20071101 News Clips

News Clips

Nov. 1, 2007

STATE NEWS

Tax plan changes urged
Several business groups say O'Malley bill is not enough
http://www.baltimoresun.com/news/local/politics/bal-md.hearing01nov01,0,6504488.story?coll=bal_tab01_layout
Business groups, auto dealers and transit advocates urged lawmakers yesterday to change Gov. Martin O'Malley's tax proposals, including a measure to link the state gasoline tax to the rising cost of road and bridge construction materials.
Several business groups, including the Greater Baltimore Committee, said O'Malley's bill, which would generate an additional $400 million per year for transportation projects, is not enough.The Maryland Automobile Dealers Association said it would support the governor's propose d increase in the vehicle titling tax from 5 percent to 6 percent if the legislature taxed auto buyers only on the difference between the price of a new vehicle and the value of a trade-in. John D. Porcari, the state secretary of transportation, told a joint hearing of three legislative committees that an additional $400 million in annual transportation spending would enable the state to "chip away" at an estimated $40 billion in "unmet" needs over the next two decades. Rural legislators pressed Porcari on why motorists would have to pay higher taxes to help fund transit projects in the Baltimore-Washington corridor.
"You're asking for a [cost-of-living adjustment] on the highway users. Would you support a COLA for transit?" asked Senator Minority Leader David R. Brinkley, who represents Somerset and Wicomico counties.
Brinkley said a regional sales tax could be levied to fund transit projects so that gas tax revenue could be used sol e ly for roadway projects. Porcari said transit users are paying fares and that motorists benefit by enhanced mass transit through less congestion on roadways.

Slots casinos would pay 70% tax
http://www.baltimoresun.com/news/bal-md.slots01nov01,0,3388188.story?page=1&coll=bal_tab01_layout
Maryland slot machine operators will pay one of the nation's highest casino tax rates - effectively 70 percent - if voters approve Gov. Martin O'Malley's plan to legalize the devices, and some industry analysts say that would mean low-end facilities catering mostly to the local population.
"It's going to limit how much you can give away to customers because the margin is so thin, and it will limit how much you can invest in the enterprise," said Lawrence Klatzkin, a gambling industry a nalyst and managing director of Jefferies Equity Research. The margin is so tight, Klatzkin said, that Maryland would end up with "a lower-cost product with much more limited offerings" than slots casinos in surrounding states provide to their patrons.
"It doesn't mean that they won't make money," Klatzkin said, "but some of the richer, higher-quality customers will likely go to Dover, Del., or to West Virginia for more comps and giveaways and much better amenities."
Legislators, who are meeting in special session, have been asked by O'Malley to put the slots issue on the November 2008 ballot as a constitutional amendment. Bids for licenses would be due the following February.

Two colleges offer BRAC options
Fort Meade Alliance sees regional benefits in promoting distinct programs
http://www.baltimoresun.com/news/local/brac/bal-md.ar.brac01nov01,0,4018528.story
After suggesting that Maryland is not developing the needed work force for defense jobs, the Fort Meade Alliance is encouraging the two community colleges closest to the growing Army post to promote distinct programs to meet national security needs. Martha A. Smith, president of Anne Arundel Community College, told Fort Meade's lobbying arm at a meeting yesterday in Severna Park that the two-year school might create a specialized center around math, science, technology and homeland security that could draw top high school graduates, train professionals and harness the skills of defense industry retirees.
Representatives from Howard Community College spoke to the approximately 50 business and government officials at the meeting about the school's advances in teaching "critical languages," such as Arabic, Farsi and Chinese.
Some alliance leaders said they see regional benefits in promoting STEM -- science, technology, engineering and math -- at Anne Arundel's college and linguists at Howard County's college, including optimizing business and government participation.

Senator says governor is strong-arming contractors
http://www.examiner.com/a-1022103~Senator_says_governor_is_strong_arming_contractors.html
A Republican senator said he is "outraged" that the O'Malley administration is trying to "strong-arm" state contractors and suppliers into supporting the governor's tax package or face loss of business. The governor's staff said nothing inappropriate or illegal was done. Sen. Andrew Harris, a Baltimore County Republican, said there was a calculated effort by the O'Malley administration to misuse taxpayer dollars by having Cabinet secretaries a nd their staff lobby for the "largest tax increases in Maryland history." Harris released copies of a letter sent by Alvin Collins, secretary of the Department of General Services, to vendors asking them to communicate with "colleagues, friends and neighbors the choices facing Maryland." The choice is "a very bleak budget plan that he will be forced to submit in January if a consensus on the revenue package is not reached," Collins said.
Harris, who is running for Congress, said a constituent who does business with the state contacted him, feeling intimidated by the letter.

