January 3, 2019 by Kenna Lemu in Blog, Budget and Tax
Like the rest of the nation, Maryland has seen its workforce age over time. Our labor force supports children, elders, and other dependents within our population. Combined with slowing population growth and people working longer in life, this is leading to changes in Maryland’s economy and increasing the need for state services like long-term care. We should reform the tax breaks Maryland offers aging adults to help the state provide these essential services while continuing to protect older Marylanders who struggle to make ends meet. As our population continues to age, Maryland is likely to see both increased need for state services and slower growth in the revenues that make those services possible. Within the labor force, age structure has a significant impact on productivity. Research shows that a labor force that has a high concentration of very old or young workers will be less productive than one that is…
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December 18, 2018 by Christopher Meyer in Blog, Economic Opportunity
The Baltimore City Council last week considered a bill requiring landlords to treat federal housing assistance the same as any other source of income when evaluating rental applications. If the city adopts this bill, it will join a growing list of jurisdictions in Maryland and nationwide in prohibiting one of the most flagrant types of housing discrimination still allowed under federal law. This legislation will bring especially large benefits to people of color who, because of multiple historical and ongoing forms of discrimination, are more likely to have low incomes and more likely to rent their homes. It is long past time for the state to enact similar legislation. More than 94,000 low-income households in Maryland are able to rent modest housing at an affordable cost thanks to federal housing assistance programs. These households include tens of thousands of children, aging adults, and people with disabilities. About 90 percent of…
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November 20, 2018 by Christopher Meyer in Blog, Education
Maryland took an important step toward guaranteeing all children a great education on Election Day, as voters overwhelmingly approved a constitutional amendment requiring gambling revenues to add to school funding rather than replacing existing funding. This amendment (informally called the “lockbox”) will fulfill the promise policymakers made when the state expanded gambling in 2007 and 2012. At the same time, it is only a first step to making up the lost ground from a decade of eroding investments in public schools. The Commission on Innovation and Excellence in Education (the Kirwan Commission) is expected to take the next step in December by recommending a far-reaching package of reforms aimed at making Maryland schools among the best in the world. When lawmakers convene during next year’s legislative session, they should finish the job by passing and fully funding a robust reform package based on the commission’s recommendations. Four factors have brought…
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October 26, 2018 by Christopher Meyer in Blog, Budget and Tax
Last week, Senate Majority Leader Mitch McConnell called for harmful cuts to federal investments that help millions of families access essential health care and a decent retirement, and provide support for people with disabilities. Coming less than a year after a massive package of tax breaks for large corporations and wealthy individuals, these cuts demonstrate congressional leaders’ upside-down priorities—and would make Marylanders worse off if enacted. Congress should protect and strengthen the bedrock income security and health care protections we all rely on, not take from them to pay for tax cuts benefitting a wealthy few. One in three Marylanders benefits from one or more of the federal investments that are now on the chopping block: Medicare About 1 million Maryland residents are insured through Medicare, including 94 percent of people ages 65 year or older and more than 120,000 people under age 65. Thanks to Medicare, 99 percent of…
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October 23, 2018 by Kenna Lemu in Blog, Budget and Tax
The investments we make through our taxes support the schools, roads, parks, and other things that help our communities thrive, but our upside down tax code means that not everyone is equally sharing in that responsibility. As a result of our tax structure and loopholes inserted into our tax system by special interests, our state doesn’t have the resources to make much-needed investments that would strengthen our communities and increase the quality of life for all Marylanders. New analysis from the Institute on Taxation and Economic Policy (ITEP) shows that those earning the most in Maryland pay the lowest share of their income in state and local taxes. As a share of their income, the poorest 20 percent of taxpayers – those earning less than $24,100 per year – pay 1.1 times as much in taxes as the wealthiest 1 percent, those earning more than $534,000 per year.   Like…
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October 12, 2018 by Ellen Hutton in Blog, Economic Opportunity
