AAA Bond Rating
Maryland State Treasurer Nancy K. Kopp announced last week that all three major bond rating agencies again have affirmed the State’s strong Triple AAA bond rating in preparation for the sale of $400 million of General Obligation bonds.
Maryland is one of only seven states to be awarded the AAA rating, the highest possible rating, from all three major bond rating agencies: Fitch Ratings, Moody’s Investors Service and Standard & Poor’s. The rating means that the State can borrow money to undertake new critical building projects such as public schools, hospitals and prisons while paying relatively low interest rates and saving taxpayers millions of dollars.
The Maryland Board of Public Works, comprising Governor Martin O’Malley, Comptroller Peter Franchot and Treasurer Kopp, completed the successful sale of $400 million of General Obligation bonds. The bonds sold at an interest rate of 4.14%. The winning bidder was Merrill Lynch & Company. The sale occurred during the bi-weekly meeting of the State’s Board of Public Works.
Proceeds from the capital improvement bonds will cover the acquisition and construction of State facilities; public schools; community colleges; jails and correctional facilities, as well as grants to local governments and non-profit institutions for hospitals, cultural and other projects.
Computer Service Tax
Thank you to all that attended the rally on Wednesday against the 6% tax on computer services. This was a law that was unfairly placed on computer services during the Special Session. I hope that the majority of the General Assembly realizes the potential harm that this tax will do. Remember the move of Maryland National Bank’s credit card company’s MBNA that moved to Delaware because of the tax burden? I hope that the Assembly has more wisdom than greed in understanding the potential loss of computer service business in our state.
Letter to the Editor
In case you missed my recent letter to the editor below is a copy:
Dear Editor,
Last week an article was written about plans for the Hickey School. The Ehrlich Administration intended to close down this dilapidated juvenile detention center and have the land be incorporated with the Gun Powder State Park System. The surrounding community was in support of this plan, unfortunately the Board of Public Works did not take action and left the situation unresolved.
Under the O’Malley Administration plans are underway to fund the construction, equipment purchase, and planning costs for reopening the Charles H. Hickey Juvenile Detention Center, a forty-eight-bed facility.
The planning costs FY 2010 $1.4 Million
FY 2011 $1.7 Million
Construction Cost FY 2012 $32 Million
Equipment Cost FY 2013 $2.5 Million
Total Cost $37.6 Million
County Executive Jim Smith and Senator Robert Zirkin want the state to spend $37.6 million to reopen the Hickey School.
Have you ever heard of Bowling Brook Preparatory School located in Carroll County? It is a juvenile facility that was closed down, after fifty years of service, because of a death of an inmate last year. Bowling Brook Preparatory is a state of the art juvenile detention facility. It is currently for sale for $16 million. The Maryland Department of Juvenile Services has not considered purchasing this facility because it does not have a fence.
The State of Maryland continues to have a structural deficit. Why would the state be willing to spend $37.6 million to update the Hickey School, when the community does not want it, instead of spending $16 million on Bowling Brook Preparatory? The state could save the taxpayers around $21 million minus the cost of a fence.
If you would like further information on the budgetary requests for the Maryland Department of Juvenile Services please email http://www.djs.state.md.us/.
Please ask Secretary Devore, Governor O’Malley, Baltimore County Jim Smith, and Senator Robert Zirkin to consider saving the taxpayer $21 million for juvenile services by acting fiscally prudent and socially responsible.
Alcohol to Minors
The House passed HB 76 – Furnishing an Alcoholic Beverage to Underage Individual – Penalty that establishes that it is a misdemeanor for a person to knowingly or willfully furnish an alcoholic beverage for consumption to a minor. A violator is subject to imprisonment for up to 60 days, a fine of up to $1,000, or both. The bill does not provide an increased fine for subsequent offenses. These provisions do not apply to an individual who was acting in the capacity of an alcoholic beverages licensee and has committed a violation of and is subject to fines and penalties under alcoholic beverages laws prohibiting the sale of alcoholic beverages to minors. I am a co-sponsor of HB 76. SB 166, before a Senate committee last month, is the companion bill.
Protection of Animals
The Senate passed SB 44 – Criminal Law – Dogfight and Cockfight Attendance – Penalties to increase the penalty for attending a cockfight or dogfight from a maximum of 90 days in jail and a $1,000 fine to a year in jail and a $2,500 fine. The crime remains a misdemeanor under the bill.
House Bill 378 – Criminal Law – Abuse or Neglect of Animals and Aggravated Cruelty to Animals – Increased Penalties, which would have increased the penalties for the misdemeanor crime of abuse or neglect of an animal and the felony crime of aggravated cruelty to animals, failed in the Judiciary Committee.
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