The Blue Ribbon Commission on Maryland Transportation Funding is scheduled to meet on June 13 from 2 pm to 5 pm in Rooms 1 and 2 of the Miller Senate Office Building in Annapolis. Based on comments from the prior May 10 meeting, the Commission will discuss value capture, public- private partnerships, and investment pricing. However, the meeting agenda is not available on the website at this time.
It is anticipated that the next meeting of this group will be held in September.
Leave a Comment » | 
Transportation and Public Works | Tagged: Transportation and Public Works | 
Permalink
Posted by Andrea Mansfield
A Baltimore Sun opinion piece reacts to recent comments by legislators in opposition to increasing the gas tax and argues that the gas tax is the best approach when considering other revenue alternatives.
What’s maddening about lawmakers and their kneejerk reaction to the 10-cent tax is that the alternatives for reviving the depleted trust fund are even less appealing. Raise fees? Already been done. Car registration and titling? Ditto. The corporate tax has already been boosted, and raising the sales tax by a penny and setting aside that money for transportation (a practice common in other states) is a nonstarter, as the ink is barely dry on the 2007 sales tax increase.
Making matters worse, of course, is that the trust fund has been raided to the tune of hundreds of millions of dollars over the years to help balance the state budget. Some of that has been repaid (or will be in the future), but much of it was not. As commonplace as the practice of dipping into the trust fund has become in economic hard times, it still amounts to eating the seed corn. Nonetheless, simply stopping it won’t be enough to solve Maryland’s transportation problems.
Maryland’s gas tax hasn’t been raised since 1992, when the current 23.5 cents per gallon represented about 20 percent of the cost of a gallon of gasoline, which was about $1.13 at the time. If that 20 percent ratio were restored today, consumers would be looking not at a dime increase but at five times that much.What Governor O’Malley and all those reluctant lawmakers need to do is bite the bullet and act this year (this fall’s special session on legislative redistricting would seem the ideal moment) and not wait for polls to show the public supports a gas tax increase — something that’s unlikely to ever happen.
Leave a Comment » | Taxes and Revenues, Transportation and Public Works | Tagged: Blue Ribbon Commission on Maryland Transportation Funding, Gas Tax, Highway User Revenues, Transportation and Public Works | Permalink
Posted by Andrea Mansfield
In an opinion piece for Center Maryland, Don Fry, President and CEO of the Greater Baltimore Committee, writes that Maryland’s Transportation Trust Fund still faces a significant funding shortfall and that there is no consensus among political leaders to address it.
The START coalition, which includes more than 60 organizations and businesses from across Maryland, is seeking three basic things from lawmakers – increase revenue for transportation infrastructure by at least $500 million per year, enact a firewall protecting the transportation fund from executive and legislative raids for non-transportation uses, and restore funding to local governments for local transportation needs.
The outcome of the recent General Assembly session graphically illustrates the magnitude of the challenge in gaining a consensus among state lawmakers on these issues. For instance, many Democrats acknowledge the need to increase the state’s investment in the transportation infrastructure, but do not support the creation of a firewall. Most Republicans oppose increasing transportation revenue, but do support a firewall.
Mr. Fry also offers his views on actions taken with respect to the Transportation Trust Fund by the General Assembly.
The bottom-line result of this pea shuffling under the shells? For the next two years, the transportation fund’s revenue will increase slightly, according to Maryland Department of Transportation estimates. But for two years it will not even receive the full benefit of the vehicle fee increases imposed this year on Maryland drivers.
The vehicle fee increases will generate a combined $123 million during the next two years, but net transportation fund revenues will increase by only $105 million during that time, according to MDOT estimates. MDOT projects that the actions of lawmakers in the 2011 session will eventually yield net annual revenue increases to the Transportation Trust Fund of $96 million by FY 2016. Generally speaking, lawmakers are taking away roughly $300 million in annual sales tax and corporate income tax revenue and replacing it with roughly $300 million in highway user revenue plus increased vehicle fees.
Meanwhile, state transportation funding to local governments will remain drastically reduced.
Leave a Comment » | Taxes and Revenues, Transportation and Public Works | Tagged: Blue Ribbon Commission on Maryland Transportation Funding, Highway User Revenues, Transportation and Public Works | Permalink
Posted by Andrea Mansfield
As previously reported, the Governor is seeking support from the business community for increased transportation funding. However, opinions vary as to whether such initiatives should be enacted, and if they are, when the discussion should take place, during a special session this fall, or during the 2012 General Assembly session.
