20071112 News Clips

News Clips

From Monday Nov. 12, 2007

STATE NEWS

From behind closed doors to backroom
http://www.examiner.com/a-1043559~From_behind_closed_doors_to_backroom.html
The action of the General Assembly's special session shifts this week from behind closed doors to the backroom behind the backrooms, where a handful of lawmakers from House and Senate hash out their differences. To be sure, everything is finalized in public as required by the state constitution and rules of the chambers. But the details of a final agreement that will reconcile different tax rates, budget cuts and slots policy will almost certainly be reached in private conferences that may or may not include Gov. Martin O'Malley's aides.
In the Budget and Tax Committee last week, the new draft of the tax bill was shared only with the committee members and st aff. Republicans weren't even handed some amendments till they demanded them.

House passes tax increases, now to look at budget cuts
http://www.baltimoresun.com/news/local/politics/bal-md.me.session12nov12,0,7894514.story
bill containing the individual and corporate income tax provisions and an attempt to make sure corporations pay taxes on their profits in Maryland passed the House of Delegates early yesterday, 82-55.
A separate measure increasing the sales tax and the car-titling tax rates from 5 percent to 6 percent, doubling the tobacco tax to $2 a pack, and raising the hotel tax passed 80-56. Similar measures passed the state Senate last week.Today, the House Appropriations Committee will meet to propose budget cuts expected to total $500 million. Meanwhile, the House Ways and Means Committe e is scheduled to take up O'Malley's plan for a referendum on slot machine gambling. Both measures could go to the House floor and receive final votes as early as tonight.

Compromise near on taxes
After initial objection, modified plan is likely to pass House
http://www.baltimoresun.com/news/local/politics/bal-md.session11nov11,0,4323436.story
The House of Delegates gave preliminary approval last night to a modified version of Gov. Martin O'Malley's tax plan after objections by Montgomery County Democrats nearly derailed his efforts to resolve Maryland's budget shortfall.
Under the new plan expected to pass the House early this morning, the sales tax would not be extended to any additional services. Proposals by O'Malley and the state Senate to tax computer services, real estate management and health clubs dr e w widespread protests, as did an earlier House proposal to tax repair services. House leaders also agreed to soften a proposed increase in the hotel tax, raising it from 5 percent to 7.5 percent. The original plan called for the tax to be 10 percent.
Despite the differences, the overall structures of the House and Senate plans are similar, and lawmakers said they were optimistic that the two chambers can come to agreement and send legislation to the governor to close a projected $1.7 billion budget shortfall.

Decisions taxing local delegation
http://www.hometownannapolis.com/cgi-bin/read/2007/11_11-35/TOP
Cuts will hurt local programs; tax hikes will hurt constituents
Since the start of the special session on Oct. 29, telephone calls and e-mails from Maryland voters have poured into the offices of senators and delegates ali k e.
County Executive John R. Leopold said a drop in state funding will make constructing the county budget difficult "because the needs are many and the resources are few." The full effects of cuts to school funding in Anne Arundel will be unknown until the county does budget projections early next year, he said, adding that "We'll have see how it all shakes out."
Republicans on both side of the aisle have banded against any tax increases, and county lawmakers are no different.
Raising corporate taxes, placing higher income taxes on people who make more money and increasing the sales tax will all make Maryland less competitive and anti-business, said Del. Ron George, R-Arnold. "(Democrats) don't understand what they are doing," he said. "(The taxes) are hitting the people who invest and create the jobs."

