Fiscal 2010 Revenues Higher Than Expected

September 2, 2010

An article by MarylandReporter writer Megan Poinski, shares the good news that was discussed at the September 1 Board of Public Works meeting; the State has a Fiscal 2010 General Fund balance of $344 million.  That’s over $180 million more than anticipated.   However, revenues are still down.

In 2010, Maryland collected 3.7% less than it did in 2009 – and $1.1 billion less than in 2008. Revenues are still down for county governments as well. In the August income tax distribution to counties released by the comptroller this week, most counties received less money last month than in August 2009 based on projected tax collections.

By law, the fund balance goes into the State’s Rainy Day Fund.

More coverage can be found in the Baltimore Sun, Baltimore Business Journal, and Daily Record.


Board of Public Works and MD General Assembly Meetings Will Be Online Starting in July

June 24, 2010

The General Assembly and Board of Public Works will begin streaming their meetings online in July.  A “test run” of the June 23 Board of Public Works meeting got 17 viewers with its streaming audio and video.

Governor Martin O’Malley said he hopes the window into board meetings will demystify what the Board of Public Works does, especially in terms of spending approvals.

Starting in 2011, the House of Delegates will make available online live video and audio of committee hearings and voting sessions. The Senate will webcast audio of its meetings. Streaming audio of the full floor sessions in both chambers is already on the General Assembly’s website. The legislature will also waive the $800 fee for up-to-the-minute updates on bills moving through the legislative process.


Board of Public Works Approves $50 Million Contract For Slot Machines

June 10, 2010

On Wednesday the Maryland Board of Public Works approved a $50 million contract to purchase 1000 slot machines for the planned Hollywood Casino Perryville located in Cecil County. As noted in the deal, the average ticket price of a lottery terminal is $46, 542, an estimate that industry analysts claim is significantly higher than what an individual machine should cost. Comptroller Peter Franchot stated that it is”an incredible windfall for the industry.”  The Baltimore Sun reports:

In April, the board gave preliminary approval to spend $600 million over the next five years to buy slot machines. The contract approved Wednesday, which authorizes the purchase of 1,068 machines divided among the six manufacturers, marks the first installment on that plan.

A state lottery spokeswoman said the average cost of machines is typically between $19,000 and $21,000. Spokeswoman Carol Everett stressed that the average from Wednesday’s is skewed because some more complicated machines cost significantly more.

Shuffle Master terminals cost taxpayers $116,000 per machine, according to details provided by the state lottery. On the low end are KGM machines, which cost $24,000 per machine.

Some manufacturers have spent a lot of money lobbying Annapolis over the past decade. IGT, which was the biggest winner Wednesday with $20 million in sales from the contract, has spent $800,000 lobbying key lawmakers. Spielo, which got $9 million, spent $87,000 on lobbyists.

The state is not done shopping: The casino will need another 438 machines to be fully operational. The lottery agency will seek approval for those machines this month, director Stephen Martino said. At the rate of $46,000 per machine, that would cost another $20 million.

Martino expects the state to purchase machines for the Ocean City casino over the summer. The state has authorized 2,500 machines for Worcester County, but plans for Ocean Downs call for only 1,500.


State Treasurer shows empathy for local governments’ current fiscal circumstances

March 10, 2010

Maryland State Treasurer, Nancy Kopp , stated in her opening remarks at the March 10 meeting of the Board of Public Works that she just returned from a meeting of the  National Association of State Treasurers held in Washington, DC where  she met with members of the Administration and Congress to discuss  issues that significantly affect the states’ fiscal conditions.  She emphasized that the state and especially local governments will not see the revenue  “upticks” for a while, even though the national economy is showing signs of stabilization.  She stated that state and local governments make significant contributions to the Gross Domestic Product and she reminded leaders that people here are “still feeling the serious pains” from this economic crisis.


Board of Public Works approves service contract for current voting machines

February 27, 2010

At its February 24 meeting, the Board of Public Works approved a service contract to continue use of the current “on-screen” voting machines for the 2010 elections. As previously discussed here, the Governor’s budget for FY 2011 does not include funding for the anticipated purchase of new voting machines. MACo has consistently opposed the investment in new voting systems, while both State and county governments are still paying for the previously purchased system.  Prior to the approval for the service contract, the Board approved a 2010 Contingency Fund item of $175,000 so the contract could be implemented in the current fiscal year.

