20071113 News Clips

News Clips

Nov. 13, 2007

STATE NEWS

O'Malley promise on taxes erased
Lawmakers remove low earners' breaks
http://www.baltimoresun.com/news/local/politics/bal-te.md.taxes13nov13,0,5019014.story?coll=bal_tab01_layout
Gov. Martin O'Malley aimed his pitch for raising some taxes at the same "working families" he wooed in last year's campaign. He promised that he had found a way to resolve Maryland's projected $1.7 billion budget shortfall that would place the burden on the wealthy and big corporations. The vast majority of Marylanders, he promised, would actually come out ahead.
But after a series of amendments the state Senate adopted last week, that appears to be in doubt. The House of Delegates voted to restore some of O'Malley's promised progressi vity, but even plan supporters acknowledge that working families are likely to end up paying the same amount or more in taxes.
He acknowledged that his plan to increase the sales tax from 5 percent to 6 percent would hurt the finances of all Marylanders, but O'Malley said his plan to cut the property tax by 3 cents per $100 in assessed value and to shift the income tax burden from low- and middle-income families to top earners would result in a tax cut for most people.
O'Malley acknowledged last week that after the Senate amended his plan, that goal might not be realized.
Some key protections for low-income workers remain in the package, most notably an expansion of the state's earned income tax credit, which provides refunds to workers who earn too little to pay state income taxes.

$500 million in cuts seen
House panel IDs savings to help close budget shortfall
http://www.baltimoresun.com/news/local/politics/bal-md.cuts13nov13,0,4603889.story
House budget writers identified yesterday nearly $500 million in potential savings in next year's budget, including recommendations to freeze inflation increases in the state's Thornton education funding plan, eliminate vacant state jobs and tap surplus funds in the state health insurance fund. The full House of Delegates takes up the proposed cuts today as part of the General Assembly's special session to close a $1.7 billion budget gap for the next fiscal year.
Republicans have criticized O'Malley for failing to significantly cut spending while proposing a range of tax increases. Lawmakers also are working on a package of $1.4 billion in tax increases. Del. Steve Schuh, an Anne Arundel County Republican, said that while he supported the final bill in committee, he would like to have see n spending curtailed even more. He also criticized the deficit-reduction plan being crafted by Democrats because it would raise a variety of taxes and relies on revenue from legalized slot-machine gambling that wouldn't kick in for several years. The slots proposal would be put to voters in a November 2008 referendum if the legislation passes. "If you blow it on spending restraint and if you blow it on slots, you're backed into a fiscal corner of having to raise taxes in a very big way to balance the budget," Schuh said.
Del. Susan L.M. Aumann, a Baltimore County Republican, opposed a measure to keep grants to private colleges at the current fiscal year amount, which would save the state $3.4 million. She expressed concern that more students will leave Maryland to attend private colleges.

Slots sites in Harford, Frederick, Baltimore counties suggested
http://www.baltimoresun.com/news/local/politics/bal-md.slots13.nov13,0,2292898.story
Lawmakers should seriously consider adding Frederick County to the locations where slot machine gambling would be allowed under a proposal for a state referendum being weighed by the General Assembly, several delegates suggested yesterday in a brief hearing on the matter.
Others on the subcommittee appeared interested in moving the proposed Cecil County location to Harford County. A proposal for slot machines near Interstate 95 in eastern Baltimore County appears to have gained little traction.

Frederick County Floated As Possible Site for Slots
http://www.washingtonpost.com/wp-dyn/content/article/2007/11/12/AR2007111201816.html
The Maryland House of Delegates b e gan weighing Frederick County as a possible site for slot machines yesterday, with some key lawmakers arguing that it could appeal to Montgomery County residents who now travel to West Virginia to gamble. Del. Frank S. Turner (D-Howard), chairman of a House subcommittee with jurisdiction over slots legislation, asked his colleagues whether it would make more sense to include Frederick in the bill, given the significant number of Montgomery residents who travel to Charles Town Races and Slots in West Virginia. "The whole concept here is to generate revenue and capture revenue," Turner said. "That should be the number one issue." Senate Minority Leader David R. Brinkley (R-Frederick) said yesterday that a Frederick location "doesn't make sense." "They are obviously ignoring the most lucrative location, which would be Rosecroft," Brinkley said, referring to Rosecroft Raceway in Prince George's County. Brinkley argued that the racetrack would attract gam b lers from the District, Virginia and Montgomery.

Proposal for slots near Rosedale faces slim odds
Plan floated last week lacks support of Baltimore County executive
http://www.baltimoresun.com/news/local/baltimore_county/bal-slots1112,0,462592.story
When a businessman floated the idea last week of slot machines near Interstate 95 in eastern Baltimore County, delegates from the county were intrigued enough to meet with him. But the proposal appears to have gained little traction as the House of Delegates considers its version of a slots bill this week. The proposal by James T. Dresher Jr. calls for 2,500 slots on an entertainment complex he would build on an industrial site near the I-95-U.S. Route 40 interchange. One potential hurdle for Dresher's plan is the opposition of Baltimore County Executive James T. Smith Jr.
Minnick said House Speaker Michael E. Busch has indicated he would be reluctant to pass a bill to put slots in any county where the executive would oppose them.

