No topic demonstrates the good, the bad and the ugly in Annapolis more than the suspension of the gas tax. Motorists vexed by the Biden administration’s desire to curb the use of fossil fuels and the ban on the import of Russian oil have seen a gallon of gas rise by $1.40 over the last seventeen months. In an effort to ease the pain at the pump, the Governor and the legislature passed a month-long abatement of the state gas tax, resulting in a savings of 37 cents per gallon. But that good deed was soon eclipsed by a bad one. Two days before the end of the legislative session, Republican legislators attempted to add an amendment to a bill that would have extended the gas tax holiday for another two months. Extending the gas tax holiday also had the support of Comptroller Peter Franchot, who reported that the extension would not burden the State’s budget, and in other states, such as New York, governors were proposing a six-month holiday, as well. On a strictly party-line vote the Democratic state legislators voted the amendment down, and Maryland motorists will have to deal with higher prices throughout the summer.
Even though many projected that the pandemic would wreak havoc on the State’s finances, the budget picture is very positive. Revenues are expected to exceed expenditures by more than $300 million in fiscal 2023. Direct aid to public schools is expected to increase by more than $450 million in the coming year, and overall, the total State funding for education approaches nearly $8 billion. The budget is so flush with cash that the legislators allocated $800 million towards future costs of the Kirwan education reforms to be held in the State piggy bank for the years ahead.
There were also selective tax reductions enacted in this session. Governor Hogan had proposed that all retirement income by seniors be tax exempt, but the legislature did not want to go that far. They did, however, approve for seniors making less than $100,000 in income would receive a $1,000 tax credit, and couples making less than $150,000 will receive a $ 1,750 credit. In addition, they granted a sales tax exemption for diapers, certain baby products, certain medical devices, oral care products and diabetic products.
One of the most consequential bills to pass in the General Assembly was the so-called “Climate Solutions Now Act of 2022”. This bill sets a goal to cut the state’s greenhouse gas emissions by 60% below 2006 levels by 2031 and further projects that the state should have zero net emissions by 2045. This bill is lauded by environmentalists as the most progressive policy to deal with climate change in the entire nation.
I have always approached the topic of climate change with a questioning mind. While I applaud the efforts to clean up our air and waters, if we do not have comparable efforts in other states, as well as other nations, will our Maryland efforts make much of a difference? In addition, I am old enough to remember that in the 1970s scientists connected to the United Nations were warning about global cooling, not global warning. I also fear that the State does not have the infrastructure in place to reach the 60% goal by 2031. Part of this law requires the Public Service Commission to conduct a study to determine Maryland’s readiness to make the switch to an all- electric, non-carbon system in the future. Although the bill that finally made it to the governor did not require all school buses to switch to electric power, it does set the state in that direction. The Department of Legislative Services provided a thumbnail illustration of the difference in costs for the two types of school buses: conventional diesel buses cost approximately $97,000 each, while electric buses currently cost over $330,000 each. At some point both residents and businesses will have additional costs to switch to all electric power as well. That same Department of Legislative Services was unable to accurately forecast the total added costs that this law will mandate. Why would our legislators pass a bill where its costs are undeterminable?
Another controversial law that passed over Governor Hogan’s veto was a bill to provide up to 12 weeks of paid leave to care for a sick relative, to care for a new-born child or recover from a personal illness. The paid leave would be funded by a payroll tax that both employer and employee would bear. However, the legislature did not specify how much the new tax will be, nor did it specify the break down between employer and employee. That task will fall upon the state labor secretary, as well as many of the implementing rules for the new law.
In other developments of local concern, a bill sponsored by Del. Michele Guyton that would have allowed speed cameras in nursery school zones, which was supported by GTCC and the Pot Spring community, did not make it out of committee in the house. Delegate Dana Stein, who is vice-chair of the committee, was unable to broker a compromise that would have produced a vote at the committee level. In many cases new bills take two or three years of effort to get passed in Annapolis. We shall see if the speed camera bill fares better next year. Another example of the need to be patient was Delegate Lisa Belcastro’s bill to create a suicide fatality review committee. It took her two years of effort, but the bill finally passed during this session. Delegate Guyton was successful, however, in getting a bond bill approved that will lead to a new Farm and Garden building at the State Fairgrounds.
Eric Rockel
Vice President, GTCC