Dear Friends,

Attached is an article from the Baltimore Business Journal regarding my suggestions on the capital budget. You may remember that I mentioned these proposals in my newsletter sent on March 19, 2010. (click to view)

Very truly yours,
Delegate Susan L.M. Aumann
District 42 – Baltimore County
303 Lowe House Office Building
Annapolis, MD 21401
410-841-3258; FAX 410-841-3163
susan.aumann@house.state.md.us

Dear Friends,

SB107 Unemployment Insurance-Tax Deferment, Trust Fund Solvency and Cost-Neutral Modernization Act was heavily discussed in the House Chamber on Monday evening. Last year the General Assembly voted to expand unemployment benefits to part time workers.  The Federal Government will provide $126 million dollars for the Unemployment Insurance fund in exchange for Maryland expanding their eligibility requirements again.  Senate Bill 107 expands eligibility to people in worker training programs and makes other changes that increase liability in the fund. That means that Maryland will receive only six weeks of help (we are currently paying out $80 million a month) but in the long run it will cost all business owners more.  Currently the State of Maryland has a deficit in their unemployment benefits which are paid by the businesses for the unemployment insurance. After the stimulus money runs out, it is expected that businesses will have to pay up to $92 million a month to sustain the expected demand.  How many businesses will have to close or reduce the amount of employees they employ?

Early in the session I received a letter from an employer in the Towson area who was gravely concerned because the unemployment insurance assessment for her 50 person business was increasing from approximately $800 every two weeks to $3800. She was wondering how she was going to stay in business in Maryland.  Please take a look at these amendments 663224/1, 413522/1, 753222/1 to address repealing the increase to the unemployment insurance taken up last session. I supported the amendments and voted against the bill.

HB 825 Vehicle Laws-Required Security- Minimum Amounts

This bill increases the minimum liability insurance limits for private passenger’s automobile insurance for bodily injury liability from $20,000 per person and $40,000 per accident to $30,000 per person and $60,000 per accident. This would give Maryland some of the highest liability coverage requirements in the country. It could prove to be very costly to taxpayers in a time when lawmakers are reluctant to increases taxes, but would increase the premium. The Maryland Insurance Administration has recommended an unfavorable decision due to the extra expense and the possibility that the effect may have the unintended consequence of causing people to drive uninsured.  Maryland Automobile Insurance Fund (MAIF) indicated that 98.6% of MAIF’s private passenger policyholders would be forced to pay for the increased limits coverage proposed in this bill. The increase in premiums that would accompany the higher required security coverage’s would certainly result in a greater number of uninsured motorists, as some drivers would simply elect not to pay the higher associated costs. MAIF recommended an unfavorable report. I voted against this bill for the reasons above. Read the rest of this entry »

Dear Friends,

We held bond bill hearings all day Saturday and Monday. Sessions are becoming longer and longer as we start to refine the budget process.

Sex Offender Legislation

A 30 year old registered sex-offender was arrested in the death of 11 year old Sarah Foxwell of the Eastern Shore. This tragedy highlighted the need for more stringent sex offender laws. On Tuesday, six bills dealing with sexual predators came to the House floor dealing with the following matters:

• HB 289 – Prohibiting good time credits for child sex offenders. These credits would otherwise shorten time served. This applies to first and second degree sexual offenses with children less than 16 years of age.
• HB 473 – Requiring lifetime supervision for the most violent and repeat sex offenders after they have served their sentences.
• HB 599 – Similar to HB 289, but applying to repeat offenders who have committed third degree sexual contact with children less than 16 years of age.
• HB 931 – Add members to the Sexual Offender Advisory Board that was created in 2006 but never met.
• HB 936 – Includes additional crimes for which offenders must register for the sex offender registry list and includes provisions for homeless people who currently list no fixed address. This sets up tiers of offenses that would standardize the way they are supervised in the community and described in the registry.
• HB 1046 – Provides for use of RAP sheets for use by judges in pretrial release determination.

It was noted in floor debate that if the Administration chooses not to enforce these laws as has happened with previously passed legislation that required assessments as to the threat the offender poses to the community and the functioning of the Sexual Offender Advisory Board, it would not matter how many laws are passed. Amendments were offered and rejected in floor debate on Wednesday which would strengthen these laws even more. The safety of our children should be our top priority.

