THE BUDGET

REPORT FROM STATE CIRCLE 2007 Published by the League of Women Voters of Maryland Inc. 106 B South Street, Annapolis MD 21401 phone: 410-269-0232 email: lwvmd@verizon.net website – lwvmd.org President: Lu Pierson Editor: Judith Heimann March 28, 2007 No. 5, 2007 ---------------------------------------------------------------------------------------------------------------------------------- TABLE OF CONTENTS Administration of Justice Affordable Housing The Budget Campaign Finance Children & Families Education Environment 1 4 10 8 6 6 2 Elections Ethics Health Living Wage Marriage Equality Revenue Transportation 9 8 4 4 3 6 3 ADMINISTRATION OF JUSTICE DEATH PENALTY Despite the efforts of the MDCASE coalition (Maryland Citizens Against State Executions), of which LWVMD is a member, and Governor Martin O’Malley, SB 211, calling for repeal of the death penalty, was defeated on a 5-5 vote in JPR. As a result, no action is expected on the cross filed HB 225 by JUD. MDCASE is already gearing up for repeal efforts in 2008. Also receiving unfavorable reports, however, were bills the LWVMD opposed, HB 690 and SB 239 (see RSC 3 and 4) which would have exempted lethal injection procedures from the Administrative Procedures Act. Until and unless the legislature comes up with procedures on how capital punishment is to be carried out, a December Court of Appeals ruling results in a death penalty moratorium. HB 645, which would have added victim and witness intimidation to aggravating factors in a death penalty case (See RSC 3 and 4) also received an unfavorable report from JUD. ASSAULT WEAPONS BAN HB 43 Maryland Assault Weapons Ban, supported by LWVMD, received an unfavorable report from JUD. Administration of Justice continued - page 2 – MANDATORY MINIMUM SENTENCING HB 1317 dealing with persons given a mandatory minimum sentence under a 1994 law, now repealed, (See RSC 3 and 4) received a favorable report from JUD and passed 76-59 in the House. There has been no action in the Senate. HB 548 (See RSC 3) which would have allowed participation in a drug treatment program, instead of a mandatory sentence, received an unfavorable report from JUD. HB 992, (See RSC 3 and 4) which would repeal mandatory minimum sentences for certain drug-related offenses, received a favorable report from Judiciary but failed 68-69 in the House. HB 930 cf SB 413, Jessica’s Law, which provides mandatory minimum sentences for specified sexual crimes against a child under 13, (See RSC 3 and 4) has received a favorable report from JUD and passed to second reading. There has been no action in the Senate. JUVENILE SERVICES/CORRECTIONS HB 10 allowing for Expungement of police records where a person is arrested but never charged (See RSC 3 and 4) received a favorable report from JUD and passed 130-9 in the House. There has been no action in the Senate. SB 69 which would set up a task force to study prison violence in Maryland (See RSC 2, 3 and 4) received a favorable report and passed 44-3 in the Senate. There has been no action in the House. SB 175, a juvenile mentoring program, known as ”Maryland Rising” (See RSC 4) has received a favorable report from EHEA. There has been no action in the House. There has been no action on HB 980 dealing with HIV testing or on SB 359,calling for reorganization and regionalization of the Department of Juvenile Services. HB 249 dealing with contact between correctional employees and inmates has been withdrawn. (See RSC 4). Marcia Reinke ENVIRONMENT Update RSC 2: HB 133/SB 148 – Oyster Restoration – passed House > EHEA fav w amendments HB 185/SB 961 – Building Permits – Patuxent River Watershed – JPR unfav/JUD withdrawn HB 418/SB 366 – Mercury Switch Removal from Vehicles – ECM hrg 3/24/passed Sen 35-10 SB 215 – Chesapeake and Atlantic Coastal Bays Critical Area Protection Program – EHEA failed, ref to interim study SB 298/HB 778 – Income Tax Credits for Green Buildings – W&M hrg 2/27, unfav report SB 300/HB 863 – Proposed Capital Projects – High Performance Buildings – no action SB 301/HB 901 – Education – New School Construction – no action SB 332/HB 942 – High Performance Buildings Act – HGO fav w amendments – passed 2nd reading w amendments SB 409/HB 890 – Warming Solutions – Reduction in Greenhouse Gas Emissions – no action Environment continued - page 3 – RSC 3: HB 488 – Statewide Electronics Recycling Program – passed House 132-4 > EHEA hrg 3/29 HB 703 – Md. Commission on Climate Change and Clean Energy Alternatives – fav w amendments HB 760/SB 532 – Diamondback Terrapin – Take and Possesion – passed House 127-10/passed Sen 43-2 HB 839 – Recycling – Bottle Deposits, Returns