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Dear Constituents,

The Governor called the Senate and the House of Delegate into Special Session to review and vote on his Congressional Redistricting map. A national census is performed every ten years counting the number of residents in the State. Maryland, like all states, must draw new congressional districts and State Legislative districts based on the principle of one-person; one-vote.

This is a political process, but this map is drawn in such an absurd way, it defies logic.  Many district configurations were presented to the members of the Governor’s Redistricting Advisory Committee over the past few months. Membership included the Chair, Jean D. Hitchcock, Secretary of Appointments; Thomas Mike Miller, Jr., Senate President; Michael E. Busch, Speaker of the House; James King, former House Member and Richard Stewart, President and CEO, Montgomery Mechanical Services, Inc.  The Committee held public hearings around the state and the common message heard at these meetings was, “keep our community together.”  Over 200 people attended the meeting in Baltimore County.

Under the new map, Baltimore County will be split into pieces among four different Congressional Districts, even though our population is large enough to support one all by itself.  The lines separating these areas are nonsensical and appear like four colors of paint splattered on a blank canvas. None of the boundaries take into account the cohesion of our neighborhoods and communities.

The Governor’s map was the only one truly considered and the majority was persuaded to vote for it or likely face consequences in the upcoming legislative redistricting. The new plan maintains two black-majority districts and targets a veteran Republican House member by splitting western Maryland into three different Districts.  Of note, the League of Women Voters vigorously opposed the proposed lines.

The Minority Floor Leader presented an alternative plan that would create three majority-minority districts, including a district basically comprising all communities inside the Baltimore beltway, including the city.  The amendment called for the Districts to be contiguous, compact, and follow natural borders.  It failed by a vote of 96 to 41. Other amendments were presented that offered contiguous districts and provided equitable representation to everyone; they also were voted down.

I believe that the Governor’s map will end up in the court system, but it remains to be seen whether the arguments will be sufficient to overcome the well-entrenched establishment.

Very truly yours,
Delegate Susan L.M. Aumann
District 42, Baltimore County

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9-11 Memorial Garden Providence Vol Fire Dept

September 11, 2011 – At 2:00 pm on Sunday September 11, 2011 the Providence Volunteer members were joined by over 100 friends, family, neighbors, and elected officials to make two very special dedications. I was honored to participate in these dedications. The first was in the “Memorial Garden” to the rear of the station. In this garden rests a 10 foot piece of steel from the World Trade Center in New York City that was retrieved from “Ground Zero” after the attacks on 9/11/01. This steel serves as the center piece to the ‘Garden’ and serves as a reminder to the 343 NYC firefighters/EMT’s/Paramedics that were killed on 9/11. The monument was dedicated with words from Captain Bon Murray of the Baltimore County Fire Department, who served on teams that responded to Ground Zero.

Providence Vol Fire Dept 9-11 Dedication

The second dedication was for the Company’s brand new Truck 297. This is the Company’s first brand new ladder truck and will serve the company for the next 15-20 years! The vehicle was dedicated and put in service by Life Member Steven Lancaster. The Truck took its first emergency response approximately 3 hours after being put in service.

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Dear Constituents,

The level of the proposed increase is outrageous during this austere time and is expected to generate an additional $77 million per year.  Maryland Transportation Authority (MTA) toll revenue supports Maryland’s tunnels, bridges and turnpikes. The MTA says it wants to keep the tolls comparable to other states in the region.  That is a ridiculous justification for imposing an extra burden on taxpayers and totally unfair in light of the recent increases in other tolls, vehicle registration fees and EZpass transponder charges.

The current proposal will increase tolls to $3.00 on 10/1/2011 and again on 7/1/2013 to $4.00 for the Baltimore Harbor Tunnel, Fort McHenry Tunnel and the Francis Scott Key Bridge. The John F. Kennedy Memorial Highway and the Thomas Hatem Memorial Bridge will increase to $6.00 on 10/1/2011 and to $8.00 by 7/1/2013. The Bay Bridge will increase from the current $2.50 to $5.00 by 10/1/2011 and to $8.00 by 7/1/2013. The Nice Bridge will increase from $3.00 to $5.00 10/1/2011 and to $8.00 by 7/1/2013. For vehicles with three or more axles, the increases are even more staggering.  I am vehemently opposed to these changes.

MTA’s “need” for the additional revenue stems from the fact that funds from the Transportation Trust Fund (TTF) have been regularly transferred to the General Fund and not replaced.  The TTF is a non-lapsing special fund that provides funding for transportation projects.  It consists of tax and fee revenues, operating revenues, bond proceeds and fund transfers.  The failure to replace the transferred money concerns me greatly because the dedicated purpose fund is not being used for transit projects and masks the huge problems with overspending.  It is a classic example of “robbing Peter to pay Paul.”

Every one of us has been affected by this recession. Housing prices continue to deteriorate and are causing a downturn in construction trades, manufacturing and jobs. Many of our neighbors are out of work; the unemployment rate for May was 9.1%. The overall economy is at best in a tenuous recovery.  Imposing this tremendous increase on commuters is wrong.
You may contact the Maryland Transportation Authority and submit comments for the official record via a web form at www.mdta.maryland.gov or by writing to: MdTA Toll Comments, 2310 Broening Highway, Baltimore, MD 21224. The public comment period is open now until August 1, 2011. Nine meetings will be held around the state, in Baltimore County the date is listed for June 22nd. The hearing locations are listed online at www.mdta.maryland.gov.

I appreciate your voicing your opinions to me and I encourage you to let all of our leaders know your views about these ill-advised increases.

Very truly yours,
Delegate Susan Aumann
District 42, Baltimore County

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Dear Friends,

Thank you for contacting my office during the 2011 Legislative Session of the Maryland Assembly. I appreciate the time you took to let me know your views on issues that concerned you. I have taken these opinions into consideration and used them while deliberating.

