Week Ahead (The New Year Edition)

On Sunday, the Baltimore Sun printed Neil's letter to the editor showing that Maryland's Millionaires are mostly remaining in Maryland, that interstate migration is at low levels, that people move both ways in nearly equal number, and that the average income of people who leave Maryland is less than the average of those who stay. In short, there's no exodus of millionaires from Maryland, and migration decisions are related more to people's individual life events than to tax calculations.

2013 is just around the corner, and so is the legislative session! Don't miss our Legislative Preview next Monday, January 7th at the Annapolis Doubletree Hotel.  If you want to start off the session informed and prepared, our legislative kick-off is the place to be. For more information and to register go to Maryland Nonprofits' event page.

As the holiday season reaches its conclusion, there's a light schedule of public meetings this week.

Wednesday, January 2nd

• Board of Public Works meets. 10am in the Governor's Reception Room, State House, Annapolis.

Happy New Year!

The Week Ahead

Last week Neil blogged about the continued moderately good news coming out of the Board of Revenue Estimates, and the recommendation of the Spending Affordability Committee. However, as Neil points out Congressional action or inaction may still have a large effect on Maryland's budget.

The new General Assembly website has gone live. There are still a few glitches, but advocates should familiarize themselves with the new website now before the start of session 2013.
 
Monday, December 17th

• Alcoholic Beverages Article Review Committee meets to complete its review of material dealing with multiple licensing plans (Various Titles, Subtitle 14A of the Alcoholic Beverages Article) and miscellaneous provisions. 5pm in Judicial Training Room 3, 2009F Commerce Park Drive, Annapolis.
• Maryland Health Care Reform Coordinating Council meets. 10am in room 240, House Office Building, Annapolis.

Tuesday, December 18th

• House Health and Government Operations Committee reviews draft palliative care legislation. 10am in room 241, House Office Building, Annapolis.
• Joint Committee on Access to Mental Health Services is briefed on the effect of the Affordable Care Act on access to mental health services and the DHMH Behavioral Health Integration Report.

Wednesday, December 19th

• Board of Public Works meets. 10am in the Governor's Reception Room, State House, Annapolis.
• Workgroup on Access to Habilitative Services Benefits meets. 9:30-11:30am in the Maryland Insurance Administration Hearing Room, 22nd Floor of St. Paul Plaza, 200 St. Paul Place, Baltimore.
• General Provisions Article Review Committee reviews drafts of Title 4 "Public Information Act" and Title 5 "Maryland Public Ethics Law" changes. 3pm in room 241, House Office Building, Annapolis. 
• Maryland Nonprofits offers a webinar on Starting a Nonprofit: Planning and Preparation. This is a paid training, for more information or to register go to their events page.

Thursday, December 20th

• Maryland Health Care Commission meets. 1pm in conference room 100, Maryland Health Care Commission, 4160 Patterson Avenue, Baltimore.
• Board of Directors of the Maryland Health Insurance Plan (MHIP) holds a public session. Topics will include prescription drug utilization, MHIP Tier 4 prescription drug cost sharing alternatives; and a procurement update. The Board also holds a closed session about the MHIP Executive Director search. Participants can attend the meeting in person or by conference call Dial in: 888-603-9632 Participant passcode: 2184969. 9am in suite 630, 1 Calvert Plaza, 201 E. Baltimore Street, Baltimore. 

Friday, December 21st

• Bureau of Labor Statistics releases state employment data for November. Maryland's unemployment rate fell in October, to just 6.7 percent. 

More moderately good news

On Thursday, two of the last pieces of the 2014 budget puzzle fell into place.

The state Board of Revenue Estimates published the December revenue estimates. This is the number that the Governor will base his balanced plan on. The estimate adds $161 million to the previous estimates, from September. The bulk of the increase is in the corporation income tax. The full report is here.

Also the legislative spending affordability made its final recommendation to the Governor. The new revenue estimates would fully cover the cost of the state’s “current services” budget through June 2014. However, the budget is not sustainable into the future. It depends on spending down the fund balance accrued through past revenue gains.