Pro-slot forces spent millions
Nearly $4 million steered toward candidate s , lobbying
http://www.baltimoresun.com/news/local/politics/bal-te.md.slots11nov11,0,6194073.story
Powerful interests that stand to benefit the most from Gov. Martin O'Malley's plan to legalize slot-machine gambling have contributed nearly $1.25 million to state candidates and political parties since 2003, and spent $2.6 million on State House lobbying fees during the past two years, according to a Sun analysis.
Gambling supporters have poured at least $135,000 into the campaign accounts of O'Malley and Lt. Gov. Anthony G. Brown, records show. Former Republican Gov. Robert L. Ehrlich Jr., an avid slots supporter, received about $131,000 during the same period.House Speaker Michael E. Busch, an Anne Arundel County Democrat and slots foe, said the money that pro-slots interests have spent to influence the political process is one o f the reasons he favors a voter referendum. "If the voters have an opportunity to look at it, and it looks like the process doesn't unjustly enrich anyone, then I think it has a decent chance," Busch said. "If it doesn't, it could look like a rigged game, if you will, [and] I think it has less chance in the voters' eyes."

House strikes repair tax plan
http://www.examiner.com/a-1041311~House_strikes_repair_tax_plan.html
The House Ways and Means Committee stripped a proposed sales tax on repair services for cars, home and hosts of other items out of tax proposal being brought to the House floor Saturday night. "We couldn't get the votes" to pass it in the full House, said Committee Chairman Sheila Hixson. The committee also cut a proposed doubling of the hotel tax in half. It will now go up from 5 p e rcent to 7.5 percent. Some counties and Baltimore City also add their own 7 percent local tax on hotel rooms. A meeting of the full House was delayed several times on Saturday as Democratic leaders tried to reach a compromise tax proposal that at least 71 delegates could support. Hixson, D-Montgomery, said they were coming up 30 votes short in winning the new tax on repairs and parking.
The full House began debate on the tax package Saturday night.

Senate Passes Health Legislation
Measure passes 30-17, would expand coverage to more of state's uninsured
http://www.baltimoresun.com/news/local/politics/bal-md.health10nov10,0,1178799.story
The Maryland Senate approved legislation yesterday that would expand government-funded programs to provide medical coverage to more of the state's 800,000 uninsured, boosting the measure's chances just months after a similar proposal died in that chamber. When fully implemented, the health care expansion would cost more than $600 million, including federal matching funds and $250 million in added state revenue. Coverage could ramp up over time so that eventually more than 100,000 residents would get insurance. While the health care bill would be paid for through a variety of mechanisms, some of the expansion would ne ed to be curtailed if funding doesn't materialize. In particular, the extension of Medicaid benefits to tens of thousands of childless adults would not happen unless voters approve slot machines in November 2008, which could bring as much as $700 million a year to the state.

Competing tax plans
House, Senate divided on individual, corporate levies
http://www.baltimoresun.com/news/local/politics/bal-te.md.taxes10nov10,0,3642752.story
The Maryland Senate and House of Delegates charted divergent courses yesterday for closing a $1.7 billion budget gap, with the Senate approving a plan that increases the sales, tobacco and corporate income tax rates while House leaders pushed an alternative that more heavily taxes the wealthy and corporations. The measures now go to the House, where a committee app r oved alternate versions of the legislation yesterday. Many of the elements of the plan being considered by the House are identical to what the Senate approved, but the two chambers remain divided over how progressive to make the individual income tax and how to ensure that corporations pay their fair share of taxes.
The Senate's close vote reflected the unease of many conservative Democrats, particularly those from the Baltimore suburbs, with the tax package championed by Democratic Gov. Martin O'Malley.
Nine Democrats joined all 14 Senate Republicans in voting against the plan. "It's clear that every Marylander is going to pay more, significantly more," said Sen. David R. Brinkley, the minority leader from Frederick County.
"We seem to be so concerned about, as the governor calls them, the working poor, and it seems to me they're going to be the people who are going to own cars that are 10 or 12 years old and break down more often," said Del. D. Page Elmore , an Eastern Shore Republican. "This will be a tax on the working poor."