This year I again served on the Transportation and Environmental Subcommittee of the Appropriations Committee. I continue to serve on the Oversight Committee on Personnel, Oversight Committee on Pensions, Joint Committee for Audits, Joint Committee on Legislative Ethics, Commission to Study Impact of Immigration on Maryland, Maryland Commission on Suicide Prevention, and Deputy Whip for the Republican Caucus.

Capital Budget

The Capital Budget allows the State of Maryland to borrow money by bonding for projects. The State will be authorizing the Treasurer to sell bonds in the amount of $940 million. Included in the Capital Budget is money to repay the Special Funded accounts that were raided such as: Program Open Space, Chesapeake Bay Fund, Helicopter Fund and others. Constitutionally, the debt service is paid by a portion of our property taxes. We are paying over $1 Billion per year in debt service. As I have reported in my Capital Budget power point presentation (see the attachment) the taxes received to pay for the debt we are incurring is not keeping pace to cover the interest cost and will cause the property taxes to increase to an estimated 17.5 cents per one hundred dollars of assessed value by 2016.

I strategized a group of reasonable amendments offered to the Capital Budget that would reduce the borrowing by:

5% – failed –would have reduced the authorization by $47 million
3% – failed – would have reduced the authorizations by $28 million
1% – failed – would have reduced the authorizations by $9 million

Even during these austere times, the legislature was not willing to cut even 1% of borrowing.

An amendment was offered to strike the “earmarks” in the Capital Budget, bond bills that equal $15 million, $7.5 million for the House and $7.5 million for the Senate. The local bond bill earmark process encourages political patronage at its worst. This process needs serious reforming.

I heard you during the campaign – “our government should spend within its means and cut back just like our families have been doing”. Everyone has been affected by this recession; the State should not add any more pressure for tax increases.

Maryland Pension Plan

The Maryland Pension plan has been highly debated this session as a result of reducing the deficit pending in the fund. The following chart outlines the actions taken by the Conference Committee regarding Pension Reform.

1. Average Final Compensation
The calculation of an employee’s final compensation figure will use five consecutive years with the highest average (up from three years), but alter the item so that it applies only to new employees and does not affect non-vested employees. Apply the same method to all systems and not just those in Employee’s and Teacher’s Pension Systems (EPS/TPS).

2. Employee Contributions and Benefits – Current Employees
Alter the benefits for current EPS/TPS employees such that their employee contributions will increase from 5.0% to 7.0% of salary to continue receiving the 1.8% multiplier for each year of service earned, with no election between options. Add a stepped increase for the contribution rates of current Law Enforcement Officers Pension System (LEOPS) employees so that the rate will increase from the current 4.0% of salary to 6.0% in fiscal 2012 and from 6.0% to 7.0% in fiscal 2013, but the 2.0% multiplier is unchanged. Alter the Budget Reconciliation Financing Act (BRFA) to apply an increase in contribution rates from 6.0 % to 8.0% for current judges.

3. Employee Contributions and Benefits – New Employees
Create a new system under which new EPS/TPS employees must contribute 7.0% of salary to earn a 1.5% multiplier in exchange for each year of service and concur with the increase in the contribution rates for new judges from 6.0% to 8.0% of salary. Increase the LEOPS contribution rate for new employees to 6.0% in fiscal 2012 and to 7.0% in fiscal 2013, while retaining the 2.0% multiplier.

4. Vesting Period for Employees
Raise the time requirement from 5 to 10 years for new employees in EPS/TPS. Apply the higher year requirement to all systems (except Judge’s).

5. Early Retirement Allowance EPS/TPS – New Employees
Increase EPS/TPS early retirement so that new employees must be at least age 60 (up from age 55) and have 15 years of service to be eligible for early retirement, with a corresponding reduction to the benefit of 0.5% for every month early the employee retirees before age 65 (up from age 62).

The retirement age changes for new hires. Future employees will have to wait until they are 65 to retire with 10 years on the job or they can leave when their years of work plus their age equals 90. This is called the “Rule of 90”. The vesting period will be 10 years before the employee can draw benefits. This change goes into effect July 1, 2011.

Current employees are vested after five years of employment and can retire after 30 years at any age or once they reach 62.

6. Normal EPS/TPS Retirement Eligibility – New Employees
Change the eligibility requirement for new EPS/TPS employees to be 30 years of service regardless of age, or age 65 (up from age 62) with at least 10 years of service (up from 5 years).

7. Normal Retirement Eligibility Other Systems – New Employees
Increase State Police eligibility from age 50 or 22 years of service to age 50 or 25 years of service for new Police employees.

8. Cost-of-living Adjustments – EPS/TPS
Amend the BRFA so that cost-of-living adjustments (COLA) for all service credit earned by current and new employees after July 1, 2011, be capped at 3% in any year the State Retirement and Pension System (SRPS) achieves its assumed rate of return and capped at 1% else wise (instead of this COLA provision being exclusively applied to new employees).

9. Cost-of-living Adjustments – Other Systems
The COLA will be adjusted for all service credits earned in all systems after July 1, 2011, to be capped at 3% in any year the SRPS achieves its assumed rate of return and capped at 1% else wise (instead of only being applicable to EPS/TPS).

10. Deferred Retirement Option Program
The State maintains a Deferred Retirement Option Program benefit, but specify that all new accounts begun after July 1, 2011, will earn 4% compounded annual interest instead of the current 6% compounded monthly interest.

