Weekly Update – March 26

Cross-over Week

This is “cross-over week” in the General Assembly – an insider’s term for the week before important bill deadlines.  Under the rules, each chamber has until Monday, March 28th to send to the other chamber those bills it intends to pass.  So, all the House Bills must be passed on to the Senate and vice versa.  Bills passed after that date must go to the respective chamber’s Rules Committee – a hurdle to avoid with less than three weeks remaining.  Cross-over week means multiple floor sessions and multiple committee voting sessions.  The pace is fast and the tension is high.

House Passes $34 Billion Budget

Contrary to what you may read in the Baltimore Sun, the House of Delegates passed a $34 billion budget Thursday night. 

During floor debate on the budget, Minority Leader Tony O'Donnell shares a chart illustrating Maryland's budget growth since 1979.

Spending is $1 billion more than last year and just about every special interest in Maryland is protected.  Well, every special interest except the taxpayers.

General Fund spending in this budget increases by 10.6% over last year.  This was largely because of the backfilling to replace Federal Stimulus dollars that are no longer available.  Had the necessary reductions been made two years ago, these increases would not have been necessary.  But, the Governor and Democratic leadership could not resist the temptation to use that temporary money to fund permanent programs.  So, here we are. 

 The budget was balanced with a combination of tax and fee increases including:

  • Doubling the Vehicle Titling Tax from $50 to $100
  • Doubling the Vanity Plate Fee from $25 to $50
  • Doubling the Land Recording Fees from $20 to $40
  • Doubling the Birth Certificate Fees from $12 to $24
  • Doubling the Parole Supervision Fee from $25 to $50
  • Increasing Nursing Home Tax from 4% to 5.5%
  • Increasing Hospital Assessments, adding 2.5% to rates
  • Applying a 2% Tax to Insurance Premiums for the Injured Workers Insurance Fund

The unsustainable nature of these spending increases will make the taxes and fees included in this budget a mere preview of things to come. 

What is important to remember is there was another option.  The House Republican Caucus offered an alternative budget that would have decreased spending and put Maryland on a course to lower taxes and fiscal stability.  The Democrats in the House of Delegates rejected this alternative at every turn.  So when the time comes for another round of massive tax increases and they tell you there is no choice but more taxes – don’t believe them. 

Transgender Bill

On track for passage today is HB 235 – Human Relations – Sexual Orientation and Gender Identity – Antidiscrimination.  This bill would protect people who identify with a gender other than the one they were assigned at birth, or people who wish to dress in a manner that is not congruent with the gender they were assigned at birth. 

For example a male teacher who wishes to dress as a female must, without the benefit of a sex-change operation, be allowed to dress as a woman in the classroom and cannot be fired or punished for doing so.  An amendment to the bill adds that the employee must dress consistently.  A man may dress as a woman if he wishes, but he must consistently do so – he cannot switch back and forth.

The bill deals only with housing and employment.  In previous years similar bills have been introduced and have included the use of bathrooms and locker rooms, which are not included in the bill this year.  Further, the bill would protect transgendered and transsexuals from being discriminated against when renting property.  An amendment to the bill allows individuals to refuse a renter based on any criteria, but not to include discriminatory language in an advertisement.  For example, if Aunt Martha wants to rent out an apartment that she owns, and a transgender person wants to rent it, she’s free to refuse him if she wishes.  She cannot, however, put an advertisement in the newspaper that reads “Apartment for rent. One bedroom, one bath. Furnished. No smoking, no pets, no transgenders.” 

This bill has been flying under the media’s radar and may pass so the liberal Democrats in the General Assembly can appease their supporters in the Gay, Lesbian, Bisexual & Transgender (GLBT) Community who are still upset with the failure of the Gay Marriage bill.

Not by chance but by choice…

  • It is not by chance but by choice that Governor O’Malley pushed through the largest tax increase in Maryland’s history.
  • It is not by chance but by choice that by 2012 Maryland will have lost an estimated 8,334 jobs from the sales tax increase alone. 
  • It is not by chance but by choice that Governor O’Malley has furloughed State Employees three times while still maintaining his taxpayer-funded chef at his taxpayer-funded residence.
  • It is not by chance but by choice that Governor O’Malley is seeking the repeal of the Maryland-mined Coal Tax Credit – jeopardizing more than 1,000 Maryland jobs in coal, trucking, and other related industries.
  • It is not by chance but by choice that Governor O’Malley refused to implement sex offender laws putting our communities and our children at greater risk.
  • It is not by chance but by choice that Governor O’Malley extended unemployment benefits to part-time employees at the same time unemployment rates were nearing historic highs.  This decimated the Unemployment Insurance Trust Fund – now employers are facing a tripling of their insurance premiums at a time when they are already reducing their workforce to stay afloat.
  • It is not by chance but by choice that the O’Malley administration’s stormwater management regulations go so far beyond the legislative intent that they will eliminate any growth in new construction jobs.
  • It is not by chance but by choice that Governor O’Malley has increased total spending by $3 billion over the last four year – the same amount as our projected deficit.
  • It is not by chance but by choice that Governor O’Malley used the regulatory billy club of the Public Service Commission to threaten the potential building of Calvert Cliffs III – jeopardizing 4,000 long term construction jobs and hundreds of high paying permanent jobs.
  • It is not by chance but by choice that Governor O’Malley accepted billions of stimulus dollars committing Maryland to obligations it can’t afford and leaving the bill for our children to pay.