Delegate wants well water test results online
http://www.examiner.com/a-1044965~Delegate_wants_well_water_test_results_online.html
State Del. Warren Miller wants to see proof that the well water at Howard's schools is safe. "I think the parents have a right to know about the water quality," said Miller, R-District 9A.Miller is introducing a measure requiring the Howard Board of Education to test the water for volatile organic compounds - which are industrial or fuel-related chemicals - at each school that uses wells and post the res u lts on its Web site.
The school system follows water regulations set by the U.S. Environmental Protection Agency and the Maryland Department of the Environment. Water at the eight schools that rely on wells is tested regularly for contamination, schools spokeswoman Patti Caplan said.
The legislation, being proposed in the upcoming General Assembly, might not be necessary if a deal can be worked out, Miller said.

House Votes Today On Spending Cuts, Health Care; Subcommittee Ponders Adding Slots Parlor To White Marsh
http://wbal.com/news/story.asp?articleid=65596
The special session of the Maryland General Assembly enters its 16th day today, with the House of Delegates scheduled to meet to debate and vote on a series of spending reductions, lawmakers say will help reduce the state's structural budget deficit, which is estimated as high as $1.7-bill i on.
While there are some actual spending cuts in this bill, there are also a number of state programs which will not see increases in funding as high as was first promised.
Senators left Annapolis for the weekend Friday afternoon, after approving their version of a tax and slots plan.
Republican Senate Minority Whip Allan Kittleman told WBAL's "C4" Monday that he believes Miller is waiting for the Senate to come back to session, until after the House enacts a slots proposal.
The House and Senate will have to work out compromise over taxes, slots and spending cuts, and lawmakers have to approve that compromise before the special session can end.

Maryland House delays meeting on slots
http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20071113/METRO/111130073/1004
House le a ders delayed a key meeting on legalizing slot machines yesterday while Democrats searched for support for the plan, lawmakers said. "I think there's going to be problems, and there should be," said Delegate Jill P. Carter, Baltimore Democrat and slots opponent.
House Republicans said they are joining with anti-slots Democrats to block a plan that would ask voters to approve the O'Malley plan.
Senate President Thomas V. Mike Miller Jr. yesterday postponed a floor session and rescheduled it for Thursday, while he waited for the House to pass the slots proposal. "It is my hope that we will have substantive work that will lead us to resolution later this week," Mr. Miller, Southern Maryland Democrat, told senators. "Miller's making it clear to Busch that nothing's going to happen until we have slots," said Senate Minority Whip Allan H. Kittleman, Carroll and Howard counties Republican.
The House also has put off voting on a health care bill that appears to have strong support. The $600 million plan would expand Medicaid eligibility to reduce the number of uninsured people in Maryland - as many as 800,000 by some counts. The measure also includes about $20 million a year for subsidies for small businesses that are not offering insurance to their employees.

Gambling interests gave $1.25 million
http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20071113/METRO/111130068/1004
Gambling interests that want slot machines legalized in Maryland have given nearly $1.25 million to candidates and political parties since 2003, according to an analysis by the Baltimore Sun.Laurel Park and Ocean Downs, two tracks that would get slot machines under a plan proposed by Mr. O'Malley and approved last week by the Senate, led all Maryland tracks in lobbying from November 2005 and April 2007, according to records filed with the state Ethics Commission.
O'Malley spokesman Rick Abbruzzese said campaign contributions did not influence the governor's slots proposal.

Conway committee votes on budget cuts in deficit plan
http://www.delmarvanow.com/apps/pbcs.dll/article?AID=/20071113/NEWS01/71113002
Aiming to cut spending by roughly $500 million, a House committee voted on spending reductions Monday to help knock down Maryland's projected $1.7 billion budget deficit. The House Appropriations Committee voted to defer some cost-of-living adjustments for community providers in the departments of Health and Mental Hygiene, Human Resources and Juvenile Services. That measure would reduce state spending by about $24 million.&nbs p ; Delegate Norman Conway, an Eastern Shore Democrat, told lawmakers on the committee that the special session to address the deficit is requiring them to make some tough and unpopular decisions, but he emphasized that the reductions were necessary.
Initially, House leadership had hoped to vote on the budget reconciliation measure Monday evening, but delays in moving through the cuts in various subcommittees slowed down the process. The House is now expected to begin voting Tuesday on the bill.