Summary Chart

Current Members Future Members
Employee Contributions Increase from 5% to 7% 7%
Law Enforcement Officers Pension System (LEOPS) Increase from 4% to 6% for 2012
Increase from 6% to 7% in 2013
6% in 2012 

7% in 2013

Multiplier-Employee Pension System/Teachers Pension System (EPS/TPS) 

 

1.8% 1.5%
Cost of Living Adjustment (COLA) For all service credit earned after July 1, 2011 

Capped at 2.5 % If investment return of 7.75% is achieved

Capped at 1% if 7.75% is not achieved

 

Capped at 2.5 % If investment return of 7.75% is achieved 

Capped at 1% if 7.75% is not achieved

Average Final Compensation No change – all systems Correctional Retirement System (CORS) & State Police 5 highest years of salary (up from 3 years) only new employees 

EPS, TPS, LEOPS – 5 highest consecutive years o salary.

 

Vesting No change Increase from 5 to 10 years 

 

Early Retirement No change Must be at least 60 years of age (up from 55) and have 15 years of service – reduction of 0.5% for every month early before age 65 (up from 62) 

 

Normal Retirement Eligibility (EPS/TPS) No change Rule of 90 (age + service = 90), or age 65 with at least 10 years of service 

 

Normal Retirement Eligibility Other Systems No change State Police increase to age 50 or 25 years of service(up from 22 years of service)
Deferred Retirement Option Program (DROP) Continue with 6% interest compounded monthly New accounts begun after July 1, 2011 will earn 4% compounded annual interest 

 

Retiree Prescription Plan Changes

In regards to health care changes, new employees will have to work for 25 years before they are eligible for full health care benefits. Current workers receive the full benefits after 16 years of work.

Conference Committee
Retiree Prescription Plan Changes

Retiree Copays
Mirror Active Plan but Out of Pocket Max is Higher and Share of the Premium Increases
Co-pays 

Generic

Preferred brand

Non-preferred brand

 

$10

$25

$40

Deductible $0
Coinsurance $0
Out-of-pocket cap
for retiree only/ retiree & spouse
$1,500/$2,000
Annual retiree
premium 

retiree only

retiree & spouse

Monthly retiree premium

retiree only

retiree & spouse

 

$593

$984

 

$49.42

$82.00

Retiree share of total premium 25%
General fund savings $13.9 million

SB 167 – Public Institutions of Higher Education – Tuition Rates – Exemptions

The House of Delegates gave approval to SB 167 giving illegal immigrants in-state tuition at community colleges and state universities. During second reading on Thursday April 7, there were over a dozen amendments offered during the almost three hour debate. The Senate passed the bill three weeks ago. The amendments that were offered by the members of the House of Delegates are listed at www.mlis.state.md.us, click on “Bill Information” and type SB 167 or type http://mlis.state.md.us/2011rs/billfile/SB0167.htm. This is crazy.  I voted against this bill but it passed the House floor with a vote of 74-66.

The State will be in violation of Federal Law.  Our taxpayers will have to foot the bill to pay the cost of defending this.  We have obligations to our legal citizen in providing them with access to our States quality schools.  If anyone in Maryland graduates or has enough credits from one of our community colleges, they have automatic acceptance to our Public University.  This means if an illegal alien graduates from Baltimore Community College, they get a priority over our legal student graduating from a Maryland High School.

Senate Bill 172/House Bill 302 – Inmates – Life Imprisonment – Parole Approval
Originally the Governor was required to grant the parole or commutations to criminals serving life sentences who have served 25 years without application of diminution of confinement credits if recommended by the Parole Review Board.

The current bill indicates that the decision by the Parole Review Board shall be transmitted to the Governor; authorizing the Governor to disapprove the decision by written transmittal to the Board, providing if the Governor does not disapprove the decision within 180 days after receipt, the decision becomes effective.  Meaning, if the Governor does not take action in that time frame, the bill would automatically grant the inmate parole.

This decreases accountability by the Governor for public safety.  If the Governor does not have time to review the submission by the Parole Review Board, the criminal will be paroled. We are talking about murderers and rapists. Getting tough on crime is diluted with this bill.  “We need to stand for justice for the victims and their families.”

The bill passed the House with a vote of 75-65.  I voted against this bill because it is bad public policy.

Offshore Wind Energy

Governor O’Malley’s Offshore Wind Energy Bill will allow national exposure to this initiative. He may be touted as the “Green Governor”. This title will leave Maryland’s consumers paying more for energy.

The Sage Policy Group, Inc. with economist Anirban Basu, issued a report that did not recommend offshore wind energy for our Marylanders because it would cost two to two and one-half times the cost of the renewable energy options.  The off shore wind power could cost $1 billion at a minimum of a 20-year commitment that will be imposed on virtually every Maryland household and businesses.

Our Marylanders pay 28-33% above the national average for their electricity needs. Remember the year 2002, when Baltimore Gas and Electric was charging the Baltimore area approximately 72% more. I live in that area and my bills have gone up dramatically, as I am sure yours have. Economist Basu notes that increasing the cost to ratepayers could hurt Maryland’s overall business climate and become a comparative disadvantage with respect to retaining and attracting business and investment.

The offshore wind initiatives will offer 20 year contracts with guaranteed price increases. The Governor has suggested that this would be a job creation enterprise. Basu concludes that the economic impacts of constructing an offshore wind facility would largely inure to the benefits of non-Marylanders: “The Specialty labor that would be required to build these marine structures is not likely to be found primarily in Maryland.” The major suppliers of marine wind turbines are foreign manufacturer (Siemans of Germany and Vestas of Denmark). The specialized construction is modeled off of the already existing offshore oil and gas industries which are based out of Texas and Louisiana.

Basu concludes that: forced purchases of very expensive energy are not the answer. An extremely long-term contract with built-in and thus guaranteed price increases simply removes the basic incentives that have benefited A Maryland’s electricity customers to date.  The Maryland taxpayer will pay the tab for the next 20 years.  Because there needs to be more time to study the impact on the state’s ratepayers, this bill is shelved for this year.

