20080404 News Clips

NewsClips 04-04-2008

STATE NEWS

Senate vote might nullify BGE pact

Power plant regulation runs afoul of terms

http://www.baltimoresun.com/news/local/politics/bal-md.rate04apr04,0,6054848.story

The Senate voted yesterday to regulate any new power plants built in Maryland, brushing aside warnings that its action could scuttle a $2 billion settlement of the state's prolonged legal battle with Constellation Energy Group. While considering a bill to ratify the settlement, senators voted 27-18 in favor of an amendment that would require all new power plants built in Maryland to first offer their electricity for sale in the state and be regulated by the Public Service Commission. Sen. Thomas M. Middleton, chairman of the Finance Committee, warned that the change "puts the agreement in jeopardy." The settlement with Constellation announced last week is contingent on the legislature approving a bill ratifying the terms without any deviation, he said. Sen. E.J. Pipkin, an Eastern Shore Republican who introduced the amendment, hailed the Senate vote.
"This is three years of working through tedious documents and paperwork to say enough is enough," he said. "Tonight, the Senate went on record saying it wants to take regulatory action for relief on ratepayers." The Senate vote came after the House had given preliminary approval to the Constellation settlement bill, despite some delegates' questions and complaints about its being rushed through.

Senate votes to repeal computer services tax

Offered in its place are millionaire surcharge, a combination of cuts

http://www.baltimoresun.com/news/local/politics/bal-md.computer04apr04,0,4794851.story

The Maryland Senate voted last night to repeal the computer services tax and replace it with a combination of cuts and an income tax surcharge on millionaires. The bill would scrap sales tax on computer services (expected to generate about $200 million a year) and instead impose a three-year surcharge on personal earnings exceeding $1 million. Del. Christopher B. Shank said House Republicans consider the computer tax "hastily enacted and ill advised" but would not support the Democratic majority's alternative tax on millionaires. "Their solution is to impose yet another tax is not necessary on a segment of the economy that can easily leave the state, find tax accountants and other tax avoidance strategies," said Shank, a Western Maryland Republican. "It sends yet another message about Maryland's negative business climate at an extremely bad time." Sen. David R. Brinkley, the minority leader from Frederick and Carroll counties, tried to replace the income tax surcharge with trims from state funds dedicated to transportation, the environment, health care and higher education. He also proposed using part of the Maryland Auto Insurance Fund's surplus. "There are alternatives to raising the income tax yet again," said Brinkley, who also tried to make the case for using more of the state's general fund reserves. Repeal of the computer services tax would be a major victory for business groups that warned the levy could destroy Maryland's high-tech industry. But the proposed alternative has received a cold reception from some business interests who lobbied hard for a repeal.

Arundel policy change finds more suspected illegal immigrants

http://www.examiner.com/a-1320116~Arundel_policy_change_finds_more_suspected_illegal_immigrants.html

Anne Arundel County Executive John Leopold's office says a new policy at county jails has helped flag foreign-born prisoners for federal immigration officials. Under the policy that began in March, federal authorities are contacted immediately when immigrants are processed at the jails so their status can be checked. In the four weeks since the new policy began, 45 inmates were reported, more than half were identified as possible candidates for deportation proceedings and 13 were released to ICE custody.

County budget moves forward as General Assembly session concludes

http://www.examiner.com/a-1319940~County_budget_moves_forward_as_General_Assembly_session_concludes.html

The winners and losers in the fight for next year’s funds in Carroll will soon take shape as commissioners delve into their budget — albeit several weeks late. The county had delayed the budget process, waiting to see how much money the state would cut from its contributions to the county as it tried to close a $1.7 billion structural deficit. With the General Assembly’s session ending Monday, the county plans to hold nearly a dozen work sessions, public hearings and agency meetings into the next several weeks in time to introduce its proposed budget by the end of April and adopt it by the end of May. Harford County released its proposed budget last week. It included reduced spending on construction projects and about the same amount for day-to-day operations. Howard introduced its proposed capital budget last week, and Anne Arundel will propose its budgets in May.

