Tag Archives: Maryland

Maryland’s Balanced Budget – For Now

By Barry Rascovar

April 17, 2017 – Another Maryland General Assembly session has come and gone with Gov. Larry Hogan proclaiming victory and legislative leaders breathing a positive sigh of relief.

There were no big wins for Hogan but no shocking defeats, either. His ideologically driven, conservative agenda may sell well with die-hard Hogan backers but it was a non-starter with Democratic lawmakers.

His most solid step forward?

A compromise bill giving manufacturers tax breaks, especially if they provide workers with new job skills (that’s the part Democrats insisted on). It’s not a huge benefit for those companies but it is another incentive that could help persuade manufacturers to move to the Free State.

His biggest defeat?

A set of restrictions imposed on the Hogan-selected state school board, which had its hands tied by Democratic lawmakers to prevent state intrusions into local school board autonomy on figuring out how to turn around failing schools.

Constitutional Mandate

Still, the most important issue of every General Assembly session revolves around dollars and cents.

Passing a balanced budget is the only constitutional requirement both the governor and legislature must achieve every year.Maryland's Balanced Budget--For Now

This time, they cobbled together a fiscal blueprint that avoids deep spending cuts while expanding state aid and services in targeted areas.

The outcome is a budget for the fiscal year starting July 1 that grows only 1.2%, to $43.6 billion.

The general fund budget essentially remains level. The state workforce holds at 80,000 (no pay raises or longevity increases).

That is a tribute to Hogan’s ability to hold down spending without taking a Trumpian axe to state government and local aid.

That’s the good news.

Dark Days Ahead?

The bad news: Those ominous storm clouds coming from the nation’s capital – potentially massive federal job losses, large cuts in healthcare, medical research and local aid.

This could give Hogan an Excedrin-sized headache he doesn’t need as he approaches an election year.

There’s an additional problem, too.

The respected Department of Legislative Services (DLS) predicts that over the next five years, Maryland’s revenue will grow 3.5% annually – versus a 5.4% rise in state spending.

That yawning gap was partially closed in the just-passed budget, eliminating 88 percent of the state’s structural budget gap.

The trouble is that this budget magic was achieved by stripping out money from the state’s Rainy Day reserve fund and moving other money around –$202 million worth of “fund transfers.” Another $185 million was saved through budget cuts by the legislature.

Thus, Hogan, Del. Maggie McIntosh and Sen. Rich Madaleno, among others, worked together in the budget process and balanced the state’s books with $91 million to spare.

Tepid Economy

Yet DLS predicts the budget gap will reach $716 million next year, $1 billion in two years and a staggering $1.5 billion by FY 2022.

Why?

“. . .a combination of tepid revenue growth, fueled by a lackluster economy, and growth in mandated spending and entitlements.”

DLS concludes “the Administration will need to take action to address a shortfall in excess of $700 million in Fiscal Year 2019.”

It adds, “The magnitude of the projected shortfalls suggests that discussion will need to focus not only on what services are provided by the State but also the fundamental revenue structure currently in place.”

That’s a polite way of announcing tax INCREASES could be back on the table, whether Hogan likes it or not.

This is especially true if the dire forecasts of historic Trump budget cuts become reality.

Closing a $700 million fiscal gap next year in Annapolis exclusively through spending reductions would be extraordinary – and painful. If Trump multiplies that deficit through massive federal budget cuts and layoffs of Maryland residents, the state could face a financial crisis.

For now, though, the state’s revenue and spending plan for the next fiscal year is in good shape.

But things could change in a hurry between now and year’s end as Trump and the Republican Congress get serious about slashing federal programs, positions and aid to local counties and states.

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The Hogan-DeVos-Trump School Threat

By Barry Rascovar

April 3, 2017–When it comes to dealing with the Maryland General Assembly, Republican Gov. Larry Hogan could well be called “Mr. Irrelevant.”

He’s threatening to veto a batch of bills recently enacted by Democrats in the state legislature – yet he lacks the votes to support his negative actions.

It amounts to more venting of angry “sound and fury” by the highly partisan governor that gets him nowhere.

He still insists on playing “Mr. Nasty” when he goes on conservative talk shows or holds a staged media event, denouncing Democratic lawmakers and their proposals in harsh terms as though their proposals will bring down the wrath of a furious GOP deity on Maryland citizens.

He demands that Democrats abandon their ideological beliefs and join Hogan’s Heroes in marching lockstep behind his decidedly conservative agenda.

A Week of Vetoes

This State House drama is nearing a climax in what could be called “veto week.” Democrats rushed through a number of bills Hogan could well reject – but there’s still time in the General Assembly session for near-certain veto-override votes.

The biggest Hogan hissy fit is likely to surround the “Protect Our Schools Act of 2017,” a Democratic measure that more accurately could be called “Protect Our State from Donald Trump and Betsy DeVos.”

The Hogan-DeVos-Trump School Threat

MD Gov. Larry Hogan and U.S. Education Secretry Betsy DeVos meet with children at a Bethesda elementary school.

The bill stems from fear that Hogan wants to impose a Republican education agenda on local school systems – dozens of charter schools, lots and lots of vouchers for kids to opt out of public schools, more aid to religious schools, private companies running under-performing schools and a state takeover of the worst-performing schools.

Democratic legislators fear the new U.S. Department of Education secretary will move heaven and earth to eliminate public schools and replace them with charter, religious and privatized schools. That’s what DeVos – who married into the billionaire family that founded and runs Amway – has loudly advocated for years.

It’s pretty much what Trump trumpeted on the presidential campaign trail last year, too.

And it’s awfully close to what Hogan has been seeking as his way to “improve” education in Maryland.

He tried to get a bill passed this session creating a special board with the power to authorize charter schools at the drop of a hat and without local school board approval. Private schooling is Hogan’s panacea for improving education achievement.

Sounding the Alarm

No wonder Democrats in Annapolis are alarmed. They aren’t going to let Hogan undercut public education systems in Maryland’s 24 subdivisions, which is what privatization, charter schools and a wide-spread voucher system could do.

Hogan falsely claims the Democrats’ bill he plans to veto will cost Maryland $250 million in federal funds under an improvement plan the state must submit to Washington.

But he intentionally ignores the fact that the new Republican president has essentially gutted that required improvement plan put in place by the Obama administration.

What Hogan has pledged to veto is a defensive bill Democrats urgently want on the books to block the Hogan-DeVos-Trump triumvirate from directly imposing their will on failing schools or creating – without local approval – charter schools and vast voucher systems.