For more information on wind energy please see The Wall Street Journal entitled “Wind Power Hits a Trough” dated April 5th regarding wind power: http://online.wsj.com/article_email/SB10001424052748704629104576190812458488694-lMyQjAxMTAxMDAwNjEwNDYyWj.html

Maryland Lawmakers Pass Direct Wine Shipping

On the evening of April 4th the Senate passed SB248 and House Bill 234 allowing state wineries to ship wine to customers.  Maryland will become the 38th state along with DC to allow wine shipping. I have been in the General Assembly for nine years and each year we have tried to get this passed. I am very pleased. The wineries may purchase a permit for $200.00 to ship wine.  The bill does not allow retailers to participate in the Wine of the Month Club to ship wine to customers from Maryland. After it is signed by the Governor it will be effective on July 1, 2011, my birthday. Let’s raise a glass together.

HB 1213 sales and Use Tax-Alcoholic Beverages-Supplement Appropriation

Retailers and restaurants will have to implement a 50% increase in the alcohol tax by July 1, 2011. It will require that retailers and restaurants to reprogram their computer systems to install a two tier taxation system and re-train the staff that serves food and alcohol.
In addition the bill contains an unfair distribution in the tax proceeds to the rural counties for school construction dollars.  It was a sponsor only bill, taken up late on Saturday evening which did not allow the citizens to vet their concerns on how the changes would affect their businesses. The Crack Pot Restaurant and Ridgley Liquors had contacted me and raised points that it will cost jobs and the implication of the reprogramming of computer systems during the busiest weekend would be extremely damaging.

Many of businesses have said they are just hanging on. Our family business closed after 107 years in business. Our people are hurting. This is a painful abuse of power by not allowing the full vetting of the bill again leaving the weary citizens in a struggling economy.

House Bill 1012/Senate Bill 803- Drunk Driving Elimination Act

This bill requires, rather than authorizes, the Motor Vehicle Administration (MVA) to establish an Ignition Interlock System Program, with a fee to cover program costs, and to establish minimum standards for all service providers. The bill requires, rather than permits, participation from persons who have been convicted of specified alcohol-related driving offenses. A person who is required to participate in the program must successfully complete it or that person is subject to suspension of the driver’s license. MVA must require the person to complete the program successfully. If the person required to participate fails to successfully complete the program, MVA is required to suspend the driver’s license for a period of six months for a first violation of driving while under the influence of alcohol, under the influence per se, or impaired by alcohol, and one year for a second or subsequent violation.  I voted for this bill and it passed the House floor on April 8, 2011.

Other Bills of Interest

House Bill 1034 – Clean the Streams and Beautify the Bay Act of 2011 – Requiring a store to charge and collect a fee for each disposable carryout bag the store provides to a customer.  This bill did not make it out of the Environmental Matters Committee.

House Bill 870 – Maryland Stem Cell Research Fund – Requiring the Maryland Technology Development Corporation and the Stem Cell Research Commission to report to the public on the progress of State-funded stem cell research by holding a public symposium on or before January 1 each year.  This bill received an unfavorable in the Health and Government Operations Committee.

House Bill 674 – Human Trafficking – Awareness – Requiring the State Department of Education, in collaboration with the Department of Health and Mental Hygiene, to provide awareness and training for Directors of Student Services in local education agencies on human trafficking; and requiring the Department of Health and Mental Hygiene, in consultation with experts in the field of human trafficking prevention, to provide to the State Department of Education specified information and materials on human trafficking.  This bill passed the House and Senate and awaits the Governor’s signature.  I was a co-sponsor of this bill.

House Bill 291 – Public Health – Maryland Medical Marijuana Model Program Work Group – Requiring the Secretary of Health and Mental Hygiene to convene a Work Group to develop a model program, including draft legislation, to facilitate patient access to marijuana for medical purposes.  This bill, now a model program, passed the House and Senate and awaits the Governor’s signature.  I was a co-sponsor of this bill.

House of Delegates Scholarship

After much deliberation Delegate Bill Frank and I have decided to allow the Maryland Higher Education Commission process our District 42 Delegate Scholarship. To be eligible for the scholarship you must fill out a Free Application for Federal Student Aid (FAFSA) Form by March 1st to be considered for the scholarship as well as all State need-based grants.  The scholarship will be distributed to District 42 students.

Visits to Annapolis

During the 2011 Legislative Session Towson High School’s Law and Policy Class, Towson University’s Women’s Swim and Diving Team, Calvert Hall’s football team, students from St. Pius and Immaculate Conception, Girl Scouts, Boy Scouts, and residents from District 42 visited the General Assembly.  If you or your group would like to visit our state government in action please contact our office and we can set up a tour of the State House and government buildings.

Lowe House Office Building Renovation

Please note that my Annapolis office will be closed from May through September due to the replacement of the asbestos ceilings in the Lowe House Office Building.  My legislative assistant, Myra will be telecommuting during this timeframe. If you need to contact me please call 410-841-3258 and we will continue to provide prompt attention to your concerns and issues.

Again, I want to thank you for the privilege of allowing me to represent you.  The experience has been rewarding and humbling and I look forward to serving you in the interim.  During the legislative session I send, via email, an update to keep you informed of pending legislation and highlights of the General Assembly’s agenda.  If you would like to be included in next year’s legislative updates, please call my office at 410-841-3258 or send me an email at susan.aumann@house.state.md.us.

