January 25, 2013

The week that was in Annapolis 

• The proposed budget is balanced for FY14 and reduces the state’s structural deficit to $155 million (down from $2 billion three years ago).  The budget includes a cash balance of $236 million and rainy day/general fund balance of $1.1 billion.  The combination of the FY14 cash balance and overall rainy day fund will help insulate Maryland from potential across the board cuts in federal spending from Washington, D.C.
• Actual general fund revenues collected so far in FY13 is 7.4% greater than projected and generated $410 million that has helped close the structural deficit.
• Increased revenues in FY13 held the state with supplemental spending on items that were not budgeted, including some education costs.  School assessment contracts ($17.3 m) and federal grants for assessment and data analysis ($3.9 m) were the biggest education line items covered with deficiency appropriations in FY13.
• The FY14 projection for available dollars from the Education Trust Fund (ETF) is $340.3 million.  The ETF is part of the $6 billion the state is spending to increase state aid for education.
• State aid for local governments increased $294 million (4.4%) over FY13.  All jurisdictions, except for Garrett County, are set to receive more total state aid dollars in FY14 than FY13.

Maryland Poll Findings
Gonzales Research and Marketing Strategies released poll findings relating to key issues facing the General Assembly and the political environment in Maryland.  Survey highlights include:

Approval ratings:

• President Obama: 64% (strongly or somewhat approve)
• Governor O’Malley: 54% (strongly or somewhat approve)

Public opinion on school safety

• 44% say stricter gun laws would do more to reduce violence in schools.
• 36% say having armed guards would do more to reduce violence in schools.

Other hot issues facing the 2013 General Assembly:

Transportation and Gas Tax

• 94% think it is important to maintain and improve Maryland’s transportation system.
• But, only 26% favor a ten cents per gallon increase in Maryland’s gas tax.

Death Penalty Repeal

• 49% of voters favor the death penalty; 44% oppose the death penalty.
• 61% say that life in prison without the possibility of parole is an acceptable alternative.

Preventing Gun Violence

• 58% favor a law banning the sale of assault weapons.
• 88% favor a law requiring background checks on gun purchases at gun shows.

News and Notes

• Raise Maryland
  A group of labor and community organizations have joined forces to encourage the General Assembly to increase the state minimum wage from $7.25/hour to $10/hour by 2015.  The legislation has not yet been introduced, but is expected to be sponsored by Senator Rob Garagiola and Delegate Aisha Braveboy in their respective chambers.
  
  
• $8 Million to Address Net Taxable Income
  The governor’s budget includes $8 million to begin a five year phase-in to correct a wealth calculation used in the distribution of state aid for education known as “Net Taxable Income (NTI).”  HB 229/SB 277 mirror the governor’s budget proposal to correct the problem of miscalculating a county’s wealth because the measure is taken before the October 15^th income tax filing extension provided by the federal government.  The compromise fix of NTI will ensure that less wealthy counties receive their fair share of education aid, while wealthier counties are held harmless in the re-calculation of wealth.  The net impact is an overall increase in state aid in the Thornton education formula.
  
  
• MSEA Legislative Priorities and Issue Papers
  In advance of any lobby day trips to Annapolis or conversations with legislators and their staff, please review and share MSEA’s legislative materials:
  
  Priorities: 2013 Legislative Priorities
  Issue Paper - Charter Schools:Protecting Maryland’s Charter School Law
  Issue Paper - Vouchers:Rejecting the BOAST Bill, Vouchers, and Neo-Vouchers
  
  
• Follow the Legislative Process during the General Assembly Session
  The General Assembly has launched a new website to track specific bills, listen to floor debate, and get up-to-the-minute updates.  The site is http://mgaleg.maryland.gov/.

• Check here for the budget hearings on various aspects of the budget in the coming weeks.
• Wednesday, January 30: Bill hearings on various tax rate and tax credit legislation before the Senate Budget and Taxation committee.
• Thursday, January 31: Formal launch of the Working Matters Coalition and the effort to pass earned sick day legislation for all Maryland workers.