The Governor’s budget proposal includes numerous tax increases including capping income tax deductions and phasing out personal exemptions for those making $100,000 per year or more.  The budget increases the tax on smokeless tobacco and requires the collection of sales tax on internet purchases.  In addition, it increases the burden on local and county governments potentially forcing a tax increase at that level as well.

 “The Governor’s budget redefines “wealth” in this state and takes aim at the middle class”, said House Minority Leader Anthony O’Donnell.  “Forget millionaires, this budget takes aim at thousandaires, phasing out income tax deductions such as mortgages and business expenses for those making even $100,000 per year!  The Governor is balancing the budget on the backs of the middle class and small businesses at a time when we should be looking for ways to make them thrive.”

 “For all of the Administration’s grandstanding about job creation, this budget takes aim at Maryland’s small businesses, the driving force behind our economy”, said House Minority Whip Jeannie Haddaway-Riccio.  “From taxing coin dealers to phasing out income tax deductions, the O’Malley budget will make it more expensive to do business in Maryland.”

 “What is most chilling about the Governor’s budget proposal is that even with all the tax hikes it includes, it is only a preview of things to come”, said “O’Donnell.  “It does not include the massive increase in the flush tax or the hike in the gas tax and other fees that will be a part of the transportation package.  Maryland’s families are struggling to make ends meet and deserve more than a pickpocket government.”

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The leadership team was nominated by Delegate Nicholaus Kipke of Anne Arundel County.  Seconding the nominations were Delegate Donald Elliott of Carroll County and Delegate William Frank of Baltimore County.

“I am humbled by the overwhelming display of support our colleagues have show in our leadership team”, said Delegate O’Donnell.  “I have always said that our caucus represents some of the best and brightest members of the House of Delegates and I am honored to have their continued confidence.”

“Our successes last year were only a sample of what we can do when stand united”, said Delegate Haddaway-Riccio.  “Maryland’s citizens are under attack with calls for higher taxes, threats to their property rights, and challenges to our core family values.  Our caucus will work diligently to protect them from these threats.”

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A 64% increase in the gas tax is one of the frequently-mentioned proposals and illustrates how completely disconnected the Governor and Democratic leaders are from the people they were elected to serve.  With, perhaps, the exception of Comptroller Franchot who has said the tax should not be increased, yet.  The Democratic leadership will tell you that this gas tax increase is desperately needed to fund transportation projects, ignoring the fact that the State Highway Administration was recently found to have hidden millions of dollars from the Board of Public Works while asking for millions in additional funding.  The Maryland Department of Transportation needs to get its fiscal house in order before asking for more of your hard-earned money.

Gas prices directly impact our day to day lives, even when we don’t drive.  Retailers and other businesses pay those higher gas prices and then pass those increased costs on to the consumer.  Then we pay more for groceries, clothing, and other goods.  People are already struggling to make ends meet, but for the Governor and the Democratic leadership the needs of Annapolis are more important.  If that were not the case then why would they push for a 64% increase in the gas tax in a year that is forecast to be the worst with gas prices reaching over $4 and possibly $5 per gallon.  Maryland’s average gas prices already increased by more than 10 cents in the first week of 2012 and yet they continue to press their case! 

But it is not just the gas tax that the Democrats want to increase.  There is much, much more.  Here are just a few of the tax increases recommended over the last few months:

• 300% increase in the Bay Restoration Fee 
• 100% increase in Emission Inspection Fees
• 50% increase in Vehicle Registration Fees
• 8% increase in the Vehicle Titling Tax

Keep in mind these proposals are on top of the toll increases that went into effect in 2011 – a 60% increase at the Bay Bridge alone which jumps another 50% in July of 2013 for a total increase of 140% by the end of the Governor’s term in office. 

Not only that, but these proposals would also be stacked on top of the tax and fee increases passed during the 2011 Session; the doubling the Vehicle Titling Tax, the Vanity Plate Fee, Land Recording fees, Birth Certificate fees; the 38% increase in the Nursing Home Tax; the 50% sales tax increase on alcohol.

Every dollar that is paid in higher taxes, tolls, and fees is a dollar taken out of our economy – citizens have less money to spend and businesses have less money to hire.  This seems to fly in the face of the Governor’s plans for job creation.

Get ready Maryland.  The Democrats are heading back to Annapolis and their eyes are on your wallet.  Can you afford to pay more?

