20080403 News Clips

News Clips 04-03-2008

Senate panel votes to repeal 'tech tax'

Levy on millionaires would replace measure

http://www.baltimoresun.com/news/local/politics/bal-md.tax03apr03,0,1108579.story

Legislators took a first step yesterday toward repealing Maryland's new computer services tax and replacing it with an income tax surcharge on millionaires, the most significant victory yet for business groups warning that the levy could destroy the state's high-tech economy. Under the bill backed by Gov. Martin O'Malley, the $200 million sales tax on computer services, scheduled to take effect July 1, would be scrapped and replaced with about $110 million in annual revenue generated by a new income tax bracket of 6.25 percent for earnings above $1 million. The bill now goes to the full Senate for consideration. The House of Delegates has not yet taken up a computer services tax repeal proposal. Sen. Donald F. Munson, a Washington County Republican, was the only GOP member to vote for the bill. He said he did so in part because he hoped the O'Malley administration would help persuade the House to reverse significant budget cuts to a higher education center in Hagerstown.

Panel OKs income tax rise

http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20080403/METRO/325180172/1004

A Senate committee voted yesterday to increase the income tax on Maryland's highest wage earners. Members of the Senate Budget and Taxation Committee voted 10-5 to increase the personal income tax on residents who earn $1 million or more, as part of a plan to repeal the tax on computer services they passed in November. The income tax increase was proposed by Gov. Martin O'Malley, a Democrat, and raises the tax to 6.25 percent for those who earn more than $1 million. The tax would last for three years, and the proposal includes cutting $50 million in spending and transferring $50 million from the state's Transportation Trust Fund to the general fund. The full Senate would have to pass the measure, then the House would have to approve it. Senate committee members hinted at some of the political trade-offs necessary to secure their support for the new tax. Sen. Donald F. Munson, Western Maryland Republican, said he voted for the tax increase to save the Hagerstown Higher Education Center, an institution budget leaders are considering slashing funding for this week. "What I'm trying to do by this vote is save my university," he said.

Bill would expedite filling Wynn's seat

O'Malley wants to call special general election without holding another primary

http://www.baltimoresun.com/news/local/politics/bal-md.fourth03apr03,0,5691603.story

Gov. Martin O'Malley is working with state lawmakers to pass emergency legislation that would allow him to call a special general election to replace Rep. Albert R. Wynn, the Prince George's County Democrat who is leaving Congress in June to join a Washington lobbying firm. O'Malley wants to skip the special primary election now required under Maryland law and go straight to a general election to get the seat filled before Congress concludes its business for the year. State Sen. David R. Brinkley, the Republican minority leader, also criticized Wynn's decision but agreed that a special election was the best option to ensure the district is represented. O'Malley said he would work with Republican and Democratic leaders in both chambers to get the bill through the General Assembly before the final day of the session next week.

Senate reverses on energy

OK's conservation measure and move to provide more low-income aid

http://www.baltimoresun.com/news/local/politics/bal-md.energy03apr03,0,1764030.story

The Maryland Senate reversed course yesterday on a key piece of Gov. Martin O'Malley's plan for reducing the state's energy consumption, giving it preliminary approval after reaching a compromise that directed more money toward financial help for lower-income families' electric bills. After taking a procedural vote to reconsider the bill that had failed, the Senate voted to amend the bill to reduce the rate relief and direct more money to the Electric Universal Service Program, which provides assistance to the poor. Sen. E.J. Pipkin, an Eastern Shore Republican, argued that ratepayers deserve a bigger break, especially as they are struggling with higher prices for electricity and a host of other consumer goods. He called the compromise amendment a victory for bureaucrats at the Maryland Energy Administration, which would run the efficiency and conservation programs. "All I've ever wanted was a fair shake for the ratepayers," said Pipkin, the only senator to vote against the amendment. "Utility bills of the average person are too high. This is a tremendous missed opportunity."

Angry Bingo Players Protest At State House

http://wbal.com/stories/templates/news.aspx?articleid=4250&zoneid=3

About 100 bingo players spent the morning demonstrating on Lawyer's Mall in front o the State House in Annapolis this morning, to protest a proposed ban on electronic gaming machines, including video bingo. Under legislation backed by Senate President Mike Miller and House Speaker Mike Busch, the machines wound be banned. The machines look like slot machines, but use a different formula to pay off prizes. The operators of Bingo World in Brooklyn Park, whose customers were part of the group demonstrating today, say their machines are "taxed and regulated." "If Senate Bill 959 passes, we employ about 165 people, almost immediately, we'll loose half of those people. We will have to lay half of them off," Clemens told WBAL News. The bill, along with a House version of the bill are still being considered by different committees.

