Journalist @baltimoresun writer artist runner #amwriting Chaplain PIO #partylikeajournalist

Journalist @baltimoresun writer artist runner #amwriting Chaplain PIO #partylikeajournalist
Journalist @baltimoresun writer artist runner #amwriting Md Troopers Assoc #20 & Westminster Md Fire Dept Chaplain PIO #partylikeajournalist
Showing posts with label People Franchot-Peter Franchot. Show all posts
Showing posts with label People Franchot-Peter Franchot. Show all posts

Wednesday, December 28, 2011

Washington Examiner - Rachel Baye: Franchot: Don't raise taxes in Maryland

How did I miss this: 
Maryland Comptroller Peter Franchot
Maryland should institute a two-year moratorium on all tax and fee increases, Comptroller Peter Franchot said at a meeting of the Board of Revenue Estimates.
"The economy right now is too fragile, and introducing new taxes or increased fees would just be an increased hardship on Maryland families," said Comptroller spokesman Joseph Shapiro.
Franchot pointed to stagnant job growth and the state's 7.4 percent unemployment rate.
Franchot's urging comes less than two weeks after a state panel recommended raising gasoline and titling taxes, as well as a number of other fees, to fund the $12 billion the state needs for transportation projects. Montgomery County Executive Ike Leggett, Prince George's County Executive Rushern Baker and Baltimore Mayor Stephanie Rawlings-Blake urged state lawmakers last month to support these revenue-earning efforts. Read more at the Washington Examiner: http://washingtonexaminer.com/news/business/2011/11/franchot-dont-raise-taxes-maryland?utm_source=feedburner+dcexaminer/Local&utm_medium=feed+Washington+Examiner%27s+DC-area+news&utm_campaign=Feed%253

Washington Examiner - Rachel Baye: Franchot: Don't raise taxes in Maryland
*****

Sunday, January 20, 2008

20080118 Franchot Offers Bleak Assessment of Economy


Franchot Offers Bleak Assessment of Economy

FOR IMMEDIATE RELEASE

Calls for repeal of Computer Services Tax in State of the Treasury Speech

Bethesda, MD (January 18, 2008) - Emphasizing his independence and prudent fiscal stewardship, Maryland Comptroller Peter Franchot today offered a bleak assessment of the State's economic outlook, urged fiscal restraint and called for the repeal of the recently enacted sales tax on computer services. Fulfilling his constitutional mandate to report to the General Assembly on the financial health of the State, the Comptroller spoke to an audience of Maryland business, civic and political leaders in downtown Bethesda and warned of the negative impact the recently enacted tax package and a shaky economy could have on Maryland's families.

"It is no secret that the U.S. and Maryland economies enter the New Year on very shaky ground, and the conditions that define our current economic landscape provide cause for serious concern," Franchot said. "Economists are increasingly worried about the prospects of a national recession, and so am I."

The Comptroller noted that the collapse of the subprime mortgage industry has ended the most sustained housing boom of this generation, destabilized the Dow Jones and other U.S. financial markets, and has driven the U.S. economy into a period of profound uncertainty. In addition, U.S. and Maryland foreclosure proceedings recently rose to an all-time high. It has also been reported that housing construction fell in November by nearly four percent, with single-family home construction falling to its lowest levels in over 16 years. Earlier this week, the Commerce Department reported that U.S. retail sales actually declined in the month of December, thus capping the worst year in that sector since 2002.

The Comptroller also spoke out against the recently passed computer sales tax as an attack on the state's knowledge-based economy and called for its repeal before damage was permanently done to Maryland's information technology community.

"This technology tax, if allowed to stand, will erode Maryland's competitive advantage in the Knowledge-based economy. The computer services tax will take a disproportionate toll on those small and independently-owned businesses that are the backbone of strong communities," said Comptroller Franchot. "The last thing we need is another tax increase, especially one that will undermine our Knowledge-based economy and damage our long-term economic success."

During the speech, the Comptroller reviewed many of the new initiatives undertaken by the Office and highlighted many of the successes in 2007.

"During this past year, we have worked aggressively to reward those of you who faithfully pay your taxes by finding - and collecting - from those who do not," said Comptroller Franchot. "For example, last June, we launched a unique partnership with the U.S. Treasury Department that allows us to intercept federal vendor payments to satisfy state income tax liabilities...and vice-versa. This new "federal vendor offset" program - the very first of its kind in the nation - will bring in more than $20 million in the first year alone, and will ultimately allow us to recover millions in unpaid taxes owed to the State of Maryland, and level the playing field for those vendors who are currently playing by the rules."