From an opinion piece in the Annapolis Capital:
We can’t endorse a gas tax increase. It would be a regressive measure putting the same extra load on struggling car-owners and rich car-owners alike. It’s potentially disastrous when gas prices are already soaring – and threatening to sap what little energy remains in the state’s wobbly post-recession economy.
And it’s not defensible while the Transportation Trust Fund remains adorned with a “help yourself” sign. Although O’Malley doesn’t stress the point, the main reason the fund is so depleted is the repeated use of it, not to build or maintain highways or even to set up transit programs, but to make ends meet in the state budget.
While the business community has come out in support of an increase in the gas tax, they want the discussion to take place during a usual 90 day session, not during a special session in the fall.
Legislators have said they will strongly re-consider a failed proposal from this year’s General Assembly to raise statewide taxes on gasoline and could do so as soon as this fall, when the assembly meets for its special congressional redistricting session.
While a tax increase has support from several of the state’s Democratic leaders, others have warned that considering it this fall could prove unpopular with residents already paying more than $4 per gallon for gas and could lead to even more taxes during the session.
“There’s more transparency during a regular session than in a special session,” said Kathleen Snyder, CEO of the Maryland Chamber of Commerce.
Leave a Comment » | Transportation and Public Works | Tagged: Blue Ribbon Commission on Maryland Transportation Funding, Transportation and Public Works | Permalink
Posted by Andrea Mansfield
During the Maryland Chamber of Commerce’s annual meeting, Governor O’Malley asked the membership to support increased funding for transportation infrastructure. The Governor’s comments were very similar to those given during a round table discussion that was held last week.
As reported by the Baltimore Business Journal:
O’Malley stressed the importance of investing more state money in roads and transit projects, but he also emphasized that the solution will have to be more diverse than simply an increase in the state tax on gasoline. The General Assembly is readying for a fall session that will ostensibly focus on Congressional redistricting, but is also expected to tread heavily on transportation issues.
Business support will weigh heavily in those discussions, as they will likely involve some form of tax increase. The gas tax hasn’t been increased since 1993, and the recession’s tolls on state revenues have left lawmakers with a $1.4 billion gap in the state’s long-term transportation investment budget, O’Malley said. Maryland charges 23.5 cents per gallon of gasoline in taxes.
As reported by the Washington Post, the Governor is exploring revenue options in addition to the gas tax.
But O’Malley suggested Wednesday that raising the gas tax alone would not go far enough, calling it a “declining revenue source” as new cars and trucks get better mileage, a greater number of workers telecommute and others turn to public transit. “What the fairest and best mix of [revenue] choices is, I can’t tell you that right now,” O’Malley said after his speech.
In a letter to state Comptroller Peter Franchot last week, O’Malley also floated the possibility of enhancing the state’s ability to collect sales and use taxes from online purchases. The governor asked the comptroller to investigate “the severity of this ‘loophole’” and cited an academic study that estimated Maryland loses more than $160 million in unpaid taxes from online sales.
Maryland businesses, he wrote, may be “unfairly disadvantaged by what amounts to an uneven playing field with their online competitors.”
1 Comment | Transportation and Public Works | Tagged: Blue Ribbon Commission on Maryland Transportation Funding, Governor O'Malley, Transportation and Public Works | Permalink
Posted by Andrea Mansfield
A previous post provided the status of various employee benefit and relation bills that MACo took a position on. Now that the dust has settled, this post provides the final status of these bills.