and Refunds – no action HB 1075 – Study to Evaluate Strategies to Reduce Deer – ECM, unfav RSC 4: HB 1220/SB 901 - Chesapeake Green Fund – passed House 96-41 HB 1368 – Black Bear Hunt – Prohibition – hrg 3/23 – no action SB 702 – Yellow Perch – Harvest Restrictions – no action SB 784 – Stormwater Management Act of 2007 – fav w amendments, passed House 134-1 HB 69/SB 49 – Program Open Space – passed House 131-2/EHEA unfavorable. Marjorie Slater-Kaplan TRANSPORTATION HB 571/SB 519 (Levi, et al/Peters et al) Truancy – Prohibition Against Issuance of Learner’s Instructional Permit prohibits the issuance of a learner’s permit to anyone with more than 10 unexcused school absences within the past calendar year. Though very different bills, the House version passed. SB 439/HB 874 (Pugh, et al/Haynes, et al) Maryland Transit Administration – Baltimore Metropolitan Transit District Advisory Council establishes a 13-member council of regular transit users. Two bills reported in RSC4 have passed both houses: SB 463/HB 868, requiring public hearings before changes in bus or rail service. SB 438/HB 770, requiring continuation of MARC service. Three bills dealing with transportation funding have received unfavorable committee reports: SB 167 (RSC3) sales tax to Mass Transit Account HB 434 (RSC3) sales tax increase to Mass Transit Account HB 444 )RSC4) Constitutional Amendment limiting transfer to general fund Carol Filipczak MARRIAGE EQUALITY All bills relating to Marriage Equality are going nowhere this year. Receiving unfavorable reports are two bills which would add new sections to the state constitution establishing that marriage shall be only between a man and a woman, HB 919 Maryland’s Marriage Protection Act (See RSC 3 and 4) which received an unfavorable from the Judiciary Committee; and SB 564 Valid Marriages (See RSC 3 and 4) which received an unfavorable from Judicial Proceedings. Also receiving an unfavorable report from Judiciary is HB 774 Family Law – Marriage – Definitions and Benefits, which would have denied company benefits to unmarried couples. Pending completion of its Marriage Equality study, LWVMD has had no position on these bills. Marcia Reinke - page 4 – AFFORDABLE HOUSING Update RSC 2: HB 235 - DHCD Rental Allowance Program Fund – received an unfavorable report HB 172/SB 106 - Prohibition on Creation of Ground Rent Leases for Residential Property – passed – signed Seven other bills (RSC 2) on ground rent have passed in the originating chamber and appear likely to become law. RSC 3: HB 423 - Workforce Housing Grant- Fund Establishment Administrative Clarifications -passed the House and is in the Senate SB 654 - DHCD Rent Stabilization Program for Seniors – withdrawn HB 486/SB 644 - Maryland Affordable Housing Investment Fund – which LWVMD considers the most important housing bill this session, has not been voted on in either committee. HB 516 - Local Governments Impact Fees and Building Excise Taxes Workforce Housing Exemption - Passed the House and is in the Senate RSC 4: SB 934 Housing discrimination based on Source of Income Prohibition is still in the Rules Committee and likely will not get a hearing this year. HB 784 – Affordable Housing – Enabling Authority for Counties and Municipalities – passed the House SB 160 – Hate Crimes – Expanding Prohibitions and Protected Classes of People – passed the House > Senate. Ruth Crystal LIVING WAGE Update RSC 3: HB 430 State Procurement Contracts Living wage - has still not been voted on by ECM Committee. Ruth Crystal HEALTH CARE HB 138/SB 107, Task Force on Health Care Access and Reimbursement, has passed both houses and is awaiting the Governor’s signature. The Governor has taken a strong stand in support of the Clean Indoor Air Act, SB 91/HB 359. He has been lobbying for the bill and has pledged to sign the bill if passed. The bills have passed in each house, but the Senate has the waiver provision in it, so they must go to conference. Delegate Nathan-Pulliam’s withdrew HB 100 that would have created a Cultural Competency Workgroup within the DHMH. HB 495, one of several tort bills put forward by the plaintiff’s bar, was defeated in the House 64 to 71. The bill would have deleted the requirement that a certificate of merit in a malpractice case must also include a “report” from the attesting expert describing the facts upon which the certificate is based. The plaintiff’s bar put forth the Health Care continued - page 5 – bill to assure the status quo following a Court of Appeals of Maryland in a case known as Walzer v. Obsorne which was decided in November of 2006. Another tort bill, HB 110/SB 267, Comparative Negligence, was