or fee, along with each attempt to increase taxes or fees. Contrary to claims by the Administration, Maryland has no revenue problem. Rather, the state is beset by profligate spending. To get our economic house in order, it is imperative that we prioritize spending-public safety, first, followed by education and infrastructure-and adhere to those priorities.
Each Session the Governor introduces an Operating Budget and the Capital Budget. The Legislature is limited to reducing the budget. In addition, the General Assembly does not have the power to cut in one area and transfer those funds to increase spending in another. I voted against both budgets.
Capital Budget
Spending in the Capital Budget exceeded the level recommended by the Capital Debt Affordability Committee by $100 million. The debt service resulting from the Capital Budget continues to grow as a part of the overall Operating Budget. Besides burdening the Operating Budget, it also directly affects the state property tax rate. The Capital Budget comprises spending projects that, in my opinion, are inappropriate or could either find an alternative funding source or wait for less lean times. Projects include $250,000 for a bike sharing project; $250,000 for a street lighting project in one Prince Georges County community; $150,000 for a high school concession stand; $125,000 for a school track renovation; $50,000 for windows in a private school; and $25,000 for a dinosaur park.
Operating Budget
The O’Malley administration claims to have cut spending over the last 6 years in budget cuts totaling $7.5 billion. However, in reality, the budget has increased every year under his administration. The Governor’s proposed spending in fiscal year 2013 was 3.9% higher ($1 billion) than fiscal year 2012.
And at the last minute, the Governor proposed raising the sales tax to 7%. Combined with the Governor’s earlier push to apply the state sales tax to gasoline, this sales tax increase would add inflationary pressure on an already sluggish economy. The Administration argues that the gas tax is necessary to fund transportation needs. The proposal collects an additional $600 million from Marylanders, on the heels of over a billion dollars in transfers out of the Transportation Trust Fund over the past several years.
In order to fund the increased spending in the budget, the House and Senate passed different versions of tax increase legislation. The good news is that, due to end of the session shenanigans and game playing, all of these proposals died! The budget that ultimately passed is described as a “Doomsday” (not in my opinion) budget, which proposes to spend $35.3 billion dollars. Even this budget has spending increase by half a billion dollars over last year’s budget. That being said, it is far preferable to the Governor’s initially proposed budget that the Legislature was ready to enact, if the tax increases had been approved.
My fear is that the Governor and the Leadership of the House and Senate are going to convene a Special Session in order to increase income taxes, other fees, and transfer money out of dedicated funds. This additional money would be used to fill in the reductions in the Governor’s proposed budget which resulted from the failure to increases revenues. I am absolutely opposed to a special session and any attempt by the Governor or the leadership to increase taxes or continue the practice of raiding dedicated funds.
The following is a partial list of cuts as a result of the failure to increase taxes and create additional revenue:
-Aid to local government (mostly education)
-Elimination of stem cell research fund
-Reduce public higher education and community college funding by 10%
-Elimination of Senatorial and Delegate Scholarships
-Elimination of State employee Cost of Living Adjustment (COLA)
-Elimination of 500 State employee positions
-Reduce agencies operating expenses by 8%
The total amount of these cuts is $512 million.
Mindful of the dire need for a culture change in Annapolis, I continue to stand for smaller government and lower taxes. In this current economic climate we must hold our government to a higher standard of fiscal responsibility. If we could freeze the budget for just one year, our structural deficit would disappear.
Maryland Offshore Wind Energy Act of 2012
This legislation was the crown jewel of Governor O’Malley’s legislative package this year – one that would have cost electricity customers $4 billion over the next 20 -25 years. Ratepayers would pay based on the amount of electricity they use ($1.50/1,000kwh/month). Many ratepayers use well over 1,000kwh per month. Businesses, manufacturers, schools, and county governments would all have to pay more. The bill created a “carve out” for offshore wind in Maryland’s Renewable Portfolio Standard (RPS) – picking winners and losers in the energy industry. The whole point of the RPS law was to require utilities to purchase a certain percentage of electricity from renewable sources while providing flexibility so they could choose the source with the best price or the most availability. With no one denying the fact that offshore wind is the most expensive way to produce renewable energy; Maryland would have picked the loser as the winner saddling our citizens with higher electric bills for decades to come. I voted against this legislation, which passed in the House, but failed in the Senate.
