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LATEST NEWS

The Governor's Budget

1/25/2022

 
As I noted last week, the Governor's budget proposal has been released. The budget is the one bill the Maryland General Assembly is constitutionally required to pass each year and it has two major components:
  • The Operating Budget, which are the dollars allocated for specific programs such as education or healthcare.
  • The Capital Budget, the dollars allocated for construction.
Maryland's current budget picture is bright, with surpluses projected between now and fiscal year 2027.  The Governor's budget includes:
  • Almost fully funds all statutory formulas for education and other programs established by the General Assembly, including the Blueprint for Maryland's Future which Governor Hogan spent years saying was unaffordable (the one exception is for an education program that does not impact Montgomery County but underfunds a program for Baltimore City and Prince George's County).
  • Holds tuition increases at Maryland's higher education institutions to 2%.
  • Funds several social safety net programs, including expanding by $5 million a summer Supplemental Nutrition Assistance Program (SNAP, also known as food stamps) program which I helped to start.
  • Provides pay increases for state employees, although non-law enforcement workers continue to receive much smaller increases.
  • Makes the actuarially required payment to the state pension and two additional payments required by law, leaving the pension funded at 76.9% and rising.
  • Provides approximately $1 billion for school construction, including funds from the Built to Learn Act, which uses the state's casino revenue to issue bonds to support school construction.
  • Continues the legislatively established Local Parks and Playground Infrastructure program for another year.
  • Fully funds Maryland's contribution to the Washington Metropolitan Area Transportation Authority (WMATA), including dedicated funding which I sponsored and worked on with our regional partners in 2018.
  • Funds Purple Line business impact grants that the Montgomery County Delegation has fought so hard for.
  • Projects the continuation of the Highway User Revenue (HUR) program that dedicates transportation dollars to local governments.
There are obviously a lot more provisions but the Governor's budget starts from a relatively strong position.  The General Assembly will spend the next few months going through it in more detail.  As a reminder, until next year the General Assembly cannot add funds to an operating budget program, but only remove them.  
On Monday, the General Assembly received the annual overview of the budget known as the fiscal briefing.  You can watch the full briefing here.
Or read the presentation here.
As always, you can keep up with what I am doing by following me at @mkorman on Twitter or by clicking "Like" on Delegate Marc Korman on Facebook.
Legislative Update
Last week, my first bill hearing took place on the Zero Emission Bus Transition Revision Act (HB 10), legislation that modifies the zero emissions bus transition bill from last year to assist the workforce.  You can watch the hearing online.
I have introduced several more bills since my last newsletter that will soon be assigned for hearings:
  • Green School Construction Act (HB 365): Removes state fund support for new or replacement school fuel systems that are fossil-fuel based.
  • Motor Vehicle Registration Clarification Act (HB 368): The bill, suggested to me by a constituent, requires the Motor Vehicle Administration to pause on sending non-insurance notices for cancelled license plates.
  • Maryland State Agency Transparency Act (HB 375): Building upon my prior work with Senator Kagan, the bill adopts a recommendation of the Star Transparency and Reform (STAR) Commission, on which I served, to require several quasi-state agencies to web stream their meetings.
  • Young Readers Program Expansion Act (HB 383): Establishes a program for counties to support local Imagination Libraries, that send books to children under five years old each month.
  • Maryland Automobile Insurance Fund - Installment Payment Plans (HB 377): Working with Senator McCray, the bill will allow Maryland's insurer of last resort to offer affordable installment plans to its customers instead of requiring those seeking insurance to rely on predatory financing options.
  • Independent Agency Health Insurance Option Act (HB 379): Also building on the work of the STAR Commission, the legislation allows certain quasi state agencies to buy into the state's health insurance program.
  • Tax Incentive for Employee-Owned Businesses (HR 403): Creates a tax incentive for businesses that convert to Employee Stock Ownership Plans (ESOPs).
Transportation
Metro's General Manager, Paul Wiedefeld, has announced his departure later this year.  Mr. Wiedefeld has a history of service in the transportation sector in Maryland, having run both the Maryland Transit Administration and BWI Airport before leading Metro.  Running Metro is a difficult job and I think Mr. Wiedefeld brought needed credibility to the role when he began and helped secure dedicated funding for the system which is critical to maintaining its capital.  Unfortunately, two events have clouded the end of Mr. Wiedefeld's tenure: COVID-19, which is obviously beyond Metro's control, and the issues with the 7000 series of railcars that are not currently running.
-----
The Governor's final six year Consolidated Transportation Program was released with the budget last week.  There is a lot to digest and, as noted above, the budget includes dedicated funding for Metro and a projected extension of Highway User Revenue.  But one area of interest is how the budget deals with the proposed expansion of I-270 and I-495.  Last year, the Governor's political action committee ran attack ads against me and others, claiming that five specific transportation projects (four roads and one transit line) would be cancelled unless the Governor's road expansion plans advanced.  The plan have advanced, yet in this final budget of Governor Hogan's tenure, four of the five projects (three roads and one transit line) still receive zero funding.  Moreover, the Governor's draft transportation budget had no funds set aside for the project Montgomery County Councilmembers said they had secured last summer.  After the Department of Transportation was asked about this at multiple meetings and hearings, Page MTA-54 of the final budget sets aside $400,000 to begin developing a project.
Community News
Montgomery County is beginning to plan the North Bethesda Bus Rapid Transit line, a proposed connection from Montgomery Mall to either Grosvenor or White Flint Metro Stations. Click here to apply for the corridor advisory committee.  Click here to sign-up for updates.
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The Comptroller has announced a three month extension of the state income tax due date.  The filing and payment deadline will be Friday, July 15, 2022.-----
Shout-out to District 16's Zoe Weiss, who testified in support of HB 49, Public Health - Emergency and Allergy Treatment - Nurse Practitioners legislation last week.  You can watch Zoe's testimony starting at about nine minutes in of this video.
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Congratulations to Bethesda's Laura Coyle on her reappointment to the Citizens Review Panel for Children.
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Congratulations to Joan Kleinman, the long-serving District Director for Senator Van Hollen recently announced her retirement.  Joan has been an incredible bridge between state officials and Senator Van Hollen.  Speaking of which, Senator Van Hollen spoke at the Montgomery County Delegation last week, including about Joan.  You can watch his remarks here, starting about 29 minutes into the meeting.
Community Events
  • On Thursday, January 27, the Western Montgomery County Citizens Advisory Board will host a special meeting with the County Council regarding the Thrive 2050 plan. The meeting is at 7pm.  Click here for the link.​
  • The next Bethesda Chevy Chase Democratic Breakfast Club meeting is on Wednesday, February 9 with candidates for Comptroller Mayor Tim Adams and Delegate Brooke Lierman.  The meeting is virtual at 7:30am and you can email [email protected] for the zoom links.


If you know of an upcoming District 16 event or a District 16 resident who merits recognition or condolences, please email [email protected].

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