The Week Ahead (Cyber Monday Edition)

Welcome back from the Thanksgiving break! Last week - in addition to consuming copious amounts of turkey, stuffing, cranberries, and pie - we blogged about #GivingTuesday (which is tomorrow) and the latest good news about employment in Maryland.

Neil Bergsman also appeared in a Washington Examiner story about upcoming MD budgets. We've asked the Examiner to clarify that MBTPI is not in favor of increasing the corporate tax rate. We do support a combination of reducing Maryland’s corporation tax rate while broadening the base - by reforming the tax code to make it harder for multi-state corporations to use accounting maneuvers to escape Maryland’s tax. This could modestly increase state revenues and reduce taxes for local businesses while making sure that large multi-state corporations pay their fair share. Neil also appeared in a story on holiday giving for the Gazette.

Today is also Cyber Monday, the traditional day when office workers spend their work hours shopping for online deals. Finding a deal online is fun, but remember that Maryland will lose $200 million dollars in owed but unpaid sales tax to internet retailers this year. Not only is that lost revenue for the state, but it represents more than $3 billion in lost revenue for local businesses and fewer Maryland jobs.

Monday, November 26th

• Alcoholic Beverages Article Review Committee reviews material dealing with the conditions for issuing licenses. 5pm in Judiciary Training Room 3, 2009F Commerce Park Drive, Annapolis.
• Community Services Reimbursement Rate Commission meets. 6-8pm in the basement conference room, Mental Hygiene Administration, 55 Wade Avenue, Dix Building, Catonsville.

Tuesday, November 27th

• Maryland Nonprofits, MBTPI, and many other nonprofits around the country take part in #GivingTuesday. You've heard of Black Friday, Small Business Saturday, and Cyber Monday. Now celebrate the important work done by nonprofits and give back to your community on #GivingTuesday.
• Land Use and Ethics Subcommittee and the Local Government and Bi-County Agencies Subcommittee (both a part of the House Environmental Matters Committee) jointly meet to review the "flags" identified in the new Land Use Article. 10am in room 250, House Office Building, Annapolis.
• Joint Information Technology and Biotechnology Committee meets to discuss digital textbook use in Maryland, electronic medical records, the Maryland Innovation Initiative, Cigarette Restitution Fund grants, stem cell research grants, and Invest Maryland. 1pm in room 231, House Office Building, Annapolis.
• Task Force on the Establishment of a Statewide Spay/Neuter Fund meets. 1pm in room 250, House Office Building, Annapolis.
• Interagency Committee on School Construction meets via teleconference to discuss the Baltimore City Block Grant MCR draft report. 3:30-4:30pm on the 8th floor, conference room 1, 200 W. Baltimore Street, Baltimore.
• Maryland Nonprofits offers Enhance Your Individual Donor Program. This is a Maryland Nonprofits training program, for more information or to register go to their events page.

Wednesday, November 28th

• Capital Budget Subcommittee and the Health and Human Resources Subcommittee (both a part of the of the House Appropriations Committee) goes on a site visit to the Prince George's County Health Care System. The visit begins at 11am. 
• House Environmental Matters Committee holds its retreat to discuss legislation for the next legislative session. 9am in room 250, House Office Building, Annapolis.
• Senate Education, Health and Environmental Affairs Committee and House Environmental Matters Committee jointly meet for a presentation on proposed regulations stemming from the Sustainable Growth and Agriculture Preservation Act of 2012. The presentation will be given by the Department of the Environment. 1pm in room 250, House Office Building, Annapolis.
• Joint Committee on Unemployment Insurance Oversight meets to discuss the status of the Unemployment Insurance Trust Fund, tax tables for 2013, the impact of the Modernization Act from 2010, implementation of the Victims of Domestic Violence Act from 2012, the legislative audit of the Division of Unemployment Insurance, and unemployment benefits for individuals unable to work due to cancer in other states. 9am in room 3 East, Senate Office Building, Annapolis. 
• Bureau of Labor Statistics releases metropolitan-level employment figures for October. 
• Maryland Nonprofits offers Forming a Nonprofit: Paperwork. This is a Maryland Nonprofits training program, for more information or to register go to their events page.