 “The gerrymandered mess that the Redistricting Advisory Committee created is not the Governor’s only option”, said House Minority Leader Anthony O’Donnell.  “There are several alternative plans that offer compact, contiguous districts and provide equitable representation to everyone.”

Senate President Mike Miller referred to the Redistricting Advisory Committee’s map as “aesthetically pleasing”.  But criticism of the plan has come from both sides of the aisle as well as from minorities who feel they are not being adequately representing under the proposed plan. 

 “The citizens of Maryland deserve a map that is more than aesthetically pleasing”, said Minority Whip Jeannie Haddaway-Riccio.  “They deserve a plan that is based on their needs, not the needs of party bosses trying to increase their power.”

Several alternative plans will be introduced when the General Assembly convenes for a Special Session on Monday, October 17^th.  Delegate Michael Hough has a plan that will create three majority-minority districts rather than the two in the Committee’s plan.  The Minority Leader will be sponsoring a Good Government Plan that also creates three majority-minority districts and a district solely for Baltimore City and inside the beltway communities.

 It is unclear if these alternatives will have the same public hearing and consideration that the Governor’s plan receives. 

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After all, it really was no secret.  Only a week after the 2011 Session ended, the Chairman of the Senate Budget and Taxation Committee Senator Ed Kasemeyer stated his intentions as bluntly as possible: “We’ve got to tax more things.”   This was after a session where the sales tax on alcohol was increased 50%, and they passed a budget that was laden with tax and fee increases.  With an attitude like that dominating the Democratic side of the aisle, there is little doubt what the taxpayers are in for coming this fall.

Like Yogi Berra said, “It’s déjà vu all over again”!  It was just four years ago that the General Assembly increased taxes by $1.3 billion during the 2007 Special Session, under the guise of eliminating Maryland’s constant structural deficits.  They increased the sales tax, as well as personal and corporate income taxes, then turned around and increased spending by $1.3 billion just a few months later!  It is the same spend and tax mentality that we’re dealing with today.  However, in 2007 the economic decline was warned of but it had not completely materialized.  Today we’re in the heart of what could be a double dip recession, with record unemployment that is high and steady.  Another round of massive tax increases could be devastating to Maryland’s hardworking taxpayers.

But, the struggle of Maryland’s taxpayers in this economy makes no difference to the Governor and Democratic leadership in the General Assembly.  They are addicted to spending and will let nothing get in the way of their next tax fix.  Even with gas prices on the rise again, many are still eyeing a gas tax increase.  If not the gas tax, then maybe another attempt at expanding the sales tax to services, or taxing internet sales.  The Senate Budget and Taxation committee has suddenly realized the state is facing a $1.1 billion deficit next year – a fact they were oblivious to when they increased spending $1.4 billion just a few months ago.   To deal with this problem the Committee has asked the Department of Legislative Services to compile a list of things that are currently not taxed that could be.  The list includes necessities like food and both prescription and non-prescription medication.  It is amazing how the same people who scream about affordable health care are considering adding a tax to your Grandmother’s heart medication.

“They want to know: What could we tax
that we don’t tax now?”

-Warren Deschenaux, Department of Legislative Services
 Washington Examiner, July 11, 2011

Even the real purpose of the special session – congressional redistricting – is also cause for concern. In addition to the obvious problems of gerrymandering, it looks like Speaker of the House Mike Busch and Senate President Mike Miller are planning to hold only 8 or 9 public hearings on the subject, in contrast with the 12 held in previous redistricting years.  After the procrastination of our globe-trotting Governor in appointing a redistricting commission, it looks to us like he’s trying to get his redistricting plan through with as little public input as possible.

Some Good News

But it’s not all bad!  The petition drive to put in-state tuition on the ballot has been a historic success!  The Board of Elections certified enough signatures from the second batch to officially put SB 167 on the ballot for the voters to decide in 2012.  SB 167 gives in-state tuition benefits to illegal immigrants and would have gone into effect on July 1 of this year had the petition drive not turned in enough signatures by the May 31 deadline.  Since enough signatures have been turned in and validated, the bill does not go into effect until after the November 2012 election and possibly not even then if the bill fails in the ballot box.  This petition drive was unlike others that have been organized in Maryland.  It was entirely a grassroots effort!  All the hundreds of people around the state who gave their time and their energy to help collect signatures are to be congratulated on their hard work and dedication to conservative principles!

