Maryland economy shows signs of stabilizing
State policymakers tell Laura Smitherman in today's Sun that, despite new tax-collection disappointments, the Maryland economy is showing signs of bottoming out. Comptroller Peter Franchot's initial reaction to the latest revenue estimates "is one of relief." House Speaker Mike Bush Busch is "cautiously optimistic."
I'm hearing this from the Maryland business community, too. I'm working on a column for Friday's paper on the economic outlook for 2010, and so far I'm also hearing cautious optimism. Last night I talked to Tom Saquella, head of the Maryland Retail Merchants Retailers Association, who said he expects the first increase in Maryland holiday sales this year since 2006. Granted, it would be an increase from depressed levels and wouldn't get sales back to levels from a few years ago.
Even so, the 1.5 percent increase or so he's predicting would be better than the plunge of 2008. Since it increased its sales tax to 6 percent, Maryland's treasury is even more dependent on retail activity than it was before. Stabilization in retail helps explain the stabilization in tax collections the revenue authorities think they're seeing. Let us know in the comment section about how the economy looks from your viewpoint.
Comments
If the State is looking for more Federal money. They could delay the RED LINE project !
Thanks !
David Nemeroff
Posted by: David Nemeroff | December 17, 2009 12:52 PM
David,
The federal money that Maryland would receive for construction of the Red Line would come from the Federal Transit Administration's Capital Investment Program. This money can only be used for transportation projects. If MD pulled the Red Line from the FTA's consideration, the dollars would just go to another state.
Posted by: MCG | December 17, 2009 3:26 PM
The infrastructure in Maryland is 40% deficient right now. The pot holes on Honeygo Blvd in my Baltimore County neighborhood have not been fixed for 4 years. These and other deficiencies will have to be addressed. The movement of goods to market and employees to their jobs depends on a good transportation system. The Red Line is part of that system and it will put people to work. We (as a community) need to understand the sacred value of the Transportation Fund and leave it alone. We need to invest in fixing the infrastructure, not continue putting it off because we can spend the money on something else. The economy does feel like its warming up, but too many of my neighbors are still under or unemployed. We don't need any more McMansions (we need more 1950's sized houses) we need a more efficient Energy grid, fewer bridge problems, more trains that go to more places and better neighborhood roads. Lets get construction started and put people back to work.
Posted by: Mark Patro | December 17, 2009 3:45 PM