FRIDAY MARCH 14, 2008

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O'MALLEY MOVES TECH TAX TO HIS SPAM FOLDER
Gov. Martin O'Malley (D) today added his voice to those calling for a repeal of Maryland's new tax on computer services, saying he hopes legislators will adopt an alternative revenue source before adjourning next month.

"The more we look at it . . . the more convinced I become that we should look for some alternative," O'Malley told reporters after an event in Dundalk.

The only alternative O'Malley mentioned publicly is a surcharge on the income of millionaires. Aides said that other options are being studied, however. (Wagner, Post)
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/13/AR200803...

TECH TAX GETS DELETED
Gov. Martin O'Malley threw his support behind a growing effort to repeal a $200 million tax on computer services and suggested yesterday that Maryland's wealthiest residents ought to help make up the difference with a surcharge on their personal income taxes.

The governor, a Democrat, said it was unfair to expand the sales tax to just one industry and echoed the sentiments of many lawmakers who believe the application of the levy was not thoroughly vetted when it was approved in November.

"I've never been a big fan of this computer tax," O'Malley told reporters after an appearance in Dundalk. (Dechter and Olson, Sun)
http://www.baltimoresun.com/news/local/bal-te.md.computer14mar14,0,27527...

MORE MORE LIKE ACQUAINTANCES, REALLY
DUNDALK, Md. (AP) -- Gov. Martin O'Malley said Thursday he would support repealing a tax on computer services if an alternative is found, because he now believes the tax could have repercussions on Maryland's economy.

Instead, O'Malley said he supports a higher income tax on the very wealthy, which is closer to what he originally proposed during November's special legislative session to tackle the state's $1.7 billion structural deficit.

"I've never been a big fan of the computer tax, and the more we look at it and the more we look at the potential downsides of the computer tax, the more convinced I become that we should look for some alternative," O'Malley told reporters. (Witte, AP)
http://hosted.ap.org/dynamic/stories/M/MD_TECH_TAX_MDOL-?SITE=MDSAL&SECT...
 
BUDGET VOTE
ANNAPOLIS — A flurry of late proposals for repealing the computer services tax dominated the debate this week as the Senate prepared to vote today on a $15 billion budget plan that clearly remains a work in progress.

On Thursday, Sen. Robert A. Zirkin introduced a bill to repeal the much-debated computer services tax, if voters in November approve a constitutional amendment legalizing slot machine gambling.

Zirkin’s bill is latest in a long line of proposals to replace the so-called tech tax, passed late in the special legislative session held last fall. (Sedam, Gazette)
http://gazette.net/stories/031408/polinew200802_32355.shtml

RASCOVAR ON THE BUDGET PICTURE
It is no fun if you’re a king who lacks coins. Just ask Martin O’Malley.

The governor is facing his second budget crisis in less than 15 months. If Maryland’s economy continues to stumble — a distinct possibility — he could face a third crisis this summer.

There’s even the potential of a ‘‘perfect storm” developing if voters in November reject O’Malley’s referendum for slot machines at select locations. Without that extra revenue — $650 million or more — the governor’s fiscal predicament would turn perilous. (Rascovar, Gazette)
http://gazette.net/stories/031408/poliras181139_32360.shtml

THE GILCHREST GOP FOR KRATOVIL
Top staffers to Rep. Wayne T. Gilchrest, the Republican incumbent defeated in the recent primaries, are backing the Democrat in November, complicating the party's chances of keeping the congressional seat in the largely Democratic district on the Eastern Shore.

Gilchrest Chief of Staff Tony Caligiuri and other staffers were among about 50 Republicans at a fundraiser Tuesday in Chestertown, Md., for Frank T. Kratovil, the Democratic candidate and a Queen Anne's prosecutor.