The Spending Affordability Committee recommended that the Governor resolve $200 million of the structural imbalance in his proposed budget. The remaining structural deficit of $183 million is judged to be “within normal budget management tolerances.” The full report is here.

Of course the wild card in the state’s budget remains the federal “fiscal cliff.” If Congress does not reach an agreement on the federal budget, then automatic tax increases and program cuts will take effect. If they do (and if they are allowed to remain in effect for more than a few weeks), then Maryland will lose considerable direct federal aid. More seriously, the federal actions would trigger a new economic downturn, which would reduce state revenues and send Maryland back into a new budget crisis.

The Week Ahead (Late Night Edition)

MBTPI staff are in New Orleans for much of this week at the annual Economic Analysis and Research Network (EARN) conference. This week's edition of the Week Ahead is very late because our travel was significantly delayed due to this mornings fog (and because the wifi at the airport didn't work). But we'll be back in Baltimore in time to cohost our conference call on the fiscal cliff (see Thursday, below).

Tuesday, December 11th

• Legislative Policy Committee holds their last meeting of the interim. 4pm in the Appropriations Committee Room (121), House Office Building, Annapolis.
• Capital Budget Subcommittee and the Public Safety and Administration Subcommittee (both of the House Appropriations Committee) go on a site visit to the Maryland State Archives and warehouses. 10am to 1pm, 350 Rowe Boulevard, Annapolis.
• House Ways and Means Committee holds briefings in preparation for the upcoming session. 10am to 5pm in room 130, House Office Building, Annapolis.
• Senate Finance Committee discusses energy issues and the Division of Labor and Industry and related laws and functions. 1pm in 3 East, Senate Office Building, Annapolis.
• Advisory Council for Alternative Response meets. 1pm in room 1044, Department of Human Resources, 311 West Saratoga Street, Baltimore.
• State Commission on Criminal Sentencing Policy continues to review and evaluate Maryland's sentencing guidelines and policies. 5-6:15pm in room 100, House Office Building, Annapolis.
• Maryland Community Health Resources Commission meets to discuss Health Enterprise Zone applicants. 2pm in room 230, House Office Building, Annapolis.

Wednesday, December 12th

• House Health and Government Operations Committee receives an update on Maryland's Health Benefit Exchange and state benchmark plan; an update by CareFirst; a briefing on Excelsior College's nursing program; and an update from the Department of Health and Mental Hygiene on generic drug reimbursement. 1pm in room 240, House Office Building, Annapolis, MD
• Special Joint Committee on Pensions meets. 2pm in room 120, House Office Building, Annapolis.
• Task Force on the Establishment of a Statewide Spay/Neuter Fund  meets. 1pm in room 250, House Office Building, Annapolis.

Thursday, December 13th

• Joint Committee on the Management of Public Funds is briefed on small business financing opportunities in Maryland and state banks. 1pm in the William Amoss Hearing Room, 4th Floor, Senate Office Building, Annapolis.
• Spending Affordability Committee meets. 4pm in room 120, House Office Building, Annapolis.
• House Emergency Medical Services System Work Group receives an update by the Maryland State Police Aviation Command and a Department of Legislative Services presentation on the Maryland Emergency Medical System Operations Fund. 1:30pm in room 318, House Office Building, Annapolis.
• Task Force to Study Maryland Insurance of Last-Resort Programs continues discussion comparing the four insurers of last resort programs. 1pm in room 231, House Office Building, Annapolis.
• Maryland Advisory Commission on Manufacturing Competitiveness holds a board meeting. 10am to noon at Frito Lay, 800 Hickory Drive, Aberdeen.
• Council for the Procurement of Health, Educational and Social Services meets. 2pm in room 240, House Office Building, Annapolis.
• MBTPI and Maryland Nonprofits host an informational conference call on the federal fiscal cliff at noon. Call 1-866-740-1260 and use passcode 7636737. 

Friday, December 14th

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

PLEASE ACT NOW - THE FISCAL CLIFF IS DANGEROUS!

