Tag Archives: Maryland

Grading Larry Hogan

By Barry Rascovar

Five vetoes and two major appointments in the past week tell us a great deal about Gov. Larry Hogan, Jr. – some good, some not so good.

He’s proving to be a more conservative governor than voters probably imagined when they voted him into office. He’s also proving surprisingly doctrinaire in the extreme language in his statements and messages.

Let’s look at Hogan’s recent decisions and grade him the way his college professors might have:

Transit oversight board  

Hogan’s veto language is hysterical in discussing the Maryland Transit Administration Oversight and Planning Board, HB1010. His veto message is a blatant political document meant to rally the faithful. Hogan said  the bill’s provisions “represent a sophomoric attack on sound transportation policy by creating an unprecedented imposition of a politically-driven board to second-guess the authority of an executive branch agency.”

That’s pure hogwash.

This bill merely sets up a transportation advisory panel, another toothless tiger, like the earlier transportation scoring system he vetoed but the legislature overrode. But at least citizens who ride public transit would have a voice to express their concerns via this advisory group.

Transparency and public input are at the heart of this bill, two elements any sane politician ought to applaud. But by vetoing the bill, Hogan comes down emphatically on the side of secrecy and imperial-style decision-making.

In his message, Hogan made the ridiculous claim that the bill degrades Maryland’s quality of life and harms the state’s competitiveness – total buncombe.

He gets an emphatic F.

Morgan State University housing

This bill bars redevelopment of the Northwood Shopping Center in Baltimore, where student housing is planned for nearby Morgan State University – unless a local community group approves.

This is a local spat that never should have been taken on by the General Assembly. It is dangerous overreach.

Besides, the conflict between town and gown largely has been settled. There’s no need for such a disruptive and intrusive piece of legislation.

Hogan chose the correct path.

He gets an A.

Bridge over the Potomac

The governor had nasty words for this bill, which forces the state to set aside $75 million over the next 10 years to start paying for a replacement for the scary-as-hell 76-year-old Harry W. Nice Bridge that connects the northern neck of Virginia with Southern Maryland.

Grading Larry Hogan

Gov. Harry W. Nice Bridge crossing of the Potomac River in Southern Maryland

Hogan accused the legislature of superseding the “professional judgment” of his transportation staff. Au contraire, governor.

This bill restores the priority status given to replacing the Nice Bridge by the O’Malley administration. Instead of building a modern $1 billion bridge, Hogan’s folks want a far cheaper expansion of the existing, dangerous crossing over the Potomac River.

That’s not good enough. Until Hogan cut tolls on Maryland roads and bridges, the state had designated a replacement for the Nice Bridge as one of its top objectives. Now there’s not enough money to do the job.

There’s nothing wrong in the legislature expressing its will on major transportation projects. The long debate over the original Bay Bridge took place in the General Assembly. Governance in Annapolis is a shared responsibility – something Hogan wants to change.

Give him an F.

Supporting renewable energy

This bill forces utilities to turn more rapidly to renewable energy for electricity. It’s a boon for advocates of solar and wind power.

The current goal is 20 percent renewables by 2022. This bill forces utilities to reach 25% and to do so two years sooner.

That’s a steep challenge, even with subsidies from ratepayers that could cost close to $200 million by 2020. It may be asking for the impossible.

Maryland has made good progress on the road to renewable energy. But there’s a limit to how far this state, given its latitude and harsh winters, can march in that direction. We’re not part of the Sunbelt and state officials have walled off vast stretches of Western Maryland for renewable wind farms.

Besides, utility rates have been rising for Marylanders, many of whom struggle to make ends meet. Hogan is not about to permit what he sees as a backdoor tax increase.

He merits an A for this veto.

Education collaborative

This bill, SB910, runs into all sorts of constitutional conflicts. The goal is noble – a panel tasked with devising ways to help poor students do better in school. But two members of the General Assembly would hold seats on this board, which would hire a director and staff and set far-reaching education policy.

That’s the job of the executive, not the legislative branch, as any student of high school civics knows.

Hogan is right to teach the bill’s supporters a lesson in constitutional government.

His veto gets a grade of A.

New Public Service Commissioner

Del. Tony O’Donnell of Calvert County is the governor’s latest Public Service Commission nominee. In some ways, it’s a curious choice. O’Donnell, a former House minority leader, is a sharp, talkative conservative Republican who seems to have worn out his welcome even in Republican circles in the House of Delegates.

He knows a lot about the inner workings of electric utilities and the science of nuclear energy, having worked as a supervisor for BGE at the Calvert Cliffs nuclear plant.

Yet he’s a pro-business Republican who isn’t likely to give much weight to environmental pleas for “green” power. He’s also not a lawyer and hasn’t steeped himself in the arcane statutory meanderings of utility regulatory law.

O’Donnell will bring an interesting outlook to PSC deliberations. But he’s liable to find those endless hearings dull, long-winded and extraordinarily dense.

Hogan could have done better. He gets a B-minus for this appointment.

New Court of Appeals judge

The governor played political favoritism here, nominating his chief lobbyist, Joe Getty, to the state’s highest court.

Yes, Gov. Marvin Mandel did the same thing with Judge John C. Eldridge. But Eldridge brought to the bench considerable experience with a high-powered law firm. He was widely respected as a legal scholar.

Getty, in contrast, is a former legislator and solo practitioner from Carroll County. He could be overwhelmed by the immensity of confronting 200 highly complex legal appeals each year.

Getty, a staunch but sensible conservative, replaces one of the most liberal judges on the appeals court, Lynne Battaglia. He brings a different perspective to deliberations.

But he also could find himself over his head, having never served as a jurist or been under the gun to write dozens of obtuse appellate decisions on technical legal disputes.

Hogan should have named Getty to a lower court so he could gain much-needed experience before throwing him into the judicial lion’s den.

The governor’s grade: C-minus.