withdrawn. Update on previously reported bills: RSC 2: SB 91/HB 359 - Clean Indoor Air Act - Passed both Houses HB 78 - Environmental Tobacco Smoke Elimination & Waiver Act – ECM unfavorable RSC 3: SB 255/HB282 - Sunset Review Board of Physicians – passed both Houses with differences SB 436 - Retrieval of Oocytes – hrg 3/14, no action SB 620/HB 1070 – Repeal of HSCRC, heard – no action SB 719/HB 844 – Sunset Review of the Maryland Health Care Commission – passed the House > FIN SB 619 - Low-Income Health Insurance Premium Support Fund – Fin, hrg 2/21 – no action SB 633 - and SB 504 – Elimination of Trans fats – hrg 3/8 Unfavorable committee report SB 676 - Influenza Immunization – EHEA, hrg 3/1 Unfavorable committee report HB 1040 - MD. Compassionate Use Act – JUD, hrg (no information available) RSC 4: HB 754/SB 795 - The Children and Working Families Health Care Act of 2007, out of the House and in Senate Finance, hrg 3/29 HB 1048/ SB 882 – Medical System Corporation - Board of Directors – Membership, no action in the House, but favorable report from Senate Finance Neilson Andrews REVENUE On March 14, the LWV of MD testified at House Ways and Means in support of the concept of extending the sales tax to services in HB 448 and HB 1022. We did not support taxing any particular services since there wasn’t time to study their impacts on lower income citizens. We prefer taxation of certain services to increases in the sales tax called for in HB 393 and HB 846 because, generally, taxation of services is less regressive that taxation of goods. We also expressed our general support for an increase in the motor fuels tax on a per gallon basis to be used for transportation purposes as long as measures are included to protect the environment. Updates: There is continued talk of a special session or deferral until the regular session to deal with action needed to deal with the expected $1.3 billion structural deficit next year. Possibly because of this, revenue bills are moving very slowly through the committees. HB 288 which would double the tobacco tax to $2 per pack in order to provide funds for expanding health coverage to uninsured Marylanders passed the House 102-37. The fate of the bill in the Senate is unclear at this point. SB 182 that would increase the amount excludable from the state’s estate tax was voted unfavorably by SB&F. The similar HB 73 is still in committee. Revenue continued - page 6 – SB 167 was also voted unfavorably by SB&F. It would have dedicated funds from the sales tax to meet Maryland’s required match to receive federal funds for mass transit in the Capital Area. Nancy Soreng EDUCATION Two late filed House bills could have an impact on local school system curriculum and school building maintenance. HB 1378 - Task Force to Review the Restoration of Vocational and Technical Education in Middle Schools and High Schools in Maryland (Stukes et al) would establish a 25 member Task Force to examine the needs of public school students who do not complete high school nor go on to post secondary education to determine if they are being prepared for meaningful work and citizenship and if the curriculum is inadequate in this regard. The Task Force would also be charged with examining the work force needs of the community and determining whether the development of vocational and technical programs and other alternatives would be more appropriate. HB 1407 - Primary and Secondary Education - Aging Schools Program - Requirements (Bohanan) would impose additional restrictions on the Aging School Program grants that would require them to be used only for projects at school buildings whose average year of construction was before 1970. (Hrg.3/20 APP) Three bills described in RSC #4, HB 1119, HB 1146, and HB 1199, have been re-referred from the Rules Committee to W&M and were heard on 3/22. Updates RSC 1: SB 9 - Surveys of Youth Risk Behaviors - Favorable report in the Senate with amendments that eliminate the original bill and establish a Work Group to evaluate the feasibility of a single survey form, coordination of surveys and explain how data will be used, etc. SB 57 - State Aid for National Board Certification - Hrg in W&M - 3/29 SB 58 - Commission to Study Expanded National Board Certification - Hrg in W&M - 3/29 RSC 2: SB 132 - Student Discipline Policies - Passed with amendments that totally eliminate the original bill and now only require the State Department of Education to review student discipline, suspension and expulsion policies and procedures SB 133 - Student In-School Suspensions - Unfavorable Report SB 225 - Income Tax Credit for New Teachers - Unfavorable