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Dear Constituent,

The 2012 Budget Highlights

In 2007 the structural budget deficit was addressed by raising $2 billion in new taxes. In 2011, we are still in the same dire situation. Instead of reining in spending during these perilous times we have increased the risk to future tax payers to satisfy special interest groups and unions. Last week, the Governor restored $58 million of the per-pupil cuts previously made in the Governor’s budget. He requested that it would be restored in the House Appropriations Committee (after a “March on Annapolis”).

Tax increases are not on the menu this year but we have fee increases in several areas that will touch people’s wallets.  When we have a special session to deal with Congressional Redistricting in the fall, will there be an appetite for more taxes? What a shame we cannot live within our means without further increases on our hardworking families!

Let me take you through the math from the State Expenditures-General Funds from page 8 of the House Appropriations Committee Report on House Bill 70-The Budget Bill and House Bill 72- The Budget Reconciliation and Financing Act, dated March 21, 2011.

On the Grand Total line, Adjusted Working Appropriation for 2011 for state expenditures is $13,228,000. The 2012 Appropriation is listed as $14,629,000. an increase of 10% or $1,401,000. for one year.

The Treasurer’s office listed that the state’s revenue projections will average around 3%.

If you look at page 3: the Administration Proposal total expenditures lists $14,636,400., the Appropriation actions of $14,629,900. This is a $6.5 million difference. We have a $34 billion dollar budget and to cut
only $6.5 million from it is a miniscule amount of .0004%. Come on!  This would equate to a family making $50,000./year and cutting $20.00 from what they earn.

The members of the Republican Caucus offered a plan that trimmed $651 million from the budget.  It would allow a savings for the future unexpected expenses and keep tax increases at bay.  We offered
cuts and level funding, not to backfill and spend the saving on new projects.

Our credit card budget leaves future generations at risk of affording our greed today. Is that responsible?

The budget is balanced but at what cost?  The 2012 increased by $1 billion from $33.1 billion to $34.1 billion.  Maryland found the increases from the following maneuvers:

Fiscal 2011 Fund transfer $9.1 million
Fiscal 2011 Revenues $23.0 million
Fiscal 2012 Fund Transfer $227.7 million
Fiscal 2012 Revenues $160.1 million
Fiscal 2012 Contingent Reductions and Fund Swaps $625.4 million
_____________________________________________________________
Total Budgetary Actions $1.045 billion

The budget includes numerous fees, taxes, and assessments.  I think we all learned during the last campaign that a tax is a fee and a fee is a tax.  Here are some of the fees/taxes/assessments passed by the House leadership in Annapolis:

  • Car titling fees increased from $50 to $100
  • Land recording fees increased from $20 to $40
  • Birth certificate fees increase from $20 to $40
  • Hospital assessments increased 2.5%
  • Nursing home assessments raised to 5.5% from 2%  2 years ago
  • Parole supervision fees increased $25 to $50 per month
  • Construction tax – 2% tax on IWIF worker’s compensation insurance + $4 million from IWIF – IWIF insures a majority of the construction companies in MD

The House Leadership is proposing new revenue streams to fund their spending habit and costing more from you.

I voted against the House bill 70 and House Bill 72 in its current state. I am unsure what the Senate will change when the Bill passes back from their House. I will keep you updated on the changes they make.

Below is the link from The Baltimore Sun, “O’Malley budget clears House hurdle, More fees, more money for education and counties” by Annie Linskey.  It outlines what Republicans did on the House floor and
what the burden of increased taxes/fees will mean to your family.

Article Link: http://www.baltimoresun.com/news/maryland/politics/bs-md-house-budget-debate-20110322,0,3464205.story

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Dear Constituents,

Due to an oversight, I wanted to let you know my position on the bills I mentioned last week:

  • Illegal immigrants and instate tuition for college students, SB 167 I will vote against this bill if it comes to the House Floor.
  • Motor Vehicle Fuel Taxes, HB 1059 I will vote against this if it comes to the House Floor
  • Texting while Driving, HB 196 I voted for this bill.

Increasing the Cost of Higher Education in Maryland – Fee or Tax?

When is a fee a tax?  That was a question that has been answered on Governor O’Malley’s TV commercial as:  “If more money comes out of my pocket, it is a tax”.

What responses would you expect to hear from parents and students who attend the University of Maryland System Schools if there was an increase in tuition?  I bet it would be vocal and heated.

What if the education cost at University of Maryland was increased through the back door, not as an increase in tuition but through fees, would you notice?  Would the increase in the cost of education concern you?   It is true that tuition was frozen for four years and last year tuition increased 3%. If I told you that the fees are going to increase and you wouldn’t be aware of it until you paid your bill for your education, how would you deal with that?

This year the University of Maryland System wants to increase their debt capacity by $200,000,000.00 for a total of $1,400,000,000.00.  This debt is not the debt of the State because it is backed by the auxiliary fees (fees and rents arising from the use of the auxiliary facility) and academic fees (tuition and student fees).  We are increasing the cost of education for our college students, but not through tuition.

In order to keep the high ratings from the rating agencies, the system must have 55% of outstanding debt supported by a reserve fund.  If the debt capacity is increased to $200,000,000.00. the System must keep a 55% reserve fund, which will make the increase closer to $300,000,000.00. for this additional increase.  Students will have to pay this.

The question is:  “Is a fee a tax”?

It will cost more to educate your student through hidden fees. I voted against House Bill 748 – Academic Facilities Bonding Authority

House Bill 234 – Alcoholic Beverages – Direct Wine Shipper’s Permit.