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Tough Job? Call Bobby Neall

By Barry Rascovar

May 23, 2016–They never seem to give Bobby Neall easy assignments. Now Gov. Larry Hogan, Jr. wants the former Anne Arundel County Executive, former state senator and former state delegate to take on another near-mission impossible: reorganize state government.

It sounds like a simple task but it isn’t – not when Maryland’s government spends $42 billion a year and employs over 80,000 entrenched bureaucrats and nearly 10,000 contract workers.

Tough Job? Call Bobby Neall

Robert R. Neall, the governor’s new senior adviser

Compounding Neall’s assignment: Republican Hogan’s motives are deeply distrusted by the Democratic legislature. Any move that smacks of cutting government operations to pay for election-year tax cuts will be buried by legislative Democrats.

Neall says Hogan hasn’t asked him to slash government spending to make way for voter-appealing tax cuts. Instead, “this is something the governor wants to be part of his contribution – modernizing government and make it perform better, and maybe in the process saving money.”

The idea, according to Neal, is to come up with “a new platform capable of doing more and delivering better services and hopefully at lower unit prices. The businessman in the governor is coming out. It’s not just about budget cuts to make tax cuts possible.”

State government certainly could use a good shake-up.

Mandel’s Magic

There hasn’t been a major reorganization in 46 years, when Marvin Mandel, taking his cue from proposals put forth by the 1968 Constitutional Convention, took 248 unwieldy agencies and boxed them into 12 cabinet-level departments.

Suddenly the governor, not individual fiefdoms, controlled state government. It was one of Mandel’s great achievements, giving Maryland government a modern organization that was manageable and the envy of other states.

While Mandel’s basic structure has stood the test of time, the state’s operations again have spread its wings, becoming ungainly, duplicative and inefficient.

Neall sees his main opportunity in an area that would avoid headlines: government’s “backroom” operations – the massive services and supplies needed for the daily activities of 90,000 state workers.

“Having a Department of Veterans Affairs is fine,” he noted, “but it may not need its own personnel office, its own purchasing office, its own procurement office.”

Centralized backroom services might make sense, especially in an age of computers and two-way video communications. But it can still be controversial – witness the furor among parole office workers when personnel functions were removed from their workplace and consolidated at the Department of Public Safety and Correctional Services.

IT Laggard

Maryland government also has a reputation for lagging behind the times in information technology. Witness the disgracefully botched software to handle the Affordable Care Act and the continual IT screw-ups in social services computer operations.

Neall diplomatically notes, “Maryland state government has never been good at using technology. We’ve lost a lot of ground.”

Improved IT operations may hold the key to a leap forward in government efficiency and customer satisfaction but Neall’s efforts could encounter a major barrier – the costs involved.

Maryland’s Parole Commission, for instance is awash in paperwork. Boxes of inmate records are piled to the ceiling in large storage rooms. Converting these legal documents to computer-accessible records and protecting this data from cyber theft won’t be cheap or rapid.

Neall sees his main job as taking a hard-eyed look at state operations and then answering this question: “What’s the best way to deliver services to citizens today?”

For example, “We no longer get all our clothes in a clothing store; we shop online off a website.”

Process, Not Overhaul

Neall is not talking about wiping out entire departments and turning government into an amorphous internet presence. Instead, he wants to zero in on how state employees and agencies go about their jobs: “How they organize their work, the processes and the time sensitivity.”

In many areas, government is unnecessarily slow and cumbersome, irritating the heck out of constituents. It may be time to learn from the private sector.

There are private companies that will deliver to you your birth and death certificates in a matter of hours – for a fee. But ask state government for that same information and it could take weeks.

A cottage industry has sprung up due to the frustration people encounter waiting hours in long lines at the Motor Vehicle Administration. For a fee, these companies will take care of everything for you. While there have been improvements at the MVA, it still isn’t market-sensitive or people-friendly.

Those are the types of efficiency changes Neall has in mind.

Avoiding Controversy

He’s hoping it won’t involve wholesale reorganizations that would raise hackles among legislators, unions and other interest groups.

So the chances of a Mandel-style re-shuffling of powerful state agencies aren’t likely. Indeed, most state operations will look the same to Marylanders.

“The storefront stays if you can deliver products in a timely fashion, create a sense of urgency and customer satisfaction,” Neall says.

Throughout his career, Neall has been recognized as an insightful budget analyst skilled in dissecting complicated business and government operations and then suggesting cost-saving efficiencies.

Turnaround Artist

He’s worked for Johns Hopkins Medicine for a quarter-century, the last 12 as head of Hopkins’ managed-care organization for the poor and near-poor. Priority Partners is the largest MCO in the state, but when Neall took over it was $10 million in the red. Within a year, he had eliminated the red ink.

Neall is trusted and respected by both Republicans and Democrats in Annapolis. He knows the magnitude of his task.

If anyone can pull this off it is Bobby Neall. The goal he has set is modernization, not wholesale reorganization.

It may not be sexy, but Neall would be happy to see a quiet, successful implementation that most people don’t even notice.

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Post-MD Primary: Insiders and ‘The Donald’ Triumph

By Barry Rascovar

May 2, 2016 – On primary election day, Maryland Democrats sent a strong message that for them experience and proven ability in public office are what count most. Frustrated Maryland Republicans, though, opted to follow a charismatic Pied Piper with wild ideas and zero elective experience.

That’s the biggest take-away from the April 26 balloting in the Free State. Except for Donald Trump’s easy triumph in the GOP presidential primary, Maryland voters came down heavily on the side of polished politicians whom they feel they can trust to deal with society’s intensely complex problems.

Post-MD Primary: Insiders abnd 'The Donald' Triumph

The “mad as hell” euphoria sweeping parts of the country against establishment figures didn’t flood into Maryland. Pragmatic insiders got the nod over impractical outsiders.

Top of the Ticket

–In the Democratic presidential primary, Hillary Clinton walloped Sen. Bernie Sanders of Vermont. No “feel the Bern” groundswell of support for the far-left socialist-democrat in Maryland. He lost by a whopping 30 percentage points – one of his worst drubbings outside the Deep South.

