While Maryland lawmakers gave low-income working families a helping hand recently by increasing a key tax credit, they need to go a step further and make sure that more workers are eligible for the credit, regardless of whether they are raising children. Maryland renewed its efforts to protect working families this past legislative session, when the General Assembly voted to increase the refundable portion of the state’s Earned Income Tax Credit (EITC), to 28 percent of the federal credit from 25 percent. This means increased tax refunds for working families who are trying to move out of poverty. As we reported previously, the economic impact of this is an estimated $19 million boost for Maryland’s economy, since those refunds will be spent locally on necessities like food and clothing. However, for both the federal and state credit, only those with children at home reap the full benefits. Childless workers and…

More people who lost their jobs due to cut backs are returning to work and in greater numbers than in the past, according to a report released by the U.S. Department of Labor (DOL) and Bureau of Labor Statistics (BLS) on August 26. The report found that two out of three workers displaced between 2011 and 2013 were employed at the start of 2014, but less than half are earning what they used to. The number of the reemployed was up 5 percentage points from the last reporting period, January 2012.  The Department of Labor defines a displaced worker as “a person 20 years of age or older who left or lost their job because their plant or company closed or moved, there was insufficient work for them to do, or their position or shift was abolished.” Displaced workers are categorized as long-tenured, those who held the job for 3…

On Monday much of the American public relaxed and enjoyed a day off for their hard work and economic contributions, celebrating the 120th Labor Day. A legal holiday since 1894, Labor Day is dedicated to American workers and their social and economic achievements. Yet as we attended cookouts and gatherings we asked ourselves, do we still value and support the Maryland worker? Here are three issues that, if addressed, would support Maryland workers: Maryland recently raised the minimum wage from $7.25/hour to $10.10/hour, which will occur over the next four years. Lawmakers and advocates understood the necessity of raising the state’s minimum wage to keep pace with inflation and the importance of a livable wage. The raise does not cover all hourly workers in Maryland though. Not only were tipped workers left out of the legislation, again, but as we reported, they will continue to receive their sub-minimum wage of…

On Wednesday, August 20th, the Anne Arundel County Board of Education approved a new policy for student suspensions and expulsions focused on rewarding positive behavior and minimizing punishments that reduce time spent in the classroom. Anne Arundel County is responding to changes that the Maryland State Department of Education (MSDE) approved in January.  MSDE required all 24 Maryland school districts to revise their discipline policies in an effort to shift from zero tolerance policies, which had led to an increase in suspensions and expulsions, to policies that keep kids in the classroom. In a 2013 report, MSDE found that of the more than 51,000 students who had received a suspension or expulsion, more than 83 percent received an out-of-school suspension or expulsion. Even more troubling, a 2014 National Center for Education Evaluation and Regional Assistance report highlighted the racial disparities in out-of-school suspensions and expulsions. The report found that Black…

Bartenders, waiters and other Maryland workers who routinely get tips – many, if not most, of them women — will have to rely even more on the generosity of their customers to make a living since state lawmakers left tipped workers out of the minimum wage increase. A new report by the non-partisan Economic Policy Institute and the University of California, Berkeley highlights how the subminimum wage for tipped workers amounts to a subsidy for their employers.  When Maryland’s minimum wage hits $10.10 an hour in July 2018, employers of tipped workers will be paying them only 36 percent of the minimum wage on average, down from 50 percent now. The workers will be relying on customers to make up the rest (64 percent). Legally, employers are supposed to make up whatever difference there is between the sub-minimum wage earned by tipped workers — $3.63 in Maryland – and the…

The recently approved $84 million in budget cuts amid expectations that the state would not raise as much revenue as expected highlight Maryland’s need to carefully consider how it raises money to pay for services and investments. Adapting the sales tax to reflect changes in the economy and applying by applying them to Internet commerce is a smart way to raise additional revenue. A bill recently passed out of the House Judiciary Committee would prevent Maryland from modernizing its sales tax in this way. According to a new report by the Center on Budget and Policy Priorities (CBPP), its passage could cost the Maryland over $127 million per year in potential sales tax revenue.   The Internet Tax Freedom Act, enacted in 1998 and temporarily renewed as recently as 2007, imposes a moratorium on new state and local taxes on monthly Internet access fees. The House Judiciary Committee recently approved legislation…

Bursting the Bubble, a report that we produced with The Commonwealth Institute of Virginia and the DC Fiscal Policy Institute takes a deep look into the recent economic growth in the national capital region and finds that this prosperity is far from broadly shared. Today we’ll consider how policymakers in Maryland can work with their counterparts in DC and Virginia to ensure that all residents can benefit from the region’s economic growth. Make Work Pay Fortunately, Maryland has been a leader in enacting policies that help ensure that working adults have enough income to support their families. During the recently concluded legislative session, the General Assembly passed legislation to raise the state minimum was and expand the refundable Earned Income Tax Credit. At the local level, Prince George’s and Montgomery County coordinated with the DC city council to enact a higher minimum wage in their jurisdictions to combat the high…

The $84 million in budget cuts and adjustments the state Board of Public Works approved yesterday make it harder for Maryland to create jobs and invest in the building blocks of a strong state’s economy.   The cuts were made because state revenue is coming in at a lower level than anticipated when the state budget was approved. (Yes, hiring improved last month, but many of those new jobs were low-wage or part-time). The need to respond to these downwardly revised revenue projections underscores the importance of reconsidering misguided giveaways that harm Maryland’s ability to meet growing needs and foster a strong economy whose benefits are broadly shared. In other words, it didn’t have to be this way. The state says revenue is projected to be less than expected this year due to weak economic growth. That’s true in part, but that’s not the whole story.  Also heavily complicit are long-term…

In states and at the federal level the battle for basic rights for workers goes on. Legislation to enact paid sick leave did not make it out of the Maryland General Assembly this year, and paid family leave seems unlikely to pass at the national level in the near future. But the experience so far on California, New Jersey, and Rhode Island implementing variations on legislation requiring employers to allow workers to earn paid time off to tend to either their own health or that of their family suggests that we ought to try again next year in Maryland. Letting employees take paid time off to tend to their own health or that of a family member would not only benefit the 709,400 private-sector workers and 57,800 public employees in the state who lack access to paid sick days, but would also provide a boost to Maryland’s economy as a…

We’ve been highlighting aspects of Bursting the Bubble, a new report we’ve released along with the Commonwealth Institute and the DC Fiscal Policy Institute showing how the unequal economic growth of the national capital region has not created broadly shared prosperity. Previously, we e described the kinds of disparities resulting from this highly uneven growth; today we will highlight one especially serious impact: housing prices growing too high for many people to afford. The median value for homes in the region is $313,792 (based on 2012 data);  well over double  the national figure of $151,992. Without a high salary, it is difficult to keep up with housing costs in the national capital region. A four-person household needs to make over  $81,900 a year  to afford basic living expenses, according to the Economic Policy Institute’s family budget calculator. Not surprisingly, then, many pay a disproportionate share of their income on housing.…