Other highlights include:

Led the successful effort to disallow the 'captive' Real Estate Investment Trusts (REITs) deduction while working aggressively to identify and eliminate other tax avoidance efforts.

Fought to expand opportunity for minority and women owned businesses through the State of Maryland's Minority Business Enterprise (MBE) program.

Partnered with the Maryland Department of Agriculture in a year-long study to verify that gas is being stored at proper temperatures, as required by law. These quality controls will ensure that consumers will get a true gallon of gasoline for the dollar.

Worked vigorously to keep more than 50,000 packs of untaxed cigarettes and almost $175,000 worth of illegal beer, wine and distilled spirits off of our streets.

Collected over $1.4 million in delinquent sales and use taxes.

Streamlined the tax payment process through new online customer service innovations, such as Bill Pay.

Promoted the use of 'green' technology in public buildings and state vehicles as a way to save taxpayer money and protect Maryland's natural resources.

Established an Economic Advisory Panel, consisting of business leaders across the State, to advise the Board of Revenue Estimates on economic conditions that will affect revenue performance in the near-term future.

Worked with Treasurer Nancy Kopp and local educators to expand public awareness of the College Savings Plans of Maryland.

Spearheaded successful effort to diversify the State Retirement Agency's investment portfolio in order to maximize investment returns and reduce risk exposure.

Promoting Sound Economic Stewardship
Acting in his role as the state's chief fiscal officer, Comptroller Franchot also focused on the uncertain economic climate that is affecting, not just the Maryland economy, but the national and global economies as well.

Comptroller Franchot urged the State to focus its economic growth strategies on high paying, high quality industries such as the life sciences.

"A State that was once defined by its billowing smokestacks and industrial assembly lines is powered today by the microscope and the microchip, and we are the better for it," said Comptroller Franchot. "The work that is being done today in research and testing laboratories across this State is redefining the limits of human understanding, and will ultimately save and improve countless lives. It has helped make Maryland the wealthiest state in the union without further degrading our open spaces or polluting the Bay."

He also cautioned against relying on future funding from unreliable and corrosive sources such as slot machines and expanded gambling.

"It is hard to believe that the great State of Maryland stands one step away from opening its door to the national gambling industry, and setting us on an economic course that is neither sound nor fiscally prudent," said Comptroller Franchot. "It has been proven, in state after state after state, that slot machines offer nothing more than false hope to desperate communities. They have destroyed families through addiction, bankruptcies and crime, and have left governments scrambling to cover their enormous social costs by any means necessary."

Looking to the future
Reemphasizing his commitment to ramp up the Comptroller's Office, Comptroller Franchot unveiled several goals for the upcoming year, including implementation of a new tax gap initiative that could bring in tens of millions of new tax revenue annually.

"Looking forward to 2008 and beyond, I will be asking Governor O'Malley and our legislative leaders to support one of the most comprehensive tax compliance initiatives of recent years. Through our 'Tax Fairness Initiative,' we will bring our current tax collection technology into the 21st century, and make it harder for tax evaders to undermine our State's financing system. We will place additional auditors in the field and will be able to attract and retain capable professionals by offering them a reasonable salary," said the Comptroller.

Over the next four years, the Tax Fairness Initiative will generate $200 million in revenue, and once fully in place it will generate as much as $100 million every year. This is revenue that is currently owed the State, but is being sheltered or otherwise not being paid, a situation which hurts every Marylander because of the fundamental lack of fairness and the stress it puts on our State's finances. The Comptroller's additional goals for 2008 include:

Level the playing field for law-abiding citizens and business by aggressively enforcing compliance with the tax laws of the State.

Continue to promote a statewide vision for the life sciences industry as the long-term economic engine for Maryland.

Work with a broad grassroots coalition to repeal Maryland's tax on computer services, which will undermine our State's competitive edge on the Knowledge-based economy and sends the wrong message about our business climate.

Work with a broad grassroots coalition to defeat the slots referendum, which represents a step backward for our state and diminishes our standing as a leader in the Knowledge-based economy.

Pursue legislation to enact new initiative which would collect up to $100 million annually in unpaid taxes by modernizing the agency's tax collection system, hiring additional auditors, and attracting and retaining the most qualified tax collectors.

Work with partners on the Board of Public Works to ensure that the state meets its stated goal of 25 percent MBE participation.