Thursday, November 29th

• Maryland Medicaid Advisory Committee meets. 1-3pm in the lobby level conference room, L-3, 201 West Preston Street, Baltimore.
• Maryland Nonprofits offers Streamlining Your Marketing Through Content Strategy. This is a Maryland Nonprofits training program, for more information or to register go to their events page. 

21,000 more Marylanders employed

Yesterday Maryland received some good news from the Bureau of Labor Statistics when the latest jobs report showed that 20,977 more residents were employed in October than September. 5,104 fewer Marylanders were unemployed, and the unemployment rate dropped two tenths of a percentage point to 6.7 percent.

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The state added a total of 14,000 new jobs during the month. The largest increases were in the professional and business services industry (+3,900); trade, transportation, and utilities (+3,700); leisure and hospitality (+3,700). The construction (+2,300), financial activities (+1,700), and education and health services (+2,700) industries also added jobs. Manufacturing (-2,300) and government (-2,700) lost jobs.

This is the lowest Maryland's unemployment rate has been since May, and the most private sector jobs created in one month since 1996.

While this is great news, there are still more than twice as many unemployed Marylanders as there were before the Great Recession. As Governor O'Malley develops the budget he will submit to the legislature in January, we urge him to continue to support and expand programs for struggling families all across Maryland.

Giving Tuesday

This is an edited version of a post that originally appeared on the Maryland Nonprofits blog. Dawn Edwards, Director of Development for Maryland Nonprofits (our parent organization), is the author.

The holiday season is upon us…  If you failed to notice, you’re one of the lucky few that haven’t seen holiday decorations (already!!) festooning storefronts; and you’ve somehow avoided bombardment by Black Friday, Small Business Saturday, and Cyber Monday sales ads.  I can’t help but wonder, “what’s the rush?”  We barely have time to give thanks before we are encouraged to leave our tables to shop for that “perfect present” for everyone on our list.

This year there is  an alternative to the corporate takeover of the holiday season… it’s called #Giving Tuesday^TM.

#GivingTuesday, scheduled for Tuesday, November 27th, is a special call to action, culminating in a new, national day of giving. It is the first effort of its kind, designed to harness the collective power of a unique blend of partners – charities, families, businesses, and individuals – to transform how people think about, talk about, and participate in the holiday giving season.  The goals are to inspire people to take collaborative action to improve our communities, give back in better, smarter ways, and to help create a better world.  

If you are a nonprofit organization you can be a part of this ‘opening day’ to the giving season by becoming a partner.  Between now and November 27th, tell your donor community (really everyone in your network) about #GivingTuesday to inspire early giving…before the year-end tax deduction rush we are all too familiar with. 

As individuals, we encourage you be a part this new day dedicated to giving by donating to your favorite causes.  And spread the word about #GivingTuesday to everyone you know!

#GivingTuesday will prove that the holidays can be about both giving and giving back.  It will celebrate Americans doing more with their wallets than just shopping – and that we Americans can give as good as we get!

With just 7 days left until #GivingTuesday, how do you plan to "Get out the Give" this giving season?!

More information...
Read the Maryland Nonprofits press release on #GivingTuesday
#GivingTuesday on Twitter
#GivingTuesday on Facebook

The Week Ahead (Thanksgiving Edition)

Registration is now open for our annual Legislative Preview!  On Monday, January 7th Maryland Nonprofits and MBPTI will convene public officials, legislative experts, and advocacy leaders at the Doubletree Annapolis Hotel to bring you important information about the upcoming legislative session. If you want to start off the session informed and prepared, you can’t miss our legislative kick-off. For registration information please go to Maryland Nonprofits event page.

Last week we hosted a guest blog from Henry Bogdan, Managing Director of Public Policy and Public Affairs for Maryland Nonprofits, on the variation in support for the various ballot measures across Maryland. We also posted a great infographic about growing income inequality in Maryland and a summary of last week's Spending Affordability briefing. Neil Bergsman also appeared in the Washington Examiner, in an article on the need for new sources of transportation funding.