Flush Tax and Storm Water Management Fee
The flush tax will increase from $30 to $60 per year. The O’Malley Administration has raided the Bay Restoration Fund multiple times over the last several years to cover budget shortfalls. The bill fails to protect the Fund from additional raids in the future and there is no guarantee that the monies raised by this increase will go to fund wastewater upgrades as they were intended. I voted against this bill, it passed.
In addition to the flush tax increase, legislation passed which forces each county to institute a storm water management fee. Each county is under order to enact a storm water management plan relating to the Chesapeake Bay; the fee is to be used to implement each plan. The amount of the fee is undetermined and there is no cap in this legislation. I voted against the measure, in part due to its blank check nature.
Education – Higher Property Taxes
Continued Lack of Board Accountability
Legislation passed strengthening Maryland’s Maintence of Effort (MOE) law. As a result of this legislation, many counties will be forced to spend more on schools. This new law allows the state to seize local tax revenue and distribute it directly to the schools, if a county does not meet its maintenance of effort requirement. In order to avoid having their tax revenues seized, the counties are “allowed” (forced) to raise their local property taxes beyond restrictions on property tax hikes currently in effect. It is still unclear how this would interact with the homestead tax credit, which, in Baltimore County, is limited to 4%. I voted against this legislation. It should be noted that this year per pupil spending in Baltimore County is $13,800.
Currently, the Governor appoints members of the Baltimore County School Board. Under this system there is no accountability and transparency. Over the years, concerns from citizens, parents, and elected officials have been dealt with by the Board in a somewhat cavalier manner. Over the last several sessions, I along with a number of other Delegates and Senators have been working on proposals which we believe will make the board more transparent and responsive. This session we came within one step in the legislative process of enacting legislation which calls for electing six members of the School Board while the Governor would continue to appoint the remaining five. Both the Baltimore County House and Senate Delegations approved this measure by large margins. However, County Executive Kamenetz, through his relationship with the Chair of the House Ways and Means Committee, successfully scuttled the proposal in the waning minutes of the Session.
Affordable Health Care Act (Obamacare) – Maryland Health Benefit Exchange Act
This is Maryland’s first step in enacting the federal Affordable Healthcare Act. The bill creates a Health Benefit Exchange, a website that allows individuals and businesses to shop for health insurance online. The budget includes $26.5 million in funding for the Exchange. In addition, this legislation expands the scope of the Exchange by establishing the Small Business Health Options Program (SHOP) and navigator programs for the business and individual exchanges. Navigators will be licensed or certified personnel that assist individuals and businesses to make insurance choices from qualified plans. Although the intent of the Exchange is to make health insurance more accessible and affordable, there are many concerns primarily related to taxpayers, consumers and the effect on insurance producers. There is also the fear that enactment of Obamacare will result in physician shortage, and then of course the current debate of constitutionality. Maryland has committed to the Exchange whether or not the ACA is ruled constitutional. The Exchange promises an additional burden on taxpayers while its success in eliminating uninsured residents remains uncertain. I voted against this legislation, unfortunately, it passed.
Legislation, I Sponsored, arising from Proposals from Constituents
Meanwhile, I have been working to make real changes designed to help Marylanders. Much of the legislation I introduced arose from proposals by constituents. This is a partial list of the bills I sponsored:
Income Tax – Subtraction Modification – Forest Conservation and Management Program Expenses – passed. This proposal was brought to me by conservationists in Northern Baltimore County. The Forest Conservation and Management Program (F.C.M.A.) has done a great deal to preserve the rural character of Northern Baltimore County, but it was plagued by large upfront costs. This legislation, which passed, provides a tax credit of up to $500 designed to cover part of these costs.
Continuing Care Retirement Communities – Regulation – passed. This proposal is designed to remedy various problems with continuing care facilities. The board of directors for some of these facilities had not allowed residents to be present at board meetings or even to be informed of what goes on at the meetings. This legislation is designed to increase transparency for these continued living communities.
State Board of Morticians and Funeral Directors – Examinations of Applicants and Licensee and Maryland State Board of Morticians and Funeral Directors – Permits and Registration Required to Remove and Transport Human Remains – both passed. These two pieces of legislation concern pre-need contracts with funeral establishments and registration of individuals who transport deceased individuals. Many people enter into pre-need contracts with funeral homes. These contracts are to be payable upon demand with the funds held in trust. Recently, there were two instances where hundreds of thousands of pre-need funds were misappropriated. The other problem deals with missing valuables. There have been cases of items taken when human remains are removed from a person’s private residence.