This is a repost of a blog by Henry Bogdan, Managing Director of Public Policy and Public Affairs for Maryland Nonprofits and our own Neil Bergsman. At the end there is more information about our fiscal cliff conference call next Thursday.

The "fiscal" or as we're calling it, the "human cliff" poses a real threat for our nonprofits and our clients. It is not just a matter of protecting the deduction for charitable contributions.

The “fiscal cliff” refers to a series of tax increases and budget cuts that take effect around the first of the year, unless Congress acts to avoid them. Maryland Nonprofits is asking you to contact your member of Congress and urge them to REACH A RESPONSIBLE COMPROMISE AGREEMENT:

• INCLUDING A BALANCED PACKAGE OF TAX RATE INCREASES ON HIGH EARNERS AND MODERATE SPENDING REDUCTIONS
• AVOIDING CUTS TO PROGRAMS THAT WOULD THREATEN THE MOST VULNERABLE AMERICANS
• PRESERVING AN EFFECTIVE INCENTIVE FOR CHARITABLE CONTRIBUTIONS
  

The fiscal cliff will trigger automatic federal budget cuts of $109 billion each year, half to defense and half to “discretionary domestic spending.” Across the board this would be an 8.2% cut to hundreds of programs that relate to nonprofits’ missions in the discretionary domestic category: from nutrition, to substance abuse treatment, to job training, and the arts.  That automatic budget-cutting process is called “sequestration.” The sequestration cuts are estimated to mean a loss of over $117 million in Maryland’s state budget alone for the next year.  
At about the same time, tax reductions for people at all income levels adopted over the last 11 years would expire all at once with major impacts on the economy. Together with sequestration these are referred to as the “fiscal cliff”.
If nothing is agreed upon in Washington, there is a strong chance of renewed recession in addition to major spending cuts.  The State Department of Legislative Services recently estimated a potential combined negative impact on Maryland’s fiscal 2014 personal income and sales tax revenues (which make up about 80% of the state’s general funds) ranging from $337 to $635 million.  Together with the sequestration cuts listed above, this could reach over 5% of the state’s total general fund budget.
Much more likely is a gradual or phased package of negotiated tax changes combined with new revenue and significant new cuts in future spending.  For domestic programs, this will be in addition to cuts over the next ten years already adopted in the Budget Control Act of 2011. Failure to raise major new federal revenue, as the President is proposing by eliminating most of the Bush-era tax cuts for the wealthiest 2% of taxpayers, will magnify the size of additional spending cuts required. Domestic program funding through the states, Medicaid, Head Start, Title 1 Education, Women and Children’s Health, for example, are all at risk. Further, any cuts absorbed by states will likely mean reductions in additional areas as they try to re-adjust priorities at their level.   
WHAT CAN YOU DO?
 
Cuts are coming – even without the “cliff” the Budget Control Act has already put reduced spending caps on discretionary domestic spending, and rapidly growing costs of veterans’ benefits will compete with everything else in that category.  Nonprofits must be advocates for raising federal revenue – as much and as fairly as possible. 

1. Support the President’s tax proposal – it is the best chance to protect the most services for people and communities we serve!
2. Oppose ‘flat dollar caps’ on tax deductions – these are being proposed as an alternative to the President’s plan for tax rate actions and a modest limit on the percentage value of deductions for top earners.  Caps won’t raise as much revenue, so many more cuts must occur, and will have major negative consequences for charitable giving and many state tax systems that benefit from federal deductibility.  More information... 
   

HOW CAN YOU DO THIS?