County could lose $7M in education funds
http://www.capitalonline.com/cgi-bin/read/2007/10_31-23/TOP
Anne Arundel County would lose between $6 and $7 million in state education fundi n g next year under the most drastic and politically risky budget cuts proposed by Gov. Martin O'Malley. As part of his plan to address the state's deficit, which currently stands at $1.5 billion, Mr. O'Malley is proposing to change how education dollars are handed out to local governments. In fiscal 2009 and 2010, funding would be set at $6,694 per pupil, but each jurisdiction still would be guaranteed at least a 1 percent increase in funding each of those two years. In total, county school systems would lose about $189 million of education funds for the next school year, according to the Department of Legislative Services.\What remains clear is legislators will have a difficult time deciding to cut planned education spending.
"It's a tough decision for legislators to make," said House Speaker Michael E. Busch, D-Annapolis.

O'Malley: I've got votes for taxes, slots
http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20071101/METRO/111010085/1004
Gov. Martin O'Malley says he has enough votes in the special General Assembly session to pass wide-ranging tax increases and get his proposal for slot-machine gambling on the November 2008 ballot, despite lawmakers saying they have yet to reach a consensus.
"I think the legislators are very uncomfortable about being told they need to vote for these massive tax increases," Senate Minority Whip Allan H. Kittleman, Howard Republican, said yesterday "The only consensus in Annapolis right now is that we shouldn't be here."
Although Democrats control both chambers, party leaders say it is too early to tell whether Mr. O'Malley will succeed with his plan to hold the session to pass the tax increases and the slots initiative to cut Maryland's $1.5 billion shortfall and increase state spending on t ransportation, health care and higher education. In addition, Comptroller Peter Franchot criticized Mr. O'Malley's proposal to tie slots to the increased spending and tax cuts. "The solution is completely lacking in consensus or basic information," he said.House Minority Leader Anthony J. O'Donnell, Southern Maryland Republican, said budget leaders blocked him yesterday from asking questions at a hearing on the corporate-tax increase. Mr. O'Donnell said many people have been left out of "One Maryland" - a phrase Mr. O'Malley used during the campaign to push for unity.
"I'm getting the impression that 'One Maryland' means one man's political future," he said, referring to Mr. O'Malley's national political ambitions. Mr. O'Donnell also said many Democrats have confided in him that they don't want to be in Annapolis for the session.
Delegate Ronald A. George, Anne Arundel Republican, sai d he doesn't have time to finish reading all of the e-mails that he has received during the week. He said that the majority of them are against legalizing slot machines and that he will continue to oppose tax increases and slots.

Board keeps mandatory high-school exit exams
http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20071101/METRO/111010032/1004
A divided Maryland State Board of Education voted yesterday to continue requiring high-school students to pass exit exams in order to graduate starting in 2009. However, the board made changes to the testing program that should give some students a better chance to earn their diplomas. Under the new regulations, students who fail one or more of the four tests - in algebra, biology, English and government - will have the option to complete projec t s that demonstrate proficiency in the subjects.Mr. Ewing, Miss Garcia, Mary Kay Finan and Charlene M. Dukes, who voted to delay the graduation requirement, were appointed to the board by Gov. Martin O'Malley. Miss Garcia, Mr. Ewing and Miss Finan met recently with Mr. O'Malley to discuss the board's activities, a meeting Miss Garcia said she requested.
Mr. Tufaro said he found that meeting "inappropriate" because the board is nonpartisan and accused the O'Malley appointees of political motivation.Mr. O'Malley has clashed for years with State Schools Superintendent Nancy S. Grasmick, who pushed for the tests to become mandatory for graduation and proposed the changes that the board approved yesterday. Mr. O'Malley said in September that the governor, not the board, should appoint the superintendent. Mrs. Grasmick has held the office since 1991. She praised the board's vote.

O'Malley Outlines The Losers if He Can't Hit the Slots Jackpot
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/30/AR2007103002084.html
There is a lot more riding on the outcome of a potential slots referendum than whether Marylanders will get to gamble closer to home. Yesterday, aides to Gov. Martin O'Malley (D) outlined proposals that he would scrap if the legislature fails to authorize a public vote on the legalization of slot machines -- or if voters do not approve the 2008 ballot measure.
O'Malley's slots plan, which would eventually be expected to yield more than $700 million a year for the state, is a significant part of his long-term revenue package, though it would have no immediate impact on next year's projected $1.7 billion shortfall, given the timing of a referendum.

Shortfall Generates Surplus of Md. Bills
At Special Session, Ideas Vary Widely
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/30/AR2007103002056.html
Even though Maryland Gov. Martin O'Malley called a special session of the legislature to address his plan to close a potential $1.7 billion budget shortfall, lawmakers came to Annapolis this week with more than 50 bills of their own -- some offering alternatives to the governor's proposal but others focusing on completely different issues. O'Malley (D) said yesterday he is interested in hearing lawmakers' alternatives. "Some of these things will bubble up by way of amendments as these measures search for consensus," he said. His own plan includes increasing the sales tax, overhauling the income tax and setting a referendum on legalizing slot machine gambling.
Many of the bills are unrelated to solving the budget dilemma. To keep lawmakers focused, House Speaker Michael E. Busch (D-Anne Arundel) and Senate President Thomas V. Mike Miller Jr. (D-Calvert) have assigned all unrelated bills to their respective rules committees. The committees are not scheduled to meet during this special session, so bills assigned there are unlikely to be heard.

