Franchot vs Miller

Following is the text of Comptroller Peter Franchot's response to Senate President Mike Miller's letter of September 10.

September 12, 2008

The Honorable Thomas V. Mike Miller, Jr.
President of the Senate
Miller Senate Office Building
Annapolis, MD 21401

Dear Senate President Miller:

Thank you for your timely response to my letter of September 8, in which I offered a sobering overview of Maryland’s current economic conditions, assessed the severe toll they have taken on our state’s fiscal well-being, and called for the establishment of a bipartisan, blue-ribbon commission to undertake a comprehensive review of state government revenues and spending.

While impressed by the length of your letter, and the obvious thought that went into it, I was quite disappointed by its tone and substance. It was yet another illustration of what is broken and dysfunctional about Annapolis. Instead of acknowledging that your solutions for Maryland’s immediate fiscal challenges – higher personal and business taxes, heavier debt loads and slot machines – are not working and far worse than the problem itself, you instead lobbed personal insults and questioned my character. A point by point written reply to your letter would, no doubt, be a waste of time, as we are both grappling with the critical issues facing Maryland, so I will spare us that chore. Suffice it to say that I respectfully disagree.

In light of your correspondence, in which you questioned my motives, credibility, integrity, seriousness and effectiveness as a public servant, I’ll confess that I was tempted to respond in kind. I was tempted to compare my 22-year record of public service with yours as Senate President, one in which your formidable legislative prowess has often been overshadowed by intemperate public remarks, acrimonious personal feuds, unconditional fealty to the interests of the national gambling industry, and stories of brass-knuckle political tactics that would cause the hardest-bitten of Tammany Hall ward-heelers to blush. However, in the interest of restoring civility and purpose to the public debate, I won’t go there.

I must, however, take issue with your attack on my agency and the 1,100 men and women who serve here with honor and distinction. Our agency is determined to help overcome Maryland’s fiscal challenges by tightening its belt and ensuring the prompt collection of existing tax revenues to which our State is entitled. Earlier this week, we presented Budget Secretary Foster with a series of operational efficiencies that, when implemented by the Comptroller’s Office, will save the taxpayers of this State over one million dollars.

Thanks to the support of the General Assembly, we are moving aggressively toward the implementation of our Maryland Tax Fairness Initiative – a new state-of-the-art tax collection and compliance system that will ultimately generate between $80 and $100 million annually for the State. For a modest up-front investment in equipment and software, our Federal Vendor Offset Program – the first of its kind in the nation – is collecting more than $500,000 in unsatisfied tax liabilities each week. And we’ve brought in nearly one-half billion dollars in tax revenue owed the state through our aggressive actions against corporations sheltering their incomes with Delaware holding companies.

We are achieving these ambitious goals within the agency budgets that have been authorized by the legislature. This extraordinary work was recognized earlier this year by the Association of Government Accountants, which presented my agency with the prestigious William R. Snodgrass leadership award, an honor that recognizes the outstanding leadership of individuals in state government that lead to improved financial management and consistently exhibit the highest personal and professional standards.

You ended your letter by extending the invitation to speak with you directly about the work of the Comptroller’s Office. I appreciate the offer, and my staff will follow up with yours to arrange a meeting at our mutual convenience. Our State has arrived at an economic and fiscal precipice, and the time for letters is hereby over. To borrow your words, it is now time to earn the respect and gratitude of the citizens of Maryland by setting aside past differences, coming to the table, rolling up our sleeves and working through the challenges that threaten Maryland’s economy and quality of life.

Sincerely,

Peter Franchot