1. Craft a message (you can use this sample format and vary the details for your audience) that: 
1. describes the people (children, families, communities, etc.) that your nonprofit serves or advocates for, and the importance of their needs; 
2. summarizes how cuts in the government-supported services they use and need will impact them and the community; and 
3. supports the President’s tax and revenue plan to help protect those services. 
2. Communicate this message (by phone, letter, email, meetings) to your member(s) of Congress (use http://mdelect.net/ to find your representatives and their contact information). 
3. Communicate to the public through social media, letters to editor, other local media, etc., to raise the profile of the issue. Communicate the same message to your state legislators and state officials (and local officials if they are involved in the services or funding). They will decide whether or how to make up for federal cuts, and how to cut or re-allocate their own resources. 
4. Reach out through your networks, coalitions, or state associations of providers or advocates, to reach more of the state’s delegation in congress (and more of the media and the public). 
5. Keep up with developments and keep your message current and fresh – follow the Maryland Budget and Tax Policy Institute’s updates at www.marylandpolicy.org 
6. Involve your board, staff, volunteers, supporters and clients in the steps above. 
7. AND Join us for a “fiscal cliff” information conference call at noon on Thursday, Dec. 13 at 1-866-740-1260, passcode 7636737.

The Week Ahead

Today is the last day to register for our Legislative Preview at early bird prices!

The 2013 Legislative Preview will be held Monday, January 7th, from 8:30am to 12:30 pm, at the Doubletree Hotel Annapolis. MBTPI, in partnership with Maryland Nonprofits, will convene public officials, legislative experts, and advocacy leaders to give their perspectives on the budget and other legislative issues for this year. We will learn the latest news about federal budget and economic policies and how Maryland government is likely to respond. For pricing and to register go to the Maryland Nonprofits events page, then fax or email the registration form.

Tuesday, December 4th

• House Appropriations Committee holds its retreat. 8:30am to 4:30pm in room 121, House Office Building, Annapolis.
• Joint Committee on Health Care Delivery and Financing meets to discuss medication shortages and environmental pollution as a cause of illness. 1pm in room 240, House Office Building, Annapolis.
• Joint Committee on Transparency and Open Government is briefed on the Public Information Act and discusses SB 740 of 2011, SB 253 of 2012, and HB 1202 of 2012. 10am in room 130, House Office Building, Annapolis.
• Task Force to Study the Laws and Policies relating toRepresentation of Indigent Criminal Defendants by the Office of the Public Defender discusses subcommittee work and overall work of the task force. 1pm in room 100, House Office Building, Annapolis.
• Interagency Committee on School Construction holds a hearing on the 2014 Capital Improvement Program. Local education agencies will appear before the Committee. 9am to 4:30pm in the 8th Floor Conference Room 1, 200 W. Baltimore Street, Baltimore.

Wednesday, December 5th

• Joint Audit Committee discusses audit finding about the Maryland Department of Transportation and Maryland Transit Administration, a report on the Fraud Hotline, and other committee business. 1pm in room 120, House Office Building, Annapolis.
• Joint Committee on Children, Youth, and Families recieves a presentation on alternative education programs. 10am in room 130, House Office Building, Annapolis.
• Board of Public Works meets. 2pm in the Governor's Reception Room, Second Floor, State House, Annapolis.
• Maryland Underground Facilities Damage Prevention Authority meets. 9am in the lower level conference room, One Call Center, 7223 Parkway Drive Hanover.

Thursday, December 6th

• Southern Maryland Higher Education Council holds a work session. 10am to noon in the conference Room at the Courthouse Square Office Building, 205 Main Street, Prince Frederick.
• Commission on Maryland Cybersecurity Innovation and Excellence meets. 9-11am, University of Maryland University College, ICC 2101, 3501 University Boulevard East, Adelphi.
• Maryland Economic Development Commission holds a board meeting. 10am to 12:30pm in the 15th floor conference room, World Trade Center, 401 East Pratt Street, Baltimore.
• Maryland Nonprofits offers Financial Leadership. This is a Maryland Nonprofits training, for more information or to register go to their events page.

Friday, December 7th

• Commission to Study Campaign Finance Law meets to review final report (if needed). NOTE: Commission meeting subject to cancellation. 3:30pm in room 130, House Office Building, Annapolis.
• Bureau of Labor Statistics releases national employment figures for November. In October the unemployment rate ticked up slightly, but employers added 171,000 new jobs.