Leggett Offers Alternative To O'Malley Tax Proposal
Executive Seeks Smaller Rate Increase on Rich Amid Concerns in Affluent Montgomery County
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/31/AR2007103102924.html
Montgomery County Executive Isiah Leggett will present an alternative personal income tax plan to Maryland lawmakers today that would tax the state's highest earners at a rate one percentage point lower than Gov. Martin O'Malley has proposed.

Lawmakers from Montgomery have voiced concern that O'Malley's proposal to redistribute the tax burden to Maryland's most affluent residents would affect Montgomery more than any other jurisdiction and threaten the economic interests of the state's largest and wealthiest county. News of Leggett's proposal came on a day when state lawmakers heard from Transportation Secretary John D. Porcari about the need to generate more revenue to maintain infrastructure and budget for new projects.


EDITORIALS/OP-EDS

The gamble with slots
http://www.baltimoresun.com/news/opinion/bal-ed.slots01nov01,0,4437010.story
For more than a decade, legalizing slot machine gambling has been rejected as a bad bet for Maryland. But a combination of politics and perseverance has put the long-simmer i ng issue back on the front burner. Now it's up to Gov. Martin O'Malley to prove that the problems inherent in such a highly addictive form of gambling - from the economic costs to the various social harms - can either be adequately alleviated or are somehow justified given the state's projected $1.7 billion deficit.
Much of the revenue raised by slots would come from people who have become addicted to gambling - at least that's been the experience elsewhere. And Maryland also could expect an accompanying increase in crime, bankruptcy, divorce, child abuse and suicide. All that, too, comes with slots.
In a speech before the legislature Monday night, Mr. O'Malley recognized the deficit as a threat to the state's quality of life. He's right, but it's hard not to see legalized slot machines as a potential threat, too. Is this really the best way to finance government? So far, the case is not convincing.

If that's the only option, take slots to referendum
http://www.herald-mail.com/?module=displaystory&story_id=177933&format=html
If it's the only way to legalize slot machines in Maryland, by all means, put the question on the ballot.
Taxpayers can only hope that House Speaker Michael Busch, who has successfully blocked slot legislation for years, will keep his word and let the voters decide on this issue. Yes, there will need to be safeguards to prevent gambling addicts from feeding their rent or mortgage money into the machines, but getting such protections passed will be easier than winning approval for new taxes.
A referendum will give both sides a chance to engage in a public debate on the issue. Let the people have that discussion, then make the decision at the polls. Approve the referendum now.

Bridging the gap
http://www.baltimoresun.com/news/opinion/editorial/bal-ed.assessments01nov01,0,6150448.story
Maryland's state school board has voted 8-4 to proceed with High School Assessments that will be required for the graduating Class of 2009. However, low passing rates in some districts, including Baltimore, have many educators and advocates rightly worried about the possibility of increasing the number of students who might have to delay graduation or who might drop out in frustration.
The board's acceptance of schools Superintendent Nancy S. Grasmick's so-called bridge plan proposal - a rigorous project as an alternative - shows a welcome recognition that there are some students who do not excel on standardized tests. But school districts must be mindful of the dissenters' concerns about whether enough timely supports can be put in place to give ever y student the best possible chance to graduate.

NATIONAL NEWS

Keeping an eye on those who keep an eye on us
http://www.gazette.net/stories/103107/prinlet115645_32359.shtml
Maryland's U.S. Sen. Barbara Mikulski and House Majority Leader Steny Hoyer are key players on the national stage as Congress, in coming days, decides two critical issues: whether the government can spy on Americans without an individualized warrant and whether the government and telecoms get a free pass in the courts for their past unconstitutional conduct.
Mikulski and other members of the Senate Intelligence Committee are meeting behind closed doors as they piece together the Senate's version of an electronic eavesdropping ''reform bill." What the committee comes up with in the coming days will g uide the direction of the whole Senate. Maryland, home of the National Security Agency, has every reason to uphold a tradition of justifiable and constitutional surveillance.

Senate approves measure to reauthorize funding at Hagerstown Regional Airport
http://www.herald-mail.com/?module=displaystory&story_id=178115&format=html
A recently expired federal program that funded Hagerstown Regional Airport's passenger service would be reauthorized for another year under a bill passed Tuesday night by the U.S. Senate. Essential Air Service (EAS), a subsidy program that helps communities far from larger hub airports, would be extended until Sept. 30, 2008. The program expired Sept. 30, 2007.
The bill is a temporary funding measure intended to extend the program until Congress passes legislation to keep the Federal Aviation Administration running for another four years, said Susan Sullam, spokeswoman for Sen. Benjamin L. Cardin, who cosponsored the bill.