Vouchers likely to win support

http://www.washingtontimes.com/apps/pbcs.dll/article?AID=/20080404/METRO/753727229/1004

School-choice supporters appear likely to win a sizable victory in this year's General Assembly. The Senate has already passed a bill that gives a tax credit to businesses who donate to scholarship funds for private schools, and a House committee is scheduled to hear the measure today. Supporters of the Building Opportunities For All Students and Teachers in Maryland bill say the tax credit is important to help keep open Catholic and other tuition-based private schools, which are often alternatives to failing public-school systems. The powerful Maryland State Teachers Association opposes the measure, saying the state cannot afford to give handouts to private schools when its public schools are cash strapped. The supporters say they have 74 sponsors on the House version of the bill, three more than needed to win approval. "The program is very popular," said Delegate James E. Proctor, former high school principal and a lead sponsor of the proposal in the House. "People think that it's a Catholic school proposal, that it's a Catholic voucher, but in reality any education organization — public, private, parochial, whatever — can participate."

U.S. Might Pay for Part Of Bethesda Road Work Montgomery Welcomes Navy's Reconsideration

http://www.washingtonpost.com/wp-dyn/content/article/2008/04/03/AR2008040303745.html

The Navy will ask the Pentagon to consider paying for some of the road and Metro improvements needed for the expansion of the Navy hospital in Bethesda, reversing a decision that had dismayed county and state leaders, according to a report being issued today. The hospital's expansion is part of the Pentagon's base realignment plan, known as BRAC, which calls for closing Walter Reed Army Medical Center in the District and moving much of the care of wounded soldiers from Iraq and Afghanistan to Bethesda. "The fact they're putting it into DAR is good news," Rep. Chris Van Hollen (D-Md.) said. "It reflects an understanding that there will be an impact on the community. Of course, it's just a first step."

Repealing levy could hurt road projects

Montgomery, Prince George’s forced into transportation dilemma

http://www.gazette.net/stories/040408/polinew205522_32359.shtml

With the Senate approving the repeal of the $200 million computer services tax on Thursday and more cuts to the transportation budget in the offing, Prince George’s and Montgomery lawmakers are hoping their road projects will stay on course. ‘‘This region has the second-worst congestion in the country,” Henson said. ‘‘That’s why the department has such an aggressive transportation program. Any cuts to the Transportation Trust Fund would affect projects, but we understand the General Assembly has difficult decisions to make.” Whether cuts to the transportation fund will stop any projects in Montgomery or Prince George’s poses a dilemma for the counties’ lawmakers.

For schools, no news from General Assembly is good news

Session sees school funding and Grasmick staying, for now

http://www.gazette.net/stories/040408/polinew205524_32360.shtml

For education advocates, perhaps the biggest news of the 2008 session is what did not happen. Teacher pension costs were not shifted onto the backs of counties. Longtime state schools Superintendent Nancy S. Grasmick was not ousted. And a funding formula to give money to schools where the cost of education is the highest looked likely to be left untouched as the chambers entered the weekend prepared to work out final details of the budget. The Maryland State Teachers Association is pleased that schools have not borne the brunt of budget cuts and hopes that will still be the case on Sine Die. While the new spirit of cooperation has not yet brought Grasmick and O’Malley together to launch any new initiatives, O’Malley did include $7.6 million in a supplemental budget submitted on Monday for a program to offer special education services to children from birth to 3 years old. While the feelings between the two probably have not changed, putting their differences aside was ‘‘good government,” Hoffman said. ‘‘I’m grateful for it. I think everybody is.”