That bodes well for Clinton in Maryland this November. She will benefit from solid Democratic support in a heavily Democratic state as well as the ABT (Anyone But Trump) factor: Two out of three Americans tell pollsters they view “The Donald” unfavorably.

–In the Republican president primary, Trump trumped two weak contenders, Sen. Ted Cruz of Texas and Gov. John Kasich of Ohio. It was easy pickings in Maryland for the outspoken billionaire real estate developer. He’s popular in rural areas (where he held his only Maryland campaign events) but he is detested in the state’s population centers. Maryland won’t be on his November list of winnable states unless his advisers live in the same world of unreality as the candidate.

United States Senate

–In the Democratic race for U.S. Senate, voters overwhelmingly favored Rep. Chris Van Hollen, who blew away Rep. Donna Edwards by a far wider than expected margin. Edwards won African-American jurisdictions but not by stupendous totals. She got clobbered everywhere else, especially in the Baltimore suburbs and in the state’s largest jurisdiction, Montgomery County.

Van Hollen’s easy romp on May 26 will make it nearly impossible for the GOP nominee, state Sen. Kathy Szeliga of Baltimore County, to compete in a November election where Democratic turnout could set a record. The ABT effect could severely undercut her chances, too.

Congressional Primaries

In two suburban Washington congressional primaries, Democratic voters again opted for well-qualified and proven establishment officials.

–In Montgomery County, state Sen. Jamie Raskin defeated two Democratic outsiders, a wine-business multi-millionaire, David Trone (who tried to buy the election by spending a record $13 million), and a former local news personality, Kathleen Matthews.

Raskin isn’t flashy or charismatic. But he’s a solid constitutional law professor and an ultra-liberal who learned in Annapolis how to work effectively within the legislative system. His legal smarts could prove a decided plus in the House of Representatives.

He and his wife, Deputy Treasury Secretary Sarah Bloom Raskin, also could become one of Washington’s most prominent power couples after November, since Raskin is virtually assured of victory in the general election.

–In heavily Democratic Prince George’s County, former Lt. Gov. Anthony Brown won a close congressional race against former two-time State’s Attorney Glenn Ivey. The two insiders far outdistanced the field, which included a vocal Latino-rights candidate.

Voters in Prince George’s clearly preferred the tried and true, remembering Brown’s quality service in the county as a two-term delegate rather than his weak performance as lieutenant governor and his abysmal run for governor in 2014.

Mayoral Race in Baltimore

–In Baltimore City, a stampede of candidates filed for the Democratic nomination for mayor but only two were taken seriously by voters. The non-politician outsiders, exemplified by lawyer Elizabeth Embry and multi-millionaire financial investor David Warnock, failed miserably to gain traction.

Warnock ran an uplifting campaign but he never persuaded voters he has what it takes to turn around a troubled, aging urban city. His advertising symbolism – driving through Baltimore in an old pickup truck – befuddled rather than enlightened viewers.

Embry, meanwhile, kept harping on criminal justice reforms – a misleading platform since Baltimore’s mayor plays a minor role in this area. That’s the job of the state’s attorney and the state legislature. Her smarmy last-minute advertising blitz portraying the two leading candidates as virtual criminals was a black mark in an otherwise constructive campaign.

Seven out of ten city voters supported the two most experienced insider candidates, former Mayor Sheila Dixon and state Sen. Cathy Pugh. That’s a ringing endorsement of competence in office over protesting voices from outside the government arena.

Pugh very narrowly defeated Dixon by winning over the city’s white voters and business community. Dixon ran strongest among African Americans who remembered her decades of constituent service and who deeply believe everyone deserves a second chance.

The city should benefit from Pugh’s victory, which all but officially makes her the next mayor in December, given the Democrats’ lopsided voter advantage in Baltimore. She is on friendly terms with Republican Gov. Larry Hogan and key state lawmakers and will have an open door in seeking help from Baltimore’s business and civic leaders.

On April 26, Maryland proved in most cases an island of sanity and stability in an election season marked by bizarre and hard to explain developments. The state’s voters, by and large, seem to have their feet – and their senses – planted firmly on the ground.

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Will O’Malley’s Folly Become Hogan’s?

By Barry Rascovar

March 28, 2016—The State Center boondoggle is back on the table.

This controversial deal, involving state buildings on 28 acres in midtown Baltimore, was tailored for developer-allies of former Gov. Martin O’Malley. It ended up on the back burner in December 2014 when the extent of the giveaway persuaded Comptroller Peter Franchot and Treasurer Nancy Kopp to put a hold on the last approval necessary.

Since then, Gov. Larry Hogan, Jr. has kept the project on the shelf – where it belongs.

Will O'Malley's Folly Become Hogan's?State Center vision

Developers’ $1.5 billion State Center vision in midtown Baltimore

But in the last few weeks, Hogan’s economic development chief, Mike Gill, said the administration was reviewing the $1.5 billion project anew. A decision on what to do at the Baltimore workplace for thousands of state employees could come before January.

There’s no question government workers deserve better quarters. The 60-year-old State Center complex is badly out of date. New accommodations need to be pursued. The worst course of action, though, would be to proceed with O’Malley’s white elephant.

Outsized Rents

Under the deal worked out by the former governor, the state, which now pays no rent at State Center, would be charged sky-high monthly rates for occupying space in a new, privately owned structure. The lease payments of $18.5 million a year would escalate every five years over the next two decades.

Such high rental rates are comparable to Inner Harbor, water-view office space.

The state also would be responsible for maintenance and security expenses, bringing payments to $30 million annually just in the first five years.

Additionally, the state would lease the entire 28-acre State Center property to the developer for a ridiculously low ground rent. A prime parcel near downtown would be virtually gifted to the development team.

The developers also want the state to pay for a costly underground garage in the first new office building. This $28.5 million expense would deplete the Transportation Trust Fund just when demand for road and bridge improvements is in high demand.