Petition Drive Exceeds Expectations

The petition to take SB 167 (which gives in-state tuition rates to illegal immigrants) to referendum is picking up steam.  On Tuesday, May 31 – the first deadline for turning in signatures – Delegate Neil Parrott announced that approximately 60,000 signatures had been turned in to the Board of Elections – tens of thousands more than the number required for the May deadline!  This puts the effort in a great position to reach the next deadline, which is at the end of June.  Members of the House Republican Caucus have been instrumental in making the petition drive successful across the state.  The members have been working hard going to community events, door-to-door, and mobilizing volunteers in their districts.

While the petition drive has made a tremendous amount of progress in such a short amount of time, nothing can be taken for granted.  Casa de Maryland and similar organizations have been vocal about their opposition to this effort.  They know the majority of Marylanders oppose giving in-state tuition to illegal immigrants and will stop at nothing to keep your voices from being heard.

The Board of Elections will throw out a percentage of signatures as invalid.  Knowing this, it is important to redouble the effort and make contact with those who have not yet signed!  If you would like to sign the petition, or print out petitions to circulate to others, please visit http://www.mdpetitions.com.

Governor O’Malley Goes to Asia; Ignores Issues at Home

Governor O’Malley left last week on a ten-day Asian tour visiting China, South Korea, and Vietnam.  His office says this trip will benefit Maryland’s economy by building relationships with those countries.  With Maryland’s private-sector job creation ranking dropping to 49^th, we certainly hope this trip will reap some benefits.  Given that American companies are fleeing Maryland in droves, it doesn’t seem likely that Asian companies will be clamoring to pay our outrageous corporate tax, but you never know.

The Governor seems to be taking a leaf out of President Obama’s book with this trip; both choosing to use the taxpayer dime to take vacations thinly veiled as diplomatic or economic missions.  Accompanying the Governor on this trip is an entire court of lobbyists, legislators, cabinet members, university presidents, and his security entourage.  That’s at least four tickets for international flights, meals, and hotels for each of the 68-member delegation, plus his security detail.  A pretty steep price to pay for any good will or business that may come out of this diplomatic vacation of his.

He was expected to announce his picks for the re-districting commission, but he left without revealing who his appointments are, if any.  A special session to decide redistricting will be herebefore we know it, and there’s still no commission to study

the issue?  Either O’Malley has decided not to bother his head about state issues anymore because his focus is on his bigger political aspirations, or he’s trying to delay

public debate about it as long as possible.  Maybe it’s both. Certainly his Democratic cronies have made no secret of their plans to disenfranchise the Maryland voter by gerrymandering the district lines.

“We will have a senator and three delegates that are cobalt blue, and they are going to be the future of this area”

- Speaker of the House, Michael E. Busch, Frederick News-Post May 13, 2011

We hope that the Governor is enjoying his summer vacation, it is a whole lot more than most Marylanders can afford right now.  In fact, if the Maryland taxpayer wants to go on vacation, he had better do it soon, since the toll on the Bay Bridge is increasing to $5 by October, with the possibility of eventually reaching $8, the alcohol tax is going up just in time for the July 4^th holiday, and the Democrats are expected to raise the issue of the gas tax again in this Fall’s special session.

With gas prices at $4 a gallon and climbing, Maryland drivers will soon experience even more pain courtesy of Governor O’Malley.  Coming this fall, they will be subject to whopping toll increases – a 100% increase at the Chesapeake Bay Bridge alone.  Not only that, but O’Malley is already laying the groundwork to push for an increased tax on gas during the fall Special Session.  This is all coming at a time when Maryland’s economy is hurting and ordinary citizens are having trouble finding jobs. Maryland’s unemployment rate is 7.3%, and that isn’t likely to improve any time soon with major companies like Northrop Grumman planning to cut over 200 jobs in Maryland by the end of the month.  This in addition to the 600 voluntary buyouts the company has planned in our state.  Last year, that company chose to locate its headquarters in Virginia rather than in Maryland.  With Maryland ranked as the 45^th worst state to do business in, it’s likely that other large companies will be making choices similar to the one Northrop Grumman made, forcing out-of-work Marylanders to either commute or re-locate out of state.