Kathleen A. Mathias Chemotherapy Act of 2012 – passed. This bill prohibits health insurers that provide coverage for both orally administered cancer chemotherapy and cancer chemotherapy administered intravenously or by injection from imposing limits on coverage for orally administered cancer chemotherapy that are less favorable to an enrollee than those that apply to cancer chemotherapy administered intravenously or by injection.
Petition Drives
Currently, there are two additional petition drives in progress. The first one concerns the State’s Congressional redistricting plan which was passed during October’s Special Session. In all honesty, there is nothing good to say about this plan. I voted against it and remain vehemently opposed to it. This plan is one of the most outrageous cases of gerrymandering in the nation! (http://planning.maryland.gov/redistricting/2010/congDist.shtml)
The other referendum effort regards the Same Sex Marriage legislation, which was passed and was signed into law in late February. After much thought, introspection and discussions with many constituents, regarding this I decided to cast my green vote in favor of this legislation.
If you would like to sign one or both of the petitions to put these issues to referendum please visit (https://mdpetitions.com/).
Conclusion
However frustrating the news out of Annapolis may be, I take heart in knowing that our corner of the state remains a proud example of all that is right with Maryland. North County schools are strong, the countryside is green, and people take responsibility for their communities. Hundreds of people contacted my office for assistance on a wide variety of issues and it is humbling to share in the daily challenges of my friends and neighbors in Northern Baltimore County. As always, I look forward to your questions and thoughts. I will continue to send periodic updates throughout the year.
Please do not hesitate to contact me regarding any issue of concern to you.
Take care,
Wade
HB 1412 Maintenance of Effort
As a former math teacher in the Baltimore County school system, I know how important the school system is to the continued success of Maryland. And as an elected representative, I have worked to create and preserve the highest standards of education for all of Maryland’s children.
First some back ground, Maryland has what is known as a Maintenance of Effort (MOE) law for education spending. This law requires that the counties spend at least as much per pupil as they spent the previous year. If they do not meet this requirement, then the State of Maryland will withhold funding from the counties. Although education spending is determined by the counties in theory, in practice the Maryland State MOE law controls education spending.
Introduced this year is House Bill 1412, which strengthens the MOE law. HB 1412 says that the state government may move directly to “intercept” local government income taxes in cases of noncompliance. The State of Maryland will then move directly to give this money to schools. The new State MOE law also “allows” the local counties to raise local property taxes in order to meet this additional financial burden.
This carrot and stick, but mostly stick approach to dealing with education issues is unhelpful and heavy handed. This State law takes a very confrontational approach to the counties. In contrast, I believe that each individual county should be left alone to make the spending decisions that they find the most appropriate.
The State of Maryland should be working hard to support our county school systems by providing technical support, fostering innovation and granting additional financial aid for particular counties struggling with their schools. Maryland should not be threatening to commandeer county revenue or forcing the counties to raise property taxes.
Please do not hesitate to contact my office on this or any other issue.
Taxes
Taxes
Taxes, taxes, taxes. 2.3 billion dollars worth of new taxes. And that number does not include raids on various state trust funds like the Maryland Insurance Trust Fund or the Injured Workers’ Insurance Fund. Maryland self insures too. So I guess keep your fingers crossed Maryland.
Let’s start with the gas tax. In its current incarnation, Governor O’Malley wants to apply Maryland’s six percent sales tax to gasoline. Initially, O’Malley wanted to get rid of Maryland’s current 23 cents-a-gallon gasoline tax, and move to a proportional sales tax. Somehow that got lost in the General Assembly. As it is now, the gas tax simply lumps the six percent sales tax on top of the current tax.
Gasoline is a fundamental part of this economy and the price of gasoline is factored into every consumer good. Increases in the costs of gasoline are incredibly inflationary as increased prices for basic commodities cut into the value of our pay checks. This recession has been marked by real wage stagnation for the citizens of Maryland. Inflation further drives down wages as each dollar becomes less and less valuable.
The Budget Reconciliation and Financial Act of 2012 (BRFA), pronounced “Burfa”, which outlines the entire Maryland budget for fiscal year (FY) 2012-13 states that:
The Governor’s budget plan includes nearly $800 million in spending reductions, preserves $885 million in cash resources, and reduces General Fund spending below FY 2012, after excluding the Rainy Day Fund appropriation.