Maryland delegates fine-tune tax plan
http://www.washingtontimes.com/article/20071111/METRO/111110041/1004
The House of Delegates early this morning passed a $1.4 billion tax plan after a day of closed meetings and hurried vote-counting to aimed at gathering support for the package.The House version of Gov. Martin O'Malley's tax plan includes an increase in the sales tax, corporate income tax and restructuring of the personal income tax, but it did not include a gas-tax hike or an expansion. But Republicans continued their criticism of the hurried process in Annapolis, which enters its third week today. "I think we need to consider the ramifications a little bit more before we push those buttons," said House Minori t y Whip Christopher B. Shank, after asking lawmakers to wait until tomorrow to vote on the tax plan.
But Democrats, after an afternoon caucus, returned the latest tax plan with the support of Montgomery County Democrats.
The move drew the ire of Republican leaders, who said Democrats excluded Republicans, reporters and the public from a Ways and Means Committee meeting where the plan was drafted, a potential violation of Maryland's open-meetings law.
"This is a bad way to do public policy," said House Minority Leader Anthony J. O'Donnell, Southern Maryland Republican. "There's no rush to get this done on a false deadline."
House and Senate leaders would then have to meet in a conference committee to iron out the differences in their slots and tax plans.

House OKs $1.4 billion tax-reform plan
http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20071112/METRO/111120053/1004
House lawmakers passed a $1.4 billion tax plan early yesterday morning after long weekend debates in which leaders of the Democrat-controlled General Assembly scrambled to find support for the plan.
The House version of Gov. Martin O'Malley's tax plan includes an increase in the sales tax, corporate income tax and restructuring of the personal income tax and a plan to spend more than $450 million on transportation projects.
The House plan does not include a gas-tax increase or an expansion of the sales tax to include services.
Republicans tried unsuccessfully to stall the plan through a series of amendments that would have stripped away specific tax increases and t hrough motions to delay the votes.
"This is a bad way to do public policy," said House Minority Leader Anthony J. O'Donnell, Southern Maryland Republican. "There's no rush to get this done on a false deadline."
House Republicans said considering increased spending is a mistake because Mr. O'Malley told lawmakers they were returning to Annapolis to close a budget shortfall, estimated at $1.5 billion to $1.7 billion. "We are setting ourselves on the same course that brought us here," said Delegate Richard K. Impallaria, Baltimore County Republican.

House Passes Income, Sales Tax Bills After Struggle
http://www.washingtonpost.com/wp-dyn/content/article/2007/11/10/AR2007111001527.html
The Maryland House of Delegates passed two major tax bills early this morning that would togethe r raise $1.4 billion a year to close a yawning budget shortfall and pay for transportation and health-care priorities.
Together, the two bills would raise roughly the same revenue as a bill passed Friday by the Senate. But several differences between the two chambers' plans would need to be resolved for the special session initiated by Gov. Martin O'Malley (D) two weeks ago to come to a successful close. Republicans blasted their Democratic colleagues for pushing "massive tax increases" through the chamber in a rushed process. "This bill will do untold damage to the economy of the state of Maryland," said House Minority Whip Christopher B. Shank (R-Washington) as debate entered its fifth hour at 11 p.m.
The start of a rancorous late-night debate was delayed for several hours as Democratic House leaders struggled to round up votes needed to pass the bills. Like the Senate, the House declined to include in its package an O'Malley proposal to roll th e state sales tax back by 3 cents per $100 in assessed value. House leaders said they did not think it was a responsible thing to do, with the state facing a large budget shortfall.
O'Malley told reporters that he might resurrect his plan in future years when the state has its "fiscal house in order."

Tax Bills Passed, Bargaining Begins
Md. House, Senate Faced With Reconciling Their Differences on Sales, Income Levies
http://www.washingtonpost.com/wp-dyn/content/article/2007/11/11/AR2007111101516.html
Leaders of the Maryland House of Delegates offered one another congratulatory embraces early yesterday morning after passing two tax bills that would raise $1.4 billion a year to help close a budget shortfall and pay for transportation and health-care priorities. But lawmakers pr e dicted several more long days ahead as they try to bring a special session called by Gov. Martin O'Malley (D) to a close this week. The House, which wrapped up a six-hour debate on its tax bills shortly after 1 a.m. yesterday, must reconcile its legislation with that of the Senate, which passed a comprehensive tax bill Friday. The Senate and House. Besides the slots legislation, the House plans to take up bills this week to expand access to health care and to direct O'Malley to cut at least $500 million from the budget next year.
Republican leaders blasted Democrats for both the magnitude of the tax increases and for a rushed process.
"We don't know what this bill is," said House Minority Leader Anthony J. O'Donnell (R-Calvert). "We've got taxes in, taxes out. We don't know what the bill does."