The Baltimore Sun’s editorial page rightly pointed out that the legislature is stepping too forcefully into education matters better left to the state education board. The state board has complained, too, about legislative overreach.

Yet given the fact that the Republican governor is slowly converting that board into a conservative panel that could well embrace the Hogan-DeVos-Trump education agenda, the restrictions spelled out in the Democrats’ bill are quite understandable.

Reelection Takes Priority

None of this needed to happen.

Had Hogan opted to make love not war with Democratic legislators, Maryland could be making greater headway on classroom achievement – including agreements on permitting more charter schools in the state.

But Larry Hogan is first and foremost a political survivalist who appears most interested in his reelection, not in finding compromises on sensible bills that improve life in Maryland.

The result is a preventive measure drafted by alarmed and worried Democrats that almost certainly will go on the books. Hogan could have avoided this confrontation, but unlike General Electric, progress is not his most important product – politics is.

He’ll continue to denounce and demonize Democrats alleging that Maryland will lose federal school funds. He’ll continue to ream out Democrats for “outrageous and irresponsible” actions that he asserts are blocking his education reforms.

It’s all designed to construct a reelection campaign story in which the poor, underappreciated underdog governor, a man trying to do the right thing, finds himself once again under attack from mean, corrupt, unethical Democrats in Annapolis.

Meanwhile, the exceedingly difficult task of finding ways to improve learning in Maryland’s public schools gets shuttled to the sidelines. Politics, not policy, must come first. ###

Hogan dodges Trump bullet, fracking, ‘road-kill’ & more

By Barry Rascovar

March 27, 2017Maryland Gov. Larry Hogan can thank his lucky stars the bitter and intractable Republican disputes in Washington sabotaged plans to do away with the nation’s current healthcare plan, the Affordable Care Act.

Passage of the Trumpcare alternative – imposing horrific added costs on older Americans, endangering Medicare funding and removing healthcare coverage for 14 million citizens next year – would have had cataclysmic effects in Maryland and placed Hogan on an untenable political hot seat.

Hogan dodges Trump bullet

President Trump

Instead, Hogan gets a slight reprieve, which helps his chances of getting reelected next year.

Then again, if the president and GOP hardliners insist on pressing a second time to wipe out the ACA and succeed, Hogan will be in the bull’s eye when furious Maryland Democrats seek revenge at the polls.

Equally ominous for the first-term Republican governor is Trump’s obsession with making exceedingly deep cuts in the federal budget. Even if Congress ignores the president’s budget submission from last week, the administration has its marching orders – cut personnel wherever possible, cut back severely on spending wherever possible and hold back on doling out money for programs run by the states.

Take, for instance, Trump’s budget that eliminates all federal funds for Chesapeake Bay restoration. Any sizable elimination of funds will infuriate many moderates and independents who voted for Hogan in 2014. Anger toward Trump could be taken out on Hogan on Election Day next year.

Hogan Dodges Trump Bullet

Maryland Gov. Larry Hogan, Jr.

The Maryland governor’s silence about Trump’s assault on federal spending isn’t helping him, either. Of course he’s in an unwinnable bind – criticize Trump and Hogan’s conservative followers will feel betrayed; support the president and Democrats will unload on Hogan.

It’s a tough time to be a Republican governor in a heavily Democratic state. Hogan has his work cut out trying to separate himself from a wildly unpopular president without alienating died-in-the-wool Republican voters.

******

From the “sound and fury signifying nothing” department, here are two items of wasted energy by elected leaders in Annapolis who should know better:

Pointless fracking debate

Environmental activists are in a tizzy over their insistence that hydraulic fracturing of Marcellus shale rock formations deep beneath Garrett County and a portion of Allegany County be forever banned in Maryland.

They’ve made such a stink that Hogan has flip-flopped on the issue – abandoning his efforts to help Republican Western Maryland landowners who might some day benefit from extraction of oil and gas using this “fracking” technique that has been in use for over 60 years.

Yet here’s the reality:

·         There is no fracking taking place anywhere in Maryland.

·         There is no likelihood of fracking taking place in Maryland any time in the years to come.

·         Fracking in Maryland is uneconomical today and will be for a long time to come.

·         Regulations proposed by Hogan are so tough that no exploration companies in their right mind will venture into Maryland unless oil prices soar far beyond $100 a barrel – an unlikely scenario thanks to the glut of fracked oil wells in more hospitable, resource-rich regions of the country.

So environmentalists will win this empty victory and Hogan will win over some environmentalists come Election Day – but he might also lose votes from the Western Maryland landowners he betrayed.

Ludicrous “Road Kill Bill” dispute

Both Hogan and lawmakers are in the wrong here.

The governor has completely politicized a law that is so insipid and toothless it’s not worth arguing about.

The law in question has no enforcement provisions and leaves the governor in full control of road-building decisions. All it does is provide a bit of transparency on the relative value of each project being funded.

Hogan’s empty threat of not funding projects because of this law is strictly for next year’s campaign sloganeering. He’s made a mountain out of a teeny molehill just to win political points with rural and suburban voters.

Democratic lawmakers said they were going to amend the law this year to make it even clearer the law is strictly advisory. They also said they would simplify the evaluation process.

Instead, Democrats in the Senate are pushing for a two-year delay in implementing a toothless law while wasting time studying how to make the law even more meaningless.

The whole thing is pointless and a turnoff to voters of all stripes.

Surely the governor and lawmakers can spend the remaining days of this General Assembly session on something that really is constructive and helps Maryland citizens.

Moxie from the mayor

Here’s a shout-out to new Baltimore Mayor Catherin Pugh, who took an unpopular stand because it was the right thing to do.

She vetoed a bill mandating a $15 an hour minimum wage for most workers in the city – a move that would have been an economic calamity for Baltimore.

Hogan dodges Trump bullet

Baltimore Mayor Catherine Pugh at her inauguration in December.

We all want every worker to take home a decent paycheck. But not if it means businesses will fire personnel, reduce hours for their remaining staff and consider moving across the city-county line.

Those weren’t idle threats when this well-meaning but idealistic bill passed the naively liberal City Council.

Such an ordinance would leave the city deep in debt, according to its own financial analysts, with businesses fleeing to Baltimore and Anne Arundel counties to take advantage of a lower minimum wage, far lower property taxes and lower insurance rates.

Baltimore City must be competitive. The state’s minimum wage already is scheduled to rise this July and in succeeding years, too.

Besides, minimum-wage jobs are not intended to be permanent positions but rather a starting point for people eager to work their way up the economic ladder to more responsible and good-paying jobs with long-term career potential.