First of all, the projected total operating budget for Maryland is increasing by three percent, or $1.1 billion dollars, not decreasing by $800 million. Second of all, the governor’s plan reduces spending primarily by shifting teacher pension costs onto the counties. Government as a whole is not spending less; they are simply shifting the costs to the local jurisdictions.
Finally, I do not know what it means to “preserve” cash resources. But I think it means new taxes. Governor O’Malley is eliminating tax exemptions for thousand-aires. Tax exemptions are one of the best, market oriented ways that we have to incentivize “good behavior”. The mortgage deduction is one of the most important tax breaks for middle-income families and promotes healthy home ownership. And charitable deductions steer millions of dollars into valuable organizations and projects. These are the important policy tools that we should preserve.
Then there are the fees. Out of all the new fees, I think increasing the application fee for a certificate of still birth from $12 to $24 is the most inappropriate. Combined with the increase in all vital record fees, this will reduce Maryland’s deficit by an estimated $739,000 in FY 2013. Its one thing to increase a fee for registering a new boat (onerous in its own right), but stillbirth? Frankly, I don’t think there should be any fee associated with still births.
We need to rein in spending. We need to make responsible choices. There are some real cuts to the government in this budget. Governor O’Malley is getting rid of several government offices like the Office of Smart Growth. And he makes some gestures towards reigning in Maryland state employee pensions and salaries. But by and large, this is more of the same.
Please do not hesitate to contact me on this issue or any other issue.
Click the following to see a list some of the proposed fees and taxes:
Proposed Fees and Taxes
HB 975
Strengthening The Forest Conervation and Management Agreement
Dear Friends,
Last week, House Bill 975, which I introduced and am working to get passed, had a hearing in front of the House Environmental Matters Committee. The Maryland Department of Natural Resources runs the Forest Conservation and Management Agreement (FCMA) program. This program allows people who enter their land into conservation to pay property taxes at a lower rate. Typically, the program enrolls about twenty five properties a year.
House Bill 975 aims to increase this number. There are large up front financial costs associated with entering your land into the FCMA program. Private property owners must pay to have their land surveyed, and then pay again to have their deed altered to reflect the agreement. To encourage people in rural, northern Baltimore County to enter into land conservation, HB 975 grants a one time tax credit of up to $500 to cover the initial costs.
Much of rural Baltimore County is part of the watershed for the Loch Raven, Liberty and Pretty Boy reservoirs, which provide water for most of Maryland. These reservoirs contain an alarmingly high rate of phosphorous, nitrogen and sediment run-off in violation of EPA standards. The best way to clean up these reservoirs and to ensure healthy drinking water is not to implement expensive filtration and sewage systems, but to preserve the rural integrity of Baltimore County’s forested areas.
Other conservation programs, such as Program Open Space or the Maryland Rural Legacy program, are well intentioned but vulnerable to having their trust fund’s raided by the Governor. In contrast the FCMA program, by lowering taxes on individuals who choose to preserve their land, provides an easy way for the state of Maryland to reach its clean water goals. Except that there are these large up front costs. HB 975 will change that.
Many northern Baltimore County residents representing local conservation organizations came down to testify for the bill. Maryland comptroller Peter Franchot submitted a letter of support. The Department of Legislative Services estimated that this bill would have a minor effect on the overall budget, while significantly strengthening the FCMA program. With such support, I am hopeful that this common sense bill will pass the Maryland General Assembly.
Northern Baltimore County is home to some of the most beautiful landscapes in the whole of Maryland. I have always felt it a priority of mine to preserve the rural character of North County. I feel that this legislation will help both in that regard as well as making it easier for individuals who so desire to enter their property into conservation.
Please do not hesitate to contact my office about this or any other issue you may have.
Offshore Wind
Once again, Governor O’Malley is pushing for another off shore wind turbine bill and I could not be more opposed. Wind energy is the most expensive possible energy source, at more than twice the current rate that we pay for energy. At their current rates, these projects will take at least ten years before they even are cost competitive.
Massachusetts, Delaware and New Jersey all have off shore wind programs and they’ll mired in deep trouble. The wind farm in Massachusetts has only been able to sell half the total power it’s produced. The Delaware wind farm couldn’t get financing to get off the ground without a federal loan guarantee. And New Jersey’s bill, which set the pattern for Maryland’s wind power bill, was recently denounced by New Jersey’s own Division of Rate Counsel because it would cost the state 30,000 jobs and a $1 billion loss for the state economy.
