News from The Maryland State Senate
Dear Frank,
Several days of intense debate came to an end on Thursday, March 15th as the Maryland Senate gave final approval to the State's 2013 budget. The Senate's recommendations have now been sent to the House of Delegates.
The Senate Budget and Taxation Committee brought to the Senate Floor four separate proposals in an effort to resolve the anticipated $1.2 billion dollar deficit.
First, Senate Bill 150, the Budget Bill.The Senate Budget and Tax Committee created a proposal for budget cuts (mostly to local aid) that would occur if: 1. the teacher pension shift did not occur, and/or 2. The tax increase bill did not pass. Most of the reductions affected education including reductions to: geographic cost of education index; per pupil foundation amount; compensatory education; students with disabilities; limited English proficiency program and teacher quality incentive funds. Other local aid listed as contingent cuts were: police aid; 10% reductions in disparity grants and library network funding; and local law enforcement grants. I supported an amendment to the budget that would have level-funded this year's budget. The amendment was defeated. I voted against SB 150 because it increased state government spending by over $1 billion from last year's budget. SB 150 passed by a vote of 37 to 9 (9 of the 12 Republican senators voted against SB 150).
Second, Senate Bill 152, the Budget Reconciliation and Financing Act (BRFA). The BRFA included many budgetary gimmicks to technically balance the budget as required by the Maryland Constitution. One of the most egregious parts of the BRFA was the raiding of $50 million from the Injured Workers' Insurance Fund (IWIF). The IWIF fund is made up of the premiums paid by private Maryland companies for their workers' compensation insurance coverage. The Fund does not include any state funds! Nevertheless, the Governor, and now the State Senate, decided that they could take these funds to help balance the budget. I proposed several amendments to stop the IWIF transfer of funds, but none were successful. This is just another example of the overreaching of the State into private businesses. Needless to say, I spoke out and voted against SB 152. SB 152 passed 34 to 12.
Third, Senate Bill 523, The Tax Increase. SB 152 includes a variety -- and costly - array of "revenue enhancements" -- substantial tax increases - including an increase in personal income tax for Marylanders who earn $3,000 or more a year. On the Senate floor, the Budget & Taxation Committee offered an amendment that expanded the income tax increase for individuals and businesses (who file individual/personal tax returns). Over significant opposition from both sides of the aisle, the Senate approved the amendment which taxes individuals and certain businesses at the highest tax rate from the first dollar. This change makes Maryland the highest, or at least one of the highest, taxed states in the nation. I strenuously argued that the tax increase would greatly harm small businesses and job creation. Unfortunately, my complaints fell on deaf ears and the legislation passed 26 to 20.
Fourth, Senate Bill 848, the education "Maintenance of Effort" bill. Maintenance of Effort (MOE) is a requirement that each county fund education at the same amount per pupil as they did the previous year. SB 848 focuses on codifying what the General Assembly has agreed to in the past regarding the MOE waiver process and the factors used to calculate the MOE for each county. There were two very controversial concepts of the bill. There is a provision which would allow the Comptroller to intercept county tax payments and give the funds directly to the board of education. As a former local official, I believe this provision interferes with the relationship between the county government and the board of education. I proposed an amendment deleting this provision which was defeated on the Senate floor. There is also a provision to override local property tax caps in counties where the citizens voted to establish a charter tax cap. I spoke against this provision because it usurps the power of the people to limit the local government's ability to raise property taxes. Despite my opposition, SB 848 passed 32 to 14, mostly along party lines.
If you have any questions or comments about the budget or any other subject, please contact my senate office at allan.kittleman@senate.state.md.us . You can also reach my office by phone at 410-841-3671.
Allan |
the many ways that both of you have contributed to the growth of the Calvert County Republican Party in well over a decade of service. 