Tuesday, November 20th

• General Provisions Article Review Committee reviews drafts of Title 4 "Public Information Act" and Title 7 "Emblems; Designations; Commemorative Days and Months." 5pm in room 241, House Office Building, Annapolis.
• Maryland Commission on Artistic Property meets to discuss the state's art collection. 10:30am at the Washington County Museum of Fine Arts, 401 Museum Drive, Hagerstown.
• Bureau of Labor Statistics releases state employment figures for October. In September, Maryland's unemployment rate fell to 6.9 percent as 11,000 people found work.

Immediate budget problem evaporating – serious challenges remain

Maryland’s budget deficit for fiscal 2014 is nearly gone. The legislature’s fiscal staff recently briefed the Spending Affordability Committee and presented new estimates. These incorporated revised estimates of state debt service requirements and casino revenues.

Source: Dep't of Legislative Services

The result is a projected shortfall of only $27 million. In the context of a total budget of $35 billion, that is essentially balanced.

Does that mean the Governor and legislature don’t have any budget work? Hardly. There are three big, big challenges.     

1.  The fiscal cliff. As we have shown, an impasse on the FEDERAL budget would have severe effects on Maryland’s economy and budget. The White House and Congress must achieve a responsible compromise that avoids precipitous cuts and middle-class tax increases, but that significantly reduces the federal deficit over time. Legislative staff recommended that the upcoming Maryland budget should leave a positive fund balance of $200 million as a buffer.
2. The structural deficit. Even though Maryland has virtually balanced its budget for the upcoming year, the state’s finances are not yet sustainable for the long haul. The projected budget for the upcoming year – fiscal 2014 - could be balanced without much effort because there’s a ¾-billion-dollar surplus to start the year. If we finance the budget by spending down that surplus, then revenues will continue to fall short of expenses after the balance is gone, and the state will be looking at budget shortfalls again in a year or two. So the Governor should propose ongoing revenue increases or spending reductions to bring the budget into long-term balance. One idea for raising revenues is an increase in the tax on cigarettes proposed by the Maryland Citizens’ Health Initiative. This would help balance the structural budget and reduce future health expenses by discouraging smoking.
3. The Transportation Trust Fund. Like most states, Maryland has a special, dedicated fund to pay for roads and other transportation projects: the transportation trust Fund. The gas tax, the transportation fund’s major revenue source has not increased since 1992. And the gas tax does not adjust to account for inflation or for fuel process. The fund is now running out, and without new revenues there will not be enough money for any new construction of roads or mass transit. Maybe not enough to cover operation and maintenance of what we have now. The 2013 legislature will need to consider increasing the gas tax for the first time in 20 years.

Growing income inequality in Maryland

Our friends at the Center on Budget and Policy Priorities and the Economic Policy Institute have released a new report looking at the growth in income inequality between the top, middle, and bottom of the income spectrum. They've created a great infographic about how inequality in Maryland has widened in recent decades:

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This prolonged growth in income inequality undermines the basic American belief that hard work should pay off. Continued growth in income inequality would harm our state’s future economy. Policies that narrow rather than widen income inequality will help Maryland recover from the downturn and grow our economy into the future. Policies such as:

• Promoting access to education and job training for tomorrow's labor market.
• Continued growth in investments in transit, childcare, and other programs that help workers connect with employers and keep jobs once they're hired.
• Other protections for low-wage worker incomes such as paid sick leave.

Growing income inequality is bad for Maryland and policymakers should pursue policies that narrow – not widen – income gaps.

Though Statewide Ballot Passed, Support Varied by County...

This post originally appeared on the new Maryland Nonprofits blog. Henry Bogdan, Managing Director of Public Policy and Public Affairs for Maryland Nonprofits, is the author.


Everyone has probably heard by now that the three seriously contested statewide ballot questions all passed last Tuesday.