O’Malley claims that off shore wind energy will not cost more than $2 a month. This is despite all the evidence from any other states and even the governor’s own Public Service Commission. His own commission says that this will cost tax payers at least $5 each month. The truth is that every credible report I have heard says that this will cost the state, and ultimately the tax payers more money.
We have a responsibility to ensure that Marylanders get the best and cheapest possible energy. But O’Malley’s insistence on this energy source that has been proven over and over again to be inefficient is a bit unsettling.
Please do not hesitate to contact my office about this or any other issue.
HB 194
As you probably know, I am a member of the House Health and Government Operations Committee. Recently, our committee held a public hearing on legislation which is designed to address a very serious problem in our state – traumatic brain injury. House Bill 194 would establish the Traumatic Brain Injury Trust Fund.
When people suffer from a serious injury to the head, the recovery can be long and painful. Many people, both traumatic brain injury survivors and their friends and family, came down to testify about the incredible journeys traumatic brain injured people took on their paths to recovery. In addition to immediate emergency medical treatment, they often need months of physical rehabilitation as their brain literally tries to rewire itself. This process is possible, but incredibly intense, difficult and expensive. And there can be gaps in coverage as most insurance plans will not cover the physical rehab or outpatient care that in many cases is necessary for a return to a normal life.
House Bill 194 directs the Department of Health and Human Services to establish a Traumatic Brain Injury Trust Fund to help patients with a household income below 300% of the poverty level. The bill directs the state to invest at least $500,000 in Maryland state funds, and to solicit additional funds from the federal government and private charities.
I have two concerns with this proposal: the funding mechanism and the bills failure to address this issue for middle income families. Maryland has a one billion dollar structural deficit and I do not want to simply lump this program onto the debt. But I do see a potential solution to both issues.
Last year, Governor O’Malley was successful in his efforts to increase the alcohol tax, raising a total of around $80 million of which $23.5 million was to be allocated to the Development and Disabilities Administration. However, at the end of the year the fund was raided and used solely for deficit reduction. After watching countless presentations by advocates for the disabled on behalf of the alcohol tax, it was heartbreaking to see the funds shifted from their original purpose. I believe that it would be fitting if this year we used some of those revenues to establish the Maryland Traumatic Brain Injury Fund.
I’m concerned about the 300% of poverty level income cap. For a family of four, the poverty level is $22,350 a year. This means that a family of four making $67,051 would be excluded from the fund. This threshold is too low. While these families may have health insurance to cover events like this, given yearly caps in coverage and the gaps in outpatient service, these families would be left alone to shoulder an enormous financial as well as emotional burden.
I think it would be better if the fund also established a sliding scale. That way, middle income families would receive much needed assistance when faced with a family member with traumatic brain injury. This may cost slightly more, but I believe that it is worth it.
House Bill 194 has laudable goals. The road to recovery for those who have suffered a traumatic brain injury is a long and arduous one. These people deserve our respect and support. Last year, revenue intended to assist the disabled was redirected. I feel that we should use some of these funds to establish the Traumatic Brain Injury Trust Fund of Maryland.
Please do not hesitate to contact my office regarding this or any other issue you may have.
State of The State
This past Wednesday Governor O’Malley delivered his State of the State Address. Espousing that we have “difficult choices to make” he claims to have proposed a balanced approach to both spending and taxation. I respectfully disagree with his so called “balanced” approach. Maryland is already the 4th highest taxed state in the nation, and as you know the Governor is proposing a host of new taxes, ranging from increased income taxes to an increase in the car titling fee, while putting forward virtually no new spending cuts.
The largest “budget cut” the Governor has proposed involves shifting the burden of our state pension system onto the counties. The popular game of Three Card Monte comes to mind when assessing our budget and the supposed reductions and cuts. As Gazette columnist Barry Rascovar said, “When all is said and done, the counties are going to come away from Annapolis with 167 million dollars more, not less.”
The Governor claims that his spending decisions have been some of the toughest he’s had to make, yet every year the Maryland State government continues to grow. As E. J. Pipkin wrote, “the $35.9 billion dollar budget he has presented is one billion dollars more than last year’s budget and the largest in state history.” The truth is that the largest part of the Governor’s increased budget is paid for through new taxes, and the other part is paid by simply adding it onto the deficit.