Work with Governor O'Malley, Treasurer Kopp and Natural Resources Secretary John Griffin to implement a more balanced and systematic approach to investing Program Open Space (POS) dollars.

To read the full version of the Comptroller's State of the Treasury Address, please log on to the Comptroller's website at www.marylandtaxes.com.

###

Contact: Joe Shapiro, 410-260-7305, office; 443-871-2244, cell

http://marylandtaxes.com/publications/nr/current/pr03.asp

Saturday, October 27, 2007

20071023 Maryland State Comptroller Special Session Letter


Maryland State Comptroller Special Session Letter

http://www.franchot.com/content/view/163/61/

October 23, 2007

As you know, Governor O'Malley has signed an Executive Order convening the Maryland General Assembly to consider his proposed remedies for the State of Maryland's $1.7 billion structural budget deficit. The Governor's proposal includes, but is not limited to, an increase in the State's sales tax, cigarette tax and corporate income tax rates, an extension of the sales tax levy to service transactions that are currently exempt, a fundamental realignment of our State's personal income tax structure, and a plan to legalize slot machines in Maryland.

Having served two decades in the General Assembly, including several years as Chairman of a House budget subcommittee, I have been through similar fiscal challenges and appreciate the Governor's desire to address our State's looming budget shortfall in an aggressive manner. As Maryland's chief fiscal officer, however, I must question the timing and necessity of this approach. Mindful of the reservations each of you has expressed about a special session, I must underscore the profound - and perhaps unintended - consequences of this undertaking on Maryland's economy, business climate and quality of life, and to caution against acting in haste.

THE TIMING

The special session that will convene on October 29 will take place against a backdrop of exceptional economic instability. The collapse of the subprime mortgage industry has effectively ended the most sustained housing boom of this generation. The recent, dramatic spike in foreclosures has created a national surge in housing inventory just as stricter lending standards have compressed the pool of potential buyers. These well-documented national trends have also been experienced in Maryland. For example,

  • The foreclosure rate has increased by 57 percent in Maryland from the first quarter of 2006 through the second quarter of 2007, compared to 41 percent nationally;
  • The foreclosure rate for subprime Adjustable Rate Mortgages (ARMs) has increased 200 percent in Maryland, compared to 115 percent nationally;
  • The median price of existing homes sold in Maryland declined by 0.6% in August, compared to August 2006. This was the second decline in just four months, coming not long after 54 consecutive months of double-digit growth;
  • Existing home sales in August dropped by 25 percent compared to August 2006, and were 44 percent lower than 2004 and 2005 levels;
  • Today, Maryland's housing inventory is at the highest levels of this decade, and has increased threefold in just three years.

The collapse of the housing market, in turn, has inspired a ripple effect throughout the entire U.S. economy. Just last week, Federal Reserve Chairman Ben Bernanke warned that the troubles in the housing market could be a "significant drag" on the economy.

The Dow Jones Industrial Average and other U.S. financial markets are in the midst of a period of high volatility. Consumer confidence has plunged, as evidenced locally by the sluggish growth in state sales tax receipts that led to last month's $130 million writedown of FY 2008 revenues. The dollar has dropped to an all-time low against the Euro, compounding concerns of higher oil prices and inflation. The Labor Department reported last week that applications for unemployment benefits are far exceeding expectations, raising concerns that the housing collapse will finally destabilize the nation's job market. As a result of these and other, similar developments, many national economists have elevated the odds that we will enter a period of recession.

It is in a spirit of concern over the general direction of our economy that I have recommended a more cautious and deliberative approach to addressing Maryland's structural budget deficit. In recent weeks, I have suggested that our December presentation of revenue estimates would offer a much clearer sense of Maryland's long-term economic outlook, as well as the dependability of the funding streams that the Governor is counting on in his package. The availability of this crucial data, coupled with traditional economic indicators that are duly reported by the media, argues in favor of taking up the Governor's proposal during the regular 90-day session. The politics of the day might argue in favor of a more dramatic gesture. From a budgetary and fiscal standpoint, however, the current state of affairs makes this special session - and its purpose - a high-risk proposition.

THE NECESSITY

In recent weeks, the media has reported warnings from senior O'Malley Administration officials that, without a special session, the State's structural budget deficit will mushroom. Please allow me to take this opportunity to set the record straight. There is no relationship whatsoever between the timing of the next General Assembly session and the magnitude of Maryland's structural budget deficit. As you know, the structural deficit is loosely defined as the negative balance between the sum of the State's ongoing spending obligations and its ongoing revenues. Unless we are required to revise State revenue estimates downward, or unless the State makes any unfunded spending commitments between now and January (which is highly unlikely), the structural budget deficit will remain at $1.7 billion.