In another twist, state workers who receive free surface parking at State Center, would have to pay to use those underground spaces.

Bond Rating in Peril?

The most troubling aspect for Hogan is that the State Center plan could cost Maryland its coveted triple-A bond rating.

Because the developers want to use the state’s locked-in rent payments – nearly $500 million over the next 20 years – to obtain private financing for the massive project, the payments qualify as a capital project.

As such, the State Center development would blow the lid off Maryland’s debt ceiling. It would mean cutting other projects from Hogan’s construction plans and could lead to higher interest rates when Maryland goes to the bond market.

It’s a bad deal for taxpayers, and for Hogan, who inherited this mess from O’Malley (and from Republican Gov. Bob Ehrlich, who announced the heavily subsidized state-private sector project prior to the Great Recession).

Joe Getty, Hogan’s chief legislative officer, was in the state Senate when his budget committee reviewed the State Center project in late 2014. He concluded that the excessive rent charged the state “sets us up to cut [other] projects that have strong commitments in other areas,” such as money for Baltimore City school construction and bond money for a new Prince George’s County hospital.

The Department of Legislative Services noted at the time that the State Center undertaking “will require a significant amount of annual general fund appropriations that could be avoided if the State instead constructed new or renovated space to replace the aging State Center infrastructure.”

Moving Downtown

Another promising avenue for Hogan: Move State Center workers into modern, renovated office space in Baltimore’s Central Business District.

Huge vacancies exist there – upwards of 30 percent and growing – which translates into deeply discounted rents. The state could lock in long-term leases at excellent prices and avoid paying future maintenance costs.

At the same time, DLS suggested the state could sell State Center’s buildings and 28 acres to the highest bidder. This would partly offset the cost of renting new office space downtown and avoid costly repairs at the current buildings.

That seems to make more sense than going forward with a sweetheart arrangement concocted by Hogan’s predecessor.

Here’s another oddity: The Ehrlich administration never bothered to seek competitive bids for the State Center project. After the initial development group dissolved during the Great Recession, O’Malley renegotiated the same deal with a slightly different group of developers.

Now may be the time to see what State Center’s 28 acres bring on the open market and what imaginative uses other developers suggest for the site – using their money, not the state’s.

No Termination Clause

That likely would require a payment to the current developers to terminate their contract with the state.

Here’s why: O’Malley’s State Center deal lacked a “termination for convenience clause.” This is routinely inserted into every state contract – but curiously not this one. Thus, the state is locked into 20 years’ worth of lease payments – pure gold for the builders – unless the developers are bought out.

For Hogan to endorse the current project makes little logic. It would saddle the state with unnecessary additional debt and exorbitant annual lease payments for two decades, endanger Maryland’s bond rating and squeeze other state construction priorities.

It also would amount to an endorsement of a questionable state subsidy pushed through by his Democratic predecessor.

Proceeding in a new direction might be Hogan’s best option.

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Wolf in the Hen House

By Barry Rascovar

March 7, 2016 – Putting a wolf in charge of the hen house would be terribly irresponsible. Yet that’s what trustees at Mount St. Mary’s University in rural Emmitsburg did – with horrific results.

After an earlier, failed search to find a replacement for President Thomas Powell, trustees of the Mount – a 200-year-old, highly respected Catholic school – surprisingly named Simon Newman as the university’s leader last year.

Wolf in the Hen House

Mount St. Mary’s University in Emmitsburg, MD

Newman’s experience in higher education? None.

He was a wolf of Wall Street, a venture capitalist and hard-nosed business turnaround specialist.

The notion that Newman would re-direct the Mount’s successful education formula in an effort to boost donations, rankings and student enrollment turned out to be specious and destructive.

Newman resigned last month after humiliating the deeply Catholic school with his tough corporate mindset and disregard for the Mount’s cherished culture of “liberal learning in the pursuit of truth.”

Trustees Blunder

It’s a classic case of poor judgment by college trustees and a lesson for other Maryland higher education institutions eager to run their campuses more like a business and less like an academic citadel.

The General Assembly is grappling partially with this issue in considering a consolidation of the University of Maryland’s College Park and Baltimore campuses. Supporters seek to accelerate discoveries and business spin-offs in Baltimore through joint research projects.

It’s all about turning UMCP and UMB into potent economic development engines. There’s less emphasis on preserving and enriching the traditional learning experience.

A two-campus solution may work exceptionally well for an enlarged UM in its quest to spur university-generated innovations and job-creating companies in today’s knowledge-based economy. These are research-rich institutions seeking promising synergies — more joint professorships, enhanced funding and spin-off commercial ventures.

But what about other colleges and universities in Maryland that are not nationally ranked research campuses?

Should those institutions be run more like businesses, cut corners to improve rankings and think more in terms of the bottom line than “learning in the pursuit of truth”?

Mount St. Mary’s train-wreck experience should serve as a warning.

Corporate Takeover Culture

Simon Newman was a bull in a china shop. He tried to bring the rough-and-tumble culture of business takeover artists to the Mount.

He bullied faculty and administrators, demanded absolute obeisance and embarked on a campaign to artificially inflate the Mount’s rankings by “culling” at-risk students even before they had been on campus six weeks.

Appalled faculty and administrators rebelled at what was called an “unethical” attempt to sacrifice students on the altar of enhanced rankings. One termed Newman’s actions “a heartless application of business procedures.”

The school’s provost was forced to resign. Two professors (one tenured) were fired for disloyalty.

On Wall Street, Newman’s stern leadership wouldn’t seem unusual. You take over a company, you “cull” less productive employees, you fire anyone voicing concerns about your new corporate direction, you eliminate low-profit divisions – and you do it all in a cold, cost-efficient manner.

Yet on a college campus, where shared governance with faculty reigns supreme and arguments over a school’s vision and actions are part of the landscape, such behavior is unacceptable. Newman’s corporate-style presidency left the Mount in shambles.