My Republican colleagues and I strive every year to find places where we can cut the budget for the coming year. I pledge to once again work with them and anyone who’s willing to find additional areas where we can responsibly cut. One area in particular where I think we can make better choices is education. We have raised per pupil spending every year for the past four years. This year, while most families are forced to tighten their belts, I believe that the school system should be held to the same per student spending level that it was last year.
Maryland government needs to work for the people. We need to create a place where people want to move their businesses, their homes and their families; where people control their finances and not Annapolis. If Maryland is to become a State governed by common sense and fiscal responsibility, we must keep our elected officials, Governor, and government accountable.
Please do not hesitate to contact my office regarding this or any other issue you may have.
January 27 2012 District Blast
Taxes
We are currently rated 42nd in the country for our overall business climate (http://taxfoundation.org/research/show/22658.html). The largest contributors to our overall negative ranking is our income and unemployment tax rate, which happen to be the most important tax rates, especially for small business. Unfortunately, Maryland is growing increasingly less competitive.
We need to keep Maryland competitive in this country and in the global market place. But these tax policies will continue to choke economic development at a time when Maryland desperately needs all the help it can get. We cannot continue to lose business to states like Florida, Delaware, and Wyoming. Maryland has one of the most educated and versatile work forces in the country. We need to give our citizens a chance to work and create jobs without crushing them under an oppressive pile of taxes and overregulation.
I am outraged that Governor O’Malley is proposing to raise Maryland taxes. Although we have the 4th highest income tax rate in the country, O’Malley plans to again raise income taxes. Governor O’Malley is trying to reduce income tax deductions and phase out personal exemptions for those who are deemed “wealthy” by the Governor, a group that seems to grow each passing year. IRS data shows that more and more people choose to leave Maryland each year because the tax burden in Maryland is higher than any of the surrounding states.
He also plans to raise a bevy of new fees and rate hikes. He has already proposed to double Maryland’s flush tax. The State has already raised all of the toll rates. Taxes on smokeless tobacco products are also proposed to increase. The Governor is also proposing a new sales tax on internet purchases. Although he has not proposed it yet, there is ominous talk of a new gas tax increase included in the transportation bill.
This 2012 Legislative Session there is a plethora of issues that the Maryland General Assembly will investigate. The budget and taxes are among the most significant and far reaching. I remain steadfastly opposed to any new and increased taxes.
Please do not hesitate to contact my office regarding this or any other issues you may have.
Baltimore County Police Update
Leaving Keys in the Ignition Can Leave You Out in the Cold . . .
. . . and Car Thieves Warm in Your Car
As the weather turns colder, Baltimore County Police would like to remind drivers not to leave vehicles unattended with the engines running and keys in the ignition.
In the past week alone, at least five vehicle owners have had their vehicles stolen when they left the keys in the ignition with the engine running. Vehicles left running outside homes, in front of convenience stores, and at gas pumps present an easy target for car thieves. Drivers should always take their keys with them and secure their vehicles, even for a very short trip into the store. Drivers may want to leave vehicles running to warm up their engines, but should never leave the vehicle unattended while doing so.
In addition to the increased risk of vehicle theft, leaving a vehicle alone with the engine running is against the law. Officers can issue a ticket that is accompanied by a $70 fine and one point against your driving record if they see an unattended car. Unattended, running vehicles also pose a safety hazard. If the vehicle slips out of gear and causes an accident, you could be issued a ticket with a $110 fine and three points against your driving record.
Opening of 2012 Maryland Legislative Session
Dear Friends,
The Maryland General Assembly has convened for the 2012 Legislative Session. The biggest issue facing the state is the billion dollar deficit. The state has not adequately addressed its fiscal status. The problem is not revenue- we are simply spending too much. That being said, the majority party continues to propose higher taxes.
Democrats control the House and the Senate and they are using their majority to make sure, through the redistricting process that they continue to control the State of Maryland (this is happening in State Houses across the country, regardless of which party is in power). And with that control, they plan to increase taxes on basic necessities like gasoline and energy, while making no plans to reduce the overall trajectory of growth in the Maryland state government.
Redistricting
Governor Martin O’Malley submitted his plan for redistricting to the Maryland Legislature on the evening of January 11th, and we are now into the automatic 45 day review period. However, Governor O’Malley has already worked on the plan with House and Senate Democrats behind closed doors.
It is almost certain to become law without any significant changes being made. With 98 Democrats and 43 Republicans in the House of Delegates, and 35 Democrats and 12 Republicans in the Senate, It is all but guaranteed that the new 2012 Maryland redistricting plan will once again strongly favor the Democrats.