At the risk of restating the obvious, it is also worth noting that through June 30, 2008, the State of Maryland has a balanced budget. That, too, is irrespective of the timing or outcome of the next General Assembly session. It has been suggested, by key lawmakers from both parties, that it would be more appropriate to take up the Governor's package during the regular legislative session, where it can be considered within the context of his FY 2009 budget proposal. Aside from affirming the basic logic of considering new revenues, spending commitments and budget cuts at the same time, I will further substantiate this approach by restating that there are no permanent costs associated with proceeding in that manner.

THE CONSEQUENCES

The Governor's revenue package includes the most dramatic reform of Maryland's tax structure in well over a generation and, in slot machines, a proven catalyst for a broad range of social and economic ills. It would directly affect all Maryland residents, workers and tourists, as well as every small business and corporation that has chosen to invest in our state. Mindful of its enormous ramifications, I must note that Governor O'Malley's plan was constructed in private, introduced gradually by press release, and the details have yet to be made available. This makes review and evaluation of the plan next to impossible, and further risks actions being taken that may have unintended consequences.

For example, according to press releases that have been made available by the Governor's office, the plan includes a proposal to extend the sales tax levy to property management services. Although the details on this particular provision are unclear, concerns about its impact on the State's affordable housing stock have already been raised. In meeting with citizens and business leaders throughout Maryland, I have heard numerous complaints that the costs of this tax will simply be "passed through" to renters, many of whom are families with low and moderate incomes who cannot afford further strain on their fixed budgets. My intent is not to render a personal opinion on this specific piece of the plan, or any others. Rather, it is to underscore the importance of sharing this plan with the public in open, inclusive and unscripted public forums. I am afraid that the current timetable allows virtually no opportunity for such stakeholder input, which could ultimately diminish public confidence in the process and result in a product that negatively impacts the Maryland economy and the taxpayers we represent.

In my view, the volatility of the U.S. and Maryland economies, the absence of an immediate fiscal "crisis" and the lack of detail about the plan could all combine to create a perfect storm of unintended consequences. Rather than act in haste, the fiscally prudent and practically wise thing to do would be to move cautiously and deliberatively throughout this process.

Wednesday, November 29, 2006

20061128 Comptroller-elect Peter Franchot’s transition team

Comptroller-elect Peter Franchot’s transition team

November 28th, 2006


Now this is a diverse, bi-partisan and

very bright transition team. In spite of my past impressions of Mr. Peter Franchot, this team impresses me.

Some of the brighter bulbs are: retiring Montgomery County Executive Doug Duncan; former Gov. Harry Hughes; former GOP senator Howard Denis; and “former Baltimore County Sen. F. Vernon Boozer, once the Senate’s GOP leader, and state Sen.-elect George Edwards, current leader of the GOP in the House of Delegates.”

But perhaps one of the brightest is former Marine and Vietnam Veteran John Bambacus. Senator/Mayor Bambacus served as a Special Assistant to U.S. Senator Charles McC. Mathias, Jr., from 1979-82 and is a former GOP Senator (District 1, Frostburg, 1983-91) and mayor of Frostburg.

Gov.-elect O’Malley would have been smart to have put some folks like Senator Bambacus, or McDaniel Professor Dr. Herb Smith or UMBC Professor Dr. Tom Schaller on his transition team.

All three are arguably some of the top political science and history minds in Maryland today. (Yes, there are others, like former Secretary of State John Willis, Harford County Executive David Craig... let’s not belabor the point…) Folks who can look at the challenges of governance with a broader view than the many special interest advocates on his team. (See my November
Tentacle column, "Now Comes The Hard Part.")

For someone who campaigned on not being beholden to special interests, Gov.-elect O’Malley’s transition team was quite a surprise for many of us. Hey, he didn’t ask me my opinion. I wish he had.

Anyway,
Len Lazarick, writing for The Examiner, wrote a piece on Comptroller-elect Franchot’s transition team on Nov 22, 2006:

BALTIMORE - Not that there’s any competition between Comptroller-elect Peter Franchot and Gov.-elect Martin O’Malley, but Franchot’s transition team is bigger than O’Malley’s, and is co-chaired by an ex-governor and the mayor’s former primary opponent.

llazarick@baltimoreexaminer.com

Read the rest here.