Tomorrow, Gov. Larry Hogan is due to release his proposed budget for the state fiscal year that begins July 1. If you’re concerned – as we are at MDCEP – about public investments that help create jobs and build a strong economy, here are three things to keep an eye on as the budget debate goes on. 1. What is the governor cutting? The governor has said his budget proposal will be $17.1 billion. That’s about $230 million less than what experts at the state Department of Legislative Services (DLS) said is needed to maintain current service levels. And it’s $480 million less than what legislators on the Spending Affordability Committee recommended investing in meeting the state’s needs. That means that under the Governor’s plan some things would be funded at levels below what meets Maryland’s needs. Where could the money come from? The DLS estimates assumed that state employees…

Decisions made during the 2016 legislative session, which begins today, will affect the prosperity of average Marylanders for years to come. Legislators will have some key opportunities this session to support a higher standard of living for all Marylanders. They can respond to Governor Hogan’s call to help working people make ends meet by expanding the state’s Earned Income Tax Credit to cover the 355,000 people who currently get little or no benefit from the credit, despite very low wages. And they can benefit the state’s economy by ensuring that Marylanders don’t have to choose between their health and their job by supporting legislation allowing all workers to earn paid sick leave. It’s likely to be a fast-paced, combative 90 days, as the governor pushes tax cuts that many legislators realize would threaten the ability to preserve quality education and other essential services in Maryland. Much of the battling will…

December marked one of the most profitable months on record for Maryland casinos— which generated more than $95 million in revenue. Regrettably, soaring profits for casinos have not resulted in more money for education, as they could have without past changes in state law. Instead, teachers and staff continue to face layoffs and students have fewer resources than they need because of budget cuts. Two main factors prohibited education in Maryland from benefiting from increasing casino profits. One was a change in the rules pertaining to how much money the casinos could keep, and the other was a change in how the government would spend the money. The original legislation that legalized gambling mandated that the Education Trust Fund receive the lion’s share of gambling revenues from slots at five new casinos. About half of the slots revenue went directly to the fund and an additional 18.5 percent to other…

Maryland state leaders seem ready to begin addressing the systemic problems in Baltimore communities that played a key role in igniting the unrest in the city following the death of Freddie Gray last April. A series of proposals for the 2016 legislative session would combat problems such as lack of economic opportunity and inadequate schools that have plagued some of Baltimore City’s poorest neighborhoods for decades. Last month, House Speaker Michael E. Busch announced his support for a package of Baltimore-focused initiatives that is estimated to cost about $10 million. It outlines a strategic plan for demolishing vacant buildings, extending the school day in certain neighborhoods, and making it easier for public institutions to hire city residents. “A successful, healthy Maryland requires a revitalized Baltimore City — a home to world-renowned hospitals, universities, and cultural institutions. A diverse coalition must join together to tackle the tough issues facing education, crime,…

Prince George’s County has seen steady economic growth over the last five years as county leaders have made a concerted effort to attract new businesses. The county has added thousands of jobs, reduced unemployment and seen home prices jump nearly 50 percent. Over the past year, 17 businesses from other parts of the region have decided to relocate or expand to Prince George’s County, in part to take advantage of the tax credits, grants for training employees, and loans that the county is offering in hopes of creating better job opportunities for its residents. The County Council and County Executive set aside millions for its business loan program, streamlined the permitting process, and greenlighted major projects, such as the MGM National Harbor casino and a new hospital. County leaders must keep in mind that taxpayers are often footing the bill for these incentives. Money invested in tax breaks for businesses…

An agreement by Maryland hospitals to create 375 jobs for Baltimore residents is a good example of how government and private businesses can work together to promote economic opportunity. The Health Employment Program was conceived by the Johns Hopkins Health System, MedStar Health, the University of Maryland Medical System and OneBaltimore. The jobs will pay an average of $15 an hour and benefit families residing in areas hardest hit during the unrest following the death of Freddie Gray last April. Lawmakers should support policies that build on this model, creating sustainable incentives for businesses that create jobs paying meaningful wages in communities that most need an economic boost. However, it is also important that companies receiving incentives are held accountable for actually creating the jobs that they promised. The program will enable people who don’t have a four-year college degree to apply for entry-level positions and get the chance to…

Governor Larry Hogan’s recent actions on school funding suggest that he is playing politics with students’ educations. The governor recently announced that he will make it a priority to find extra funding for three school districts with declining enrollment in rural districts (all of which overwhelmingly voted for him in the last election). Yet at the same time Governor Hogan continues to refuse to release tens of millions of dollars the legislature set aside for districts struggling with higher costs and growing enrollment. Those rural districts may well need help, but the cash-starved urban and suburban districts, which are being denied aid, are responsible for educating the lion’s share of minority students in Maryland. Earlier this month, the Governor sent a letter to the president of the Maryland Association of Boards of Education, saying he intends to include $5.6 million in new education funding for Carroll, Kent, and Garrett counties.…

Maryland lawmakers will have the opportunity this legislative session to adopt a set of policies that would make the criminal justice system more effective, save the state significant money, and boost the economy. Recommendations that Maryland’s Justice Reinvestment Coordinating Council (JRCC) will make to Governor Hogan and the General Assembly at the end of this month could save the state $247 million over the next 10 years by reducing the prison population by almost 20 percent (4,000 people), according to estimates from researchers at the Pew Charitable Trusts. These savings could then be reinvested into substance abuse treatment, mental health care, workforce training, and other effective strategies proven to  keep people from returning to prison. This would be a great next step, building on the state’s adoption of the Second Chance Act earlier this year that removed a significant barrier to employment for thousands of Marylanders. JRCC’s report will lay…

Against a backdrop of growing revenues and an improving economy, Maryland might still face eliminating or delaying important transportation projects, school building and other public investments that help create jobs and build a strong economy. It won’t be due to lack of money. Instead the problem could turn out to be reluctance to use available dollars – a policy that fails to take into account the state’s needs. With regard to schools, the issue is $68 million that Gov. Larry Hogan has refused to release. The money would mean giving high-cost school districts the support they need. The Governor says that the state shouldn’t be spending more in the classroom until it meets all its pension needs. The General Assembly voted to appropriate the money but agencies can’t spend it without the Governor’s approval; the ongoing stalemate means serious needs are going unmet. Meanwhile, state analysts estimate that the state’s…

Governor Larry Hogan and the now more than two dozen governors who have said they intend to block Syrian refugees from entering their states should reconsider their positions. The implication that refugees are allowed to resettle in the United States with little screening is false – refugees undergo more screening and background checks than anyone else traveling to this country – and the suggestion that a person is a security threat by virtue of their nationality is disrespectful to the Syrians who are already part of Maryland communities. Instead of viewing people whose lives are shattered by world crises as a threat, these governors should take the opportunity to assist families in need and help refugees become valuable contributors to their states’ economies. Maryland’s economy already relies heavily on the contributions of immigrants, who account for billions of dollars in taxes and consumer purchasing power. Inclusive state immigration policies don’t…