National education groups loudly condemned Newman. Finding a first-rate replacement could prove exceedingly difficulty. Recruiting quality faculty and students could be even more challenging.

Non-Traditional College Presidents

A few other Maryland colleges and universities have chosen non-traditional presidents, but they have avoided the Mount’s horror story.

In 2002, the University of Baltimore hired a pharmaceutical executive, Robert Bogomolny, as president. But Bogmolny also had been a law professor. It turned out to be an inspired choice (through he stoked tensions with the law school’s dean over a diversion of tuition money).

Under Bogomolny, UB was transformed into a more traditional college campus with a student union building, residential housing and an eye-catching law school building. Bogomolny’s corporate background took a back seat to his respect for academic traditions.

His successor, Kurt Schmoke, also had a non-traditional background – a lawyer turned mayor turned law school dean. His selection proved quite popular.

In 1995, Hood College had great success hiring a former Internal Revenue Service Commissioner and Justice Department lawyer, Shirley Peterson, as its president.

Goucher College turned to a former director of the Voice of America and a respected journalist, Sanford Ungar, as its president – but he also had been dean of the School of Communications at American University.

Washington College last year chose a former chair of the Federal Deposit Insurance Corporation, Sheila Bair, as its new president. An expert on financial regulatory reforms, she had taught that subject at the University of Massachusetts Amherst.

The Chestertown school previously was led by Mitchell Reiss, a veteran State Department diplomat who had cut his teeth in academia as a government and law professor and vice provost at William and Mary’s law school.

Soul-Searching

In none of these instances did university trustees select a president ignorant of the unique culture of academia. And in no other instance did the trustees seek to bring more of the corporate culture to campus.

There’s certain to be plenty of soul-searching at the Mount over what went wrong and how to return the institution to its historic mission of providing students with a warm and welcoming learning environment steeped in Catholic values.

Using rough-hewn business tactics on college campuses doesn’t work. Trustees with years of experience as corporate executives need to keep that in mind before they make the same mistake as the Mount.

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Manly Words, Manly Deeds?

By Barry Rascovar

Feb. 8, 2016 – Though lacking flair and imagination, Gov. Larry Hogan, Jr.’s second State of the State address proved a solid effort with just the right theme: conciliation and compromise.

That leaves unanswered the key question: Will these promising words be followed by matching deeds?

Manly Words, Manly Deeds?

Gov. Larry Hogan, Jr. delivers annual State of the State address in MD State House.

The governor called his speech “A Middle Temperament,” taking a page from Robert J. Brugger’s definitive state history – “Maryland A Middle Temperament 1634—1980” and from Captain John Smith’s written description of the Chesapeake’s munificent bounties in the early 1600s.

Hogan heaped ample praise on himself in the speech, taking credit for everything that went right over the past 12 months in Maryland – even if he had nothing to do with it.

For instance, he raved about Maryland’s job growth and his big budget surplus – both the result of national macro-economic factors in which any governor plays virtually no role.

Education Puffery

He boasted about his record spending on education – though that’s the result of mandated increases in Maryland’s education aid formula. Hogan didn’t lift a finger to make that happen.

He even claimed credit for being the first governor to fully fund a program giving extra education aid to higher-cost counties. This, despite the fact he cut that aid in half last year and only fully funded the program in his new budget because infuriated lawmakers made it a legal requirement.

Hogan also sounded alarm bells about Maryland’s ballooning borrowing costs. Yet the governor did little in his budget to sharply rein in borrowing over the next fiscal year.

Actions, not words, will tell us if Hogan is serious about working with Democratic lawmakers on that and other serious problems the governor discussed in his annual address.

Legislative leaders have plenty of reasons to doubt whether Hogan will follow through on his pledge to “seek middle ground where we can all stand together.”

Partisan Moves

In his early dealings with lawmakers, the Republican governor struck a partisan tone. He refused to meet them halfway. He has continued to shut them out of policy development and rarely keeps them informed about his plans before he makes a splashy PR announcement. He’s been the opposite of inclusive.

He also has lacked consistency.

Last fall, out of the blue, he announced extra education aid for three Republican counties to help them deal with falling student enrollment. Yet Democratic Baltimore City, facing a far larger and more costly enrollment plunge, got nothing.

Then last week, Hogan finally caved to demands from legislative leaders to ante up money promised by the O’Malley administration to support Prince George’s Hospital Center until a new regional medical complex is built.

Hogan did so only after the House speaker and Senate president announced they’d push through a bill forcing Hogan to put up these funds in future years.

Yet Hogan praised his action, asserting such an arrangement was long overdue – as though the O’Malley administration had dropped the ball. It was a transparent re-writing of history.

Missing Demolition Funds

In December, Hogan suddenly announced plans to pour $700 million over a number of years into Baltimore City’s housing demolition program. Yet when Hogan’s budget arrived, the first installment of demolition money wasn’t there, nor an explanation of where all that $700 million would come from.

Hogan blamed Baltimore City for this gap in his budget. He claimed the city had failed to sign a memorandum of understanding (MOU) that had been in negotiation for months.

But wait a minute: There’s no signed MOU for the Prince George’s hospital, either. Yet that didn’t stop Hogan from putting supplemental funds into his budget last week.

Where’s the consistency?

“There is so much we can find agreement on,” Hogan said in his speech. Indeed there is. But it will take more give than take from the governor – a reversal of his style from his first legislative session.

t also will take less partisan one-upmanship, less headline-grabbing announcements that blindside legislative leaders.

The opportunity is there, though, for Hogan to put together a winning legislative record this year. That will mean not only saying the right things about “finding the middle ground” but making the right moves to make compromise possible.

That may not prove popular with his hard-core conservative base, but if Hogan is serious about avoiding a rough road for his priorities and avoiding hyper-partisan gridlock in Annapolis, he’s the one who must take the initiative by backing up his conciliatory words with conciliatory deeds.