Pugh’s veto protects Baltimore’s economic well-being, even if liberal critics unfairly condemn her.

She’s been quiet and withdrawn during her initial months in office. Yet when it truly mattered, Pugh didn’t hesitate to analyze the facts and make a tough, courageous decision.   ###

Pimlico’s Improving Future

By Barry Rascovar

March 20, 2017 – Thanks to revenue from Maryland’s successful slots casinos, the state’s thoroughbred racing industry has seen a re-birth that hints at prosperity for the Free State’s billion-dollar horse industry in future decades.

Breeders are returning to Maryland to take advantage of the huge jump in purse money fueled by slots proceeds. Off-track gambling revenue is rising. And the state’s most important day of sports entertainment, the Preakness, is breaking attendance and wagering records.

To keep those good times a-rollin’, though, will require a major investment by Annapolis political leaders and by their counterparts in Baltimore City.

Pimlico's Improving Future

The Preakness Stakes at Pimlico Race Course as horses near the first turn.

It won’t be easy but it is achievable.

The centerpiece of Maryland horse racing is the Preakness, run at historic Pimlico Race Course since 1873 (108 consecutive years since 1909). Last May’s second jewel of thoroughbred racing’s Triple Crown drew 135,256 fans to Old Hilltop – a record turnout for any sports event in Maryland.

But Pimlico is badly in need of a facelift.

Stronach’s One-Track Plan

The Stronach Group that owns Maryland’s two major race tracks at Pimlico and Laurel, would love to shutter the Baltimore facility and run exclusively in the Washington suburbs to multiply its profits. Laurel is where Stronach is putting all its improvement money.

That would be a wise business decision if not for the history, tradition and psychic ties between the Preakness and Baltimore. Move the race to a more southern location and the race loses all its history and records. Close Charm City’s race track and the community, already in bad straits, suffers mightily.

A new Preakness site can never duplicate the warmth and friendliness that exists between Baltimoreans and the nation’s racing community during Preakness week. Ask any trainer of a Preakness entrant and you’ll hear nothing but kudos. Pimlico, despite its physical limitations, is far and away their favorite stop on the Triple Crown circuit.

Preakness guests are received like old friends and acquaintances and get VIP treatment in a relaxing, comforting environment.

If the Preakness moved to Laurel, where would Stronach take racing’s VIPs that week for fabulous, down-home evening functions? Beautiful downtown Laurel? The nearby Holiday Inn?

Move the Preakness and a century-old bond would be broken. The gloss and mystique of the Preakness would disappear. Stronach would be devaluing one of its most valuable commodities.

Legal Barriers

Beside, Stronach can’t move the Preakness or shutter Pimlico without approval of the state racing commission and the Maryland General Assembly. Neither is in a mood to oblige. Not now and in all likelihood not ever.

But Stronach certainly is trying to present a case for such a move.

This year it has put Pimlico on a starvation diet of just nine days of racing. That’s an insult to Baltimore area racing fans and to Baltimore officials. Mayor Catherine Pugh should take note.

There is a glimmer of hope, though.

Thanks in large measure to Baltimore Del. Sandy Rosenberg, the Maryland Stadium Authority has come forth with a plan for modernizing and saving Pimlico.

It’s a “situational analysis” that paints an exciting future for a rejuvenated race track – if Pimlico’s owners are willing to take a realistic look at the state’s political landscape and accept a two-track solution.

Achievable Solution

This is a much-needed first step. It outlines a $285 million renovation program that is eminently achievable. There are amply ways to pay for this, thanks to the fact that it will have to be done on a multi-year basis.

By way of comparison, Churchill Down, home of the Kentucky Derby, underwent a $121 million renovation starting in 2001; it took nearly four years to complete. More renovations took place at Churchill in 2015 and 2016 (ultra-luxury suites, a fully renovated clubhouse and plans for a $37 million suite tower).

There’s no reason Pimlico’s re-make can’t be done in a similar phased-in way that divides the re-make into chunks with workable price tags over a decade.

Pimlico's Improving Future-2

Any they’re off on Preakness Day at Old Hilltop in Baltimore.

Stronach will have to chip in big-time if it wants Maryland and Baltimore to contribute handsomely, too. A public-private partnership only succeeds if all sides are fully committed financially.

Millions toward a Pimlico renovation could come from the 1 percent of slots revenue that already flows into a race track improvement fund. The $2 million in tax revenue generated each year by the Preakness also could be dedicated toward paying the interest on bonds for the renovations.

And remember how the Ravens’ football stadium was built: With special instant scratch-off lotteries. A similar money-raiser through the lottery agency could be devised for Pimlico’s facelift.

With bond interest rates near historic lows, this is an ideal time to start getting serious about what a beautified Pimlico will look like, the timing of improvements and the financing arrangements.

Racing Revival?

Moving the Preakness is out of the question. From a sports perspective, such a move would be a PR and financial disaster. It would be devastating to Baltimore and a black eye if the state of Maryland allowed such a travesty to take place.

Thoroughbred racing once was the Sport of Kings with huge crowds flocking to the tracks daily. The sport has been in decline in recent decades but there are signs of a rebound.

That rebound is clearly evident in Maryland. Additionally, cutting-edge technology advances such as virtual reality, augmented reality and electronic sports gaming hold immense potential to boost racing’s popularity and profitability.

For all those reasons, it’s time to get serious about making Pimlico a first-rate race course with all the creature comforts fan expect. It would be a big win for the surrounding communities, the city and the state.

Pimlico is an economic resource that holds considerable potential, but only if we take advantage of the opportunity.

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Hogan, Trump & Trouble?

By Barry Rascovar

March 13, 2017–Maryland’s Republican governor, Larry Hogan, Jr., has done all in his power to separate himself from the new, controversial Republican president, Donald Trump.

Given Trump’s unpopularity in Maryland – he lost by a whopping 25% in November – that wall of separation keeps Hogan in good stead with most voters in this top-heavy Democratic state.

His popularity remains sky-high and Hogan continues to skirt controversial social issues that could bring him trouble with liberal voters while losing the backing of GOP conservatives.

Hogan, Trump & Trouble?

MD Gov. Larry Hogan, Jr.

His prime objective is getting reelected in 2018 while dragging in with him enough Republican legislators to ensure a veto-proof state Senate.

Then Hogan would have more leverage and ability to help the state GOP turn the corner in Maryland and become a truly viable statewide alternative to Democrat hegemony.

But that scenario could blow up in Hogan’s face through no fault of his own.

Trump Referendum?

The 2018 election is looking more and more like a national referendum on Donald Trump’s manic, unpredictable presidency. If that become the case, Hogan’s continuation in office could hang by a thread.