Monday Press Clips

This Week In Annapolis

State bond cost could outstrip revenue

Lawmakers scramble for compromise as businesses reject O’Malley’s unemployment fund plan

Democrats ask for Republican ideas to solve budget crisis

Democrats seek an expansion of gambling to include table games

Chesapeake Bay blowup: How to trap pollutant-filled rain

New stimulus jobs numbers for Maryland, fresh ammo for campaign attacks

Delegate Shank trying again to get Justice’s Law passed

No judgment for judges: Gansler’s plan for judicial elections could rob citizens of any meaningful oversight

Press Clips

Stimulus Not Solving School Fiscal Woes


Lethal Injection Draft Regulations Released

Federal Engineers Questioned Bay Bridge Bolts’ Integrity

McIntosh Wants to Put the “Smart” Back in Growth

UM Audit Finds Credit Card Misuse

State to Reform Foster Care System

Governor Designates “Smart Sites” Across State

State Delegate Plans to Renew Push for Reform

Unstimulating Stimulus

Who exactly, besides the government, has benefitted from the American Recovery and Reinvestment Act (ARRA)?  Since the passage of this massive spending bill, the economy has lost 1.6 million jobs.  According to the U.S. Department of Labor, the unemployment rate for May rose to 9.4% – the highest rate in 25 years

 Last week, President Obama embarked on a new effort to prove that his stimulus plan was worth the $787 billion it is costing the taxpayers.   Instead of new information or concrete, specific examples we were given vague numbers and basically told to have faith and continue to hope for economic change.  We were told that, even though 1.6 million jobs have been lost, 150,000 have been created or saved.  The Administration also told us that in the next 100 days, an additional 600,000 jobs would be created or saved.  Created or saved?  Which is it and where are they?  The Department of Labor can specifically point to the precise sectors when jobs have been lost – why can’t the Obama Administration be a little more specific?  Where are the actual people who have a new job or avoided losing their job as a result of the ARRA?  Why, if the ARRA is doing what it was supposed to do, do we only have 150,000 jobs to show for it?  What happened to the 3.5 million jobs over two years that the Administration had initially promised?  A meager 150,000 is a rather austere start when such lofty promises have been made.

 The Baltimore Sun has reported that the Obama Administration is “relying heavily on educators to pull the country out of its economic doldrums”.  Education funding is important – Maryland already spends record amounts on education.  But, when exactly did educators become such dependable economic stimulators?  What is so wrong with depending on the traditional economic engines like small businesses and entrepreneurship? As a part of this new reliance on educators as an economic stimulant, Maryland will soon receive $210 million in additional federal stimulus money for education.  Now there is no doubt that the O’Malley Administration is eagerly anticipating another pot of money to spend – they have yet to find a pot of money they did not like.  However, this latest pot of money from the taxpayers (we should never forget that it is after all taxpayer money) through the ARRA is just small example of the catastrophic failure of the stimulus plan to repair the economy.  The reason for this failure is very basic – the stimulus plan does nothing to stimulate the economy and only stimulates and enables the bad spending habits government. 

In Maryland, we have grown accustomed to failed government policies disguised with a public relations and media blitz.  They have been the hallmark of the O’Malley Administration.  Governor O’Malley used this “governing by mirage” technique consistently as Mayor and brought that bag of tricks with him to the Governor’s mansion.  The best example of this is the tax increase scheme he championed in 2007 – allegedly aimed at wiping out the structural deficit.  In the summer of 2007 the Governor went on a state-wide tour with a “Cost of Delay” budget in his pocket.  The purpose of this doom and gloom budget was to scare people into supporting his massive tax increase plan.  To sweeten the pot, he told everyone that 95% of people would actually see a tax cut.  What do we have to show for the Governor’s massive tax increases?  The structural deficit was not wiped out; it is currently $1.2 billion and growing.  The 95% of us that were supposed to see a reduction in taxes are still waiting.  While congratulating himself on his fiscal responsibility, the Governor has backfilled virtually every reduction in state spending and the budget has grown year after year.   In the 2009 session it looked like the Governor would have to make actual reductions that he could not backfill, but he was rescued from having to make those reductions by the Obama stimulus package.  Instead of making the plump bureaucracy of state government lighter, leaner, and more efficient the Obama stimulus package has perpetuated the cycle of Maryland’s chronic overspending.   As a result, Maryland is well on its way to another tax increase when the stimulus money runs out – a need that will conveniently arise after the next election.

It is abundantly clear that the policies of the Obama Administration and the O’Malley Administration have done more to hurt our economy than to help it.  Citizens across the state and the nation are beginning to rise up realizing that the emperors are not wearing clothes and we have been taken for fools.  What is needed to get this economy moving is to put money in the hands of the taxpayers – not the government.  Reduce the size of government and reduce taxes – allow people to keep what they earn.  Give people incentives to spend through sales tax holidays and with tax credits.  It is time to put an end to the nanny state where government takes care of us.  It is time to put our faith back into the entrepreneurial spirit of our country.  Enough is enough.