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Hogan’s Budget Dilemma

By Barry Rascovar

Jan. 18, 2016 – Tumbling oil prices, a bear market for stock and 401(k) investors and a sharp economic pullback in China and other developing countries could wreak havoc in Maryland as Gov. Larry Hogan, Jr. prepares to release his budget for the coming fiscal year.

Even before lawmakers get a chance to analyze what’s in Hogan’s conservative spending plan, the state’s revenue assumptions for the next 18 months could be out of date.Budget balancingBudget projections made by the state’s Board of Revenue Estimates just a month ago have been eclipsed by the worst-ever start-of-the-year results on Wall Street, historic drops in oil prices and stock market losses totaling a staggering $2.5 trillion in just two weeks.

This bad news comes at a terrible time for Hogan. His budget already has gone to the printers. It’s too late to make adjustments. His fiscal blueprint could be out of sync with January’s realities.

Indeed, if this worldwide gloom persists, the modest economic growth anticipated by Hogan might prove optimistic. The governor’s spending and tax-cut proposals might have to be drastically reduced – even with a large surplus in the bank.

Maryland’s economy is tied to what happens nationally and internationally.

A sharp slowdown in China’s trade hurts the Port of Baltimore and BWI Airport. Ditto for the laggard economic activity in Europe and in emerging countries.

Too Much Oil

The oil glut is leading to 250,000 layoffs in the energy sector, which will mean less work for contractors, subcontractors and suppliers throughout the country, including Maryland.

Maryland’s income tax receipts will be hurt by the plunge in stock prices. Alarmed consumers, already unnerved by talk of terrorist attacks, could continue to rein in their spending, which hurts sales tax collections.

Economists aren’t yet predicting that international woes will lead to a second Great Recession.

But weak growth could make it exceedingly difficult for Hogan to carry out his pledge to cut taxes.

While the Republican governor will propose over $400 million in tax cuts in his address to the Maryland General Assembly this week, Democratic lawmakers aren’t likely to support them if economic conditions make those tax cuts unsupportable.

U.S. Resurgence?

The best news for Hogan would be if the current batch of bad news is replaced by a sharp and lengthy bounce-back on Wall Street and an uptick in consumer spending. The U.S. economy, after all, is in far better shape than the rest of the world.

Still, we live in an era of instant international linkage. What happens in China or France or Iran or Russia affects the U.S. economy. As journalist Thomas Friedman famously wrote, “The world is flat.”

Hogan has little, if any, control over Maryland’s overall economic well-being. He can’t stop the panicked selling on China’s stock exchange, or Iran dumping more oil exports on an oversaturated world petroleum market or a Republican Congress ratcheting down federal aid to the states.

Lower gas prices were supposed to stimulate consumer spending as drivers fill up their vehicles far more cheaply. Yet so far no such bump has occurred.

Low or No Growth

Shaun Driscoll, who manages T. Rowe Price’s New Era Fund, predicts low gasoline prices could persist for the next six months and the oversupply of petroleum might linger for a couple of years.

The U.S. could find itself in a sustained period of low growth or no growth. For Hogan, that would make tax cuts problematic not only this year but in the immediate future, too.

“Risks abound,” the state’s Board of Revenue Estimates warned last month, noting the nation’s economic outlook was “subdued.”

Those observations came before the history-making plunge on Wall Street and disappointing economic news from China.

Volatility around the globe and at home makes it tough for elected officials to accurately predict the future. Extreme caution may become the watchword as budget deliberations begin in Annapolis.

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Barry Rascovar’s blog is www.politicalmaryland.com. He can be contacted at brascovar@hotmail.com.

2015’s ‘Dumb & Dumber Award’

By Barry Rascovar

Before we get too far into the New Year, let’s dispense with the Maryland political maneuver deemed as the low point of 2015: Civil rights advocacy groups waited till the very end of the year to file the worst and most counter-productive legal complaint that’s been filed in a long, long time.

The groups, including the NAACP Legal Defense and Education Fund and the American Civil Liberties Union, are essentially suing Gov. Larry Hogan administratively for daring to kill the $2.9 billion Red Line rapid rail route through Baltimore. Their reasoning: Hogan made a racially discriminatory decision that harms African Americans in Baltimore City.Red Line logoNot only is the complaint historically inaccurate, it is pointless and damaging to their cause. For this publicity-seeking waste of time and energy, the groups’ complaint richly deserves 2015’s “Dumb and Dumber Award.”

Leap of Logic

Republican Hogan has been heavily criticized for cancelling the Red Line project, but racial bigotry isn’t one of the charges that sticks.

Not only is it a stretch to make that wild accusation, there’s no evidence to back up the charge.

Did Hogan sit in his office plotting the death knell of the Red Line so he could keep African Americans “in their place”? Did he divert most of the Red Line money to rural and suburban highway projects as a discriminatory move against blacks?

The accusation is preposterous on its face.

Protesters even claim the Red Line was a vital piece of the state’s plan to remedy racial disparities, and that rejecting the Red Line was part of an historic pattern of racially imbedded transportation decisions by state governors.

Pure hogwash.

Red Line History

Never once in all the years I have reported and commented on the Red Line project have I heard such a distorted argument.

Never once did the Democratic O’Malley administration or the Republican Ehrlich administration make the argument that they wanted to proceed with the Red Line because of its civil rights implications.

Never once did the Hogan administration even hint at a racial motive for stopping the Red Line in its tracks.

The civil rights groups are far, far off-base.

Yes, cancelling the Red Line, and the $900 million in federal funds, ranks as the most boneheaded decision of the century (so far) in Maryland.

Yes, it will harm African Americans in Baltimore – but also whites, Hispanics and Asian-Americans in both Baltimore City and Baltimore County.

But Hogan’s move was largely a political decision. Racial discrimination didn’t enter into the discussion.

Not Worth the Cost

He did it because he’s a rigidly conservative Republican who hates big government spending projects that primarily benefit Democratic strongholds. He didn’t feel this controversial construction undertaking was worth the huge outlay of state funds.