The only challenges to the authority of the Governor and his allies in the House and Senate are set forth in Article III, sec 4, of the Maryland State Constitution, which says that “Each legislative district shall consist of adjoining territory, be compact in form, and of substantially equal population.” In practice, this means that each district can have roughly plus or minus 5% total difference in population, or approximately 120,000 people. As is usually the case, the Republican districts tend to be larger, while the Democrat districts tend to be smaller. There will be challenges to the Governor’s plan in court.
Under the Governor’s plan, District 5b has been dismantled. In a future communication I will be providing a chart for constituents to determine which new district they’ll be in beginning January 2015. Until then I will continue to be the delegate for District 5b. Even if you will no longer be in my district in the future, I will continue to look after the interests of all of my constituents here in Annapolis.
Energy and Taxes
The Governor and legislative leadership are proposing a handful of new taxes for Maryland. Taxes and fees are already too high in the state of Maryland. There is a new gas tax in the works, and I am unequivocally opposed to it. The proposed plan would increase the price of gasoline by 15 cents, already one of the highest rates in the nation, over the next three years, and would raise fees on all bus and rail passengers. There is also a plan to increase sales taxes by a penny and a plan to increase MVA fees. The extra taxes would go to try and help pay for the millions in unfunded infrastructure projects proposed by Governor O’Malley.
Over the last ten years the Transportation Trust Fund (TTF) has been systematically raided by the Governor and the Legislature. How can the gas tax fix Maryland’s transportation budget crisis when the money can simply be reallocated at will by a simple majority?
We need to change the rules so that a super-majority in the legislature is required to move the money in order to ensure that the already obligated money goes towards its intended purpose. Instead, the governor is pushing for a tax increase that would hit rural and suburban voters especially hard, and take more than $870 million annually out of the pockets of average Marylanders.
Another serious problem is energy. Right now, there is a proposal to mandate the construction and integration of off-shore windmills into the energy grid, despite the fact that it will take 14 years before windmills will become at least cost competitive. In addition to the higher energy rates that Marylander’s will have to pay, there will also be a mandatory $4.00 per month fee charged on utility bills
The Budget
There is no reason why Maryland cannot live within its means, we need to establish a set of priorities and adhere to them. Maryland currently provides five million dollars a year to in vitro fertilization benefits for state employees. I have proposed a bill that will end this benefit and re-direct the funds to autism treatment. Also there is an item in the budget to replace the signs in front of several schools; certainly those funds could be used in a more fiscally prudent fashion.
Maryland families all across this state are forced to save, and to make do with less. Why shouldn’t government be made to do the same? In the last ten years the budget has not decreased once, despite all the turbulence in the economy. Some say that they have cut this program or saved money here, but they conveniently omit that they are shrinking the projected budget which already has budget increases built into it. We need to guarantee that the real size of the budget goes down from year to year.
My Legislation as of January 18th 2012
We need to make sure that our tax laws are designed to reward good behavior and discourage bad behavior. With this in mind, I have proposed a new law that would allow citizens who agree to enter their land into preservation with the Forest and Conservation Management Agency to receive a five hundred dollar tax credit.
The program allows citizens to have their land taxed at a much lower tax rate if they agree to not develop it for fifteen years, but the program has been struggling because of the initial upfront costs associated with the program. This tax credit, although modest, should go a long way towards encouraging more and more people to use the FCMA program.
Finally, I have proposed a bill to restructure the Baltimore county school board. Currently, the Governor is allowed to appoint the nine members of the board. Under my legislation, the county would be divided into nine different districts, each of which would elect its own member to the school board. This simple change will hold schools more accountable to the people and less accountable to the politicians.
Conclusion
With the 2012 legislative session underway, there will be many different issues that demand the attention of the citizens of Maryland. This year alone, Maryland is projected to have a one billion dollar budget deficit. And while this is lower than in past years, it is still too large. It is imperative to make sure that the net budget and the total size of the Maryland State Government decreases. One of the best ways to do that is to stop the implementation of any new taxes that grow the size of the Maryland State Budget.
Please do not hesitate to contact my office about this or anything other issues you have.
[1]Davis, Aaron. “Md. commission proposes 15-cent increase in gas tax”
The Washington Post. Retrieved from http://www.washingtonpost.com/local/md-politics/md-commission-proposes-15-cent-increase-in-gas-tax/2011/10/25/gIQArC29GM_story_1.html