Report SB 242 - Services Required after Multiple Student Suspensions - Passed with amendments that convert the proposal into a pilot program in one school in each of two local school systems HB 274 - Commission to Study Expanded National Board Certification - Passed House HB 275 - State Aid for National Board Certification - Passed House HB 317 - Student Health and Fitness - Unfavorable Report HB 383 - Confidentiality of Harassment Reports - Favorable Report RSC 3: SB 330 - Task Force to Study Student Achievement Variables - Unfavorable Report SB 462 - Alternative Pre-K Providers - Unfavorable Report SB 466- Summer Learning Pilot Program - Unfavorable Report Education continued - page 7- SB 475 - High School Assessment Task Force - Passed Senate with amendment extending report date by two months to January 1, 2008 SB 496 - Public Schools Procurement Preference for Locally Grown Foods - Withdrawn SB 673 - Merit Pay for Teachers - unfavorable Report SB 688 - Diploma by GED Exam or Compulsory Attendance - unfavorable Report HB 439 - Class Size Reporting - unfavorable Report HB 540 - Laptop Computer Distribution - unfavorable Report HB 546 - Raise Compulsory Attendance Age to 17 - unfavorable Report HB 593 - School Computer Internet Filters - unfavorable Report HB 610 - Surveys of Youth Risk Behaviors - passed House with Amendments that eliminate the original bill and establish a Work Group to evaluate the feasibility of a single survey form, coordination of surveys and explain how data collected will be used, etc. HB 619 - School Superintendent Notification of Criminal charges - Favorable Report HB 639 - Multiple Student Suspension Services - unfavorable Report HB 838 - Character Education Fund - passed House with amendments that eliminate an annual conference requirement but add professional development and reduce reporting requirements HB 859 - Program of Civil Rights Instruction - unfavorable Report HB 1023 - School Attendance - unfavorable Report HB 1037 - School Attendance Performance Reward - unfavorable Report RSC 4: SB 860 - Compulsory Attendance Age Increase to 18 - withdrawn HB 1146 - Task Force on BRAC TRAC Curriculum - favorable with amendments to add to task force membership and to the sponsor list HB 1199 - Meals for Achievement Eligibility - favorable with amendments adding sponsors SJ 3 Celebrate Freedom Week - unfavorable Report Lois Stoner CHILDREN AND FAMILY ISSUES HB 53 (Morhaim et al)/SB 177 (Zirkin) – Residential Child Care programs – Out of Home Placement HB53 passed third reading unanimously, SB 177 hrg Feb.15, EHEA - on 3/26 reported favorably, with amendments. SB 703 (Dyson)/HB 1318 (Davis) – Maryland Partnership for Innovation and Quality in Family Child Care. This is the bill entered by SEIU (Service Employees International Union), similar to last year, authorizing representation for Child Care Providers. (see RSC3) Private Sector Labor & Industry Ctte. Some changes have been made, notably to allow NAEYC (National Assn. for the Education of Young Children) and other organizations to be involved in the regulatory process. But NAEYC and others remain opposed. They do not agree that involuntary representation fees should be deducted from purchase of care payments to non-union member families, even if the payments are increased, and many providers have said they will not accept children with subsidies if they have to pay the fees. (SB 703 was heard on March 15; HB 1318 heard on Mar. 21, 2007, no action reported) HB 1124 (Rosenberg)/SB 792 (Kelley) – Child Welfare – Reports of Abuse or Neglect – see RSC3. House Rules and Executive Nominations - House hearing 3/15, no action yet; Senate hearing 3/20/07, no action. Children and Family Issues continued - page 8 – SB 431 (Kelley) – Out of Home Review Board. Case reviews requiring the State Citizen’s Review Board to determine if agency’s child protection responsibilities are being carried out. (Passed third reading 44-0 in JPR > House action – 3/28/07, 1pm, hearing, JUD) HB 1226 – Children with Disabilities - Voluntary Placement Agreements, Del. Barnes, et al requires Juvenile Court to make a finding in hearings on a child with a developmental disability or mental illness, and make a specified finding requiring local social service agency to take specific actions. (JUD, passed third reading 137-0. Senate – no action) HB 397- Eastern Shore Task Force on Foster Care, Del. Haddaway, et al. Establishes a Task Force, including membership, chairman, staffing, duties, requiring dates for completion of report. (JUD, passed 3rd rdg; FIN, hrg 3/28) Maryland KIDS COUNT Partnership The Kid’s Count report for Maryland, sponsored by