Wynn's early exit leaves tough choice, hard feelings

http://www.baltimoresun.com/news/local/bal-md.wynn04apr04,0,1362419.story

When he decided to leave Congress before the end of his term to join a Washington lobbying giant, Rep. Albert R. Wynn left his constituents with a choice: Pay for a costly special election to fill his seat or go unrepresented in the House for the remainder of the congressional session. The dilemma is rankling even some of his fellow Democrats. "Congressman Wynn's decision makes more financial sense for him than it does for the state," state Sen. Jamie Raskin of Montgomery County, a Democrat whose district overlaps Wynn's, said yesterday. "It leaves a gap in representation, it causes controversy about a replacement, and then it raises issues about potential conflicts of interest." Asked whether it would be better for the constituents if he completed his term and spared taxpayers the cost of a special election - estimated by some at $2 million if both primary and general elections are required - Wynn declined to comment. O'Malley wants to push legislation through the General Assembly to allow the state to skip a special primary and go straight to a special general election. A single vote held quickly could cut costs to an estimated $1 million and allow the winner to enter Congress before the legislative year ends in September. State senators introduced a bill for a special general election in July, which would give the victor six months to serve in Washington. Peter James, the Republican nominee for the 4th District, said Wynn's decision symbolizes a culture in Washington that he is seeking to change. "That's why Congress has such a low rating," he said. "Guys like to take off and start lobbying. It's a shame it's all about the money to most people, it appears."

Ehrlich Back On Campus To Talk Persuasion

http://wbal.com/stories/templates/news.aspx?articleid=4270&zoneid=3

Former Governor Ehrlich was back on campus Thursday at Towson University as he spoke to students in a "Persuasion" class. Ehrlich has attended Dr Rick Vatz's class twice a year at Towson since the early 90's to speak about persuasion and answer questions from students of the professor of rhetoric and communication. "Don't be afraid to ever give your opinions," he told students in the lecture room. He told students to don't allow opponents to ever label them. "Because your opponents will always try to label you," said Ehrlich just before he took questions from the students in the lecture room at Towson University. "In debate, in a corporate environment, academic environment, (and in a) political environment, you never want to be labeled, ever. Unless it is accurate, because your opponents will always try to label you."

Tech Tax Repeal Gets Senate OK; O'Malley Says Lawmakers Should Not Worry About Approving "Millionaire Tax"

http://wbal.com/stories/templates/news.aspx?articleid=4264&zoneid=3

The Maryland Senate has given its final approval to legislation to repeal the state's computer service sales tax that was set to take effect in July. In the final vote, both those Senators Republican Nancy Jacobs and Democrat Roy Dyson voted against the bill. Another Republican, Barry Glassman of Harford County voted against the bill when the Senate took the final vote. Earlier today, the Senate rejected several Republican backed amendments. Those amendments sought to repeal the tech tax without creating a new 6.25 percent tax on people who make more than a million dollars a year. Late this afternoon, Governor Martin O'Malley spoke out for the first time about the computer tax repeal legislation. The governor praised the bill, but admits it will be a "tough vote" for lawmakers. The governor says lawmakers should not worry about the "political ramification" of voting for an income tax hike so soon after the special session. The governor says those facing the higher tax rate can afford it.

EDITORIALS/OP-EDS

Betting on a slots mirage

http://www.examiner.com/a-1319917~Betting_on_a_slots_mirage.html

We’re not finished with this session, but legislators should worry about the next. Specifically, how to pay for their profligate spending. They raised taxes in the special session. But what happens when legislators “need” more money again? Will they rely on slots revenue? Think again. The state’s revenue estimates for slots are increasingly looking like a pipe dream — if the measure passes next November. And what happens if the current credit crisis prevents the slots license winners from building the entertainment centers envisioned to house the machines? What’s clear is that slots are a big “if” on many fronts. Legislators must not build budgets with the predicted slots revenue factored into them. Even if the referendum passes, there is no guarantee the state will strike it rich.