These include:

1. Question 4 - the “Dream Act”
2. Question 6 - the Civil Marriage Protection Act
3. Question 7 - the Constitutional Amendment permitting expanded gaming
   

Although they  passed on a  statewide basis, the support for each of these varied by county.  Nonprofit advocates or others attempting to work with members of the General Assembly should review how those legislators’ constituents (or at least the voters in their counties) dealt with these questions.  Delegates and Senators will certainly be aware of the results  when they are called on to vote for progressive or controversial legislation between now and the 2014 state elections.   The results are summarized below with links to the county-by-county votes reported for each question on the State Board of Elections’ website.

Question 4 – Dream Act
Passed statewide by 58.3 to 41.7% - but had a majority in only eight jurisdictions: Baltimore City and Baltimore, Charles, Howard, Montgomery, Prince George’s, Somerset and Wicomico Counties.
   
Question 6 – Civil Marriage Protection
Passed by a 51.9 to 48.1% margin, with a majority in only six jurisdictions: Baltimore City and Anne Arundel, Baltimore, Frederick, Howard, and Montgomery Counties.

Question 7 – Expanded Gaming Constitutional Amendment
Passed by 52 to 48% statewide, and in 12 of the state’s 24 jurisdictions: Baltimore City and Allegany, Calvert, Charles, Frederick, Montgomery, Prince George’s, St. Mary’s, Somerset, Washington, Wicomico and Worcester Counties.  
The ‘closest’ vote either way in a county was Question 7’s loss in Dorchester county, by 61 votes (6,901 to 6,962)

The entire set of ballot question results is available on the State Board of Elections' website.

The Week Ahead

Yesterday was Veterans Day, when we honor those who served in our nation's military. This weekend was also the start of National Hunger and Homelessness Awareness Week. In a country where 67,000 veterans are homeless on any given night, this week serves as a poignant reminder that the best way to honor our veterans is to take better care of them than we currently do. Baltimore City alone has roughly 350 homeless veterans.

MBTPI was in the news several times in the lead-up to last week's election. We also blogged our reflections about the election and its potential effect on Maryland's budget.

Tuesday, November 13th

• Spending Affordability Committee meets for its second briefing from the Department of Legislative Services (DLS). This time DLS will present on transportation, capital, and state debt. 4pm in room 120, House Office Building, Annapolis.
• Joint Committee on Workers' Compensation Benefit and Insurance Oversight discusses the annual report by the Worker's Compensation Commission and other worker's compensation issues, including cancer presumption. 11am in room 231, House Office Building, Annapolis.
• Joint Subcommittee on Program Open Space and Agricultural Land Preservation receives an update on land conservation policies, funding and programs. 2pm in room 3 East, Senate Office Building, Annapolis.
• Advisory Council for Alternative Response holds its monthly meeting. 1pm in room 1044, Department of Human Resources, 311 West Saratoga Street, Baltimore. 
• U.S. Treasury Department releases federal budget numbers for October, including the national deficit.  
• Center for Community Service and Justice at Loyola University Maryland hosts a screening of The Line, a film about Americans living at or below the poverty line. 7pm in Cohn 133 (room below the chapel), 4501 North Charles Street, Baltimore.
• Maryland Nonprofits offers a Maximize Your Member Benefits webinar. For more information or to register go to their events page.