McCain revisits Naval Academy

'Service to America' campaign tour makes stops in Annapolis

http://www.baltimoresun.com/news/nation/politics/bal-te.mccain03apr03,0,2212448.story

John McCain, promoting his life story with a "service to America" campaign tour, stopped yesterday at the place that service began more than half a century ago, the U.S. Naval Academy in Annapolis. McCain chatted with midshipmen at one of the tables, an academy spokesman said. Department of Defense policy prohibits military installations from being used for political campaigning. We encourage our nation's leaders to visit federal grounds, and this is a great opportunity for the midshipmen to interact with him," said Ensign Laura Stegherr, a Navy spokeswoman.
McCain also stopped at Chick and Ruth's Delly, a political hangout not far from the Statehouse, and joined patrons in reciting the Pledge of Allegiance, a longtime tradition. Among those on hand were former Govs. Marvin Mandel, a Democrat, and Robert L. Ehrlich Jr., a Republican. McCain greeted Operation Welcome Home volunteers and visited the USO lounge at Baltimore-Washington International Thurgood Marshall Airport before heading for stops in north Florida, where he trained as a pilot and came back, years later, as a just-released POW.

Anne Arundel misstating funds, county auditor says

http://www.examiner.com/a-1317686~Anne_Arundel_misstating_funds__county_auditor_says.html

The Anne Arundel County government consistently is misstating its financial records — which could create budget problems — and has not placed controls to prevent employees from stealing money, according to an annual audit. “If someone buys our bond and we tank because we didn’t disclose our financial statements properly, we could be in trouble,” said county Auditor Teresa Sutherland. Anne Arundel failed to spend a $5 million federal grant in time and had to repay it — along with $400,000 in interest. Though the county reapplied for the grant and got the money back, the damage was done. “If you start not following federal government’s procedures, they’re going to start yanking the grants,” said Sutherland, who added that misspending of grants is not new in Anne Arundel. Another major issue is the lack of security controls to prevent employees from stealing money from fees or misappropriating funds. Several employees have unauthorized access to financial programs, and some employees process an entire financial transaction, leaving little supervision over the process.

School bands march toward victory as House considers noise ordinance bill

http://www.examiner.com/a-1317689~School_bands_march_toward_victory_as_House_considers_noise_ordinance_bill.html

Marching bands in Carroll County got the ear of state lawmakers. Now the legislature’s on the verge of passing a bill that would exempt the bands from a county noise ordinance. The bill would exempt all schools from the noise ordinance between 8 a.m. and 9:30 p.m. It passed the House unanimously is expected to be voted out of a Senate committee tomorrow, said Republican Sen. Larry Haines, chairman of the Carroll delegation. “I don’t see why anyone would” object to it, Haines said. “I think everything will pass.”

Tax district to fund BRAC

http://www.examiner.com/a-1317693~Tax_district_to_fund_BRAC.html

Tax districts to pay for BRAC-related growth in Harford have received state lawmakers’ approval. The districts, which need County Council approval, would allow the county to charge developers the additional tax for building new schools, roads, sewers and such. If all the landowners within a proposed district agree, the county council could pass the additional taxes for that district to pay for the added strain of Base Realignment and Closure-driven development, said Sen. Barry Glassman, one of the bill's sponsors. “For folks at the north end of the county, BRAC growth won't be subsidized by the general taxpayers' funds,” Glassman said. County Council President Billy Boniface, who worked with Glassman to draft the bill, said Harford would be unique among the other nine counties with authority to create special taxing districts. Of these, he said, only Harford requires all landowners to agree to the tax.

EDITORIALS/OP-EDS

Rebate redux

Our view: Promoting conservation is in ratepayers' interests

http://www.baltimoresun.com/news/opinion/editorial/bal-ed.energy03apr03,0,7204733.story

In the final week of a legislative session, bills have a way of dying and then reviving. So it wasn't too shocking that the Senate yesterday reanimated Gov. Martin O'Malley's proposal to promote energy conservation one day after killing the measure. The real surprise was the continued false portrayal of the bill as a choice between giving money to ratepayers or handing it over to faceless bureaucrats. Let's set the record straight: Programs that encourage conservation aren't a waste. Without a serious commitment to decreasing energy demand, there are real doubts about whether the state will have an adequate power supply in the not-so-distant future. The Senate actions may prove acceptable, but it's still not clear that ratepayers are any better served. A utility rebate may be helpful to legislators seeking re-election in two years, but it isn't meaningful energy policy.

Transparency now

http://www.examiner.com/a-1317702~Transparency_now.html

The state Senate is scheduled to vote today on the most fiscally responsible bill to grace the floor this year. The transparency bill already passed the House unanimously last month and was voted out of committee unanimously in the Senate earlier this week. Every senator must vote yes. Giving citizens the tools to hold their government accountable must not be a partisan issue. We think the threshold should be lower and that state salaries should be included in the database, as all of that information is public and relevant to the proper running of state government. But the bill makes it much easier for all Marylanders “to see where their money is spent,” said Del. Warren Miller, R-Howard, the bill’s sponsor in the House. He’s hoping — as are we — the bill will spur Maryland’s local governments to create their own Web sites to monitor local spending.