'Every veteran is a patriot'
Worcester County honors those who served
http://www.delmarvanow.com/apps/pbcs.dll/article?AID=/20071112/NEWS01/711120304/1002
Remembering is a very important thing on Veterans Day, Congressman Wayne Gilchrest, R-1st-Md., said Sunday during the ceremony at the Worcester County Veterans Memorial in Ocean Pines.
"It is so important to remember those young Americans who came to find a place in history," he said. "They came form a democratic process where your dreams and ideals can become a reality."

Montgomery officials look to Congress for tax help
http://www.examiner.com/a-1043184~Montgomery_officials_look_to_Congress_for_tax_help.html
Montgomery elected leaders are asking members of Maryland's congressional delegation to fix a ta x glitch that could have some county residents facing increased federal taxes, in addition to potential state tax increases. Montgomery County Executive Ike Leggett, Council President Marilyn Praisner and Council Vice President Mike Knapp sent Sens. Benjamin Cardin and Barbara Mikulski, and Reps. Roscoe Bartlett, Chris Van Hollen and Albert Wynn a letter requesting they work to modify the federal alternative minimum tax.
Knapp said the tax could be especially devastating this year because Gov. Martin O'Malley is proposing a 20 percent increase in the sales tax and increases in the income tax rate for residents earning more than $150,000.
"Everything would be piling up on the county at the same time," Knapp said. "It would be hitting our residents very hard all at once at a time when the economy itself is not very strong."

Shelter for homeless veterans breaks ground on expansion
Addition could be com p leted within a year and will add 42 beds
http://www.baltimoresun.com/news/local/baltimore_city/bal-shelter1112,0,3238070.story
The South Baltimore Station, a shelter used by many homeless veterans battling substance abuse, broke ground on an expansion this morning. U.S. Sen. Benjamin L. Cardin told onlookers that there are 25 million veterans living in America, in addition to the 1.2 million activity duty members of the military, about 200,000 of whom are serving in Iraq and Afghanistan. Veterans Day is being observed today with a federal holiday. "I can't think of a more appropriate place to be on this Veterans Day than here at Baltimore Station," Cardin said, and noted that he feels veterans have been shortchanged over the years. "We haven't even done what we said we could do, and now we're trying to the right thing." Shelter officials said that private foundations, government agencies and private citizens have contributed nearly $4 million for the expansion.


LETTERS TO THE EDITOR

More time is needed to face budget woes
http://www.baltimoresun.com/news/opinion/letters/bal-ed.le.11nnov11,0,2126136.story
I have many concerns about the process of the General Assembly special session. Foremost among them is the lack of time and information available for voters to review and reflect on the legislation being considered ("Panel reworks revenue package," Nov. 7). Increasing Maryland's state taxes must be given serious and thoughtful consideration so that we understand all the related concerns. Once the decision to increase taxes is made, i t will be difficult to go back and revisit these increases.
But just look at how many new taxes are being considered, even though their full impact is not clearly understood.
I love my state. I love my nation. I realize that government needs funding to function.
However, I expect no less from our government than I do from my family - and that is to spend within our budget and be accountable for how we spend our hard-earned dollars.
Please take this budget process more seriously.
Patt A. Parker
Dunkirk
The writer is president of the Maryland Federation of Republican Women.