This week, the Trump Administration proposed a new rule that would make it harder for many lawful immigrants to remain in the country. This proposal, referred to as the “public charge rule,” would put the futures of more than 90,000 Marylanders in jeopardy. Under the current rules, immigrants who are applying to become a lawful permanent resident (LPR or green card holder) or to extend or change the category of a nonimmigrant visa can be denied if they are receiving cash assistance due to low income. Currently this rule applies to Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), and General Assistance. The new Trump Administration proposal would also permit denying green card and visa applications for families that qualify for food assistance through the Supplemental Nutrition Assistance Program (SNAP), Medicaid, and some forms of housing assistance. Many Marylanders would struggle to be deemed acceptable under the new…
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October 2, 2018 by Kenna Lemu in Blog, Criminal Justice, Economic Opportunity
While our state’s overall economy is stronger, a decade after the Great Recession many working Marylanders’ paychecks have not fully recovered from the impact of the recession. Median earnings within Maryland are now 3.1 percent lower than in 2007, after adjusting for inflation. Workers here are now lagging behind the nation, while nationwide median earnings are finally near pre-recession levels, according to new data released last week by the U.S. Census Bureau. After adjusting for inflation, there was no significant change in wages for the typical Maryland worker between 2016 to 2017. For comparison, wages for the typical U.S. worker rose about 3 percent last year, after adjusting for inflation. Policymakers can combat the slow wage growth through policies that remove institutional barriers keeping people out of the labor market, increase the minimum wage, and prepare Marylanders for in-demand jobs. On a positive note, Maryland continues to see a reduction…
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September 20, 2018 by Christopher Meyer in Blog, Budget and Tax
Marylanders are faced with important choices about what kind of state we will be. We have a growing backlog of unmet needs in education, health care, and other pillars of our economy. The choices embodied in our state budget determine how we will respond to these needs and ultimately reflect where our priorities lie. The surest path to long-term prosperity is to invest in the backbone of thriving communities, like great public schools and a healthy population. To do that we need an effective, equitable revenue system. This future is within our reach, if we have the will to build it. Maryland’s prosperity today is built on the smart decisions we have made over time to invest in the basics. But we started cutting back in the years after the Great Recession, and the effects are showing more by the day. Here’s where Maryland stands now: Our public schools are…
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July 5, 2018 by Christopher Meyer in Blog, Economic Opportunity
Maryland’s strong laws protecting workers’ rights to come together and negotiate for better wages and working conditions have helped raise wages for workers across our state, both for union members and non-members. A Supreme Court ruling last week could severely undermine Maryland unions – particularly those representing teachers, firefighters, and other state and local government employees – making it harder for unions to negotiate fair wages and ultimately increasing income inequality. When we use our shared investments to support family-sustaining public service jobs, we all reap the benefits in the form of higher-quality public services and a stronger labor market. The decision in Janus v. American Federation of State, County, and Municipal Employees, Council 31 further rigs the rules of our economy against working people and undermines the foundation of shared prosperity in Maryland. At the heart of the case are the fair share fees unions and employers negotiate to…
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June 14, 2018 by Christopher Meyer in Blog, Economic Opportunity
Photo by Ser Amantio di Nicolao via Creative Commons The Trump administration and Republicans in Congress have proposed major changes to federal housing assistance that would lead to dramatically higher rents for families that already struggle to keep a roof over their heads. In the wake of a new tax law that handed out billions to powerful real estate interests, these proposals put thousands of Maryland families at risk of becoming homeless or being unable to afford other necessities. Rather than arbitrarily hiking rents, the federal government should expand housing assistance to at least cover the families who are eligible for current programs but are still left to face high housing costs with no help at all due to insufficient funding. About 77 percent of people eligible for housing assistance don’t receive it. The Trump administration plan would raise rents for 64,000 Maryland households (128,000 people), hitting each with an…
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