Open mic day at Board of Public Works
Wedged between approvals to purchase land for Program Open Space, a complex lease deal for a new development in Baltimore and a state bond sale, David Schwartz of Americans for Prosperity appeared before Gov. Martin O’Malley Wednesday at BPW to rankle him about budget decisions.
Schwartz, who used to raise money for former Gov. Robert L. Ehrlich, told O’Malley that members of his Tea Party organization “were pretty unhappy” that this year’s $32 billion state budget relies on $389 million in promised federal funding. Congress is now wavering on that commitment and may not deliver the help.
“We are running a deficit right now,” Schwartz said. “When is that getting taken care of and how is getting taken care of?”
O’Malley explained that the budget contains a contingency plan for this exact possibility: Borrow another $200 million from the income tax reserve fund and use the cash balance to cover the rest.
Schwartz disliked the answer: “So we are raiding the local income tax [fund] again?” he asked. The income tax reserve fund has become the new go to account to fill budget holes. O’Malley used it last year and this year.
The governor appeared uncomfortable with the line of questioning: “No. I wouldn’t. No. That’s not. …”
Treasurer Nancy Kopp piped in with the news that state revenues are higher than expected, inflating the cash balance and making it less likely that the state would need to borrow from the income tax fund.
O’Malley reminded Schwartz that the state still has its coveted AAA bond rating, calling it a “seal of fiscal responsibility.” Kopp concurred noting that the state had, only moments earlier, sold about $500 million in bonds at very low interest rates: Evidence that Wall Street has faith in the credit rating agencies' assessment and views Maryland as a safe place to park cash.
Ehrlich, who is running to get his old job back, used many of the same maneuvers that O’Malley has employed to keep the state’s budget balanced. However, dipping into the income tax reserve fund appears to be a relatively new idea – one that was initially suggested by Comptroller Peter Franchot who oversees the fund.
The credit rating agencies have not expressed any concern over the practice, other than noting that using the fund is a one time revenue source that does not solve an ongoing budget problem.
Comments
Did Dave Schwartz, who had been on Bob Ehrlich and Andy Harris's campaign payrolls for years until he made the lateral move to Americans for Prosperity, reveal that he is a registered and paid lobbyist?
Ironically, Mr. Schwartz tried to discredit liberal opponents by labeling them "registered lobbyists," or "paid lobbyists," but now he holds that title.
Even worse, Americans for Prosperity's paid staff testified before legislative committees five times last session and lobbied Republican legislators to introduce a bill drafted by an AFP consultant, but the group failed to register and disclose its lobbying activity as Maryland's ethics law requires.
With a $26 million budget for 2007 and 2008 and a general counsel who used to be the Maryland Republican Party's executive director, Americans for Prosperity has no excuse for breaking Maryland's ethics law.
If he wants to weigh in on the issues of the day, Mr. Schwartz should first admit his organization's wrongdoing and obey Maryland's ethics law by disclosing Americans for Prosperity's paid lobbying activity last session.
- Steve Lebowitz, Annapolis
Posted by: justdafacts | August 2, 2010 2:33 PM
Did Steve Lebowitz do research before saying the AFP members whom testified were paid? Of course not.
Speaking of unregistered lobbyists... how are those former O'Malley hacks doing? You know, the ones who work for companies that lobby the state, but they don't actually "lobby" personally?
Posted by: Lori | August 2, 2010 3:34 PM
Lori -
You may have misunderstood my comment. Americans for Prospertiy has two paid staff members in Maryland who testified five times last session for and against legislation as part of AFP's agenda. One bill they supported was actually drafted by an AFP consultant and introduced by Maryland Republican legislators.
I have the sign-in sheets to prove it. On top of that, AFP's two paid Maryland staffers chatted extensively on facebook, twitter, and other social media about organizing bus trips to Annapolis, contacting legislators, and paid robo-calling to pressure a legislator.
I have no problem with AFP members voluntarily lobbying; in fact, I'd do anything I could to defend their First Amendment right to do so.
AFP and their paid staff have that same right, which is why Maryland, like all states, has ethics laws that do not conflict with anyones' First Amendment rights while protecting the public's right to know who is being paid how much by whom to lobby.
Now that Americans for Prosperity has reigstered to lobby, they need to follow the law by disclosing their lobbying activity and expenditures last session. Every other special interest group obeys the law, whether they are liberal, conservative, or nonpartisan. AFP needs to step out of the shadows and join the community of law abiding interest groups that lobby the legislature.
- Steve Lebowitz, Annapolis
PS - If you're concerned about political insiders lobbying government officials without triggering the lobbying legislation requirement, you should research Bob Ehrlich's closest advisor, the Baltimore lawyer, David Hamilton.
- SL
Posted by: justdafacts | August 2, 2010 10:46 PM
Today you are rather amusing oh defender of MOM Steve-let me send out some fake Bob Ehrlich twits fame-Lebowitz.
You talk about ethics-why is Ulysses Currie under investigation by the FBI still a committee chair in Annapolis?
How about the ethically challenged Muse of Prince Georges County?
What about the ex-MOM hacks who are now lobbying the MOM administration?
Everything cut and dry there?
Perhaps you should focus on cleaning up Annapolis's kitchen first oh defender of high taxation!
Posted by: john | August 3, 2010 12:45 PM