The beginning of the end for Hogan may have commenced last week with House Speaker Paul Ryan’s rush to eliminate Obamacare and replace it with a haphazard health-care insurance program that punishes the lower-middle class, the poor and citizens nearing retirement age.

It also is sending the nation’s health-insurance industry into a prolonged period of chaotic uncertainty. The result could be a rapid pullout next year by insurers from what’s left of Obamacare to avoid gigantic losses caused by the program’s slow, agonizing demise mandated by Ryan’s legislation.

The Congressional Budget Office on Monday estimated a whopping 14 million Americans would lose their health insurance coverage next year under the Republican plan being rammed through the House of Representatives. That’s terrible for Republicans who have to run for reelection in the fall of 2018.

Cutting subsidies out from under Obamacare also would devastate state health budgets. Hundreds of thousands of Marylanders now receiving health insurance support or care through Medicaid could be cut off without the resources to afford health-care protection (CBO says premiums could rise 20 percent next year alone).

Ryan’s plan calls for Maryland and other states to receive far less to undergird their health insurance programs. Hospitals could be flooded by non-paying patients with nowhere else to go. Preventive health care, a key component of Obamacare, would disappear; people would show up at emergency rooms needing far more costly medical treatment.

Bad timing

For Hogan, the timing couldn’t be worse. By next year, Maryland’s entire health care network could face an unprecedented financial and medical crisis. Maryland’s health expenditures could balloon, and many of the state’s citizens could be panicking over the loss of their medical safety net.

That’s a recipe for problems at the polls.

Unfortunately for Hogan, this could be just the initial blow coming from Trump’s Washington.

Sweeping federal layoffs this year and next seem in the cards — the largest cutbacks since the end of World War II by one account.

Last week, Comptroller Peter Franchot wrote down state revenue estimates for the next 18 months by $33 million and warned of the likelihood of major job losses in federal agencies employing hundreds of thousands of Free State citizens.

The budgets for programs affecting all aspect of the Maryland economy are at risk, from housing assistance critical in poor communities like Baltimore and rural Maryland to severe reductions in funding for the Coast Guard that could hurt the state’s important maritime economy and policing of the Chesapeake Bay.

Maryland impact

Massive budget cuts in the space program, food and drug enforcement, agriculture, the Census Bureau, the Medicaid agency, education aid, medical research and environmental protection would reverberate ithrough Maryland, home to many of these agencies.

All of this is dreadful news for Hogan.

He’s got nothing to do with what Trump and his Republican allies are foisting on the American public. Yet he may end up paying the ultimate political price.

Let’s face it. Hogan’s 2014 election victory was a fluke, the result of a well-run campaign and exceedingly good luck: Democrats nominated a historically bad candidate (Lt. Gov. Anthony Brown, now a member of Congress) who ran one of the worst-ever gubernatorial campaigns.

Given Maryland’s 2-1 Democratic voter registration edge, Hogan’s re-election was always less than certain, even with his high poll numbers. Inflame the state’s Democratic voters and any Republican, even a popular incumbent, could have big problems.

So if Marylanders are infuriated with Trump & Friends; if hundreds of thousands are scared, angry and afraid of having little or no health coverage; if the state’s large federal workforce endures unprecedented layoffs and spending cuts, and if Democrats are so enraged they take out their fury on Election Day, Hogan had better prepare for the worst.

Déjà vu?

It’s happened before.

In 2006, Republican Gov. Bob Ehrlich enjoyed exceptionally high polling numbers right up till the general election. Most people said Ehrlich had done a pretty good job. Yet he lost by 6% – nearly 120,000 votes.

How could that happen?

Ehrlich’s loss was linked to the unpopularity of a Republican president, George W. Bush, saddled with a wobbly economy, a flagging war on terrorism, an unnecessary, trumped-up war against Saddam Hussein in Iraq and ineptness in the White House.

By the November 2006 election, Bush’s poll rating – which hit 90% after the 2001 terrorist bombings, had plunged to 38%. (It would continue to sink to a low of 25%).

Voters wanted to send Bush a message – and in Maryland the only way to do that was by voicing disapproval of the top Republican candidate on the ballot that year – Bob Ehrlich.

Hogan should be alarmed that Donald Trump’s approval rating as of two weeks ago was just 38% – identical to Bush’s low appeal in 2006. The Obamacare controversy and the new president’s angry Twitter insults, unsubstantiated allegations and inflammatory rhetoric could shrink Trump’s approval numbers to record lows for an American president.

Should 2018 turn into a “message” election, Larry Hogan’s “good guy” image and Marylanders’ lack of animus toward him may prove all but worthless.

He could well become, for state voters, Donald Trump’s surrogate on the ballot.

It could be 2006 all over again in Maryland.  ##  

Giving Frosh His Independence

 

By Barry Rascovar

Feb. 20, 2017—You can’t blame Gov. Larry Hogan, Jr., for getting irritated over the Maryland attorney general’s new authority – granted by the General Assembly – to sue the federal government without the governor’s permission.

This strips Hogan of a smidgen of his enormous powers. Yet if the Republican chief executive truly wished to stop this slight weakening of his powers all he had to do was pick up the phone and negotiate a compromise.

Instead, Hogan gave Attorney General Brian Frosh, one of the mildest mannered men in politics, the cold shoulder when Frosh requested the go-ahead to object in court to President Trump’s temporary ban on refugees and immigrants from seven Muslim nations.

Giving Frosh His Independence

Maryland Attorney General Brian Frosh

Hogan called the delegation of power to Frosh “crazy” and “horrible” – but the real nuttiness lies in Hogan’s refusal to talk through his objections with Frosh and come to a reasonable arrangement each could live with.

Political Divide

Sure, Hogan is a conservative Republican to the core and Frosh is a down-the-line Montgomery County liberal Democrat.

Still, Frosh almost never picks a fight. His 20 years in the legislature were marked by quiet persuasion based on facts, open dialogue and finding middle ground.

Only when Frosh asked for permission to sue, provided back-up documentation to the governor and was met by silence did he opt to make an un-Frosh-like aggressive move.

Democrats in the House and Senate were happy to help him, since they were alarmed by Trump’s executive order against Muslim refugees and immigrants.

Numerous state attorneys general sued to stop the president’s executive order and temporarily succeeded in blocking it. Frosh wanted authorization from Hogan to do the same thing.

He said he was concerned by clear indications the new administration will wipe out the Affordable Care Act that gives health insurance to 430,000 Marylanders and anti-environmental steps that could damage the health of the Chesapeake Bay. He wanted the tools to speak out on Maryland’s behalf in court.

