From state Sen. J.B. Jennings:
End of Session Wrap-up
The 2015 session of the Maryland General Assembly was gaveled to a close at midnight on Monday. I wanted to follow-up with you and let you know how many of the big issues this session were resolved.
State Budget
Initially, the Maryland Senate unanimously approved, with significant amendments, Governor Hogan’s $40.5 billion budget. In conference committee the budget was significantly altered with clashes between the Governor and the Assembly over the budget priorities and spending. It wasn’t until the last day of session, the Assembly approved the budget and sent it to the Governor, who is unable to veto it. Since this bill was significantly altered from its original form when in the Senate, I voted against the bill. In the original version I supported, roughly 74% of the state’s structural deficit would be eliminated. The altered version causes the structural deficit to widen to $1.7 billion over the next 5 years.
By approving the budget without the Governor’s support, the General Assembly is rolling the dice and betting that he will release the needed money for their programs. This reflects two opposing philosophies – the General Assembly believes in spending more revenue than the state has and Governor Hogan believes in spending only what the state has to spend.
On the bright side, for the first time in 8 years, the approved budget is balanced without any tax or fee increases. Contrary to what some in the leadership believed, Governor Hogan proved it is possible to balance the budget without imposing a heavier tax and fee burden on Maryland citizens.
Pensions
In 2011, the state agreed to contribute an additional $300 million annually in contribution to the pension system. In return, the state asked state employees to increase their paycheck contribution to the pension system from 5% to 7%. Last year, the state contributed only $150 million and this year it will drop to $75 million. In my opinion, it is unfair to have employees still paying the higher pension costs when the state can’t meet its obligation.
Not only was I not pleased to see the Governor’s budget cuts eliminated, but I was also extremely concerned that raiding the state’s annual supplemental contribution to the pension system is putting Maryland’s prized AAA bond rating in jeopardy which in turn will increase the long-term cost of the pension by over $2.5 billion.
Geographic Cost for Education Index
The Assembly approved a bill to make the Geographic Cost for Education, also known as the GCEI, funding 100% mandatory. This index has been a discretionary expenditure that the Governor has the option to fund. Governor O’Malley did not fund this until his second year in office and he only funded 30% of it that year. Governor Hogan funded it at 50% in the budget he introduced, however, the legislature wanted it to be funded at 100% ($136 million/annually).
This money goes to subdivisions where education is more costly because of larger populations or other unique area needs. This represents yet another mandatory expense which leaves the Governor even less room to cut spending. This money only goes to 11 of the counties. While Baltimore County will receive an additional $4.2 million, Harford County receives nothing.
Charter Schools
Charter schools provide parents with more educational options for their children. Governor Hogan introduced legislation to expand charter schools in the State of Maryland. The Governor’s effort to add additional charter schools in Maryland was heavily amended to only minimally change the existing state law which is one of the most restrictive charter school laws in the country. The Governor wants to move forward by offering students and their parents more education choices. In short, the amended proposal, does not meet this goal.
Rain Tax
The Rain Tax was repealed, although the counties are still required to raise the necessary revenue to pay for its stormwater projects, but they no longer have to impose a tax based on a resident’s square footage of impervious surface. However, residents must present their plan to the Maryland Department of the Environment for review and approval. I was a proud supporter of this legislation along with the majority of my colleagues in the Senate and House.
PMT – Phosphorus Management Tool
Governor Hogan worked out a compromise plan with the General Assembly democrats regarding regulation for limiting the amount of chicken manure farmers can use as fertilizer. Over the next seven years, an increasing number of farmers will have to carefully calculate how much manure they spread on their fields – and in most cases dramatically reduce its use.
Business Regulations
Several measures recommended by an independent task force to enhance the state’s business climate were enacted. Some of the measures approved include: (1) an advisory council to assess the impact of new regulations on small business (2) require some agency employees to take customer service training (3) examine ways public universities might make money by selling findings of their researchers (4) restructure the state’s economic development efforts and (5) expand apprenticeship programs.