The new service contract was not without controversy, as the Board had discussions about the confusing nature of the contract. The final vote on the contract approval was 2-1, with Comptroller Peter Franchot voting against its approval. The eventual amount of spending on service items is not fully clear from the contract proposal, as the item approved includes some components relevant only to the purchase of new voting systems, which will not be activated for the coming year without their purchase. The anticipated value of the new contract is some $21 million over the three-year base contract, with renewal options for four years totaling approximately $22 million. Half these costs are expected to be billed to county governments according to their voting-age population.


Wednesday Board of Public Works meeting canceled

February 9, 2010

The February 10 meeting of the Board of Public Works has been canceled.

Among the items that had been scheduled for the Board meeting was a discussion of the proposed contract for purchasing new voting machines for use in the 2010 elections. MACo has previously posted coverage of this controversial decision, and the fact that the funding for this contract was not included in the Governor’s FY 2011 proposed budget.

MACo will follow any details about rescheduling of this and other BPW agenda items, and will post these details once they are available.


MACo asks Board of Public Works to Reject Contract for New Paper Ballot Voting System

January 13, 2010

In a letter sent to the Board of Public Works, MACo raises concerns with the approval of a contract for a new voting system.   There has been much discussion about the new system in recent weeks.  Governor O’Malley indicated during a MPT interview that he has heard from county governments that implementation of the system should be delayed because of time constraints and the cost during tough budget times.  A recent Gazette article indicated that the cost could keep the system from moving forward.

An excerpt from MACo’s letter is below.

While the policy debate leading to the potential purchase of these machines has stretched on for some time, this contract approval represents a timely opportunity for the Board to assess both the propriety and effectiveness of this substantial expenditure of State and county funds.  MACo believes that the contract for these voting systems should be rejected, on grounds of affordability, effectiveness, and administrative implementation.

At a time when governments are facing the hardest fiscal challenges in memory, committing such massive funds to replace fully functional and effective voting systems cannot be the State’s top priority.  Furthermore, the proposed purchase of materials for a “hybrid” system does not even accomplish the stated goals of the many who have advocated for a paper ballot system.  Combine these aspects with the uncertainty about administration, legality, and looming federal action – the contract pending the Board’s approval should be rejected.


9 Counties Cited for Excellence in School Maintenance

December 16, 2009

The Board of Public Works approved a report of  a school maintenance survey conducted by the Public School Construction Program at their December 2 meeting.  Nine counties received a “superior” rating and  were awarded citations by the Governor.

  • Allegany-Flinstone Elementary School
  • Anne Arundel-Davidsonville Elementary School
  • Baltimore-Seven Oaks Elementary School
  • Calvert-Calvert County School
  • Cecil-Charlestown Elementary School
  • Frederick-Wolfsville Elementary School
  • Garrett-Route 40 Elementary School
  • Howard-Worthingon Elementary School
  • Montgomery-Somerset Elementary School

State Treasurer, Nancy K. Kopp, expressed her appreciation for the schools’ scores especially in such challenging economic times.  MACo thanks the Treasurer for her continued commitment to and support of the public school construction program.


Board of Public Works Makes $360M in adjustments to FY 2010 budget

November 18, 2009

The Board of Public Works (BPW), at their November 18 meeting made changes of approximately $360 Million to the FY 2010 state budget.  This is the third round of cuts made by the  BPW in an attempt to address the continuing shortfall of revenues supporting the state’s FY 2010 budget.  Many state agencies as well as higher education will be affected by the cuts, though none proposed and voted on today were  in direct Aid to Local Governments.  MACo is in the process of determining whether local government services may feel the “pinch” from this latest round of cuts.  The BPW has made over $1 Billion in cuts to the FY 2010 budget.  See Summary.

MACo Executive Director, Michael Sanderson states in today’s Baltimore Sun that the cuts taken to local governments do raise the question about whether or not they exceed the statutory imposed limit of 25%.