"Anyone who makes the argument to [Mr. Gilchrest] that you need to get behind the party doesn't understand what Wayne Gilchrest has been trying to do for the last 18 years," Mr. Caligiuri said. "Party doesn't factor into his decision." (LoBianco, Washington Times)
http://washingtontimes.com/article/20080314/METRO/483387228/1001

REPORTER'S NOTEBOOK!
Sen. Delores Kelley made it clear who the Senate’s true presiding officer is during a budget debate Wednesday.

Kelley was repentant, saying that passing the computer services tax during the fall’s special session was ‘‘a mistake,” while urging colleagues to vote down a budget amendment proposed by Senate Republicans.

The amendment would have repealed the computer tax, making up the lost revenue by carrying a $114 million balance from the state’s general fund forward to fiscal 2010 and requiring Gov. Martin O’Malley to make $100 million in cuts from state agencies. (Gazette)
http://gazette.net/stories/031408/polinew200827_32360.shtml

TAKERS FOR WELDON'S SEAT LINE UP AND OTHER BRIEFS
Lisa Baugher is hoping to have her day on the floor of the House of Delegates.

Baugher is the latest to say she'll run for a vacant Frederick County seat in 2010.

Michael Hough was the first to declare his candidacy for 2010, and now others are starting to line up in the earlier-than-usual race.

Hough, a Republican and vice chairman of the Frederick County Central Committee, announced earlier this month he intends to start fundraising for a campaign to take the seat in 2010. (Bernhardt, News-Post)
http://www.fredericknewspost.com/sections/news/reporters_notebooks_displ...

SLOT OR DIE
Senate President Thomas V. Mike Miller has told the leaders of the state's powerful teachers union that they need to support a November referendum to legalize slot machine gambling or be prepared for severe cuts in education funding.

The board of the Maryland State Teachers Association will hold a monthly meeting Friday and is poised to vote on whether to endorse the ballot initiative on slots, a move that could anger local teachers unions that believe the body should wait for more input and debate from the rank and file. A poll of members showed great division about the referendum, union sources said.

While slots supporters have made their case to officers of the association, Comptroller Peter Franchot and others are waging a similarly pitched battle to keep them neutral. (Olson and Bowie, Sun)
http://www.baltimoresun.com/news/local/politics/bal-slotstory0313,0,4395...

ONE OF THE TWO DOZEN IMMIGRATION CRACKDOWN BILLS
ANNAPOLIS — Some lawmakers want to withhold state aid from local governments that have sanctuary policies prohibiting employees and police officers from asking someone’s immigration status.

Del. Warren E. Miller introduced a bill to ban sanctuary policies and require ‘‘local governments to fully comply with and support federal immigration law.”

Non-compliance could result in loss of some state aid for policing. (Schwartzman, Capitol News Service)
http://gazette.net/stories/031408/polinew200838_32364.shtml

WHO, ME?
As a man of few words, Sen. Nathaniel Exum can confound detractors and reporters, but his nature plays well in his district.

‘‘I’m just trying to serve my constituents,” Exum said in a brief interview Thursday.

But his laconic nature contrasts with the power he wields. He delayed a Senate decision on the appointment of Col. Terrence Sheridan to become superintendent of the Maryland State Police and then cast the sole dissenting vote. (Davis and Valentine, Gazette)
http://gazette.net/stories/031408/polinew200819_32357.shtml

O'MAZEL TOV!
ANNAPOLIS — Gov. Martin O’Malley will lead a Maryland trade mission to Israel this summer to promote foreign investment in life sciences, an industry in which the state is trying to become a global leader.

Representatives from Maryland’s biotech industry, higher education officials and Jewish community leaders will accompany O’Malley (D) on the expedition, scheduled for May 27 to June 2.

‘‘We have a number of Israeli companies now and we obviously want to keep growing them,” said Barry E. Bogage, executive director of the Maryland⁄Israel Development Center, which is facilitating the trip. ‘‘With the talent that we have in Maryland and the large Israeli community that’s here ... it’s a great home for Israeli companies.” (Brody, Gazette)
http://gazette.net/stories/031408/polinew200843_32366.shtml

YEAH, THAT WASN'T YOUR BEST IDEA
Annapolis - The Maryland Senate overwhelmingly approved repeal of the required application for the Homestead Property Tax Credit passed just last year after confused homeowners complained loudly about the new requirement.

