Wednesday, March 31, 2010

County Reveals Furlough Plan

Montgomery County Chief Administrative Officer Tim Firestine revealed the county's furlough plan today, which calls for 80 unpaid hours off for all full-time non-public safety and non-public school employees over the next fiscal year. Along with MCPS's plans to increase class size by one student, this is a tangible sign of significant reductions in county services. The budget crisis is REAL, people. Following is Firestine's memo.

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Building Better: How High-Efficiency Buildings Will Save Money and Reduce Global Warming

By Mike Sherling.

Hello MPW readers. I’m Mike Sherling, a field associate with Environment Maryland. Environment Maryland is a statewide, citizen-funded environmental advocacy organization.

Today, Environment Maryland released Building Better: How High-Efficiency Buildings Will Save Money and Reduce Global Warming, a new report that outlines the economic and environmental benefits of improving the energy efficiency of our buildings.

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Leggett Warns Council on Bond Rating

The Gazette reported this morning on County Executive Ike Leggett's warning to the County Council about risks to the county's AAA bond rating. We have the full text of Leggett's memo to Council President Nancy Floreen and it makes for compelling reading. We also have the full text of Fitch Ratings' statement on the county's bonds, which we will be posting tomorrow.

Following is Leggett's memo.

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Hurson Weighs in on Teacher Pensions

Hoisted from the comments: Former Delegate and House Majority Leader John Hurson (D-18) weighs in on the controversy over teacher pensions.

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Stand Up for Academic Freedom

By Marc Korman.

The Maryland General Assembly has a bad habit of stepping all over academic freedom and interfering in the University of Maryland’s mission to educate its students during budget season. Last year’s controversy involved what films could be screened on College Park’s campus. This year’s controversy involves the clinics at the University’s law school.

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Politicians Debate Endorsement Value of Post vs. Apple Ballot

The Washington area’s paper of record has launched an all-out holy war against the Montgomery County Education Association (MCEA), the county’s most powerful labor union. From a political perspective, this is important because both of their endorsements are considered among the most desirable in the county. If the Post is determined to annihilate MCEA, their endorsements may be headed in different directions. And so we asked a group of elected officials this question:

If you had a choice between getting endorsed by the Post OR getting on the Apple Ballot, but not both, which of the two would you pick and why?

Here is what they said.

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MD State Senator Rich Madaleno on "Political Pulse" on Ch. 16 TV

State Senator Rich Madaleno (District 18 in Montgomery County) will be on the "Political Pulse" TV Show to discuss:

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Tuesday, March 30, 2010

Leggett and Floreen to Host Cable TV Call-in Show

Following is a press release detailing a cable TV call-in show to be held by County Executive Ike Leggett and County Council President Nancy Floreen on Wednesday night, March 31, 7:30 to 8:30 p.m.

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Environmentalists Say Legislators Are "Giving the Environment the Shaft"

Environment Maryland is claiming that the General Assembly is "giving the environment the shaft this year" and that, "the Chesapeake Bay is getting thrown under the election year bus in favor of campaign contributions." Its State Director also says, "I've never seen special interests get their way so universally... Bankers, developers, truckers, utilities, and chicken companies are getting their wishes granted by our state legislature."

Following is their press release.

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Say What?

By Walter E. Bader.

“Newspaper editorial pages are entitled to their own opinions—but not to their own facts. That seems to be a distinction that The Washington Post has a hard time making these days.” Such was the observation of Peter Hart of Fairness and Accuracy In Reporting nearly four years ago.

Certainly, nothing has changed at the Post.

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Pension Surprise Wrong for Montgomery County

By Patricia B. O’Neill, President, Montgomery County Board of Education.

Last week, in a surprising move, the Maryland Senate voted to transfer hundreds of millions in teacher pension costs from the state to local governments out of concern that the expenditure is unsustainable. As president of the Montgomery County Board of Education, I must say that this was a total surprise to us, especially given that the move was championed by one of our own legislators, Senator Rich Madaleno. It is comforting for now that the proposal appears to have stalled, with the House Appropriations Committee recommending a study of the implications of the cost shift. It is the right and respectful thing to do, and Delegate Norman Conway, chair of the committee, is right; a seismic shift of this magnitude should only be undertaken after a comprehensive study involving all stakeholders. At the very least, those who are going to be affected adversely by this shift should have been aware of this instead of reading about it in the papers and blogs.

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How to School Annapolis

This year was supposed to be a lean year in the statehouse. Cuts were everywhere. Furloughs and pink slips were being handed out left and right. State aid and teacher pensions were on the chopping block. But somehow, the Prince George’s County state legislators were able to bring home an extra $18 million. How did they do it?

Take a seat, folks, because class is in session!

