Discussing the news and issues impacting Maryland's business community. Issues like health care, taxes and regulation, fiscal responsibility, civil liability reform, transportation funding, environmental regulation, education, and more.
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Maryland Congressional Delegation Urged to Support Infrastructure Investments
The Maryland Chamber, together with 16 local chambers of commerce, sent a letter to Maryland’s congressional delegation today, urging them to support an economic stimulus package that would invest in infrastructure and transportation projects.
“Our organizations support new investments in improving our roads, highways, bridges and rail; expanding transit; and ensuring the long-term viability of our ports and airports. We also support funding of utility infrastructure as an economic stimulus solution that creates jobs, lowers energy costs and addresses climate change,” the letter stated.
Watch the video to hear Jock Menzies, Chairman of the Terminal Corporation and Chair of the Maryland Chamber’s Transportation Coalition, explain the content and purpose of the letter.
MTA Announces Proposal to Increase Toll Rates for Trucks and Add E-ZPass Service Charge
The Maryland Transportation Authority today proposed an increase in toll rates for large trucks and other multi-axle vehicles and the implementation of E-ZPass service charges.
“Today’s proposal helps better distribute the costs of operating our system among the
different types of vehicles that use our facilities,” said Authority Chairman and
Transportation Secretary John D. Porcari. “Even with the proposed toll-rate changes and
service charges, Maryland still offers some of the most generous commuter discounts in
the country, and our truck toll rates are comparable to - and generally lower than - those
in the region. I’m pleased that we could preserve our post-usage discounts for truckers.”
Effective April 15, adjusting toll rates for multi-axle vehicles, including trucks with three or more axles and vehicles towing trailers, to help ensure that costs to preserve Authority roadways are allocated proportionately; eliminating the Class 7 toll-rate schedule; and, in its place, implementing an oversize permit charge to use Authority facilities. The proposal includes a $2-$5 toll increase per trip depending on the number of axles at the Francis Scott. Key Bridge and Fort McHenry and Baltimore Harbor tunnels; a $4-$5.50 increase per trip at the Bay Bridge; a $5-$13 increase per trip at the John F. Kennedy Memorial Highway and Hatem Bridge; and a $3 increase per trip at the Nice Bridge. The cost for A-series commercial tickets at the Hatem Bridge would also increase proportionately.
Effective April 15, charging $10 for an Automatic Vehicle Identification decal for the HatemBridge and placing a one-year expiration on light-trailer tickets.
Effective July 1, implementing service charges to help recover E-ZPass processing costs, including a $1.50 monthly account maintenance charge; charging for the cost of new and replacement transponders ($21 standard, $33 exterior, $40 fusion); instituting a $3 Notice of Toll Due charge; and increasing toll violation charges from $15 to $25.
Effective July 1, changing the duration of E-ZPass commuter plans from 60 days to 45 days.
Eliminating commuter, Shoppers and Travelers tickets and transitioning customers to
E-ZPass. As part of the transition for Bay Bridge customers, the Authority will create a
Shoppers Plan for E-ZPass to offer the same percentage discount as existing tickets.
MTA is accepting public comments on the proposal through January 27. Submit your comments via email to mdtatollrates@mdta.state.md.us or send them to Mr. Ronald L. Freeland, Executive Secretary, Maryland Transportation Authority, 2310 Broening Highway, Suite 150, Baltimore, MD 21224.
The Authority’s take final action on the proposal during its monthly meeting on January 29.
Maryland Chamber of Commerce Panel Discusses Customer Trust and Retention
A panel of experts discussed strategies to improve customer service and to earn consumer trust and loyalty at the Maryland Chamber of Commerce’s “Who’s Taking Care of Your Customers?” small business program. The panel included Angie Barnett, President and CEO of the Better Business Bureau; Tom Saquella , President of the Maryland Retailers Association; and David Libdan, President of Applied Resource and Knowledge. Watch the videos below to view the panelists’ presentations.
Split Rate Property Tax Bill is Back in Montgomery County
Maryland Chamber Vice President of Government Affairs Ron Wineholt was in Rockville yesterday evening to testify in opposition to legislation that would allow Montgomery County to impose discriminatory rates of taxation on business property.
The legislation would allow Montgomery County to establish classes of real and personal property and to impose varying rates of taxation on each class.
The Maryland Chamber strongly opposes this bill. A minority of states authorize local governments to impose differential tax rates on varying classes of property. Such laws always result in local governments imposing discriminatory and burdensome levels of taxation on business property, sometimes at levels 2 to 3 times the level of taxation for residential property.
Chamber Launches New Pro-Business Advocacy Website
In preparation for the 2009 Maryland General Assembly session, the Maryland Chamber’s grassroots program, the Chamber Action Network (CAN), is launching a new website. The goal of the new site is to keep you informed about important public policy issues that could impact your business and to seek your feedback on how proposed legislative and regulatory action could impact your business.
CAN is a grassroots coalition of 50 chambers of commerce from around the state. We work together to coordinate pro-business advocacy efforts in Annapolis. Together, we represent more than 22,000 Maryland employers.