the Casey Foundation and Advocates for Children & Youth, was released on Feb. 28th. . It provides the best available data to monitor children’s well being through key indicators. Unfortunately, though there has been marked improvement in teen birth rates and juvenile crime figures, plus some others, in every indicator where it is possible to analyze by race – African American children are faring worse than white children. Both groups show improvement in many areas, such as the overall child death rate, which has declined by nearly 25% since 2000. The child death rate for white children has declined by 21%, and by nearly 25% for African American children. These figures occurred almost entirely between 2004 and 2005, but the magnitude of the racial disparity has endured, with an African American child nearly two times more likely to die in 2005 than a white child. Overall nine of the seventeen KIDS COUNT indicators of child well-being presented in the report have shown improvement, specifically in juvenile violent and non-violent crime arrest rates – down by 20% and 9% respectively, and the 20% reduction in Maryland’s teen birth rate. The series includes the seven key indicators for child well being, and a state wide summary – Maryland at a Glance. The Guides are available online and can be reproduced easily, at www.acy.org. For more information on Kids Count, contact Jeannean Everett-Reynolds, 410-547-9200, x 3014.or jereynolds@acy.org. AFTER SCHOOL/OUT OF SCHOOL TIME – OOST! There is growing interest across the state in after-school /out of school programs, and their benefits are well documented. However, no specific state-wide initiative is underway at present. Montgomery County’s Local Management Board, the Collaboration Council for Children, Youth and Families is currently preparing a strategic plan which may well become the forerunner for the future. Stay tuned! Pat Plunkett CAMPAIGN FINANCE REFORM Delegate Lee and other members of the Montgomery County delegation have introduced HB 918 – Regulation of Local Campaign Finance Activity – County Authority. This bill will allow counties to enact campaign finance laws governing candidates for election to county offices. Such laws may be more stringent than, but may not conflict with, state or federal laws related to campaign contributions, expenditures, reporting , campaign materials, and administrative penalties. The Montgomery County League asked the LWVMD to approve testifying in favor of HB 918 and we submitted testimony to W&M on March 20. No further action. Campaign Finance Reform continued - page 9 – SB 546 – Public Funding of Campaigns, one of our Legislative Priorities, is being held by the EHEA Chairman, Joan Carter-Conway, apparently because Senate President Mike Miller objects to it. Efforts continue to get a vote in EHEA. The cross-filed bill, HB 731, was heard by W&M on March 20. The outlook is dim for both the Senate and the House bills, with only two weeks left in the General Assembly session. There has been no further action on any of the other campaign bills reported in RSC 1 – 4. (Correction – The Senate bill regarding contributions from LLCs is SB 227, not 721 as reported in RSC 4.) ETHICS The only bill (HB 209) reported on was voted down in committee. Kay Terry ELECTIONS SB 488 – Voter Registration Protection Act, which would restore voting rights to ex-felons who have completed their court ordered sentence, passed in the Senate 28-19. It also passed in the House, and is on it’s way to the Governor for signature. LWVMD presented testimony in opposition to HB 706 – Election Law – Identification of Voters (Delegates Myers, Bates, Beitzel, Kelly, McKee, Shank, and Stull), which would have required voters to show a government issued ID card before voting. The House Ways and Means Committee reported this bill out of Committee with an unfavorable report. Also receiving an unfavorable committee report from this Committee was HB 934, which would have created a Task Force to study instant voter registration and voting by mail. Regarding the issue of voter verified paper ballots or records, the House unanimously passed HB 18 - Election Law - Voting Systems - Voter-Verified Paper Records. As amended, this bill has an implementation date of 2010 and contains provisions for a mandatory audit of 2% of the paper records. The Senate-side paper trail bill, SB 392, passed out of the Education, Health and Environmental Affairs Committee, but in a substantially amended form. The bill no longer requires a mandatory audit, does not require that the paper is the official ballot or record of voter intent, and also has an implementation