Perhaps the reason that the governor seems so out of touch with the realities of Maryland employment numbers is that no one in his inner-circle has trouble finding jobs – in fact, several of them have been on the taxpayer dole for years.  The Governor himself has gone from City Council to Mayor and then to Governor (and all the time he spends picking on Governor Chris Christie makes you think he’s looking for a national run sometime soon). First Lady Katie O’Malley received a Glendenning appointment to a 10-year term as an Associate Judge to the First District Court of Maryland in 2001.  This was two years after her brother, Max Curran, received a Glendenning appointment to a 6-year term on the Maryland Public Service Commission.  (Max by the way just landed a job with O’Malley Enemy #1, Constellation Energy.  That should make family dinners interesting).  Governor O’Malley’s father-in-law, Joseph Curran III, has been a Delegate, a Senator, and the longest-serving Attorney General in Maryland’s history.  Not wanting his father in law to get bored counting his pension dollars, O’Malley appointed Curran to chair the Sex Offender Advisory Board.  But, the nepotism doesn’t stop there.  The Gov’s baby brother, Peter O’Malley not content in his post at the Maryland Democratic Party, is about to start a new job as Chief of Staff for the Mayor of Baltimore.  It isn’t hard to find work when you know people. 

But you know, maybe we’re being too hard on the Governor.  After all, he wants to give you a job too (well, if your name is Jeeves that is).  A job listing posted Thursday on the Department of General Services website seeks a Housekeeper/Butler for Government House, the home of Maryland’s governor. Starting in the mid-$30,000s, the salary is negotiable. So nice that he could open his doors and hire one of the unwashed masses.  If you’re having problems finding a job because Martin O’Malley has run employers out of the state, don’t worry!  The Governor has a job for you, provided of course that you don’t mind washing the “First Underpants”.

Winners

Criminals…whether you are a convicted felon serving a life term or an illegal immigrant flagrantly violating federal law, the Maryland General Assembly had nothing but love and compassion for you this year.  House Bill 302 – Inmates – Life Imprisonment – Parole Approval grants automatic release for those serving life sentences if they have to wait more than 180 days for the Governor to approve their parole.  We wouldn’t want hardened criminals to be inconvenienced now would we?  Senate Bill 167 allows illegal immigrants to pay in-state tuition.  Proponents of this bill will tell you that these students have done nothing wrong this will allow them to go to college and become contributing members of society, completely ignoring the fact that once they graduate it will be a violation of federal law to actually employ them.

Labor Unions…a consistent winner in Maryland, labor unions did well again this year.  The Democratic majority along with O’Malley Administration let the unions expand their strangle-hold on the state by unionizing independent home care providers.  As they did with daycare providers several years ago, independent home care providers will now be subject to collective bargaining.  Those who choose not to join the union will be charged a “service fee”.  Unions also secured themselves a victory in the eyes of their membership with the $750 bonus for state employees.  The truth about that “bonus” is that the bulk of it will go to pay the service fee that non-union employees will have to pay starting July 1.  So the unions get to pocket most of the money they’re also taking a tremendous amount of credit for.  Good work if you can get it.

Prince George’s County, Montgomery County, and Baltimore City…after strong “negotiations” (or vote trading) these “big three” jurisdictions are walking away with the lion’s share of the revenues from the Alcohol Tax increase.  While the whole state will pay this bill and suffer the impacts like the closure of small businesses, it is these jurisdictions that will reap most of the benefit.

Losers

Taxpayers…Maryland’s taxpayers have made the loser’s list once again. Last year, they escaped a direct tax increase, but this year they were not as fortunate.   The budget included a number of tax and fee increases…doubling the Vehicle Titling Tax, the Vanity Plate Fee, Land Recording fees, Birth Certificate fees.  Even our sweet little silver-haired grandmothers will be paying the 38% increase in the Nursing Home Tax.  The sales tax on Alcohol was increased by 50%.  Does this menu of tax increases mean that Maryland has finally ended its ongoing budget crisis?  Sadly, no.  In fact, spending increased over 10% from last year to this year and there is talk of more tax increases as early as this fall.  With the increase of the sales tax on alcohol, Maryland’s Tax Freedom Day be pushed to April 18^th, meaning the taxpayers will have to work an extra day before they have paid all their taxes for the year.