EDITORIALS/OP-EDS

Dispatches from the front lines in the deficit war
http://www.baltimoresun.com/news/opinion/oped/bal-op.fraser11nov11,0,3152895.column
The De m ocratic Party's Senate caucus was full of grumbling last week about Comptroller Peter Franchot, who called Gov. Martin O'Malley's tax reform package a "pounding" for the poor.
At the same time, Mr. Franchot was stepping away from the governor's proposal to require taxes of some mega-corporations that currently pay no taxes in Maryland. Mr. Franchot had absented himself from the Budget and Tax Committee's effort to craft an acceptable loophole-closing bill.
The no-higher-tax heat arises in many forms as the General Assembly wrestles with Mr. O'Malley's plan. Democratic Sen. James Brochin, for example, announced last week that he would join the Republicans in their opposition to the governor's revenue-raising and tax-reform plan.Mr. Brochin, who is consistently voting for Republican efforts to defeat the governor's plan, says he's willing to pay the bill if government economizes and stops supporting things such as state a id to independent colleges. He's from a legislative district in Baltimore County that marginally favored former Gov. Robert L. Ehrlich Jr. over Mr. O'Malley.
Last week, I quoted an acquaintance who asked why no one stops to think of paying taxes as a privilege. What he meant is that taxes are, as a wise man once said, the price of living in a democracy.
You will no doubt be surprised to learn that not everyone agrees. I offer this proof in the form of an e-mail last week: "Fraser Smith, you are a pathetic fool, and a doddering socialist. 'Paying taxes is a privilege'? Moronic!"


Balto. Co. delegates consider slots
http://www.baltimoresun.com/news/local/baltimore_county/bal-slots1110,0,331518.story
Baltimore County delegates are considering a plan for a slot machine gambling parlor in the M i ddle River area, an idea that could gain political traction amid opposition to proposed sites in Cecil and Worcester counties.
The county has long been a hotbed of slots supporters, but the long-standing opposition of County Executive James T. Smith Jr. to a site at the Timonium fairgrounds has kept them out of the slots proposals that have been floated in Annapolis in recent years, including the one Gov. Martin O'Malley offered as part of his budget-balancing package.
"For the last six years being down here, I've supported slots," said Del. J. B. Jennings, a Republican whose district includes the potential site. "What kind of person am I to say I'm for slots but don't put them in my backyard?"
The two other delegates from that district, Republicans Patrick L. McDonough and Richard K. Impallaria, opposed the plan.
"I can tell you, with me, it won't happen," McDonough said. "It's a non-starter. The communities will not accept it. You'll have a fight you do n 't want."

Budget cuts may affect farmland
http://www.baltimoresun.com/news/local/harford/bal-ha.farm11nov11,0,7371273.story
Farmers have a big stake in the current special session of the General Assembly called by Gov. Martin O'Malley to close a $1.7 billion state budget deficit. Money for agricultural land preservation would be cut drastically, and funding for cover crops would be slashed if lawmakers are unable to reach an agreement on new revenue sources to close the gap, said state Agriculture Secretary Roger Richardson. His warnings were included in a letter to farmers alerting them to some of the proposed reductions and how agriculture would be affected.

2 senators support tax-plan changes
http://www.baltimoresun.com/news/local/howard/bal-ho.politics11nov11,0,265919.story
Two of Howard County's three state senators sit on the Budget and Tax Committee and participated in key votes for the first set of changes that are reshaping Gov. Martin O'Malley's tax plan. Democratic Sens. Edward J. Kasemeyer and James N. Robey supported the committee majority in lowering O'Malley's suggested top income tax rate for Maryland's highest-income residents, while rejecting his idea for relief for people earning less than $15,000. Kasemeyer and Robey said the changes make sense to them, despite angry calls and e-mails from anti-tax critics and pressure from liberals to make Maryland's rates higher for wealthy people.
Howard's third senator, Republican Allan H. Kittleman, the Senate's minority whip, serves on the Finance Committee. He, like other GOP members, had strong opini o ns on the sales-tax portion of what his county colleagues did. "It was the classic bait and switch," he said. "A shell game." Instead of sales taxes on health clubs, real estate services and tanning salons - all of which vigorously lobbied against the move - the committee substituted computer services, landscaping firms and arcades, without any notice or plans for a public hearing. "They put in three new [businesses] who had no idea they were even being considered," Kittleman said.