The original bill was designed to ferret out rental property owners who falsely claimed that they lived in the residence so they could claim the homestead exemption, which lowers taxes by putting a cap on assessment increases. All homeowners were required to fill out applications that were sent to them when their properties were reassessed.

Sponsored by Democratic Majority Leader Edward Kasemeyer, the repeal was opposed by county governments who hoped to capture $10 million in property taxes that were being avoided on rental properties. The repeal passed in 41 to 4 vote. (Lazarick, Gazette)
http://www.examiner.com/a-1278038~Senate_repeals_homestead_credit_applic...

SCHOOLING THE BRATS
ANNAPOLIS — With the state’s military population expected to rise because of base realignments, some lawmakers are pushing for better services for soldiers and their children.

A proposal from Del. Tom Hucker aims to roll out pre-kindergarten services statewide for 4-year-olds whose parents are on active duty. Del. Anne R. Kaiser’s bill, introduced in February, would require the state’s 24 school systems to better facilitate military student transfers from one school to another.

And both chambers have a bill, supported by the presiding officers, to offer professional help for soldiers returning from Iraq with mental health and substance abuse problems. If passed, the law would take effect in June and last until May 31, 2011. (Moore, Gazette)
http://gazette.net/stories/031408/polinew200824_32358.shtml

CLL PHN BAN HRING
A statewide ban on using hand-held cell phones while driving appeared headed for failure in the Maryland Senate yesterday but was resurrected amid fierce debate and a dramatic reversal by one lawmaker.

The bill would prohibit talking on cell phones or other wireless communications devices while behind the wheel unless drivers use hands-free accessories such as headphone sets equipped with microphones. It also would ban texting while driving. Lawmakers have tried to pass such legislation for a decade but have met with stiff opposition. A final vote is expected next week.

Yesterday, the bill seemed doomed to fail again when senators narrowly voted, 23 to 22, to remove all provisions of the bill except for a ban on texting while driving. Proponents said the altered legislation would be rejected by the House of Delegates, where lawmakers have twice voted down a texting-only ban in committee on concerns that it would be difficult to enforce. (Smitherman, Sun)
http://www.baltimoresun.com/news/local/politics/bal-md.cellphone14mar14,...

CAN'T FIND SERVICE
 ANNAPOLIS, Md. (AP) -- A long-debated measure to ban the use of handheld cell phones while driving could be approved by the Maryland Senate next week - although its supporters say it's on life support.

The bill would fine drivers $50 for talking on phones while driving without using handsfree devices. The proposal would allow cell phone fines only as secondary offenses, meaning a police officer would not be allowed to pull over a driver simply for using the phone. Text messaging while driving would also be banned.

Maryland lawmakers have for years considered the ban, similar to ones in place in Washington, D.C., and New York state. (Wyatt, AP)
http://hosted.ap.org/dynamic/stories/M/MD_XGR_CELL_PHONE_BAN_MDOL-?SITE=...

BECAUSE PARENTS WILL LOVE THIS
The Maryland Senate voted unanimously yesterday to toughen driving laws for teenagers after the spate of fatal accidents involving young drivers in the fall. Senators also debated a statewide ban on using handheld cellphones while driving, a controversial proposal that now appears likely to pass the chamber.

Under the legislation passed by the Senate, drivers younger than 18 who are charged with drinking while driving, leaving the scene of an accident or fleeing a police officer automatically would lose their driving privileges for at least six months.

A separate bill that passed yesterday would require the Motor Vehicle Administration to notify the parents or guardians of any teenager who receives a citation for a moving violation, such as speeding. Both bills must now pass the House of Delegates. (Rucker, Post)
http://www.washingtonpost.com/wp-dyn/content/article/2008/03/13/AR200803...