The new website, www.ChamberActionNetwork.com, will deliver public policy information in new and interactive ways. Members of the Maryland Chamber staff, including our lobbyists, will be posting updates to the CAN Blog. We’ll also be posted video updates from Annapolis with our lobbyists and the policy experts who volunteer on Chamber committees. The site will include:
Issue pages on important public policy topics, as well as priority legislation. These pages will provide simple summaries, useful resources, news links, in addition to more detailed policy positions.
A Blog that will be frequently updated by Maryland Chamber staff, including our lobbyists, and staff from the other CAN partner organizations.
Video updates from Maryland Chamber lobbyists in Annapolis, as well as video interviews with policy experts, lawmakers and business people from across the state.
Grassroots tools to help business people identify and communicate with their legislators.
A calendar of business-related public policy events from around the state.
Polls and surveys to seek feedback from business people like you.
We hope you’ll visit www.ChamberActionNetwork.com frequently and encourage your employees and colleagues to do the same. Get involved in our advocacy efforts. Tell us how proposed legislation will impact your business. Use the site’s grassroots tools to communicate with your elected officials. Comment on blog posts that peak your interest. In short, get involved. Your participation will make our pro-business advocacy efforts stronger.
Chamber Board Approves 2009 Business Agenda
The Maryland Chamber’s Board of Directors approved the 2009 Business Agenda during its November meeting. The Business Agenda outlines the Chamber’s priorities for the coming year and guides the organization’s advocacy efforts.
“This Business Agenda is the end result of the hard work of active Maryland Chamber members who volunteer their time and expertise to serve on the Chamber’s public policy committees. We thank our member volunteers for their hard work,” said Maryland Chamber Chairman Betty Buck, President of Buck Distributing Co., Inc.
The current state of the economy presents extraordinary challenges for Maryland businesses. Therefore, to retain jobs in our state, the Maryland Chamber’s priorities for the 2009 Session are to:
Seek a competitive tax structure;
Promote affordable health insurance;
Protect the economic vitality of the state’s transportation system;
Sponsor the 2009 Guide to Maryland Government Publication
The Maryland Chamber is beginning production of our 2009 Guide to Maryland Government. This annual publication includes the Maryland Chamber’s business agenda; maps of Annapolis; O’Malley Administration contact information; and legislator listings broken down alphabetically, by district and by committee.
Showcase your company to many of Maryland’s most influential business and government leaders by supporting this useful publication as a 2009 logo sponsor. The cost of sponsorship is $600. Your full color logo would appear on the cover of the publication.
Our wide distribution list includes representatives of Maryland Chamber member companies, all members of the Maryland General Assembly and many members of the O’Malley Administration. In addition, multiple copies are distributed to local chambers and trade associations. Many member businesses also buy bulk copies.
Dec. 9: Small Business Subsidy Informational Meeting
The Maryland Health Care Commission is partnering with Delegate Shawn Z. Tarrant, the Baltimore City Chamber of Commerce, and business trade associations to host a free meeting to provide information about the Health Insurance Partnership to small business owners that have been unable to provide health coverage to their employees due to high premiums. Your business may be eligible for a health insurance premium subsidy of up to 50 percent if you have nine or fewer employees, your employees have an average annual wage under $50,000, and you have not offered group health insurance to them in the last 12 months.
The meeting will also offer information on the benefits of and steps to establish a Section 125 premium conversion plan. These plans allow employee premium contributions to be made on a pre-tax basis and are required to participate in the Health Insurance Partnership.
Meeting will be held on Tuesday, December 9, 2008, from 8:30 a.m. to 10:30 a.m. at:
The Maryland Health Care Commission
4160 Patterson Avenue
Baltimore, Maryland
On the Patterson Avenue side of the Reisterstown Plaza at the corner of Patterson Ave & Reisterstown Road, in Baltimore City, MD.
The Maryland Chamber will hold Business Day in Annapolis on January 22 in the Miller Senate Office Building. Business Day in Annapolis provides you with an outstanding opportunity to:
Preview the 2009 General Assembly session with the legislature’s most influential leaders.
Promote the Business Agenda.
Interact with your elected officials.
Network with Maryland’s business leaders.
This year, Business Day will be a breakfast event, so please adjust your schedules accordingly. The event will begin at 8 a.m. with a continental breakfast and networking. The Leadership Briefing will begin at 8:30 a.m. Invited speakers include:
Gov. Martin O’Malley, Governor of Maryland
Sen. Thomas V. Mike Miller, President of the Maryland Senate
Del. Michael E. Busch, Speaker of the Maryland House of Delegates
Sen. Allan H. Kittleman, Senate Minority Leader
Del. Anthony J. O’Donnell, House Minority Leader
Following the leadership briefing, attendees can visit their lawmakers to discuss the issues most important to their business. An addition meeting with Comptroller Peter Franchot is also planned. Registration for this year’s event is one-half of the 2008 rate in light of the economic downturn: $65 for Maryland Chamber members ($75 after Dec. 31); $100 for nonmembers. Register online here, or contact Kristen Solis at (410) 269-0642, (301) 261-2858 ksolis@mdchamber.org.