Wednesday, November 14th

• Special Joint Committee on Pensions meets for an update on the system actuarial valuation report, system funding study, and investment overview. 2pm in room 120, House Office Building, Annapolis.
• Task Force on the Establishment of a Statewide Spay/Neuter Fund discusses presentations on the implications of a rabies surcharge and a survey of public attitudes toward establishing a statewide spay/neuter program. 1pm in room 250, House Office Building, Annapolis.
• Board of Public Works meets. 10am in the Governor's Reception Room on the second floor of the State House, Annapolis..
• Maryland Campaign for Paid Sick Days kicks off with an event featuring worker's rights activist Ellen Bravo and Delegate John Olszewski, Jr. Everyone gets sick and everyone deserves time to get better without risking their economic stability, yet 800,000 Marylanders are forced to make impossible choices: Go to work sick, send an ill child to school, or stay home and sacrifice much-needed income, possibly risking job loss. Learn how paid sick leave benefits business, improves public health, and protects families. Lunch is provided at this free event, but registration is required. 11:30am to 1pm at Westminster Hall, 519 W. Fayette Street, Baltimore.
• Census Bureau posts data on retail sales in October.
• Bureau of Labor Statistics (BLS) releases the October Producer Price Index.
• Maryland Nonprofits offers a financial management training on Project-Based Financials. For more information or to register go to their events page.
• Maryland Nonprofits presents the next offering in their ongoing Policy Webinar Series: Developing an Advocacy Policy. For more information or to register go to their events page.

Thursday, November 15th

• Maryland Health Care Commission meets. 1pm in conference room 100, Maryland Health Care Commission, 4160 Patterson Avenue, Baltimore.
• BLS releases the October Consumer Price Index, the primary inflation indicator.
• BLS also releases initial unemployment claims data for the previous week. Analysts expect an uptick due to the effects of Hurricane Sandy. 
• Maryland Nonprofits offers a webinar on Compiling Board Member Bios. For more information or to register go to their events page.

Friday, November 16th

• Maryland Advisory Commission on Manufacturing Competitiveness holds a board meeting. 2pm in the 17th floor conference room at the World Trade Center, 401 East Pratt Street,  Baltimore.

Reflections on the election

Now that the glow from all that late night election-return television watching has faded, we thought we'd share some thoughts about the impact of the election on Maryland going forward.

The most important issue facing Maryland in the next three months is the looming fiscal cliff (or slope, as some have called it). Either the lame duck or the newly elected Congress will have to decide what, if anything, to do about expiring federal tax cuts and the mandatory spending cuts (known as sequestration) set for January. While both measures might help reduce the federal deficit in the short-term, the long-term effects would be devastating in human terms, and would likely push the country back into recession. The Washington Post has collected a number of graphics together to help explain the fiscal cliff at the national level.

In Maryland, the effects of falling off the fiscal cliff would be multiple. The state would see an immediate reduction in federal aid of $117.6 million (see pages 22-24) due to sequestration in fiscal year 2013. The state would also lose up to 53,500 jobs and $268 million in personal income and sales taxes, the largest local revenue sources for the state. This loss of revenue and increased demand for services by the newly unemployed would put significant pressure on the state's budget. The effect in later years would be even more severe.

Not to mention the cuts in federal aid to county and local governments.

Gambling expansion passed, and would raise some additional funds for the state. However, the increase in revenue for FY 2013 would be a bare $58 million, with not more than $200 million per year by 2017.Plus - the Department of Legislative Services' budget projections assumed that the referendum would pass. So the money is not "extra." it's already accounted for in the projections.


It seems unlikely that Congress will address the fiscal cliff before America falls off it. More likely is that the newly elected Congress takes up the issue after the fact early next year. It's unclear what the solution to the current gridlock might be, however. Voters mostly maintained the status quo last night. Democrats still control the White House and the Senate, while Republicans retained control of the House of Representatives. The hyper-partisan polarization that created the fiscal cliff will probably not abate.

Complicating matters for Maryland, the governor will likely have to present his budget to the General Assembly before the matter is resolved. The governor may reserve some amount in the budget to serve as a contingency for the fiscal cliff or it's resolution. or he may submit a budget in January based on the most reasonable assumptions, and leave it to the legislature to make adjustments as the budget bill works through the legislative process. If there is no answer when the legislature take final action on the budget in late march or early April (and that would be bad), then the Governor may propose adjustments to the budget for approval by the Board of Public Work after the budget is enacted.

In short, the national election - whatever else it accomplished - has done little to reduce Maryland's level of budget uncertainty.