LARGE, UNMARKED BILLS, PLEASE
ANNAPOLIS — With Maryland facing a sluggish economy, one lawmaker has floated a measure that would trade the roughly $2.6 billion the state still stands to gain from 1998’s landmark tobacco settlement for a lesser lump sum that will help during the expected downturn.

Del. Steven R. Schuh wants the money up front to maintain funding for programs currently financed by the Cigarette Restitution Fund and to bolster state aid for school construction.

‘‘We have to embark on another wave of massive school construction,” he said. ‘‘We can’t do it in dribs and drabs over the next 40 or 50 years. Our schools are falling apart.” (Brody, Gazette)
http://gazette.net/stories/031408/polinew200833_32361.shtml

YOU STAY CLASSY, SUSAN PAYNE
ANNAPOLIS — Fliers proclaiming House Judiciary Chairman Joseph F. Vallario Jr. as ‘‘wanted for aiding and abetting” illegal immigration were removed from a Tuesday evening hearing after he took offense.

The fliers, which depict Vallario wearing an ornate, Mexican-style sombrero, were denounced as racist by one legislator, but others defended them as legitimate free speech.

Del. Victor R. Ramirez, a committee member who was born in El Salvador, said the flier was ‘‘blatant racism.” (Schwartzman, Capital News Service)
http://gazette.net/stories/031408/polinew200840_32365.shtml

GAS PRICES
ANNAPOLIS — With oil prices setting record highs each day and the national economy slumping, lawmakers said this week that they have little hope of passing legislation to either provide relief from prices at the pump or increase the gasoline tax in hopes of addressing a bleak budget outlook.

‘‘I don’t know that there’s anything we can really do about it,” House Speaker Michael E. Busch said. ‘‘This is a national issue now.”

AAA has asked federal and state officials, including the three leading presidential candidates, to address the issue long-term, with goals of reducing overall gasoline consumption and the country’s reliance on oil. (Sedam and Davis, Gazette)
http://gazette.net/stories/031408/polinew200815_32356.shtml

DRUG SENTENCES MELLOW OUT, MAN
Annapolis - Low-level drug users and dealers could face less severe penalties in Maryland under a proposal supporters said encourages rehabilitation rather than incarceration.

A movement to reduce mandatory minimum sentences for minor drug crimes gained momentum Thursday after members of the House of Delegates rejected a watered-down version of the proposal offered by its opponents. If passed, the Smart on Crime Act would create a new misdemeanor category of crime for petty drug possession and possession with the intent to distribute.

Under current law, low-level drug offenders face the same 10-, 25- and 40-year sentences as major dealers, said Del. Curt Anderson, a Baltimore City Democrat backing the proposal. (Malarkey, Gazette)
http://www.examiner.com/a-1278070~Softer_penalties_for_drug_users_gainin...

I LOVE THE SMELL OF CHEMICAL FINE IN THE MORNING
State officials fined energy company Mirant $250,000 for repeated pollution violations at coal-burning power plants in Charles, Montgomery and Prince George’s counties, but environmental advocates called it a ‘‘slap on the wrist” to a company with $2 billion in profits last year.

The state and Mirant reached a consent decree for the fines to be paid as part of a settlement of the pollution complaints.

As part of the settlement, Mirant subsidiary Mirant Mid-Atlantic LLC agreed to cut visible emissions and other air quality violations at Mirant’s Morgantown plant in Charles County, Chalk Point plant in Prince George’s County and Dickerson plant in Montgomery County. (Ford, Gazette)
http://gazette.net/stories/031408/polinew200825_32359.shtml

POLITICS IS STANDING IN THE WAY OF RURAL PEOPLE READING POLITICKERMD.COM
ANNAPOLIS — Rural lawmakers are at odds with the Maryland Department of the Environment over a tidal wetland fee and permitting process that is halting a project to extend broadband cable to remote communities.