Heroin
Several years ago the DEA tightened the rules for prescription painkillers. This was done due to the abusing of these prescriptions and the high number of deaths. As a result, people have turned to a cheaper, easier to acquire drug – Heroin. In response to the state’s heroin epidemic, the General Assembly adopted legislation to establish a Joint Committee Council made up of House and Senate Members. The Committee will review the recommendations made by the Governor’s Heroin Opioid Emergency Task Force to effectively address the crisis by December 2015. Heroin overdose deaths have soared to epidemic proportions, increasing 88% from 2011 to 2013, according to the Department of Health and Mental Hygiene.
Marijuana
Last year, possession of small amounts of marijuana were decriminalized and made a civil offense. In the same view, the Assembly approved to decriminalize possession of marijuana paraphernalia and make smoking marijuana in public a civil offense, punishable by up to a $500 fine. In addition, legislation was approved to expand eligibility for expungement of criminal records for individuals convicted of a previously considered criminal offense.
Ex-Felons Voting Rights
The Assembly approved a bill to restore voting rights to ex-felons as soon as they are released from prison. Current law requires them to complete their sentence including parole and probation time before their voting rights can be restored. Also approved, was a bill to establish by January 2016 a Pilot Program for Small Business Development, operated by ex-offenders, to encourage the establishment of small businesses by individuals exiting the prison system.
Fracking
The General Assembly remains apprehensive about the potential damage to people and the environment caused by fracking. It gave its approval to a bill to a two-year moratorium on fracking. I continue to support fracking.
Speed Increase – 65 MPH to 70 MPH
The General Assembly approved legislation to authorize, but not require, the State Highway Administration to raise speed limits from 65 mph to 70 mph on some interstates and highways. Currently only two highways would qualify; Interstates 70 & 68 in Western Maryland.
Death with Dignity
The General Assembly and the sponsors of the legislation to provide Death with Dignity agreed to forego a vote on the measure this year and bring the issue back next year. The idea was to spare an emotional and lengthy debate in the waning days of the session. Senate and House leaders plan to convene a work group that will present another proposal in January 2016. Specifically, the measure provided that a terminally ill patient may request and receive aid in dying from his or her attending physician. The bill exempted from civil or criminal liability physicians who, in compliance with specified safeguards, dispense or prescribe a lethal dose of medication following a qualified patient’s request.
Please do not hesitate to contact me on these or any issue of concern to you. I value your input. I encourage it and welcome it.
Best Regards,
Senator J.B. Jennings
In a State of 5.976 million people, a budget of 40.5 billion dollars, the actual spending of State funds comes to $6,777.11 per person. I don’t think this budget is fiscally responsible. Especially when a deficit is still occurring. Does anyone ever remember the State spending $6,777.00 on anyone other than people in jail? Think about it…….
Maryland is 19th in the country….
http://kff.org/other/state-indicator/per-capita-state-spending/#
Regardless of whatever number we are in whatever category we are this budget is not responsible. How can you spend $6,777 when virtually no one pays that much in State Tax? You may get it from some businesses but individuals are where the majority of tax comes in. Everything else comes in from tariffs, tolls and licensing. Which I might add, is yet another burden to the individual tax payer. What I get from this is that the State is expecting to receive $6,777 from each person in this State during the course of 2015 or else this is not sound. Yet alone a substantial DEFICIT is accrued. Please, someone explain to me where this seems to be a responsible budget for 2015. Republican or Democrat, please explain……
I suspect that a big chunk of the money that is spent comes from the feds. (And, we all know where their money comes from)
Correct. Also, please note, that when I say every person in Maryland, I mean every Man, Woman and Child. This includes people who are not working and paying taxes. After taking it all in, can anybody explain why this is a responsible budget? I’m not saying other years were any better, I am saying that this budget is not fiscally responsible. I don’t want to hear about Republicans or Democrats. I want to talk about this budget, that the author has heralded. That the current Governor, whose platform was fiscal responsibility, is not acting as he stated he would…….
Soulcrusher I agree with you 100%. This is no more balanced than any other government budget, at any level. I work in the uncertain world of commission sales. I have no idea, from month to month, what my actual income is to be. I have scientific wild ass guesses based on history. As a result I always plan to only spend money on the essentials of food, housing, health, transportation, etc. When there is an abundance I have the luxury of planning for the future and buying those (extras). Why can’t government work the same? Because it’s not their money! The folks squatting on ivory pedestals in DC, Annapolis, Bel Air, etc. know that it will be no skin off their collective noses if the income doesn’t meet the spending. The very definition of a balanced budget has been perverted by these greedy souls who only know and want to get reelected.