Weak A.G.

Maryland is one of a handful of states that didn’t –until last week – give its attorney general the independence to sue the federal government without getting an okay from the governor.

Indeed, this state has one of the weakest attorney general offices in the country. Only on rare occasions can Frosh’s office conduct a criminal investigation and try the case—the state’s constitution handed over those broad powers to the local state’s attorneys in 1851.

Maryland’s attorney general primarily staffs the law offices of state agencies, gives legal advice to the governor, General Assembly and judiciary, handles consumer protection issues, defends the state in court litigation and files lawsuits on behalf of state agencies.

Yet this is a statewide office just like the governor and state comptroller. All three are elected by Maryland voters every four years. Their authority is spelled out in the Maryland constitution. Yet Frosh’s office is unusually dependent on the governor for permission to act.

That’s never been a healthy situation.

Why create a constitutional law office without giving that office the freedom to carry out the full range of legal responsibilities normally handled by an attorney general in other states?

Why make the Maryland attorney general such a weak reed, unable to speak for the state on legal matters without first coming on bended knee to the governor for consent?

The current conflict over separation of powers never surfaced when Democrats occupied both offices. Usually the two elected officers were on the same political wave length and agreed on occasional litigation to protest federal actions.

Cover for Hogan

Under Hogan and at times under Republican Gov. Bob Ehrlich disagreements have surfaced. Yet this need not have reached a point of separation if Hogan had ordered his skilled legal counsel, Robert Scholz, to work out an accommodation.

Frosh may have been close to the truth when he suggested this new arrangement actually gives Hogan the best of both worlds – despite the governor’s public protests.

Hogan doesn’t want to go on record opposing the new Republican president. He’s trying hard to ignore anything and everything Trump says that provokes controversy.

Yet it’s no secret radicals in the new administration want to deep-six Obamacare and purge all sorts of environmental regulations that could set back efforts to clean up the Chesapeake Bay.

Someone has to speak out and protest in court at the appropriate time. Hogan doesn’t want to alienate his Republican core base, yet extreme actions in Washington may require pushback from Maryland to avert harm to citizens and the “Land of Pleasant Living.”

The new delegation of authority by the legislature to Frosh solves that dilemma quite neatly for Hogan. He can continue to ignore Trumpian broadsides and dangerous executive orders while Frosh, on his own volition, tries to block Trump’s moves in court.

The governor’s hands are clean. He hasn’t forsaken the Republican president.

(He also can try to dissuade Frosh through well-reasoned arguments. The power granted Frosh requires that he notify Hogan of the attorney general’s intention to sue, wait 10 days so the governor can put any concerns he has in writing, and then Frosh must “consider the Governor’s  objection before commencing the suit or action.”)

Re-election Battle?

The real danger for Hogan could lie in the next six to 12 months if Trump takes such extreme steps affecting Marylanders, the state’s social programs and its natural resources that Frosh becomes the hero of the day – filing lawsuits repeatedly to stop or reverse Trump’s moves.

Should Hogan continue to remain mum during that time, ignoring the human toll of Trump’s actions, it might hurt the governor’s re-election chances.

Thus, Brian Frosh might place himself at the head of the pack of candidates running for the Democratic nomination for governor.

Could Hogan then face off against the attorney general in November 2018 just as Frosh’s popularity in vote-heavy Central Maryland soars due to his role as Maryland’s defender against heavy-handed actions from Washington?

It’s not far-fetched.

That possibility gains credence with Frosh’s request for a future annual budget of $1 million to create a five-person legal staff to sue the Trump administration when the public interest or welfare of Maryland citizens is threatened – be it their health, public safety, civil liberties, economic security, environment, natural resources or travel restrictions.

If Hogan, for political reasons, won’t oppose Trump and radicals in the administration, Frosh is the logical person to fill that void.

Giving him the power to act isn’t wild and crazy. It’s in line with the way things work in most other states. It ensures that Maryland’s interests will be defended by at least one statewide, constitutional officer elected by the people.

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Will Hogan’s Slimmed-Down Budget Implode?

By Barry Rascovar

Jan. 30, 2017 – Through no fault of his own, Maryland Gov. Larry Hogan’s slimmed-down, $43.5 billion budget could implode at any moment, depending on actions in Washington by President Trump and a Republican-controlled Congress intent on slashing federal domestic spending.

Just one example: Trump wants immediate repeal of the Affordable Care Act – the hated Obamacare he pilloried in the campaign. Tea party Republicans in Congress are marching rapidly down that same path.

It sounds wonderful to Trump’s followers and foes of the ACA.

But the loss of ACA funds would blow an immediate $1.26 billion hole in Hogan’s balanced budget – and would add up to a stunning $7.7 billion loss for Maryland over the next five years.

That’s just the tip of Maryland’s deficit iceberg if Trump and his Republican majority on the Hill start chopping with their budget axes.

Maryland’s Budget Plight

Losing ACA funds would cost Maryland $100 million in savings from drug rebates that Hogan is counting on in his budget, $62 million in child health matching money, $16 million for home care and $225 million in federal support that subsidizes health insurance for 60,000 moderate- or low-income Marylanders.

Then there’s Trump’s federal job freeze, with Virginia and Maryland most at risk of seeing large declines in its federal work force.

Think what it would mean for the Free State’s economy – and tax collections – if Trump and Congress slash the workforce at the Centers for Medicare and Medicaid Services, the Social Security Administration, the Food and Drug Administration and the National Institutes of Health – all centered in Maryland.

There’s nothing in Hogan’s budget to cushion the state from a Trumpian-sized downsizing of the federal government. Instead, his fiscal blueprint ignores that approaching whirlwind and focuses instead on ratcheting downing spending without destroying existing social programs.Hogan's Slimmed-Down Budget

Clearly, the governor is trying to make it past the next election using smart spending hold-downs and a hoped-for upward bump in revenue collections.

He certainly wasn’t considering the anti-spending mood in Washington or the state’s precarious long-term budget outlook. Hogan just wants to get through 2018.

But legislative budget analysts noted last week there are very large deficits looming that Hogan hasn’t addressed.

Budget Quicksand

Those potential pools of red ink leave “the state vulnerable to expected federal cost containment actions” that include personnel cuts, greatly reduced agency budgets and repeal of the ACA without a viable replacement.

As it stands, Hogan’s budget could run into big trouble with Maryland’s Medicaid program this coming fiscal year. Legislative analysts politely wrote that the governor’s budget “contains optimistic assumptions” about slower Medicaid enrollment and the state’s ability to recoup drug rebates from pharmaceutical companies.