I have been a co-sponsor of this bill for the last three legislative sessions.  Unfortunately, this bill has never made it out of the Economic Matters Committee and has failed

The bill requires that a person be permitted as a direct wine shipper by the Comptroller’s Office before engaging in direct wine shipping. To qualify for a direct wine shipper’s permit, the applicant must be (1) a person licensed outside of the State to engage in the manufacture of wine; (2) an authorized brand owner of wine, a U.S. importer of wine, or a designated Maryland agent of a brand owner or U.S. importer; (3) a holder of a State issued Class 3 manufacturer’s (winery) license or a Class 4 manufacturer’s (limited winery) license; or (4) a person licensed by the State or outside of the State to engage in the retail sale of wine for consumption off the premises. The direct wine shipper must ensure that all containers of wine shipped directly to a consumer in the State are conspicuously labeled with (1) the name of the direct wine shipper; (2) the name and address of the consumer who is the intended recipient; and (3) the words “Contains Alcohol; Signature of Person at Least 21 Years of Age Required for Delivery.” A direct wine shipper must also (1) report quarterly to the Comptroller’s Office the total amount of wine, by type, shipped in the State, the price charged, and the name and address of each purchaser; (2) file a quarterly alcoholic beverage tax return; (3) pay quarterly to the Comptroller’s Office all sales and excise taxes due on sales to personal consumers in the State, calculating the amount of the taxes as if the sale was made at the delivery location; (4) allow the Comptroller’s Office to audit the direct wine shipper’s records on request; and (5) consent to the jurisdiction of the Comptroller’s Office or other State unit and the State courts concerning enforcement. A direct wine shipper is prohibited from shipping more than 24 9-liter cases of wine annually to any one individual or delivering wine on Sunday to an address in the State. The Comptroller’s Office may adopt regulations for the issuance and enforcement of the provisions of this permit.

I am hopeful that this year this bill will make it out of committee and come to the House floor for a full vote. There are amendments being considered by the Economic Matters Committee on this bill. The sponsor, Delegate Ivey, indicated that it has not been voted on; however they have eliminated shipping directly to the retailers and will allow vineyards to direct ship to the consumer.  One other aspect that is being considered is permitting the shipping of wine of the month clubs. We will keep you updated as things progress.

House Bill 940 – Counties – Kennel Licenses – Requirements for Breeders

This bill requires a person or breeder to obtain a kennel license if they own or have custody of 10 or more unspayed dogs over six months old and intends to breed and sell the offspring. By January 15 of each year, each county must report the information collected for the preceding year to the Department of Labor, Licensing, and Regulation (DLLR).

Under current law, there are no statewide license or fee requirements for dog breeders in Maryland. Dog owners must obtain a license for each dog kept in the State. Specific provisions related to the licensing of dogs vary from county to county. In most counties, the owner of a dog over six months old must apply for a one-year license on or before July 1 of each year. While many counties are authorized to set their own dog and kennel license fees, (and a few others are authorized to also set terms and/or forms for such licenses), in general, the fees for dog licenses are $1 for each male or spayed female dog, $2 for each unspayed female dog, $10 for a kennel license for owning or keeping up to 25 dogs, and $20 for a kennel license for keeping more than 25 dogs.

This bill requires that each county that does not currently license kennels must establish a licensing program and maintain records in a manner specified by the bill. Counties must train animal control officers to collect these records during routine inspections. Finally, the counties must compile records and submit them to DLLR by January 15 of each year. As a result, the bill may have an operational or fiscal effect on some counties. In turn, the counties may increase or establish additional kennel licensing fees to cover the costs of maintaining the records required by the bill.

I support this bill.

Update on Illegal Immigrants

The State of Maryland is currently breaking law.  Maryland taxpayers have supported in- state tuition to illegal aliens who attend Montgomery Community College to the tune of $5.8. million dollars.  The Federal Government states that illegal aliens are ineligible for state or local benefits including post secondary education benefits such as reduced tuition.  Maryland’s current law requires the colleges to charge out of state tuition for non documented aliens.

Tuition and fees paid by students constitutes less than a quarter of the colleges revenue, the remaining three quarters are supported by state and federal funds, or taxpayer funded.

Non Documented aliens usually do not have the capacity to establish residency in Maryland as their illegal status makes them eligible for deportation at any time.

This bill reflects poor judgment that is why I do not support it.

We are heading into the final weeks of session.  I appreciate your views and opinions on bills that come before the legislature.

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Dear Constituents,

Over the past few weeks, I have received thousands of phone calls and/or emails expressing either support or opposition to Senate Bill 116 – Civil Marriage Protection Act.  I wanted to inform you that this bill came to the House Floor for a vote today.  After several hours of discussions and personal reflections on the House Floor, Delegate Vallario, Chairman of the Judiciary Committee, recommitted the bill to the Judiciary Committee.  The outcome is uncertain.

Life Sentence – Parole with- out the signature of the Governor

Currently, a Maryland inmate serving a term of life imprisonment may only be paroled with the approval of the Governor. House Bill 302, as amended and given preliminary approval by the House, now provides that if the Patuxent Institution Board of Review or the Maryland Parole Commission decides to grant parole to an eligible prisoner sentenced to life imprisonment who has served 25 years without application of diminution credits, and the Governor does not transmit a written disapproval of the decision within 90 days, the grant of parole becomes effective. I think this another attempt to water down our laws that should protect us.  I voted against this bill.

Illegal immigrants and instate tuition for college students

A Senate committee significantly amended and favorably reported Senate Bill 167 to exempt specified individuals who attended and graduated from Maryland high schools from paying out-of-state tuition at a community college. These persons are also exempt from paying out-of-state tuition at a public institution of higher education in Maryland if they first attend a community college in the State and are awarded an associate’s degree or obtain 60 credit hours. Additional qualifications for the exemption require that the individual must:

  • have attended a secondary school in the State for at least two years;
  • have graduated from a high school in the State or received the equivalent of a high school diploma in the State;
  • register as an entering student at a community college within four years of graduating from high school;
  • register at a public four-year institution within four years of obtaining an associate’s degree or 60 credits; and
  • provide documentation that the individual or the individual’s parent or guardian has had Maryland income tax withheld during the year prior to high school graduation and annually before, between, and during attendance at community college and/or a public institution of higher education.