Unauthorized Signs on Highway Rights-of-Way: HB 289/SB 410 would authorize removal of improperly placed signs on highway rights-of-way by state or local authorities, and authorize a civil action to recover costs of their removal or disposal. MACo supported the bill because it would assist in the beautification of public roadways and provide reasonable authority for state and local governments to remove improperly placed signs. Status: Both bills passed the General Assembly and are awaiting the Governor’s signature. MACo Testimony
Towing Task Force Legislation: HB 356/SB 570 would implement the recommendations of the Task Force to Study Motor Vehicle Towing Practices. MACo offered amendments to these bills to clarify that certain provisions only apply to those local jurisdictions that currently license towers, retaining the bill’s intended incentives, without a local mandate. However, this amendment was not adopted because the committee felt it was already implied. Ultimately, the House and Senate adopted different approaches for the regulation of towers and a conference committee was appointed to resolve them. Status: Both bills died in conference committee. MACo Testimony
Motor Carrier Permits for Local Public Transportation Systems: HB 431/SB 402 would exempt a public transportation system established under the public laws of a county government or municipal corporation from the motor carrier permit required for a passenger motor vehicle used in the transportation of persons for hire. Currently, local transportation systems are regulated by local government, the PSC, the MTA, and the Federal government depending upon the sources of funding used for operations. MACo supported this bill to streamline and create efficiencies in the process. MACo did however, seek an amendment so the bill would also apply to local governments that entered into contractual arrangements with non-profit entities to manage and operate transportation systems on their behalf. Status: SB 402 passed the General Assembly and is awaiting the Governor’s signature. HB 431 died in the Senate Rules Committee. MACo Testimony
Purchasing of Street Lights: HB 905 would allow a local government to purchase street lighting equipment from an electric company either through an agreement that is reached with the electric company or through a condemnation proceeding. If equipment is purchased through a condemnation proceeding, the bill specifies items that must be considered by a jury in determining the fair market value of the lighting equipment. HB 905 seeks a fair and just process for local governments to purchase street lighting equipment. MACo believes this bill could serve to stop the stalemates that have occurred thus far when local governments have expressed interest in purchasing street lighting equipment. Status: HB 905 was given an unfavorable report by the House Economic Matters Committee. MACo Testimony
1 Comment | Transportation and Public Works | Tagged: Bill Hearings, Session Wrap Up, Transportation and Public Works | Permalink
Posted by Andrea Mansfield
As reported yesterday by MACo, a number of issues with county effect remained in play prior to the midnight deadline for the General Assembly session. Below is an overview of how each of those bills ultimately played out:
Maintenance of Effort – As reported yesterday, three bills were awaiting final action. MACo supported HB 44 and SB 53 as a legislative initiative, to expand and balance the process for considering county MOE waiver requests —and both bills stalled in the Senate Budget and Taxation Committee. Status: The bill that passed, HB 869, delays the “penalty” for any county missing MOE but denied its waiver – withholding funds in the subsequent year, rather than the immediate year. The bill will become effective June 1, 2011.
Semiannual Payment Schedule for Business Property – HB 463, was amended by the Senate to apply to businesses with property taxes that do not exceed $100,000. The House concurred with the amendments and the bill passed and will become effective October 1 and will apply to all taxable years beginning June 30, 2012.
Ambulance Service Providers and Assignment of Benefits SB 154, which would require health insurers to reimburse an ambulance provider (must be owned, operated, or under the jurisdiction of a political subdivision or a volunteer fire company or rescue squad) directly for covered services passed both chambers.
Public Access to Electronic Records: HB 37 / SB 740 alters the State’s Public Information Act (PIA) to address the release of public documents in electronic format. The bill will require the State and local governments to provide records in a searchable and analyzable electronic format where possible. Governments have the authority to remove “metadata” before providing an electronic document. MACo supported the bill. Status: SB 740 passed with a 2013 sunset that was added by the Senate. The House initially rejected the addition of a termination date but later receded from its demand. HB 37 did not pass.
Open Meetings Act Complaints: HB 48, which was requested by the Open Meetings Compliance Board, sets a 1-year time limit for a person to bring an open meetings complaint before the Board. It also requires local governments to post their meeting notices online and also physically post them at a publicly accessible location. Finally, it repeals the requirement of a written notice. MACo supported the bill. Status: The Senate altered the 1-year time limit to 5 years but the House has rejected the Senate change. The two sides were unable to resolve their differences and the bill failed.
Waste-To-Energy as Preferred Renewable Energy: HB 1121 / SB 690 would move waste-to-energy from a Tier 2 source to a Tier 1 source (a more favorable position) within the State’s Renewable Energy Portfolio Standard. MACo supported the bill. Status: The House amended the both HB 1121 and SB 690 to also include refuse-derived fuel as a Tier 1 source. The Senate accepted the amendment and passed SB 690. HB 1121 did not pass.
Funding for School Aid, School Construction and DDA Wait List - SB 994/HB 1213 increase the tax on the sale of alcohol from 6% to 9 %. The bills are in slightly different posture. SB 994 provides $15 million to fund the Developmental Disabilities Administration waiting list, while HB 1231 provides $47.5 million for school construction projects across the State. As specified in the budget, funds from this revenue increase are also being used for additional school aid in Baltimore City and Allegany, Garrett, and Prince George’s Counties.
Uses of Local Program Open Space Funds SB 421 extends the recently expired practice of allowing a local government that has attained its POS land acquisition goals to use all of its POS funds on recreational facilities and projects. MACo supported the bill. Status: The bill passed the Senate and encountered difficulties in the House. MACo drafted amendments that specified that 25 percent of the funds could only be used for the following purposes: (1) land acquisition; (2) repair or renovation of existing recreational facilities or structures; and (3) capital renewal projects (projects necessary to preserve the physical integrity of a facility or structure or to integrate two different phases of a phased-development project). Both the House and the Senate passed the bill with the MACo amendments.