If Hogan’s number are wrong, his Medicaid allocation could be in deficit territory by hundreds of millions of dollars.

Some of the governor’s budget-balancing tricks aren’t likely to work, either.

For instance, he figures he can save nearly $100 million if the legislature repeals spending mandates lawmakers approved last year. Don’t count on Democratic lawmakers giving the Republican governor what he wants.

Additionally, Hogan wants to increase the budget deficit in future years by handing out tax cuts to military retirees, police and firefighters, tax savings to those with student loans, and tax breaks to small business owners offering sick leave to workers.

The cost? $106 million in the first year and $488 million over the next five years.

Deficits Return

Hogan says he wiped out the state’s structural deficit with this budget – but only because he grabbed $170 million from the state’s Rainy Day Fund.

Even worse, analysts say Hogan’s financial plan does little to prevent a widening structural deficit in future years, growing to $432 million a year from now and $1.2 billion four years later – and that doesn’t even take into account the worsening fiscal situation if Obamacare is repealed.

The Department of Legislative Services also points to deeply troubling trends in the Maryland Department of Transportation’s six-year capital spending plan. MDOT can’t build all the projects it is promising due to a tightening revenue picture.

Maryland’s gas tax receipts are far less than expected, debt service costs are rising and MDOT operating expenses are galloping ahead of projections.

On top of that, Hogan has set aside $747 million in MDOT cash to greatly increase highway-construction aid to Maryland counties. That move would require a sharp cutback in bonds issued by MDOT, which means reducing the number of promised transportation projects over the next six year.

MDOT’s Growing Budget Hole

All told, MDOT is $1.7 billion short of the money it needs to complete projects on its list. Moreover, analysts say the department is underestimating its own operating expenses by $585 million in future years.

There could be tough questioning and resistance to Hogan’s transportation program when his minions try to explain this disturbing situation to the General Assembly’s budget panels.

Yet the MDOT quagmire could rapidly become a secondary concern if the White House and Congress go on a budget-cutting rampage this spring, creating “carnage” in state capitals.

On its own, Hogan’s budget appears to be a sensible, Republican-styled attempt to slowly diminish spending in ways that begin to align appropriations with the state’s annual revenue flow.

He resorts to a number of gimmicks to balance this year’s fiscal package, but what governor doesn’t?

There are almost certain to be fireworks over Hogan’s more questionable budget proposals in the next few months—especially if the man in the White House turns off much of Maryland’s fiscal pipeline from Washington.

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‘Honest Prince George’ Strikes Again

By Barry Rascovar

Jan. 16, 2017 – Back when I was a naïve and newbie political reporter covering the Maryland General Assembly in the early 1970s, I was baffled when legislators joked in lounges and hallways about “Honest Prince George.”

I found out soon enough it was a jovial but derogatory reference to the questionable “pay for play” politics practiced by some leaders of Prince George’s County.

Rapid land development and the county’s population explosion made the Washington suburb prime ground for under-the-table payoffs to elected officials who got builders construction permits and re-zoning approval.'Honest Prince George' Strikes Again

Straight-arrow Prince George’s senators and delegates would join in the verbal State House sparring about their “honest” county, but they knew better than most what was going on.

Now “Honest Prince George” has surfaced again.

Blown Cover

Arrests by federal prosecutors so far have nabbed a liquor board commissioner, a longtime former councilman and a yet-to-be-named state legislator involved in a bribery and payoff scheme.

Will Campos, a ten-year councilman and ex-delegate resigned his state post in 2015 after only nine months in office, realizing the feds were hot on his trail.

He pled guilty earlier this month to taking nearly $50,000 in payoffs to direct $325,000 in county funds to business owners over a seven-year period. On one occasion, he was handed a white envelope in the bathroom of a College Park restaurant. It was stuffed with $3,000 in cash.

Another ex-delegate, Michael Vaughn, turned in his resignation letter last Wednesday due to “ongoing health challenges” – like avoiding a long prison sentence (clearly not good for your health).

Prosecutors say one of their targets is a delegate who voted in committee to extend Sunday liquor sales in Prince George’s as part of a bribery scheme. Vaughn was the only county delegate on that committee who voted in 2015 for that Sunday liquor-sales bill.

More shoes will drop as federal investigators continue the latest Prince George’s County corruption probe.  It’s certainly been a lengthy, and sad, saga.

Baggett First to Fall

The first bigshot in Prince George’s to fall was Jesse Baggett, chairman of the then-all-powerful Board of County Commissioners during the county’s massive land-development boom in the 1960s and early 1970s. Baggett went to prison in 1971 for taking a $3,500 bribe from a builder in exchange for help on re-zoning.

The county became ground zero for the headline-grabbing Marvin Mandel racetrack scandal in which the secret sale of a county half-mile track in Upper Marlboro formed the case against Governor Mandel and his co-defendants, including a prominent county lawyer, Ernest N. Cory, Jr., who lied repeatedly to the state racing commission about the Mandel group’s ownership of the track.

This unsavory reputation by county leaders helped unseat many of them in the 1970s. Leading the reform group was Steny H. Hoyer, now the county’s longtime congressman, and an influential lawyer-politician, Peter F. O’Malley.

Yet the smell of money proved irresistible for a few. A veteran state senator, Tommie Broadwater, went to prison for food stamp fraud. A delegate, Leonard Blondes, was found complicit in a bribery scheme.

A one-term delegate and county councilman, Tony Cicoria, stole $65,000 in campaign contributions, lied on his tax returns and then while on the council went AWOL for 13 months to avoid arrest. Cicoria eventually was nabbed in Florida  where his return to Maryland was delayed by local charges of using a phony drivers license.

Good old “Honest Prince George.”

Johnson’s Shame

In the 21st century, the most flagrant offender has been former County Executive Jack Johnson, who used his office to extort $1.6 million from developers during his eight years in office.

When Johnson and his wife, herself a county councilwoman, were arrested by the feds, Johnson was shouting at his wife to stuff illicit cash into her bra and panties and to flush the rest down the toilet. (Officers recovered $79,600 from Leslie Johnson’s undergarments and another $100,000 from the water closet.)

Then there was the sad case of current Sen. Ulysses Currie, accused of using his office and committee chairmanship to twist arms for his client while getting a kickback worth hundreds of thousands of dollars.

Currie beat the rap, but not without humiliating himself with a defense that claimed Currie was too dumb to be dishonest.

And of course there was Tiffany Alston, who avoided criminal punishment by resigning as a state delegate 2012 after she stole thousands from her campaign fund to pay herself and cover her wedding expenses.