An individual who qualifies for the exemption and is not a permanent resident must also provide an affidavit stating that the individual will file an application to become a permanent resident within 30 days after becoming eligible to do so. Documented immigrants who are in the country on student visas do not qualify for the exemption, but otherwise the exemption applies regardless of residency status. The governing board of each public institution of higher education must adopt policies to implement the bill. House Bill 470,  the original companion measure, is scheduled for House committee consideration next week.

Motor Vehicle Fuel Taxes

House Bill 1059  increases the State motor fuel tax rate for all fuels, except aviation gasoline and turbine fuel, by 20 cents per gallon. After an initial increase of 10 cents per gallon, the remaining rate increase is phased in semi-annually by 2 cents per gallon over two years. In fiscal 2012 and 2013, the bill requires a transfer of motor fuel tax revenues to the general fund in an amount equal to the revenue generated from the 10 cents per gallon tax increase. The bill takes effect July 1, 2011. Companion bills, Senate Bill 714/House Bill 1001, beginning July 1, 2011, increase the State motor fuel tax rate for all fuels, except aviation gasoline and turbine fuel, by 10 cents per gallon. Under the bills, beginning July 1, 2013, the motor fuel tax rate is effective for one year and every subsequent year, on July 1, the motor fuel tax rate must be increased in accordance with the annual percentage growth in the construction cost index, up to one cent per gallon annually; or maintained at its current level if there is no increase in the annual percentage growth in the construction cost index. Beginning July 1, 2011, State vehicle registration fees increase by 50% for all classes of vehicles.

Texting While Driving

House Bill 196 passed the House with the addition of several sponsors. It prohibits a driver from reading any text message while in the travel lane of a roadway, whether or not the car is in motion. A companion bill, Senate Bill 424, passed second reading in the Senate without amendment, although floor amendments were offered.

I appreciate your views and opinions and please continue to keep me informed.

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Dear Constituents,

On March 1, 2011, the House Republican Caucus‘ alternative budget proposal was presented to the Appropriations Committee.  Minority Leader Tony O’Donnell and Minority Whip Jeannie Haddaway-Riccio made the presentation but our Republican Delegates on Appropriations, including Delegates Bates, Beitzel, Eckardt, McConkey,Szeliga, Stocksdale and I worked tirelessly on crafting the proposal.  The House Republican Caucus is taking a firm stand to reduce spending, not just this year, but long-term.  By reducing spending, we’ll also be on a parallel track of reducing Maryland’s onerous tax burden, particularly sales, gas, and business taxes by FY2014 and 2015. I believe it is very important to research and offer recommendations so that Marylanders are relieved from increased taxes and expenses.

The entire presentation on our budget proposal can be viewed here: http://marylandhousegop.files.wordpress.com/2011/03/house-republican-caucus-fiscal-vision-for-maryland-2012.pdf

Some key points to know about Governor O’Malley’s budget versus our proposal:

Our plan reduces state spending by an additional $621 million in FY 2012 and holds growth at 2% for Fiscal Years 2013-15.  The plan allows for 4% budget growth in FY 2016.  It replenishes the Transportation Trust Fund without increasing the gas tax.  It also reverses the raiding of the Bay Restoration Fund and Program Open Space of cash and funding the projects with debt.  The plan allows for a gradual rollback of the increases in the sales and corporate income taxes beginning in FY 2014 making Maryland a more business-friendly state.

Transportation Trust Fund:
I wanted to include some background on the Trust Fund.  The Maryland Department of Transportation (MDOT) is structured as a special funded agency. Transportation funding in Maryland occurs through the Transportation Trust Fund and the Transportation Authority Fund. The Transportation Trust Fund receives funding from the motor fuel tax, motor vehicle titling tax, corporate income tax, rental vehicle sales tax, sales and use tax, operating revenues from transit, port, and aviation fares and fees, federal funds, and various other income sources.  All MDOT expenditures are made through the Transportation Trust Fund, including debt service, operating costs, the capital program, and support to local governments. The Transportation Authority Fund is funded primarily with toll revenues.  Maryland’s citizens, residents and businesses alike, expect that taxes and fees assessed for using the transportation system will be used to maintain and expand that system. The portions of Maryland’s sales and use tax and corporate income tax dedicated to transportation serve as the means for businesses and other indirect beneficiaries of transportation to support the infrastructure. Despite the intent to dedicate these revenues to transportation uses, large transfers from the Transportation Trust Fund to the General Fund have occurred over the years. While the majority of these transfers have been repaid, a significant amount, especially from the local government portion, approximately $997 million has not been replenished.

House Bill 518: Transportation Trust Fund Protection Act :
This bill sponsored by Delegate Krebs had an extensive hearing on February 22, 2011 in the Appropriations Committee. The bill requires that the funding structure remains intact and the funds collected through the sources mentioned above continue to be used to insure our roadways and bridges are drivable and reliable.  Over the past few years our State’s Budget has experienced issues with meeting our obligations and turned to the TTF as a way of continuing operations.  Most of the money that the Governor borrowed from the TTF was repaid except for what was borrowed from the portion that goes to local governments.  The amount not repaid to the locals amounted to over $900 million.  The locals still need to do road and bridge repair but the funding has been swept and they have been left with dealing with the issues within their own resources. The pressure has been hard to deal with especially with the amount of snow and salt needed in the last few years.

Last year Governor O’Malley had a bill to give an incentive to small businesses who hire new employees; the employer would receive $5000.00 per qualified new hire. This incentive was paid for by funds diverted from the Transportation Trust Fund. In addition to lower funds coming through because of the recession, the General Assembly diverted Highway User Funds from the local governments for road maintenance and it has had a negative effect.