EDITORIALS/OP-EDS

As mayor, he fought OC slots, but now ...
http://www.baltimoresun.com/news/local/politics/bal-md.marbella13nov13,0,2383791.column
Jim Mathias has lived in Ocean City long enough to remember when the big issue was whether to let a McDonald's or a 7-Eleven or some other intruder into town. As mayor, Mathias opposed slots. As delegate, he is open to them, under certain conditions.
But perhaps nowhere has there been as much turmoil as Ocean City, what with proposals to raise the sales tax from 5 percent to 6 percent, the hotel tax from 5 percent to 7.5 percent and, most of all, to put slots at Ocean Downs Race Track on U.S. 50 just before you get to OC. When Ocean Downs appeared on the list of possible sites for slots, "it caught everyone by surprise," Mathias agreed. "Our phones went into meltdown." While his city's elected officials and its business community remain as strongly opposed to the gaming devices as he was as OC's mayor - the fear is that slots would cannibalize the existing hotels, restaurants and attractions - Mathias has slowly moved toward seeing their possible benefits.
Mathias says he will ask that Ocean Downs be removed fr o m consideration as a slots location, but knows that a similar request made in the Senate, by Sen. J. Lowell Stoltzfus, was voted down. Now, as the House prepares to tackle the slots issue, he's bracing for the fallout, no matter what he does.

Gambling's payoff
http://www.baltimoresun.com/news/opinion/editorial/bal-ed.slots13nov13,0,7646249.story
If the Maryland General Assembly chooses to approve slot machines, lawmakers ought to at least take the precaution of setting parameters on the gambling industry's influence in Annapolis. Records show that individuals with ties to gambling contributed more than $1.25 million to state candidates and political parties over the past four years - on top of spending more than twice as much on lobbying during the last two.
There are too many opportunities for corruptio n , which is why legislation now before the House Ways and Means Committee to prohibit political contributions from individuals employed in the gambling industry makes a lot of sense.
O'Malley administration officials say they're offended by any suggestion of impropriety in their choice of five locations for slot machines. But the fact that the owner of Ocean Downs in Worcester County has given nearly $400,000 in political donations and now stands to own one of those slots licenses certainly suggests his contributions didn't go unnoticed.
If the governor's slots proposal were to pass, limiting political contributions from the gambling industry seems like a reasonable protection. Failing to do so would be a victory not for free speech but for the allure of deep-pocketed political donors who are guaranteed to come calling to Annapolis year after year.

Special session 'cuts' may trim local projects
http://www.herald-mail.com/?module=displaystory&story_id=178957&format=html
Barring any major problems in reconciling House and Senate versions of the bill, it now appears that the Maryland General Assembly will pass most of the budget balancing package sought by Gov. Martin O'Malley. What remained (as of Monday morning) was for the House of Delegates to agree on $500 million in budget cuts and to agree on a yea-or-nay referendum for slot machines. As proposed, the taxes would affect citizens and businesses statewide. But the cuts could target projects in areas where the delegations are mostly made up of members of the minority party. It will be a challenge for the Washington County delegation to see that such does not happen.

Slots on the Brink
Maryland lawmakers may vote for a referendum on legalization. But don't bet the house on the o utcome.
http://www.washingtonpost.com/wp-dyn/content/article/2007/11/12/AR2007111201557.html
MOTIVATED MORE by exhaustion than conviction, Maryland's House of Delegates this week may follow the Senate in shunting the question of legalizing slot machine gambling off to voters. If the House does vote to put slots on the ballot as a referendum next year, the delegates will be punting on the most basic task of representative democracy: to cast votes on pressing issues. They may also be consigning the slots proposal to the grave it so richly deserves.
That may seem counterintuitive, given recent polling, including by this newspaper, that suggests broad support for slots. But considering the reaction of slots' leading advocate, Senate President Thomas V. Mike Miller Jr. (D-Calvert), who first balked at a referendum, there is cause to doubt the depth of popular s upport for legalizing slots. A referendum is not yet a done deal. Because it involves a constitutional amendment, it will need 85 votes to clear the 141-seat House. We hope the votes aren't there. Still, slots have tied the General Assembly in knots in recent years, and Mr. Miller has given every indication that he is willing to paralyze the current effort to close a budget deficit of at least $1.5 billion if he does not get at least a referendum. Battle-weary lawmakers may simply throw up their hands. If they do, it should be to fight another day and defeat at the polls a slots proposal that will foster corruption and gambling addiction while primarily hurting the poor.

Governor's scary budget story
http://www.gazette.net/stories/110907/policol00609_32359.shtml
Give Gov. Martin O'Malley credit. He knows how to te l l a scary story. Last week, O'Malley announced that the failure to pass his $1.3 billion tax package would result in deep cuts to education, public safety and health care. Those opposed to a special session, slots and higher taxes would bear responsibility for this tragedy.
O'Malley is hardly the first politician to use misdirection, fear and a manufactured sense of urgency to push his agenda. But before we run screaming into the arms of some frightening tax increases and slots, let's unmask some of O'Malley's special session goblins. Misdirection is the most reliable trick in the tax increase playbook. Faced with a deficit, liberal politicians claim the most important, worthy and politically leverageable programs are up for deep cuts. No one wants to irresponsibly cut these items. O'Malley's ''Cost of Delay" budget utilizes this tactic expertly.
Even the most liberal Democrats know O'Malley's creating a false sense of urgency to push his tax and slots plan.
B e fore we're scared into giving government more of our money, let's remember that the private sector provides far more jobs and health care for working families than government ever has.
Herbert H. McMillan of Annapolis represented District 30 in the House of Delegates from 2003-07.