…I have not endorsed anyone for Governor. Quite candidly, I think it is premature to endorse anyone until after the 2010 legislative session has been completed. Then, and only then, will I be able to make an informed decision about what’s best for the community I represent.
Translation: Give us a little more, Governor. That opinion was shared by the legions of Prince George’s politicians who swarmed into potential primary challenger Wayne Curry’s birthday party. The party was a bombshell that scattered shrapnel all over Annapolis and in hindsight was one of the best things to happen for the county.

So isn’t this ungrateful behavior by the PeeGees? Of course, but it also creates the most valuable commodity in politics: leverage. And O’Malley’s promise to help the county in its quest for more aid was a direct response to such tactics.

2. Be Persistent
Prince George’s politicians have been beating the drum on state aid for a long time no matter who has been in the Governor’s office. The latest rumble started last year, when the county’s increasing wealth caused a 1.2% cut in its state aid. Exum confronted O’Malley aide Joe Brice about it:

“It is clear Prince George's County has been hurt by these cuts,” he said. “We want to know what the Governor is going to do to rectify this? Because next year is 2010. And who is the Governor going to look for in his reelection campaign?”

Brice responded that O'Malley would try to bring all lawmakers together and work with them on the budget.

“As long as he is aware,” Exum shot back.
Delegate Justin Ross followed up with a bill to change the school aid formula, telling the Post that it was a “fairness issue.” The bill was voted down by the House Ways and Means Committee, but the PeeGees had laid down their marker for 2010.

This year Ross reintroduced that bill, which would have generated $39.6 million in new school aid for the counties. Prince George’s would have received $13.4 million, the most of any jurisdiction. Charles County would have been second with $4 million. MoCo would have received zero dollars. The PeeGees began sniping at MoCo in the Post over aid even though they were already getting FAR more aid than MoCo. Clearly, the PeeGees were not going to give up. O’Malley and the General Assembly leadership got the message.

3. Get Some Allies and Cut a Deal
There are three ways to get allies and cut a deal: persuasion, pressure and working out mutual gain. The PeeGees used all three to fix their aid problem.

Persuasion: The case made by Ross for a formula change involved the appropriate timing to determine wealth. Current state wealth formulas are based on tax returns filed through August 15 or September 1, but wealthy people often get extensions and file later. Ross and the PeeGees argue that undervalues the true wealth of jurisdictions with a lot of rich people in them, like MoCo, so they want to move the formula date to November 1. MoCo budget expert Senator Rich Madaleno (D-18) bought that argument, telling Ross that he had made a “compelling case” for changing at least one of the state’s formulas. Ross said, “Prince George’s County has no greater friend than Montgomery County in the legislature.” Oy!

Pressure: This is the product of the leverage and persistence discussed above. O’Malley needed Wayne Curry out of the way and the PeeGees were not going to cooperate until they got some bacon. As a result, the General Assembly’s leadership understood the importance of taking care of Prince George’s.

Mutual Gain: No budget bickering occurs in a vacuum in Annapolis. Everybody has complaints, and those who want to play ball can get some relief. This year, Baltimore City, MoCo and Prince George’s were each thrown a bone. The city got to keep the street maintenance money that some other jurisdictions were trying to take away. MoCo got to escape its Maintenance of Effort (MOE) fine. And the PeeGees got a change to the wealth formula covering disparity grants, which subsidize “poor” jurisdictions, that gave them $18 million. (They’ll be back for the much-larger education formula next year, and that will cost MoCo big-time.) So the city got to keep something it already had, MoCo avoided a fine it should never have had to pay and Prince George’s got brand new money. Who do you think made out the best?

Let’s not overstate our case. There are no LBJs running around the Prince George’s delegation and they have problems like everyone else. A few of them are deadwood, a few of them are banana-cakes and at least a couple of them are probably crooked. But as a group, they know how to squeeze the orange and get some juice to come out.

Now compare the above to our legislative “strategy” on teacher pensions. Our plan to avoid having Big Daddy stick it to us next year was to stick it to ourselves this year. Leverage, persistence, pressure, negotiation, posturing, recruiting allies, lining up votes, tough bargaining – you know, all those unsavory things that Big Daddy and the PeeGees do – well, some of our guys are too good for that. Others just don’t care because they are in Annapolis for other reasons. “Frankly, funding Ike and Nancy Floreen’s pet projects doesn’t get me out of bed in the morning,” sneers one MoCo delegation member.

Hear that? That was the bell. Class is dismissed.

Did we learn anything?

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Monday, March 29, 2010

Bob Hydorn Files for Delegate in District 39

Montgomery Village Foundation President Bob Hydorn has filed to run for the office of Delegate in District 39. Montgomery Village occupies much of the northern part of the district, which curls like a "C" to the north and west of Gaithersburg. The incumbent Delegates are three-termer Charles Barkley, freshman Saqib Ali and appointee Kirill Reznik. Barkley and Reznik are expected to run again for their current seats. Ali has been making a lot of noise about his disagreements with Senator Nancy King, who beat him out for the Senate appointment in 2007, but he has not announced whether he will challenge her or stay put. Hydorn starts with a nice geographic base but the incumbents have a head-start on him in making the rounds of the district. Following is Hydorn's announcement email.