Arturo,
Some of your essentials are also roads, prisons,courts, roads, infrastructure. These things aren’t inexpensive. Just look at the proposed cost of new rail lines. Tho the argument in the thread, a bit one sided since you are leaving businesses that also pay taxes and receive the benefit of all those capital expenses as well. Other people use our roads as well, we aren’t an island but part of a bigger economy. All of our liabilities aren’t due at once and our state budget is balanced. Typical tea party song and dance from you guys. Gosh,you just can’t see the forests among the trees.
Rocco =
Typical tea this and tea that with a lot of generalized blather about how ‘chit cost mo’ and such. Well, go for it. Lie, steal or do whatever it is you think you can do to get the money. Your ilk has always believed you can have all the boondoggles along with all the government bloat. The rest of us will still be laughing at the politicians who think their budget is wonderful because they managed to not stiff the public with huge tax increases again this year.
Understand one thing though, you are not fooling anybody. Any sane person knows the state is in trouble for lack of quality private sector jobs. The old eyewash about things being expensive and that we only get the cheap government we pay for belies all the current high taxes and fees – personally, I am glad we are not getting all the government we pay for. Efficient spending in this state would mean the re-education camps would already be up.
Considering we are living in one of the least taxed generations and we have put 2 wars on the credit card you shouldn’t be complaining as it is your grandchildren whom will have to pay Kore for you to get Social Security and maintain the military industrial complex that costs 3 times as much as all welfare programs combined. I was reading an article about the current military appropriations for which Pentagon asked for $43 billion but Congress approved $96 billion instead. Pork and barrel Republicans actually outspent Democrats as long it is spent on their priorities and benefit their donors.The sequestration worked for a year and the Congress figured they would add extra stuff to war effort funding whish isn’t included in the general federal budget but you can keep believing your Republican Party is looking out for efficient and lower government. I will though remind you that it was Clinton the last pres with a yearly surplus whish Bush quickly turned into rebates instead of paying down the debt. If you are so concerned about the deficit why don’t you pay more or leave the feds as your heir???
I don’t think our debt level is even real as long as the Federal Reserve keeps monetary policy loose and actually pays billions to the Treasury from interest earned. This may be too complicated for you to understand but this thing called financing allows you to pay less in taxes than you would otherwise.
Rocco – Don’t try and insult my intelligence with the lack of yours. Quantitative easing by the Fed was nothing more than printing money in order to buy our own securities – throwing us deeper in debt for the sole purpose of enriching Wall Street (2009 – 2014/ nytimes.com/upshot/quantitative-easing….). It is beyond hilarious in your not knowing that we had been buying our own debt, increasing our spending and raising our debt ceiling year after year. No wonder you big government buffoons think the country and this state are flush with cash. Oh, and I am not a republican. But you are sure one ignorant democrat.
I think my last paragraph speaks to the role of the fed by creating loans and assets by circulation of the same bundle of $$. Guess you really don’t understand do you? Ignorance is bliss, keep it up. I believe the article actually describes what I said!
The fed sends earned interest on the loans back to Treasury.the fed doesn’t create additional debt to the federal govt, the fed pays $$ to treasury. It is fiat currency and has no value u!timately just like your money it will rise in purported value according to the market. Money is nothing but a IOU.
Rocco – You are a complete moron.
My MD state tax burden was 12,246.00 for 2014. So someone is welcome for me paying their “fair share.” HAHA. And before people holler “oh you must make a lot of money”–Just chill, I employ 4 people that earn between 48,000 and 90,000 per year. There is risk and investment in there that many people that only sign the back of checks don’t understand.
…I feel really bad for you. I’m sure you’ll find that the kind folks here on The Dagger, will be very sympathetic to your plight. I think the typical response is something like “if you don’t like it, then get out”. Just ask any teacher!
Wow–you are right and I agree. I totally get the whole “if you don’t like it get out” gig. But you know what, that is exactly what is happening. Just look at Nutramax labs in Edgewood, they moved a bunch of operations to SC. Pretty soon people are going to pull their head out of the sand and the many of the employers and taxpayers are going to be gone….and much of MD will look like W. Balto.. That will be a shame..