The Week Ahead (Election Edition)

Tomorrow is election day, and MBTPI encourages everyone to vote. This is an important election year for Maryland, with a number of ballot issues affecting the state's budget and vulnerable populations. We have not taken a position on any particular ballot issue; however, readers may be interested in our analysis of Question 7, the gambling expansion referendum. You can find out where your polling location is and look at a sample ballot ahead of time on the Board of Elections website.

Last week Gazette.net quoted Neil Bergsman about the effect sequestration would have on Maryland, and Reuters highlighted our brief on expanded gambling. I also blogged about the national employment figures for October.

Tuesday, November 6th

• House Health And Government Operation Committee meets for a briefing on naturopathic medicine. 2pm at the John Hopkins Hospital Sheikh Zayed Tower, room 2069B, 1800 Orleans Street, Baltimore.
• Election Day 2012. Maryland voters decide several issues with budget and policy implications, including whether to expand gambling, the DREAM Act, redistricting, and same sex marriage.

Wednesday, November 7th,

• House Health And Government Operation Committee holds briefings on access to habilitative services (HB 1055); proposed clinical laboratory regulations (Relates to HB 66); the Prince George's County Health System; and the recent meningitis outbreak and regulation of facilities that compound drugs. 1pm in room 240, House Office Building, Annapolis.
• Joint Committee on Children, Youth, and Families meets to discuss local management board budget considerations. 10am in room 130, House Office Building, Annapolis.
• Task Force to Study Maryland Insurance of Last-Resort Programs meets for a discussion comparing the four insurer of last resort programs. 2pm in room 231, House Office Building, Annapolis.
• Health Services Cost Review Commission meets. 10am in room 100, 4160 Patterson Avenue, Baltimore.
• Maryland Nonprofits offers Major Gifts: Not the Impossible Dream. This is a Maryland Nonprofits training; for more information or to register go to their events page.

Thursday, November 8th

• Joint Committee on the Management of Public Funds receives an update from the Comptroller and Treasurer, and a review of local government audits by the Office of Legislative Audits. 1pm in the William Amoss Hearing Room, 4th Floor, Senate Office Building, Annapolis.
• Maryland Health Insurance Plan Board of Directors meets. Topics include medical claims review, the quarterly financial review, a federal update, application and enrollment Reports, a procurement update, COMAR update, and Executive Director search update. 9am in Suite 630, 1 Calvert Plaza, 201 E. Baltimore Street, Baltimore.
• Maryland Advisory Council for Virtual Learning discusses the history and status of online learning in Maryland. 1-3pm in conference rooms 6 and 7, 200 W. Baltimore Street, Baltimore.

Friday, November 9th

• Board of Social Work Examiners meets. 11am in room 109, Metro Building, 4201 Patterson Avenue, Baltimore.

US employers added 171,000 new jobs in October

October saw employers add 171,000 new jobs, the 32nd straight month of growth, according to this morning's report by the Bureau of Labor Statistics. Job seekers were more optimistic, as 578,000 of them joined (or rejoined) the labor force. Because of the growth in labor force participation, the unemployment rate was essentially unchanged, rising just one tenth of one percentage point to 7.9 percent.

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The employment story among subgroups remains essentially the same. Unsurprisingly, whites, Asians, and the more highly educated continue to have lower unemployment rates than African Americans or Hispanics, teenagers, or those without high school diplomas. The unemployment rates for blacks and those without high school diplomas actually rose .9 percentage points, while the rates for most other groups were relatively stable.

The greatest numbers of new jobs in October were in retail, education and health services, and leisure and hospitality. Industries that lost jobs included mining and logging, the auto industry, and government.

The national economy is limping forward as Maryland's economy continues to deliver moderately good news. However, the future of this recovery depends in large part on what Congress does or does not get done in the next six months. The threat of sequestration, combined with expiring tax cuts and other measures, looms over every economic model and state budget. Last months' Spending Affordability briefing highlighted the potential negative effects of Congressional inaction: $117.6 million in lost direct federal aid, up to 60,000 lost jobs, and a further $635 million in lost state revenue due to smaller state income and sales tax collections.