HB 92 – Labor and Employment – Job Creation and Recovery Tax Credit.

This week we heard on the floor HB 92 Labor and Employment-Job Creation and Recovery Tax Credit. It is a good bill that allows a tax credit to employers who hire new employees are able to receive a $5000.00 per employee hired tax credit. The tax credit cap is limited to $20,000.000. Delegate McDonough offered an amendment that would require that any new hires be evaluated through E-Verify to ensure the new hires are citizens of the state before the tax credit is granted. The E-Verify program is an attempt to combat the prevalence of document and identity fraud in the employment verification process by providing a voluntary means for employers to verify employee status electronically against federal Social Security and immigration databases. We talked about this issue in our weekly caucus and felt this was the right thing to do. The amendment number is 803729/2.

Delegate O’Donnell offered amendment number 643221/1 that would direct the tax credits to small businesses who employ fewer than 50 employees. Ten million dollars would go to minority businesses, and the other ten million would go to small businesses. I supported both of these amendments because they would help small businesses and ensure that those hiring are hiring legal citizens of the state. Read the rest of this entry »

After deep cuts, Md. lawmakers consider millions more in reductions

A new General Assembly analysis of Baltimore’s transportation spending has reopened a debate over state aid to the city – and is leading some lawmakers to consider multimillion-dollar cuts.

The city receives more state funding than any county, and nowhere is that discrepancy more apparent than in the distribution of gas tax and titling fee revenues. Baltimore is to receive $130 million from that fund in the next fiscal year; the state’s 23 counties will split the remaining $10 million. – Read the entire story from the Baltimore Sun.

March 6, 2010
Dear Friends,

The following subjects were discussed during this past week.

Jury Trials in Civil Actions
The Senate passed SB 118, which prohibits a party in a civil action from requesting a jury trial if the amount in controversy does not exceed $20,000, instead of the current $10,000.  The bill is contingent on the voters’ adoption of a constitutional amendment (SB 119, also passed by the Senate) that increases, from over $10,000 to over $20,000, the amount in controversy in civil proceeding in which the right to trial by jury may be limited by legislation.  Identical bills, HB 436 – Courts – Jury Trials in Civil Actions – Amount in Controversy and HB 434, – Civil Jury Trials – Amount in Controversy
respectively, had a hearing in the House this week.

Injured Workers’ Insurance Fund (IWIF)
Senate and House committees took testimony both for and against changing the status of IWIF from that of a State agency to a not-for-profit mutual insurer.  Under SB 507 -Injured Workers’ Insurance Fund – Status and Renaming and HB 1008, the new company retains its public purpose as the insurer of last resort and must continue to guarantee the availability of workers’ compensation insurance in the State.  One of the questions raised at the hearings concerned the long-term status of IWIF’s current State employees.  Also of concern is the new company’s retention of IWIF’s existing exemption from the 2% tax on premiums that other private insurers are required to pay.  There is a tentative agreement between the Governor’s office and IWIF that would allow more autonomy to the agency for a transfer of $20 million from their reserve account to the State’s General Fund.

Health Care and Health Insurance – Bisphenol-A
I voted in favor of House Bill 33 – Child Care Articles Containing Bisphenol-A – Prohibition that prohibits the sale, manufacture and distribution of children’s products that contain bisphenol-A (BPA), a harmful compound found in some plastics.  The bill also requires manufacturers to use materials that are the least toxic alternative available on the market.  According to the Centers for Disease Control and Prevention (CDC), BPA can leach from reusable food and water containers and baby bottles.  While the U. S. food and Drug Administration used to assert that BPA packaging was safe, more recently the Federal Drug Administration (FDA) has cited concerns that it may have an effect on the brain, behavior, and prostate gland of fetuses, infants, and young children.  It is important to protect the health of babies and children, especially when they are in the developmental stages.  While many manufacturers have voluntarily stopped producing items with BPA, I think that this legislation sends a strong message and is an important public safety measure for Maryland ’s children.

Read the rest of this entry »

On Wednesday, March 3, 2010 former Congresswoman Helen Bentley received the Speaker’s Medallion Award. This award is presented to a Maryland citizen who has made outstanding contributions to the State. Helen Bentley was honored at the annual Speaker’s Society Dinner as well as on the House floor. I am attaching a copy of the picture that was taken after the award ceremony. The State of Maryland is extremely grateful for Helen’s contributions and I feel honored to call her my friend and mentor.