Unauthorized Signs on Highway Rights-of-Way: HB 289/SB 410 would authorize removal of improperly placed signs on highway rights-of-way by state or local authorities, and authorize a civil action to recover costs of their removal or disposal. MACo supported the bill because it would assist in the beautification of public roadways and provide reasonable authority for state and local governments to remove improperly placed signs. Status: Both bills passed and will become effective October 1.
Towing Task Force Legislation: HB 356/SB 570 would implement the recommendations of the Task Force to Study Motor Vehicle Towing Practices. MACo raised concerns with language that stated that a motor vehicle towing and storage lienor may not sell the motor vehicle to which the lien is attached unless the lienor is licensed by the local jurisdiction. MACo suggested that this language be amended to clarify that it only applies to those local jurisdictions that currently license towers, retaining the bill’s intended incentives, without a local mandate. This amendment was not adopted. Status: both bills died in conference committee on the last day of the session.
Motor Carrier Permits for Local Public Transportation Systems: HB 431/SB 402 would exempt a public transportation system established under the public laws of a county government or municipal corporation from the motor carrier permit required for a passenger motor vehicle used in the transportation of persons for hire. Currently, local transportation systems are regulated by local government, the PSC, the MTA, and the Federal government depending upon the sources of funding used for operations. MACo supported this bill to streamline and create efficiencies in the process. MACo did however, seek an amendment so the bill would also apply to local governments that entered into contractual arrangements with non-profit entities to manage and operate transportation systems on their behalf. Status: SB 402 passed with MACo’s amendment and will become effective October 1.
Direct Deposit of Wages: HB 233/SB 484 would authorize counties and municipal corporations to pay employees’ wages by direct deposit. Status: The final version of the bill that passed (HB 233) would require direct deposit as a condition of employment and provide an opt-out for those individuals who do not have a bank account. In addition, the bill was amended to grandfather those jurisdictions that currently may require direct deposit through a collective bargaining agreement, personnel regulation or local law.
Concussion Education and Treatment: HB 858 and SB 771 require school systems and youth sports programs to provide information about concussions to athletes, their parents or guardians, and coaches. An athlete suspected of having a concussion or other head injury must be pulled from practice or play until cleared by a licensed health care provider. MACo supported the bills with amendments that would clarify the bill’s notice and education requirements for local parks and recreation departments. The amendments also clarify information that must be provided by youth sports programs when using school or local government-owned recreational facilities. Status: HB 858 and SB 771 were amended to become identical bills. Both bills passed with the MACo amendments.
Leave a Comment » | Education, Employee Benefits and Relations, Environment, Health, Parks and Recreation, Planning and Zoning, Public Information and Ethics, Taxes and Revenues, Transportation and Public Works | Tagged: Education, Employee Benefits and Relations, Environment, Health, maintenance of effort, Parks and Recreation, Public Information and Ethics, Taxes and Revenues, Transportation and Public Works | Permalink
Posted by Emily Hollis
This post summarizes the status of various transportation and public works bills that MACo took a position on.
Unauthorized Signs on Highway Rights-of-Way: HB 289/SB 410 would authorize removal of improperly placed signs on highway rights-of-way by state or local authorities, and authorize a civil action to recover costs of their removal or disposal. MACo supported the bill because it would assist in the beautification of public roadways and provide reasonable authority for state and local governments to remove improperly placed signs. Status: HB 289 has passed the General Assembly and SB 410 is moving towards final passage. MACo Testimony
Towing Task Force Legislation: HB 356/SB 570 would implement the recommendations of the Task Force to Study Motor Vehicle Towing Practices. MACo is concerned with language in the bill that states that a motor vehicle towing and storage lienor may not sell the motor vehicle to which the lien is attached unless the lienor is licensed by the local jurisdiction. MACo suggested that this language be amended to clarify that it only applies to those local jurisdictions that currently license towers, retaining the bill’s intended incentives, without a local mandate. This amendment was not adopted, however MACo is seeking a letter from the Attorney General to clarify that the bill does not mandate or imply that jurisdictions that currently do not license must do so. Status: Although each bill has passed out of its respective chamber, they are in different forms which will be resolved in a conference committee. MACo Testimony
Motor Carrier Permits for Local Public Transportation Systems: HB 431/SB 402 would exempt a public transportation system established under the public laws of a county government or municipal corporation from the motor carrier permit required for a passenger motor vehicle used in the transportation of persons for hire. Currently, local transportation systems are regulated by local government, the PSC, the MTA, and the Federal government depending upon the sources of funding used for operations. MACo supported this bill to streamline and create efficiencies in the process. MACo did however, seek an amendment so the bill would also apply to local governments that entered into contractual arrangements with non-profit entities to manage and operate transportation systems on their behalf. Status: SB 402 has passed the Senate with the amendment and has been heard in the House. HB 431 is awaiting action by the House Economic Matters Committee. MACo Testimony