He wrongly called the Red Line a “boondoggle” because in his mind any oversized project that won’t help his voter base in rural and suburban Maryland isn’t a priority.

He called the Red Line “unaffordable” even though it clearly could have been downsized and revamped to make it more cost-efficient and make it fit into the state’s long-term transportation budget.

Nixing the Red Line was decided by Hogan long before he took office.

He promised during the 2014 campaign to kill the Red Line. Race had nothing to do with it; conservative ideology had everything to do with his decision.

The civil rights groups also make the argument Maryland has a long history of racially discriminatory transportation and housing decisions.

Excuse me, but how did housing get into this argument over building the Red Line?

Not in My Neighborhood

There’s no doubt housing discrimination was at play in the Baltimore region over the past 100 years. My former colleague at The Baltimore Sun, Antero Pietila, brilliantly presents the case against the federal, state and city governments for their racially biased housing policies in his book, “Not in My Neighborhood.”

But the issue here is transportation, not housing.

Where did the civil rights groups get the idea that building Baltimore’s Central Light-Rail Line and the region’s Metro Line were purposely designed to discriminate against blacks?

That’s buncombe. It rewrites history to fit the groups’ distorted, conspiratorial world view.

Marvin Mandel built the Red Line not to serve white Marylanders but because there was a right-of-way available from the old Western Maryland Railroad that ran through Northwest Baltimore City and Baltimore County.

Today, Baltimore’s first mass-transit rail line well serves areas that are both black and white, as well as Hispanic.  Even the line’s county stations serve a very large and growing African American community.

Key Right-of-Way

William Donald Schaefer built the Central Light-Rail Line because there was an abandoned right-of-way available — the former Northern Central Railroad route. It was a cost-and-efficiency engineering decision. The goal, then as now, was to make public transportation to jobs, stores and entertainment easier for EVERYONE – especially those living in Baltimore City.

Neither Mandel nor Schaefer posed as George Wallace seeking to deny blacks better public transportation. Quite the opposite. Race was never a factor in their decisions to build those routes, plain and simple. It did not enter into discussions.

There’s no question Baltimore lacks quality public transportation. There’s no question the city and the state should have done a better job anticipating the need for a comprehensive, coherent and connected mass-transit system that gets low-income adults to job sites.

It’s been a huge failure by state and local officials.

You can blame it on politics, both in Annapolis and in Washington. But you cannot blame Baltimore’s sorry transportation situation on racial discrimination.

Civil rights groups are wasting time and money on this canard. There are important civil rights issues confronting Baltimore at this time, but not the Red Line’s demise.

Fait accompli

The civil rights groups’ complaint to Washington bureaucrats contains another huge leap of illogic: It’s too late to undo what’s been done.

Hogan killed the Red Line. It’s a fait accompli. The federal government is redistributing that $900 million to other cities that weren’t stupid enough to turn their backs on such a huge federal gift.

You can’t revise history to satisfy your wishes. The Red Line money from Washington is gone. A civil rights complaint, even if upheld, won’t make that money reappear.

Besides, who’s to say the Red Line would have solved Baltimore’s discrimination woes? Since when did these civil rights groups become experts in the most advantageous public transportation modes for Baltimore residents of color?

How do they view Hogan’s decision to spend $135 million on improving Baltimore’s sub-par bus system? That’s a whopping amount of money for such an undertaking that will primarily benefit the city’s lower-income workers and residents.

Is that part of the discrimination conspiracy, too?

What a distraction.

These civil rights groups should be ashamed. Demonizing Larry Hogan for unfounded civil rights affronts is a terrible mistake that politicizes the legitimate work of those groups. It polarizes the situation and needlessly antagonizes the one person who holds the purse strings for future transportation projects.

The complaint hurts, rather that helps, Baltimore City in its appeals to Annapolis at a time when the city needs all the help it can get.

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Dump Those Hateful Lyrics

By Barry Rascovar

Jan. 4, 2016 – I strongly disagree with “politically correct” crowds that frequently seek to re-write history for their own present-day purposes. But when it comes to the hateful lyrics of Maryland’s official state song, I say quite emphatically, “Dump them.”

The words to “Maryland, My Maryland,” composed by an emotionally wrought Rebel sympathizer, James Ryder Randall, are despicable.

Dump Those Hateful Lyrics

James Ryder Randall

Abraham Lincoln is called a despot. Those supporting the United States rather than the Confederacy are called “Northern scum.”

The poem is a blatant call for Maryland to separate from the U.S. and join the Confederacy.

It’s a blood-thirsty state anthem, written in New Orleans by the 22-year-old Randall following the first casualties of the Civil War during Baltimore’s Pratt Street riot of April 1861.

Rebel Call to Arms

Thus the words:

“Avenge the patriotic gore

That flecked the streets of Baltimore,

And be the battle queen of yore, Maryland! My Maryland!”

Randall, who spent most of his adult life far from Maryland in Augusta, Georgia and other Southern outposts as an editorial writer, quickly became a hero among Southern separatists.

His words, set to a catchy German college tune that we know today as “O Tanenbaum” or “O Christmas Tree,” caught on with Rebel soldiers and supporters.

Why such mean-spirited, blood-curdling words would come to represent the state of Maryland – whose citizens were decidedly mixed in their views of the Civil War – remains cloaked in mystery.

Adopting a State Song

Republican Gov. Harry Whinna Nice vetoed a bill making Randall’s lyrics the state song in 1935. He felt the words were inappropriate. Nice was on the mark.

But the next governor, conservative Democrat Herbert R. O’Conor, went along with legislators, especially those from rural parts of Maryland with Southern sympathies. O’Conor signed the bill making “Maryland, My Maryland” the state song in 1939.

Big mistake.

Other states have dumped offensive lyrics in their state songs. Florida did it twice (“Swanee”), Kentucky did it (“My Old Kentucky Home”) and so did Virginia (“Carry Me Back to Old Virginny”).

