Over the past 15 years, the state of Maryland has handed out  close to $1 billion  in subsidies for businesses. Coming in various forms (tax breaks, grants, and low interest loans with deferred payments), these subsidies result in a direct reduction in  the resources available for the state to provide essential services for Marylanders-education, healthcare, infrastructure, and human resources. Both the total number and amount of credits claimed has increased dramatically over the past 20 years. Prior to 1995, there were just two business tax credits (enterprise one and Maryland-mined coal credits). Since then, lawmakers have established 28 business tax credits. Tax credits make up what we like to call Maryland’s shadow budget, since they are akin to spending. But unlike spending through the state’s operating budget, most tax credits are not subject to an annual appropriation. This means that they don’t get the same level of scrutiny as other…

Maryland legislators now have a little more time to finish funding education and other important services, but the gap between them and the governor remains wide. One of those gaps is over funding for education and health care. The General Assembly should stand firm on its commitment to public education and health care, two pillars of our modern economy. If Governor Hogan wants to underinvest in these areas he can, but the legislature should not be a party to it. Constitutionally, Maryland’s budget is due on the 83rd day of the session, which was yesterday. However, policymakers are not really in trouble until the end of the session, one week later (next Monday, April 13th). Even then, the governor can call for an extended session. On Monday, Governor Hogan did just that, issuing a proclamation extending the session for up to ten days if the budget isn’t passed by the…

Just about half of Marylanders who rent are paying so much for a place to live that they’re in danger of not being able to afford other necessities. Prices for rental homes in Maryland have increased annually while wages for most Marylanders have remained stagnant and unchanged for years. These two factors combine to force families to pay more of their income for rent. It’s a dangerous situation, making it hard for families to afford basic necessities like food, transportation, or medical care. The federal Department of Housing and Urban Development understands how a high rent burden can put a family in economic trouble and advises that families not pay more than 30 percent of their income in rent. However, because of high rental prices, most families have no choice but to dedicate a greater share of their income to putting a roof over their head. Today, 49 percent of…

The supplemental budget Governor Hogan released yesterday falls short of what Marylanders deserve in the quest for a strong economy and broad prosperity. The Governor’s proposals would undo the General Assembly’s efforts to restore unwise cuts in spending on schools, public employees, and other necessary services. Both the House and the Senate approved state budgets for the coming fiscal year that removed  cuts to education formulas made by the Governor and restored the 2 percent cost-of-living pay increases he took out. The General Assembly realized the value in having a highly educated workforce for growing and attracting new business and the life-long impact education has on a person’s ability to earn and support themselves and their family. On the other hand, the Governor’s supplemental budget focuses more on reducing revenue – which would lessen the state’s ability to invest in job growth and support the middle class, while giving the…

Governor Hogan’s announcement that he will sign legislation removing a stifling barrier to employment for thousands of Marylanders is a step forward in the fight to help more people make ends meet and promote a stronger economy. Last Thursday, the governor’s office announced he would sign the Second Chance Act, which the Senate approved unanimously and now is before the House of Delegates. The measure  provides those convicted of minor criminal offenses the opportunity to have their convictions shielded from public view. This legislation would help  pull many of the chronically unemployed out of deep poverty. In turn that would  increase economic activity and reduce what the state has to spend to provide public assistance. This legislation would enable people  convicted of certain minor offenses to petition to shield court and police records from public inspection. Only nonviolent misdemeanors (for example, trespassing, disorderly conduct and prostitution) for which the offender…

House lawmakers’ decision to restore around $250 million in cuts proposed by Gov. Hogan recognizes that those who can least afford it do not deserve to have the state’s budget balanced on their backs — namely, children and poor pregnant women. The House Appropriations Committee budget restores funding for education, health services, and public employees, while still cutting the state’s long-term deficit by 74 percent. If all changes are accepted by the Senate, the remaining deficit would be a tiny fraction — four tenths of one percent — of the overall budget. This deficit could then be eliminated relatively easily in the 2016 legislative session. The restoration of education funding came mainly from the committee’s decision to provide the full amount of additional funding to schools in areas of the state where the costs of educating children are higher. The governor’s cuts to the Geographical Cost of Education Index (GCEI)…

The General Assembly has the opportunity to correct gender-based wage discrimination this session. The Equal Pay for Equal Work Act (Senate Bill 424/ House Bill 1051) would give employees the tools to correct pay discrepancies without fear of retaliation by their employers, a significant step toward equality. Without any intervention by policymakers or employers, it would take Maryland until 2042 to reach wage equality between men and women for similar jobs. While waiting for that to occur, a woman working full-time who was born between 1955 and 1959 will lose at least $532,000 by age 59 because of pay discrimination. The same woman will lose almost $800,000 if she is college educated. Women will see wage discrimination reflected in their paychecks, their savings accounts, and their retirement. The Equal Pay for Equal Work Act would prohibit an employer from firing, demoting or otherwise punishing an employee for the disclosure or…

Maryland’s unemployment rate is lower than the national rate, and more Marylanders are back to work since the recession. However, a closer look at the numbers reveals that Maryland has seen an increase in low-wage jobs and that the recovery is uneven when it comes to people of color and where people live.  In order for Maryland’s economy to grow, we need more jobs that help grow the middle class. Low-Wage Employment Grows Maryland has seen an increase in certain low-wage occupations in recent years, such as food services and hospitality. Growing these industries does not necessarily help the state’s economic future or Maryland families. Even in traditionally high-paying industries job growth has been concentrated at the bottom of the pay scale. That doesn’t put families back where they were before the recession. Lower wage jobs also restrict Maryland’s ability to pay for schools and other services, since it doesn’t…

Despite its overall wealth, Maryland continues to be plagued by wide inequities in income and opportunity. How successful you are can depend on where you live, how educated you are, the color of your skin, and if you are a man or a woman. Legislators and the governor speak often about improving life in Maryland, but we need to carefully examine who benefits from their proposals. Maryland is home to  two vastly different groups of people—the very rich and the very poor. We need policies that support growing our economy to help all Marylanders, not just those at the top. Wages for the working class have been stangant for some time. In fact, Marylander’s incomes fell between 2009 and 2013. And the gap between the higher-incomes and lower-incomes widened, a trend that has yet to be reversed and stifles opportunity for those at the lower end of the income spectrum.[1]…

Hogan’s proposed Education Tax Credit  would reduce Maryland state tax revenue by $15 million a year, shiftingg it to individuals and corporations as compensation for donating money to well-funded private schools. The  Maryland Education Tax Credit  has been called  “a voucher scheme that would shift public, taxpayer dollars into private schools” by the Maryland State Education Association. Under the Governor’s proposal, an individual would be eligible for a tax credit as high as $200,000 for one year, or 60% of the contribution not exceeding this amount. The governor’s  legislation would appropriate $5 million  to pay for credits in fiscal year 2016, which starts July 1. Within just two years, the appropriation would triple to $15 million, reducing available funding to already depleted public schools  in Maryland. Governor Hogan has already proposed a separate $68.1 million reduction in the Geographic Cost Education Index (GCEI), which benefits schools in areas of the…