Purchasing of Street Lights: HB 905 would allow a local government to purchase street lighting equipment from an electric company either through an agreement that is reached with the electric company or through a condemnation proceeding. If equipment is purchased through a condemnation proceeding, the bill specifies items that must be considered by a jury in determining the fair market value of the lighting equipment. HB 905 seeks a fair and just process for local governments to purchase street lighting equipment. MACo believes this bill could serve to stop the stalemates that have occurred thus far when local governments have expressed interest in purchasing street lighting equipment. Status: HB 905 was given an unfavorable report by the House Economic Matters Committee. MACo Testimony
1 Comment | Bill Hearing, Transportation and Public Works | Tagged: Bill Hearings, Transportation and Public Works | Permalink
Posted by Andrea Mansfield
The Senate Budget and Taxation Committee approved its plan to modify the Governor’s 2012 proposed budget, concurring with a large number of the actions taken by the House. As a part of their plan, the Senate Committee concurred with the House to restore funding for education, rejected a Department of Legislative Services (DLS) recommendation to transfer 50 percent of teacher retirement expenses to the local boards of education, and concurred with a one-time payment of $13.2 million to counties and municipalities, $5 million and $8.2 million respectively, for local roadways. The Senate Committee also concurred with the House to rejected a DLS recommendation to direct all transfer tax revenue, which funds Program Open Space (POS) and other land preservation programs, to the General Fund and establish a statutory minimum funding level for all programs of $50 million.
For county governments, one major difference in the House and Senate plan is the shifting of costs for property assessments. The House reduced the shift to 50 percent of the costs, whereas the Senate committee adopted the full 90 percent shift as proposed in the Governor’s budget. The Senate proposal would cost county governments roughly $35 million annually, while the House’s lesser version would cost counties only about $20 million a year. Like the substantial range of issues where the House and Senate have different approaches, this item will be sent to a conference committee to develop a final fiscal plan for both the operating budget (HB 70) and Budget Reconciliation and Financing Act (HB 72). The Senate is likely to debate the budget plan on the floor next week, and the conference committee will begin work soon thereafter.
The Budget and Taxation Committee also included revenue from an increase in the alcohol tax. After approving its budget plan, the Committee voted on a 3 percent increase on alcohol sales that would be phased-in over three years. Revenue generated in FY 2012 would be used to fund developmental disabilities, a restoration of the disparity grant, and targeted education funding.
Other differences are in the areas of retiree health benefits and pensions, as well as a wide range of modest differences in state agency funding levels or restrictions.
Information outlining the difference in the House and Senate plans, as well issues remaining to be resolved, will be made available on the MACo blog in the coming days. Press coverage of budget discussions can found at the links below.
2 Comments | Education, Employee Benefits and Relations, Parks and Recreation, State Budget, Taxes and Revenues, Transportation and Public Works | Tagged: Education, Parks and Recreation, State Budget, Taxes and Revenues, Transportation and Public Works | Permalink
Posted by Andrea Mansfield
Tuesday’s edition of the Diane Rehm Show, available on a variety of public radio stations in the area, will discuss infrastructure funding — prompted by the ongoing federal budget debate, cutbacks in state and local budgets, and the recent devastation in Japan. 
According to the show’s website:
The crisis in Japan is prompting new questions about long simmering issues here at home, and among them, our country’s deteriorating infrastructure. For years our bridges, dams, water treatment systems and other critical infrastructure elements have been in dire need of maintenance and repair, but finding the money to address these needs has become increasingly difficult. Earlier this month a bipartisan group in the Senate offered a plan that, if enacted, would encourage private investors to take the lead on large scale transportation, water and energy projects. Please join us for an update on efforts to rebuild the nation’s crumbling infrastructure.
Guests
Stephen Flynn
President, Center for National Policy, former senior fellow with the National Securities Studies Program at the Council on Foreign Relations and author of “America the Vulnerable” and “The Edge of Disaster.”Dan Flanagan
consultant, project finance and infrastructure investmentJack Basso
director, program finance and management, American Association of State Highway and Transportation Official (AASHTO)Josh Mitchell
staff writer,Dow Jones Newswires.
Tune in to your local public radio station to listen, or visit the show’s website to stream or podcast the episode.
Leave a Comment » | Taxes and Revenues, Transportation and Public Works | Tagged: Transportation and Public Works | Permalink
Posted by Michael Sanderson