Yet for 20 years, Maryland legislators have refused to get rid of lyrics that don’t come close to representing the state’s citizens. The words are hateful, viciously un-American and written to encourage Maryland to secede from the United States.

It is past time to reverse that dreadful decision by the 1939 General Assembly and Governor O’Conor.

Correcting a Mistake

This is not, as Gov. Larry Hogan, Jr. put it recently, “political correctness run amok.”

He needs to re-think his position. Randall’s lyrics never should have been allowed to represent Maryland’s citizens. Does he really want school children singing those words?

Hogan’s right that the “PC Crowd” frequently careens out of control trying to revise history to further their own current-day ideological goals.

Taken to an extreme, this would mean tearing down the Washington Monument and re-naming the District of Columbia because George Washington owned hundreds of slaves, frequently ordered severe whippings and refused to liberate them until after his death.

It would mean tearing down the Jefferson Memorial and removing Thomas Jefferson’s face from American currency because he, too, owned hundreds of slaves and conceived children with them.

It would mean melting down the austere statue of Roger Brooke Taney on the grounds of the Annapolis State House because of his refusal as Chief Justice of the Supreme Court to abolish slavery. Taney’s other sensible and forward-thinking Supreme Court opinions, and his extremely important work in Andrew Jackson’s Cabinet, would be ground into dust.

Byrd Stadium No Longer

The PC Crowd already had its way at the University of Maryland, College Park, where the name of Harry C. Byrd was erased from its football stadium – even though Byrd, who tried vigorously to keep Negroes out of University of Maryland colleges, arguably did more to turn UM into a first-rate state university than any of his successors.

“You can’t change history, and we’re not going to be able to rewrite history,” Hogan said. That’s true. The past is water under the bridge, it is time that already has ticked off the clock.

We can, though, learn from mistakes of the past. We can glean a greater understanding of the flawed decisions of former leaders and why those mistakes happened – so that we, in the present, don’t make similar mistakes.

As philosopher George Santayana wrote in 1924, “Those who cannot remember the past are condemned to repeat it.”

Lessons from Yesterday

Hogan should learn from Governor O’Conor’s mistake in 1939. He should review and learn from Governor Nice’s courageous veto in 1935.

There’s nothing sacred about a state song, especially one that fiercely and savagely promotes secession.

It makes sense to follow the suggestion of an advisory panel to replace Randall’s odious lyrics with words that better represent Maryland’s history and its citizens’ good intentions.

Overturning a legislative and gubernatorial mistake made 77 years ago isn’t a matter of political correctness.

It’s common sense that ought to be supported on a bipartisan basis in the State House.

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Barry Rascovar’s blog is www.politicalmaryland.com. He can be reached at brascovar@hotmail.com

Hogan’s Happy Holidays

By Barry Rascovar

(From The Community Times (a publication of the Carroll County Times)

Dec. 23, 2015

What a whirlwind year this has been for Gov. Larry Hogan, Jr. He’s seen phenomenal highs and
lows.

The year’s emotional peak came with his swearing-in as Maryland’s 62nd governor. The low point came when Hogan announced he had been diagnosed with advanced non-lymphoma Hodgkin’s disease that required prolonged and extensive chemotherapy.

As we near the end of 2015, Hogan has every reason to celebrate the holidays with joy and optimism.

Hogan's Happy Holidays

MD Gov. Larry Hogan, Jr.

Hogan’s cancer is gone, oncology specialists at the University of Maryland Medical Center have told him; his hair is slowly growing back and his future looks sunny.

On the political front, Hogan goes into the holidays with high approval ratings. For a Republican governor in a heavily Democratic state, that is heartwarming.

A note of caution is in order, though, at this time of good cheer and warm wishes.

Hogan’s high approval could be fleeting. Governors always see their ratings sink during legislative sessions when there’s controversy swirling around executive department proposals.

So Hogan can expect his numbers to drop when the General Assembly convenes next month.

No 2016 Honeymoon

This will be Hogan’s second legislative session. The first was pretty much a honeymoon for the new chief executive — except for a nasty tug-of-war over education funding. This time, Democratic leaders will be more aggressive in opposing Hogan initiatives. There won’t be an extended honeymoon.

Hogan has to keep in mind that Democrats will be far more anxious to criticize the Republican governor and block his proposals.

They don’t want to give him victories that might lead to his re-election.

So this winter could be a rocky period for the governor as Democratic leaders in the General Assembly try to gain the upper hand.

Hogan needs to remember that the most recent Republican governor also had high approval ratings through most of his term — only to lose his re-election bid.

At a similar stage of his governorship, Bob Ehrlich enjoyed very strong poll numbers, yet it wasn’t enough to win him another four years in office.

Inevitable Push-back

Next year could be a pivotal year from Hogan’s governorship. He’s had time to figure out how to run this huge ship of state. He now knows what he wants to change.

Streamlining government sounds easy in principle. Getting rid of costly and pointless regulations couldn’t be that hard, right?

Think again.

For every action Hogan takes to eliminate government rules and regulations, there will be an equal and opposite reaction from politicians and groups that fought hard to put those mandates on the books.

Similarly, if Hogan follows up on recommendations by his task force to reorganize state departments and agencies, he can expect fierce opposition.

Quarrels or Cooperation?

The governor will be tested on his ability to work cooperatively with Democrats in the legislature. Hogan got into a needless quarrel last time over education aid and then refused to compromise.

If the same things happens in 2016, there could be gridlock in Annapolis.

Hogan has a lot going for him right now. His public fight to overcome cancer won him countless admirers. He cut highway tolls — a popular move. He has avoided hot-button social issues that could stir an uprising against him.

But can he make headway on his key issues, such as reducing government spending and lowering taxes? Those will be tough to sell to Democrats, who see a need for more, not less, help from government for society’s underclass.

This year turned out to be a blessed one for Larry Hogan. Politically, though, he faces some daunting challenges in the year ahead.

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