Bad decision on tech tax dogs legislature

http://www.hometownannapolis.com/cgi-bin/read/2008/04_03-57/OPN

Last year's legislative special session was supposed to get the state's serious fiscal problems off the table for 2008. It was not supposed to produce this, from a letter titled "Tech Businesses Welcome in the Commonwealth of Virginia": The letter, from a Republican state senator from Virginia, is an undisguised lunge at Maryland high-tech businesses alienated by the "tech tax," a new 6 percent levy on computer services, including software design and data processing. It's just a faint foretaste of what we'll see from Virginia and other states if the new Maryland levy actually takes effect on July 1. The General Assembly is in overdrive right now, and the debate might be settled soon. But as this is written, the option pushed by the governor was to pay for the repeal by a combination of budget cuts - including in the transportation fund - and an income tax surcharge on the 0.2 percent of the state's income tax filers who make more than $1 million a year. We're not enthused by either of these options ourselves, but the tech tax is pure folly and has to go. We hope the governor and legislators, this time at least, can come up with a fix that doesn't make the overall situation any worse.

State House surprises

http://www.gazette.net/stories/040408/polilee203928_32365.shtml

After a bruising November legislative special session, the state’s largest tax hike in history and the collapse of his approval ratings, Gov. Martin O’Malley offered an unambitious agenda for this year’s 90-day session. Looking for consensus ‘‘feel good” items, O’Malley focused on public safety, the environment and helping foreclosed homeowners. Expanding the state’s DNA database to help police fight crime was a sure crowd pleaser. Also, a wider DNA pool helps exonerate the innocent as often as it helps convict the guilty. So what’s not to like? Plenty, according to the Legislative Black Caucus, which vigorously opposed the bill and helped gut it. Hands down, the Black Caucus is the most important emerging political power in State House politics. In a Democratic-dominated state and state legislature, the black vote is greatly amplified. So when the Black Caucus mobilized against O’Malley’s DNA bill, crying ‘‘racial profiling,” the bill was doomed. Black lawmakers feared the police would target innocent blacks just to have their genetic fingerprints on file. ‘‘Once the government has your information, you might spend your life trying to clear your name when mistakes are made,” said one black official. Puzzled white lawmakers questioned their black colleague’s concerns. When one white delegate called their fears ‘‘irrational” black lawmakers took it personally and stormed out of the meeting room. After some hasty apologies and fence-mending, O’Malley’s bill was watered down to the blacks’ satisfaction. Now let me ask you a question: Which of the following three groups would you imagine least likely to support November’s slots referendum? The racetrack owners, the local governments or the state teachers union? Surprisingly, it’s the racetrack owners. They are withholding support until they get more concessions from the state. True, Senate President Mike Miller threatened the teachers with defunding their pensions but the teachers are powerful enough to call that bluff. Instead they’re going for the money. So, on Election Day, look for teachers passing out slots ballots at polling places. Perhaps their familiar ‘‘apple” logo will be replaced by three apples in a row, a slots jackpot.

Wrapping it up

http://www.gazette.net/stories/040408/poliras203923_32362.shtml

As weary legislators rush to wrap up their 2009 session in the State House so they can get out of town at midnight Monday, they leave behind some important unresolved problems. The biggest immediate worry is Maryland’s still-growing budget shortfall. Neither O’Malley nor the legislature was willing to make large enough budget cuts to eliminate Maryland’s on-going spending-to-revenue gap. Instead, they turned to one-time revenue gimmicks. They also stripped large sums of money from transportation projects and shifted that cash into the general fund. At this point, the governor has no choice. If revenues slump badly, his only realistic option is belt-tightening, even if it hurts programs near and dear to Democratic lawmakers and O’Malley. A second area of lingering concern focuses on Maryland’s inadequate supply of electrical power. Brownouts could become routine in a few years because state policymakers and politicians have largely ignored this burgeoning problem. Encouraging power companies to come into Maryland and build gas-fired power plants or wind farms won’t be easy given the state’s past nastiness toward Constellation and protests from local groups opposed to most forms of new energy production. The governor still has to develop a proactive power plan — one with strong legislative backing — if he wants to persuade Constellation and its competitors that erecting new energy facilities in Maryland isn’t a waste of their time and money.