Republicans optimistic for their agenda

Franchot Spokesman On GOP Meeting

The 90-day session of the Maryland General Assembly began this afternoon in Annapolis, as elected officials including Gov. Martin O'Malley and House Speaker Michael Busch pledged to work on issues like reducing crime, expanding education, increasing transportation opportunities, and foreclosure reform.

Republican lawmakers and party officials began the day by looking back at the fall's special session, which produced tax increases designed to close the state's budget deficit.

"One of our priorities (for the current session) is to clean-up the mess created in the special session," John Flynn, the Executive Director of the Maryland Republican Party, said during an interview with PolitickerMD.com.

Flynn said the special session was "unnecessary" because there was "no deficit." He said the budget, which was projected to have a $1.7 billion deficit, was "balanced through the end of June."

"It could have been dealt with during the regular session," Flynn said.

Lawmakers approved $1.4 billion in annual tax increases during the special session. Measures included a rise in the sales tax from 5 to 6 percent, and an increase on the cigarette tax from $1 to $2 per pack. The corporate income tax also expanded from 7 to 8.25 percent.

The GOP has filed a lawsuit with the intention of overturning the initiatives enacted during the special session. Flynn would not comment on the possibility of the lawsuit's success, saying, "It is in the hands of a judge."

One particular tax increase enacted during the special session had Flynn particularly upset-the 6 percent sales tax on computer maintenance and services.

"It puts our high-tech sector at a disadvantage when they are competing with Northern Virginia," Flynn said.

Beginning in 2009, the tax will affect those in areas like information technology facilities management and operation, along with computer programming. Systems integrators and consultants, as well as fields in maintenance and repair are also expected to be taxed. Other areas, such as internet access and computer training, will be exempt.

Republicans have found support from Democratic Comptroller Peter Franchot, who spoke out against the computer sales tax during a speech Tuesday afternoon before GOP lawmakers.

"The symbolism of taxing the knowledge-based economy is not good for the business climate," Franchot told the crowd.

Today, during an interview, a spokesman for the comptroller, Joe Shapiro, said Franchot "believes and takes to heart the fact that he is a state-wide elected official."

"(Franchot) is happy to speak with both Democrats and Republicans," Shapiro said.

Shapiro added that Franchot was "primarily against a tax on the knowledge-based economy because it is the economic engine of Maryland."

He added that one of the strengths of the state resided in its "technology-based work force."

Experts predict the computer sales tax could generate $200 million a year for the state after it takes effect July 1.

Flynn challenged the need to generate money from a tax, saying instead that "fiscal discipline" was necessary.

"We need to slow the growth of spending," he added.

In addition, Flynn weighed-in on the immigration debate, saying Republicans would focus on enacting federally mandated regulation created during the REAL ID Act of 2005, which calls on states to create driver's licenses that can also serve as national ID cards. The state has resisted imposing the act to this point.

"Maryland has not been compliant with the national ID Act," Flynn said.

"Illegal immigrants should not be allowed to get a driver's license," he said later.

Flynn also discussed the controversy surrounding the State Board of Education's decision last month to award State Superintendent of Schools Nancy S. Grasmick with a new four-year contract.

Grasmick, who has served since 1991, frequently clashed with O'Malley during his time as the mayor Baltimore, and her appointment was not endorsed by the governor, Speaker Busch, or Senate President Thomas V. Mike Miller, Jr. Former Gov. Bob Ehrlich appointed the majority of current board members.

"Politics should be taken out of education," Flynn said.

The executive director would not say whether he thought Grasmick should remain in her position, saying that "to do so would violate," his belief that education should be "separate from politics."