date of 2010. Both bills are contingent on funding, which is not now in the budget. A hearing will be held on March 22 in the Senate EHE Committee on SB 1025 - Election Law - Presidential Primary Election Date, altering the date of the statewide primary election in the year in which the President of the United States is elected from the first Tuesday in March to the second Tuesday in February. This bill, sponsored by the Senate President at the request of the administration, would be effective for the 2008 Presidential primary. A cross-filed bill, HB 1434, is with the Ways and Means Committee. Intended to make Maryland a more important state in the Presidential candidate selection process, this bill is one of several in states hoping to have the same impact. California just moved its primary from June to February 5th, and 20 other states including Texas, Florida, Missouri and New Jersey are considering the same. On the other end of this spectrum, state lawmakers may cancel Washington's 2008 presidential primary, an election that some say is expensive and meaningless since the state's parties rely heavily on caucuses in deciding whom to support as presidential nominees. Lu Pierson - page 10 - THE BUDGET The House passed the Budget Bill, HB 50, on March 16th with 250 amendments that cut spending by $192.3 million. The bill then went to the Senate were it was amended an additional 135 times. The two versions of the bill will go to conference committee where a final version will be negotiated and presented to both chambers. In addition to cuts to the Governor’s original budget, cuts were made to the two supplemental budgets that he submitted. The first supplemental budget included $16.9 million in federal funds (requiring general fund match) for community health and mental health program, $14.5 million in special fund assistance to low-income electric customers and $67.4 million for state universities and colleges. The second supplemental included $15 million for the Maryland Health Insurance Plan and $10.8 million for the Department of Juvenile Services. Although the Governor’s original budget was under the spending affordability recommendation, the supplemental budgets caused his request to exceed the mark. Below are the key amendments each chamber made as reported in the Legislative Wrap Up: House Reductions Senate Changes to House Bill Rural Legacy Program $5 million Eliminate $53 million in Dedicated Fund for ICC Heritage Structure Tax Credit $10 million Restore $ 5 million to Heritage Structure Tax Credit Mental health services $12 million Reduce Stem Cell Research Fund by $10 million Medical Assistance $39.4 million Restore $19 million to Medical Assistance Dept. of Ed. excess test funds $14.5 million Restore $500,000 in excess test funds to Ed Dept Non-public school textbook aid $200,000 Restore $200,000 to Non-public school textbook aid Higher Ed (includes aid to private inst.)$11.8 million Restore $9.8 million to public and private Higher Ed Hiring freeze on state employees $7 million Increase state hiring freeze to save $10 million Economic Dev. Opportunities Program $2 million Restore $2.9 million to Film Production Credit Prog. In both chambers, failed attempts were made to dramatically reduce the budget as a means of dealing with the structural deficit issue. The House amendment proposed $116 million in cuts to the Executive and Judicial Branches and approximately $570 million to General Fund expenditures including a cut of $290 million in support for general K-12 education, a $240 million cut to programs such as compensatory education, special education and English as a second language instruction. The failed Senate amendment cut $113 million from the Judicial and Executive branches and another $417 million cut to such programs as school funding, teacher’s retirement fund, health care services and community colleges. These cuts, if enacted would have retained more of the Rainy Day fund but would have significantly impacted services and still wouldn’t have dealt with the long term issue of lack of revenue. However, if no new revenue sources are approved by the General Assembly these are the kinds of cuts that will have to be made to balance the FY09 budget. HB 94 (Heller)/SB 20 (Madaleno) Task Force to Study the Needs and Expenditures of State Programs. This bill would create a task force to do an analysis of what we are actually spending on state programs, have spent in the past, and should be spending to meet the needs. In some ways it would do for other state programs what the Thornton Commission did for education. The League sent letters of support. Nancy Soreng