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Berliner to Hopkins: See You in Chevy Chase

Last week, Council District 1 challenger Ilaya Hopkins proposed a series of debates with incumbent Roger Berliner and he has agreed to at least one of them. On June 1 at 7 PM, the two will debate at the Town of Chevy Chase Town Hall at 4301 Willow Lane. This is the backyard of East Bethesda resident Hopkins and the stronghold of Purple Line rail opponents, with whom the pro-rail incumbent has disagreed in the past. Following is the press release from the Berliner campaign.

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MCEA Condemns Teacher Pension Shift

Following is a press release from MCEA opposing the shift in teacher pensions that was passed by the Senate. The release contains some pointed language directed at Senator Rich Madaleno (D-18), who authored the proposal and has been known as one of MCEA's best friends over the years.

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Prince George’s Delegation Seeks Veto Power Over WSSC Minority Contracting

The commissioners of the Washington Suburban Sanitary Commission (WSSC) have been told by their general counsel that the agency’s current minority contracting program is illegal. That doesn’t sit well with the Prince George’s County Delegation, which is devoted to the program and its beneficiaries. So they have a solution: they want veto power over what WSSC will do. And they are very, very close to getting what they want.

According to commissioners, a legal analysis delivered to them in closed session Wednesday concluded that the WSSC’s minority business enterprise program violates the U.S. Supreme Court’s 1989 ruling, in City of Richmond (Va.) v. J.A. Croson Co., that preference programs are unconstitutional unless based on a finding that the beneficiaries otherwise lack access.
Of course, these contractors have had thirty-two years of access! And their political contributions get them a WHOLE lot more access than the average Joe on the street.

WSSC has known that its minority contracting program has had problems for at least five years but its commissioners cannot agree on how to fix it. The three Prince George’s commissioners almost always deadlock with the three Montgomery commissioners, so the current illegal program has been extended again and again. But the legal counsel’s naked declaration is forcing the issue to a head and that alarms state legislators in Prince George’s County. After all, some of them depend on minority contractors for cash and political support and their interests must be protected.

So Prince George’s County Delegate Aisha Braveboy (D-25) and Montgomery County Delegate Herman Taylor (D-14) introduced local bill PG/MC 116-10, which prohibits WSSC modification or approval of a new minority contracting program without General Assembly approval. In this case, that means approval by the Prince George’s delegation, the Montgomery County delegation and finally the General Assembly as a whole. Both lead sponsors have an angle. Braveboy has sought to cast herself as a champion of minority contractors and would like to use the issue in a potential challenge to Senator Ulysses Currie. Taylor is running for Congress against Donna Edwards and is looking for ways to build a base in Prince George’s County.

Local bills pertaining to bi-county agencies like WSSC must pass both the Prince George’s and Montgomery delegations before heading to the floor. Prince George’s approved it by a 19-0 vote. The situation is more complicated in Montgomery because the County Executive and the County Council are on record as opposing the bill. In a letter to the two delegations, the Montgomery County Office of Intergovernmental Relations wrote, “The Montgomery County Executive and Council oppose this bill because it could require the Commission to operate a program that is not legally defensible and because the Commission should have the autonomy to operate its own program.”



Most MoCo legislators care little or nothing about minority contracting. They see it as a Prince George’s issue. If Braveboy and her delegation are jumping up and down about it, why not just give it to them and try to get something for it later? So the MoCo delegation voted in favor of the bill by 11-10, but it did not pass because it needs a majority of the delegation’s twenty-four members, or 13 votes, to get approved. Delegates Al Carr (D-18) and Tom Hucker (D-20) were absent.

But the issue is not yet dead. Braveboy and Taylor are still pushing it and want a new vote, possibly today. If they can get both Carr and Hucker to vote with them, the Prince George’s delegation will get its veto power. WSSC could then fashion the world’s fairest, most legal minority contracting program but if politically-connected contractors squawk, it is going down.

That would be very, very dangerous. In the wake of its legal counsel’s opinion, WSSC is now knowingly operating an unconstitutional race-based contracting program. That makes the agency a sitting duck for any non-minority contractor looking to sue. And if there is a class action that covers a period of years, well… the liability will be incalculable. And any damages will be paid by you, the ratepayers. That’s right, you.

So who’s more important? The ratepayers? Or politicians and their cronies? We’re about to find out.

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What’s Next? State Leadership Will Enhance National Health Reform

By Lieutenant Governor Anthony G. Brown.

Last week, President Obama signed The Patient Protection and Affordable Care Act, one of the most comprehensive and critical pieces of domestic health care legislation in over 40 years. While the challenges at the federal level to pass a bill and expand affordable access to care have been discussed in great detail, the challenges individual states will face over the next three years to implement reform have been underreported.

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