Constant Surveillance

Unfortunately, a few politicians in Prince George’s continue to regard elective office as a way to enrich themselves through quid pro quos.

Other jurisdictions, such as Baltimore County and Baltimore City, have similar shameful histories – witness the recent indictment of Gary Brown, Jr. on the eve of his appointment as a state delegate for laundering $18,000 in campaign contributions for his boss, Baltimore Mayor Catherine Pugh, through his relatives.

At least Prince George’s voters had the good sense to elect a reformer, Rushern Baker, as county executive to help clean up the mess left behind by Jack Johnson.

Still, the ballooning liquor board scandal points to a continuing problem in the county that will need constant surveillance and scrutiny to scrub Prince George’s County of its “pay to play” reputation.

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Response from Franchot’s Top Aide

Jan. 10, 2017–Len Foxwell, a longtime confidante and aide to Comptroller Peter Franchot responded to the column, “Maryland’s Demeaning ‘Begathon’ Continues” (see next item below) with the following lengthy defense of his boss. It’s three times longer than the column Foxwell finds objectionable, so be prepared.

Also note:  Maryland’s Jan. 25 “begathon” can be viewed live on the Board of Public Works page of the maryland.gov website. Watch the long hours of 24 school superintendents trooping before the board trying to justify more money for school construction — and then judge for yourself the value of this exercise.

Meanwhile, here is Foxwell’s missive:

January 9, 2017

Dear Mr. Rascovar:

Good afternoon, and Happy New Year.  Here’s to good health and both personal and professional fulfillment in the year ahead.

Having read your most recent contribution to MarylandReporter.com – a politically-lubricated jeremiad against the Maryland Public School Construction Program’s longstanding appeals process – I feel obliged to respectfully rebut several of your more misleading and uninformed points.

My first is in response to your characterization of the process itself – “a demeaning ‘begathon’ that long ago outlived its usefulness and turned into a political circus allowing the governor and comptroller to praise and reward their friends in the counties and humiliate their enemies.”  From this passage, your readers might assume that you have diligently attended previous school construction appeals hearings in recent years, and that you are personally familiar with the tone and tenor of the proceedings.

That would be incorrect.  I have had the good fortune of attending every Public School Construction Program appeals hearing since Comptroller Franchot took office in 2007.  To date, I haven’t actually seen you at any of them.  I find it highly improbable that you have followed this annual event – which customarily lasts several hours – on the Board of Public Works’ streaming video feed.  Therefore, I have to question your authority to editorialize on the performance of the Board members at this annual event.

The Board of Public Works provides the public with both a video archive and written transcripts of past meetings.  I would respectfully encourage you to go back, catch up on what you’ve missed over the past decade or so, and offer your readers with specific instances in which Board members gratuitously “humiliated” participants in the meeting or otherwise demonstrated inappropriate conduct.

In stark contrast to what you have described in your column, I think you’ll find that the Board of Public Works is, for the most part, quite laudatory of the efforts of Maryland’s local school systems to carry out their shared mission effectively in this age of limited financial resources.  As for Comptroller Franchot, you will find that he reserves particularly high praise for those school systems that have performed well on their annual public school maintenance surveys, as conducted by the Interagency Committee for Public School Construction.

This is a longstanding priority of his, one that dates back to the early days of our previous governor’s administration, because schools that are maintained properly tend to have a longer life span, which leads to cost savings for Maryland taxpayers.  Even more important, we believe, is the fact that – all things being roughly equal – students who have the opportunity to learn in safe, comfortable and attractive schools tend to outperform those who don’t.

The Board members have also utilized this open and transparent public forum to encourage local school systems to consider alternative construction practices and other strategies – such as the use of geothermal energy whenever possible – to achieve cost savings and better learning outcomes.  All of these would seem to be valuable points of discussion for those who share an interest in the fiscal well-being of our state and our ability to prepare students for success in a complex global economy.  Yet, inexplicably, none of these points found their way into your analysis, which leads me to speculate — with apologies in advance for being impolite —  that you simply have no idea what you are talking about.

In fairness to you, these meetings have had their moments of honest disagreement between Board members and local school systems.  Last year, for instance, the Board members sought to hold the Howard County Public School System accountable for its management of, and response to, the presence of unacceptable levels of mold in several of its schools, which had led to several reported cases of illness and hospitalization.

Similarly, there was considerable discussion about the decision of the Carroll County Public School System to close multiple schools within the county due to insufficient enrollment, despite Governor Hogan’s willingness to invest $4 million to forestall that effort.  Given the number of Maryland students, teachers and families whose lives were affected by these two issues alone, I think we would all be interested in knowing whether you regarded those public discussions as (to borrow your own terms) “distasteful” and “unbecoming.”

You correctly note that Comptroller Franchot has “conducted a consistent crusade to force [Baltimore County] to install portable, temporary air conditioners in all schools lacking central cooling units.” However, you incorrectly suggest that his effort is rooted in a desire to discredit the incumbent Baltimore County Executive and thwart whatever political ambitions he may harbor.

It is worth noting that Comptroller Franchot’s engagement in this subject dates back to June 16, 2011, when he wrote letters to then-Baltimore County Schools Superintendent Joe A. Hairston and Baltimore City Schools CEO Andres A. Alonso.  Noting that the conditions within many of their school facilities can “pose an obvious health and safety risk to all concerned,” he asked “how…children can focus and learn – much less perform to the best of their abilities on final exams and standardized tests – in such an environment.”

He went on to write that “it is equally hard to see how teachers and staff members can feel like their hard work and sacrifice are truly valued when they are forced to work in such unpleasant workplace conditions,” and noted that these conditions “erode the quality of the learning experience” and “sends a disturbing message of indifference to those who have dedicated their lives to serving our children.”

Bear in mind that in June of 2011, Mr. Kamenetz had been in office for approximately six months, and was still several years away from being mentioned, within Maryland political circles, as a probable candidate for statewide office.  To that same point, the letters in question were authored more than three years prior to Governor Hogan’s successful gubernatorial campaign.

Therefore, the notion that the Comptroller’s commitment to safer classrooms for the children of Baltimore City and Baltimore County is inspired by a nebulous political rivalry with Mr. Kamenetz, or an equally nebulous political alliance with Governor Hogan, is beyond asinine.  Your insistence on force-feeding this discredited narrative erodes whatever credibility you have accumulated over the course of your career and – at a time when our political system is in such desperate need of sunlight – serves as a reminder of why public confidence in the media is trending in the wrong direction.