Vulnerable populations…we all heard the radio commercials, saw the rallies, and read the letters from members of the Maryland’s most vulnerable populations – the disabled and mentally ill.  They were advocating an increase in the Alcohol Tax and dedicating that money to their chronically underfunded programs…a dime a drink with a link they called it.  Maryland’s most vulnerable populations were exploited by the Democratic majority who used them to bring the bill forward but then dedicated the bulk of the money to the “big three” jurisdictions, including Montgomery County – one of the wealthiest counties in the country.

Governor Martin O’Malley…one would think after a landslide win just a few months ago, Governor O’Malley would have the political capital to put his agenda on  a glide path through the General Assembly.  This proved not to be the case.  His Wind Energy Proposal deflated and his Septic Bill was flushed.  The Governor didn’t even stay in town during the critical final days of session…he headed to New Jersey to pick a fight with  Chris Christie, a Governor that is actually doing something.

This is “cross-over week” in the General Assembly – an insider’s term for the week before important bill deadlines.  Under the rules, each chamber has until Monday, March 28^th to send to the other chamber those bills it intends to pass.  So, all the House Bills must be passed on to the Senate and vice versa.  Bills passed after that date must go to the respective chamber’s Rules Committee – a hurdle to avoid with less than three weeks remaining.  Cross-over week means multiple floor sessions and multiple committee voting sessions.  The pace is fast and the tension is high.

House Passes $34 Billion Budget

Contrary to what you may read in the Baltimore Sun, the House of Delegates passed a $34 billion budget Thursday night. 

During floor debate on the budget, Minority Leader Tony O'Donnell shares a chart illustrating Maryland's budget growth since 1979.

General Fund spending in this budget increases by 10.6% over last year.  This was largely because of the backfilling to replace Federal Stimulus dollars that are no longer available.  Had the necessary reductions been made two years ago, these increases would not have been necessary.  But, the Governor and Democratic leadership could not resist the temptation to use that temporary money to fund permanent programs.  So, here we are. 

 The budget was balanced with a combination of tax and fee increases including:

• Doubling the Vehicle Titling Tax from $50 to $100
• Doubling the Vanity Plate Fee from $25 to $50
• Doubling the Land Recording Fees from $20 to $40
• Doubling the Birth Certificate Fees from $12 to $24
• Doubling the Parole Supervision Fee from $25 to $50
• Increasing Nursing Home Tax from 4% to 5.5%
• Increasing Hospital Assessments, adding 2.5% to rates
• Applying a 2% Tax to Insurance Premiums for the Injured Workers Insurance Fund

The unsustainable nature of these spending increases will make the taxes and fees included in this budget a mere preview of things to come. 

What is important to remember is there was another option.  The House Republican Caucus offered an alternative budget that would have decreased spending and put Maryland on a course to lower taxes and fiscal stability.  The Democrats in the House of Delegates rejected this alternative at every turn.  So when the time comes for another round of massive tax increases and they tell you there is no choice but more taxes – don’t believe them. 

Transgender Bill

On track for passage today is HB 235 – Human Relations – Sexual Orientation and Gender Identity – Antidiscrimination.  This bill would protect people who identify with a gender other than the one they were assigned at birth, or people who wish to dress in a manner that is not congruent with the gender they were assigned at birth. 

For example a male teacher who wishes to dress as a female must, without the benefit of a sex-change operation, be allowed to dress as a woman in the classroom and cannot be fired or punished for doing so.  An amendment to the bill adds that the employee must dress consistently.  A man may dress as a woman if he wishes, but he must consistently do so – he cannot switch back and forth.

The bill deals only with housing and employment.  In previous years similar bills have been introduced and have included the use of bathrooms and locker rooms, which are not included in the bill this year.  Further, the bill would protect transgendered and transsexuals from being discriminated against when renting property.  An amendment to the bill allows individuals to refuse a renter based on any criteria, but not to include discriminatory language in an advertisement.  For example, if Aunt Martha wants to rent out an apartment that she owns, and a transgender person wants to rent it, she’s free to refuse him if she wishes.  She cannot, however, put an advertisement in the newspaper that reads “Apartment for rent. One bedroom, one bath. Furnished. No smoking, no pets, no transgenders.” 

This bill has been flying under the media’s radar and may pass so the liberal Democrats in the General Assembly can appease their supporters in the Gay, Lesbian, Bisexual & Transgender (GLBT) Community who are still upset with the failure of the Gay Marriage bill.