Election-year politics loom large

Check out the February 26, 2010 article from the Gazette.net

Click Here to view

To view a graph that shows the Structural Imbalance between Ongoing Revenues and Ongoing Spending- Fiscal 2006 – 2011

Click Here

February 26, 2010

Dear Friends,

The following relates to the February 19th meeting about Articulated Instruction Module (AIM).

The House and Senate members of the Baltimore County Delegation met on February 19^th to discuss the AIM Program with Superintendent Joseph Hairston regarding the highly contested grading system.  This issue has raised a number of questions over the past few weeks and because of this, the Superintendent stated he would discontinue the mandatory implementation of the reporting component of this program. Upon further pressing, Dr. Hairston said the data collection aspect of the program has been suspended, then followed up by saying AIM’s reporting component would not be implemented.  This was seen as good news.

The issues noted were in regard to the amount of time our teachers would spend recording the student’s mastering of more than 100 specific skills collected on a per student basis and then recorded in a twelve page report.  It was indicated this process would take one and one half hours of input per student. The AIM program would have educators set classroom instruction aside to complete the data input.  Many see this process as duplicative in light of what has been required by the No Child Left Behind Act.

Many questions were posed to the Superintendent about the development and copyright issues surrounding the creation of this program.  The Assistant to Dr. Hairston, Dr. Barbara Dezmon, has renewed her copyright six times, the latest in 2006 for the AIM Program.  This creates a questionable ethics issue.

I have joined in with other delegates in crafting a letter to the State’s Attorney’s office asking for an investigation.  If you would like a copy of the letter please let us know.

As I stated in the hearing: “This program has caused a lot of harm and I hope that there will not be any retaliation to those teachers and staff that were not supportive of this program. Teachers need more time to teach and less time on data collection and I hope this never happens again.”

Read the rest of this entry »

February 9, 2010

Dear Constituents,

Another week in Annapolis proved to be less then exciting and exposing more of our fiscal problems to come.

GENERAL OBLIGATION BONDS

Bond bills are introduced each year that aim to support specific projects in the State. These capital projects must serve a wide spectrum of public purposes. The bonds that are issued are General Obligations bonds and are sold with a single coupon rate of 5% for 15 years. The debt service for the General Obligations bonds are funded almost entirely through property taxes. In Appendix F of the 2010 Budget Highlights has a worrisome note that the “Property tax collections are not expected to keep up with the debt service payments, thus requiring additional general funds effective in Fiscal Year 2011.” If the State of Maryland accepts more Bond Bills and increases our General Obligations, the funding of the debt service may increase property taxes. This year, Fiscal Year 2012, the O’Malley administration has provided $15,000,000 in the budget for Bond Bills.

Cutting back on grants and bonds when the State is facing debt service requirements that will out-pace property tax revenues is a sensible action to take.

UNEMPLOYMENT INSURANCE

In 2009 the General Assembly passed an expansion of the Unemployment Benefits, HB 740 which will take effect in October 1, 2010. This expansion has caused many businesses to realize up to 300% increase in their bi monthly payments. Unemployment benefits are paid by the employer in the form of unemployment taxes, any increase in benefits necessitates an increase in taxes on business.

House Bill 740 expanded the Unemployment benefits to part time workers. The Department of Legislative Services Issue Papers, 2010 Legislative Session, states “Maryland employers will pay from the highest tax rate table for calendar 2010 due to the low balance of the Unemployment Insurance Trust Fund.” When the funds are fully depleted, states may borrow from the Federal Government’s unemployment trust fund. The amount borrowed should be paid back within one year in order to prevent interest from accruing. Under the Obama plan states were required to amend their UI statute in-order to qualify for additional funds. These changes would include: (1) making part time workers eligible for benefits; (2) providing coverage to individuals who separate from work for compelling family reasons (illness of a family member, safety reasons due to domestic violence, change in spouse’s employment location); (3) providing Workforce Investment Act training benefits for at least 26 weeks in high demand industries; or (4) adding a $15 weekly allowance to UI payments for dependents.
Read the rest of this entry »