It is my belief that Comptroller Franchot’s perspective on the air conditioning issue has been well-documented.  For the sake of brevity, I won’t unpack his entire argument in response to yours.  Suffice to say that, in the year 2017, every child, teacher and public school employee is entitled to air conditioned classrooms in the warmer months – when it’s not uncommon for building temperatures escalate into the triple digits – just as they are entitled to heated classrooms on frigid days.

Despite the fact that hundreds of millions in taxpayer dollars have been invested in the Baltimore City and Baltimore County school systems for building improvements since Comptroller Franchot took office, more than 50,000 school children in these two jurisdictions – most of whom hail from low and moderate-income communities – are unable to learn in the same conditions that are taken for granted elsewhere.  They are, however, expected to demonstrate the same academic progress and perform comparably on standardized tests as their peers.

The Maryland NAACP regards this as a “neglected civil right;” Comptroller Franchot views it as a fundamental matter of social and economic justice, and Governor Hogan has lent his support, and that of his Administration, to a grassroots coalition of families who demand equity for vulnerable children and teachers who otherwise would have no voice.

I suspect there is space for honest disagreement – however irrational – over the need for immediate relief for these children.  However, I would respectfully suggest that it is the height of disrespectful arrogance to blithely dismiss, as “plants,” those who have attended past Board of Public Works meetings to make their voices heard.

These are working parents who took unpaid time off from work to stand with their children as they described conditions in a classroom without air conditioning or even functioning windows.  They are members of our civic and faith community – such as the Rev. Dr. Alvin Hathaway of the Union Baptist Church in Baltimore – who refuse to stand by as certain children are held accountable for all of the obligations of enrollment in a Maryland public school without a fundamental right that is available to their peers.

All of them took advantage of the unique opportunity afforded by the Board of Public Works to express their points of view in an open, transparent forum, and many of them did so after feeling as if nobody else was bothering to listen to them.  None of them did so with professional benefits in mind, or to curry favor with members of the Annapolis political establishment.  Rather than trivialize their service, I would humbly suggest that you regard them as an aspirational model.

As a point of reference, I have attached copies of the 2011 correspondence that I referenced earlier in this letter.  I thank you in advance for considering the points articulated in this letter, and wish you, once again, a happy new year.

Sincerely,
Len N. Foxwell Chief of Staff Comptroller of Maryland

Re-imagining State Center

By Barry Rascovar

Jan. 2, 2017–As an early New Year’s gift to Maryland taxpayers, Gov. Larry Hogan, Jr. delivered the final blow to an outrageously priced scheme to turn over to private investors the 28-acre State Center complex in Baltimore for redevelopment.

Re-imagining State Center

The $1.5 billion State Center plan rejected by the Board of Public Works.

Hogan’s predecessor as governor, Martin O’Malley, had pushed hard  forthe State Center deal in a way that benefited the developers but left the state with unconscionably high rental payments for the next half-century – beginning at $30 million or more per year and escalating by 15 percent every five years.

O’Malley’s proposal also would have threatened the state’s triple-A bond rating by smashing through Maryland’s debt ceiling.

Additionally, the deal hinged on the state constructing for the developers a high-priced underground garage, costing $28.3 million. The money to pay for the 20-year bonds on the garage would come out of the state’s struggling Transportation Trust Fund at roughly $2 million a year.

As an extra kick-in-the-pants, state workers would have to pay to park in the underground garage even though they now get free parking on surface lots at State Center.

It was a boondoggle of immense proportions disguised as a mixed-used redevelopment of State Center to help revive midtown Baltimore.

Public-Private Partnership

The initial plan, worked out by former Gov. Bob Ehrlich in the early 2000s, made sense as a model for smart transit-oriented development. It was the sort of public-private partnership that would benefit Baltimore, the state and the developers – office space, retail, apartments and community amenities centered around two mass-transit lines.

Then came the Great Recession. What had been feasible plans for State Center’s re-birth crumbled. As lingering effects of the recession dragged on, the State Center proposal took on more of a Mission Impossible cast.

When O’Malley revived the concept with new developers and a new set of financing figures, what had been a good deal became more and more suspect.

The legislature started asking questions and looking at the proposal’s details. Analysts for the General Assembly didn’t like what they discovered.

The state was being asked, essentially, to underwrite this massive $1.5 billion project. There would be only one prime tenant in the developer’s lone Phase One building – the state of Maryland, occupying nearly all of the office space.

Even worse, the developers wanted to charge the state unheard of water-view rental rates for a mid-town building in a tenuous neighborhood overlooking other mid-town buildings, a hospital and a public housing project.

Then the underground garage was added to the state’s to-do list by the developers. As the Department of Legislative Services put it, “A significant amount of private investment has been continuously stripped out of the plan.” It was replaced by state taxpayer dollars.

Kopp, Franchot Skeptical

Comptroller Peter Franchot bailed out as a State Center supporter some five years ago, complaining about the exorbitant rents and the fear of losing Maryland’s money-saving triple-A bond rating.

Treasurer Nancy Kopp kept worrying about breaching the state’s borrowing limit by undertaking the capital leasing costs of the State Center project.

Thus, O’Malley no longer had the votes to gain Board of Public Works approval to complete the revised deal with the developers.

When Hogan entered the picture, he tried to work out a fair settlement that would not leave the state holding the bag and the developers reaping all the rewards.

He even turned to mediation with the developers. But the numbers wouldn’t work unless the state contributed heftily to the privately built project.

So Hogan pulled the plug on the State Center arrangement just before Christmas and then sued the developers to leave no doubt the deal has been cancelled.

What Next?

The fate of State Center after the legal finger-pointing ends is an open question.

It would cost in excess of $200 million for the state to replace its office buildings on the site. That’s capital money the state lacks at the moment.

More sensible would be leasing deeply discounted office space for state agencies in nearly empty downtown high-rises while working with the city on a new residential-and-retail plan for the State Center acreage.

Franchot even proposed a pie-in-the-sky idea: a large sports arena for Baltimore at  State Center. Hogan immediately asked the Maryland Stadium Authority to investigate this remote possibility.

It’s unfortunate a prolonged recession cut the economic legs out from under the original State Center development plans.

But it did.

Now it’s time to start all over.

Let’s re-imagine what State Center could become a decade from now: A catalyst for strengthening midtown neighborhoods, creating a new corridor of residences and shops, and givng state workers quality office space for state workers on the current site or at a more affordable location somewhere in Baltimore’s downtown area.

Hogan faced reality and pulled the plug because the deal on the table didn’t work. His next move will be even more important: defining the future uses for this valuable 28-acre property.

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