At issue is a $1-per-linear foot surcharge assessed on the broadband cable that crosses over environmentally sensitive Eastern Shore waterways, including the Choptank River, which separates Talbot and Dorchester counties.

Lawmakers and supporters of the project, which is being constructed in three phases, say the levy should be waived because of the project’s importance. They also believe it should already be exempt because it is a state and federally funded telecommunications project. (Brody, Gazette)
http://gazette.net/stories/031408/polinew200836_32363.shtml

THOUGH GOP IS KEEPING THE MOCK TRIAL TEAM GOING
ANNAPOLIS — The state’s highest court on Wednesday dismissed a Republican lawsuit attempting to nullify the tax increases and slot machine referendum passed in last fall’s special legislative session, ending a lengthy battle over a provision of the state constitution.

In a short statement released one day after arguments were presented, the Court of Appeals upheld the January decision by a Carroll County Circuit Court judge. The appellate judges will release a full opinion at a later date.

GOP lawmakers alleged that the taxes should be overturned because the Senate adjourned for six days without a full vote in the House of Delegates, which they said violated state law. They also alleged a House clerk backdated a document to show House consent. Democrats claimed that the suit was politically motivated and frivolous. (Brody and Sedam, Gazette)
http://gazette.net/stories/031408/polinew200835_32362.shtml

OINK OINK!
The state senators who voted to deregulate the electricity industry nine years ago still get much of their campaign contributions from the utility industry, according to a report released Thursday by Progressive Maryland and Common Cause.

Lawmakers are considering a bill, proposed by Sen. Paul G. Pinsky (D-Dist. 22) of University Park and Del. John S. Cardin (D-Dist. 11) of Baltimore, to establish public campaign financing for General Assembly candidates. If passed, the law would take effect July 1, the beginning of fiscal 2009.

Under the proposal, the state could get revenues of $14.1 million in fiscal 2010 and annual revenues of $9.2 million. The bill would also establish a five-member Election Financing Commission to manage and supervise the public funding system. (Moore, Gazette)
http://gazette.net/stories/031408/polinew200846_32368.shtml

SOLAR POWER BLASTS
ANNAPOLIS -- Delegate Sue Hecht is continuing her efforts to boost solar power in Maryland.

Hecht, a Frederick Democrat, had success in the House of Delegates on Thursday as the chamber approved her bill, which clarifies the rights of residential solar users. It now awaits approval in the Senate, and Hecht said she plans on introducing amendments to the governor's energy policy bills to further help residential solar users.

The bill would prevent homeowners associations from banning solar panels and other solar energy devices, and set up the framework for homeowners to enter easements to protect their access to sunlight. It passed in the House 138-0. (Bernhardt, News-Post)
http://www.fredericknewspost.com/sections/news/display.htm?StoryID=72448

BLAIR LEE RANTY
By now we all know that the Democratic presidential nomination will be decided by the convention’s superdelegates, the nearly 800 party bigwigs who make up 20 percent of the convention vote but are not bound by the primary results.

Most of Maryland’s superdelegates are either prominent elected state office holders, ranking party officials, labor union leaders or minorities. Many have already committed to either Hillary Clinton or Barack Obama. Among the uncommitted superdelegates, the labor folks will wait until their unions decide and the party officials will wait to see what’s best for the party. Meanwhile, the uncommitted elected officials are starting to squirm.

Take U.S. Sen. Ben Cardin. In his 2006 race against Republican Mike Steele, an attractive African American, Cardin received vital help from Obama who campaigned for Cardin, it seemed, every week. Must not Cardin now return the favor, offsetting U.S. Sen. Barbara Mikulski’s support for Clinton? (Lee, Gazette)
http://gazette.net/stories/031408/polilee181141_32361.shtml

With the PolitickerMD.com Wake-Up Call e-mailed to your inbox, phone, Blackberry or PDA first thing in the morning, you can get a rundown of Maryland's top political headlines. Sign up to get the Wake-Up Call delivered every morning.