Some on the Appropriations Committee stated that having a Constitutional Amendment would limit the flexibility to respond to pressing needs that Government may run in to. There is a provision that allows for catastrophic needs in the bill. I think that flexibility is already restricted by the undisciplined budgeting and spending by the Governor. We need to put the TRUST back in the Transportation Trust Fund. I support Delegate Krebs’ effort in HB 518.  The Budget Bill for FY 2012 requires the TTF to put $39 million into the Rainy Day Fund; I ask why is it the responsibility for the TTF to have to divert funds for this purpose?

HB1001 Transportation Trust Fund-Financing- Use of Funds:
Generally requires the same protections as HB518 through a constitutional amendment but this bill provides for an increase in taxes:

  • Ten-cent increase in the fuel tax effective July 1, 2011
  • One-cent maximum annual increase in fuel tax beginning 2013 indexed to the construction cost index (CCI) and
  • 50% increase in the annual vehicle registration fee.

This legislation is consistent with the findings of the Blue Ribbon Commission on Maryland Transportation Funding that Maryland’s transportation system is facing a fiscal crisis.  I understand the needs but feel additional taxation at this time, when our economy is trying to recover, will have detrimental effect on our citizens and businesses. We, the Government need to evaluate the new programs being suggested and postpone some until our State’s economy recovers.

I appreciate your input and please continue to keep me informed of your views and opinions.

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Dear Constituents,

The State Highway Administration (SHA) and its contractor, J&P Excavating Co., Inc. are beginning a project to improve the storm drain system along the outer loop of I-695 (Baltimore Beltway) at Fox Hunt Lane in Lutherville.  The project should be completed early summer 2011, weather permitting.

Construction work may occur at any time Monday through Friday, 8 a.m. – 3 p.m.  There also exists a possibility of longer daily hours.  SHA and J&P Excavating Co. will make every effort to minimize disruptions to the community.  This project begins to the north of Joppa Road and extends in an easterly direction for a total distance of 0.32 miles. The proposed system will consist of three inlets and pipe. The improvements will also include construction of a surface drainage ditch between the proposed inlets.  The new storm drain system will connect to an existing system that discharges to the north of the project site.

Citizens with questions or concerns may contact SHA’s Project Engineer, Mr. Len Sutphin.  He may be reached by phone at 240-382-4844, or by e-mail at lsutphin@sha.state.md.us.  The SHA project field office is located behind the Valley Presbyterian Church at 2200 West Joppa Road, Lutherville, Maryland 21093.

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

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Dear Constituents,

The 2011 session is gearing up to a roar. The formal introduction of legislation was this past Friday, February 11th.  Any new bill introduced beyond that guarantee date will be referred to the House Rules Committee.  So far over 1100 bills have been introduced in the House and over 850 in the Senate.

Sponsored Legislation:

The German Society of Maryland asked me to sponsor HB 142 commemorating October as German-American Heritage Month. Senator Kathy Klausmeier sponsored SB 121 in the Senate. This bill urges educational and cultural organizations to observe German-American Heritage month with appropriate programs, ceremonies and activities. German settlers arrived in Maryland in the early 1700’s to take advantage of Lord Baltimore’s offer of inexpensive land to settle. After the immigration, many inventions and talents helped form our nation’s history. Our own Maryland flag contains the colors of the German flag and many of our towns are named after celebrated German immigrants.

Since the early spring I have been participating on a Commission to Study Immigration in Maryland.  We have met every month since May and have covered a great deal of information so far, but more is needed to be understood. Delegate Malone and I sponsored HB34 -Commission to Study the Impact of Immigration in Maryland, for an extension of the report deadline to May 31, 2011.

I have two more bills that I am introducing and will keep you posted after we have had the hearings.

Current Hot Topics:

The Religious Freedom and Civil Marriage Protection Act (SB 116) received testimony this week. Under current State law, only a marriage between a man and a woman is valid in Maryland. SB 116 repeals the reference to a man and a woman and specifies that only a marriage between two individuals who are not otherwise prohibited from marrying is valid in Maryland. Under the bill, an official of a religious institution or body authorized to solemnize marriages is not required to solemnize any marriage in violation of the right to the free exercise of religion. Hearing dates have not been set for identical House bills (HB 55 and HB 175).  The Senate is going to vote on SB116 in the next few days and then will taken up in the house.

Maryland Off-Shore Wind Energy Act:
Maryland is considering placing a wind turbine farm ten miles off shore in the Chesapeake Bay for electric generation.  The Public Service Commission would be the agency to approve contracts and require certain electric companies to enter into long -term power purchase agreements for electric transmissions.

Testimony indicated that the transmission lines from the-offshore wind will tie into the Rehoboth Beach, Delaware or the Indian River generating Station near Millsboro, Delaware.  There are questions regarding how much energy will stay in Maryland verses going across the grid which includes the following states: Delaware, New Jersey, and Pennsylvania. There are concerns regarding the potential rate increases and the construction and maintenance costs that will affect the rate payers in Maryland.  These costs will be borne by Marylanders but energy will be provided to the other states mentioned.

Will home energy bills be increased or decreased for this new advanced technology and how many Marylanders will be served are questions that are still being considered. When more information is provided I will keep you informed.

Delegate Aumann’s Capital Budget Presentation:

Over the past weeks I have been gathering information regarding the increasing pressure being placed on the Capital Budget. If you would like to view the power point presentation I have attached the pdf file. (Click Here to Download File)

I appreciate your input and continue to keep me informed of your views and concerns.

Kindest Regards,
Susan L.M. Aumann
District 42, Baltimore
303 Lowe House Office Building
410-841-3258

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