Special thanks to State Farm Insurance for serving as the event sponsor. Additional sponsorship opportunities are available to help you gain visibility before an engaged and influential business audience. For more information, contact Jan Krueger at (410) 269-0642, (301) 261-2858 or jkrueger@mdchamber.org.
Remembering Joseph B. Harlan
The State of Maryland and the Maryland Chamber lost a leader last week with the passing of Joseph B. Harlan. Harlan was a prominent Baltimore attorney and active member of the Maryland Chamber of Commerce.
He Chaired the Chamber’s Workers’ Compensation Committee, playing a major role in the passage of the Workers’ Compensation Reform Laws of 1986 and 1987.
Harlan began his career as a prosecutor, before he went into private practice with the firm of Swerdloff, Rabineau & Murphy, and later in the firm Klein & Harlan. In the 1990s, he began a startup health care company. In 2001, he joined the law firm DLA Piper.
The Maryland Chamber sends its condolences to Mr. Harlan’s family.
MD Business Tax Reform Commission to Hold First Meeting
The Maryland Business Tax Reform Commission has now been appointed and will hold its first meeting Wednesday, November 19, at 3:30 p.m. in Annapolis. Karen Syrylo, CPA, the Chamber’s State Taxation Consultant, will represent the Maryland Chamber on the Commission.
The Commission was established during the 2007 special session to review and evaluate the state’s current business tax structure and make recommendations for changes. Policies to be studied include mandatory unitary combined reporting, gross receipts taxes, value added taxes, alternative minimum taxes, and more.
We will be covering all Commission hearings and keeping you updated on this blog.
Governor Addresses Maryland Chamber
Governor Martin O’Malley thanked the Maryland Chamber for its support of the successful slots referendum and discussed Maryland’s economic future during the Chamber’s recent Business Policy Conference in Cambridge.
“I want to say something that perhaps has not often been heard from Democratic Governors at the Chamber of Commerce, thank you for your partnership and especially for your support on the passage of Question 2. It wouldn’t have happened without you,” O’Malley said.
With the referendum behind us, the Governor turned his attention to the national economic downturn. He discussed Maryland’s economy and his Administration’s priorities.
As the country comes out of the current economic downturn, O’Malley said he has faith that Maryland will rebound faster than other states. He pointed to the state’s strength in biotech and life sciences and the fact that Maryland is one of seven states with a Triple A bond rating and one of nine states with positive job growth.
He also discussed the 40,000 to 60,000 jobs coming to Maryland as a result of Base Realignment and Closure (BRAC). “We would like more dollars to do more road improvements, and more traffic and intersection redesigns more quickly; but we are focused on the jobs that are coming,” he said.
Here is a video of the Governor’s remarks. We apologize for the poor audio quality.
Transportation Funding Challenges Discussed by Business Policy Conference Panel
The affect of the economic downturn on already strained federal and state transportation funds and the outlook for transportation funding were the topics of discussion at the “Transportation Funding Challenges” panel at the Maryland Chamber of Commerce’s 2008 Business Policy Conference.
Jock Menzies, Chairman of the Terminal Corporation and Chair of the Chamber’s Transportation Coalition, moderated the discussion. The panel included Beverley Swaim-Staley, Deputy Secretary of the Maryland Department of Transportation; Lon Anderson, Director of Public and Government Relations for AAA Mid-Atlantic; and Anne Ferro, President and CEO of the Maryland Motor Truck Association, Inc.
Swaim-Staley addressed recent cuts to Maryland’s Six-Year Capital Progam—a deferral of $1.1 billion over six years.
“For the first round of reductions we were forced to reduce a lot of the new projects that we had put in the program,” she said. “Unfortunately now because of the economic news we have actually had to reduce some of the projects that we had the good fortune to add last year.”
Swaim-Staley said that despite the cuts, the Department of Transportation was able to save system preservation programs, and though more reductions loom on the horizon, she is hopeful the programs will stay intact.
Anderson said that though the system preservation program is in place, he expects cuts will be seen as budgets shrink.
“I know that Maryland remains committed to highway safety and I know they have the preservation program in place—but let’s be honest, transportation is very expensive and saving transportation is even more expensive” he said. “In tough times maintenance gets deferred.”
Budget reductions are a result of several factors including the depletion of the Federal Transportation Trust Fund and the stagnation of the gas tax rate Swaim-Staley said.
“There was traditionally a gas tax increase about every four to five years for many, many decades. That used to be a funding source you could count on. Many projects would be put in the pipeline about six to ten years ahead of time and there would be funding for those projects to go from planning to design to construction,” she said. “Unfortunately the last gas tax increase was in 1992 and we have not had a gas tax increase since then.”
Anderson said while a raise in the gas tax, the revenue from which is applied to transportation funding, is needed, accountability for what transportation funding is used for is just as important.
“The transportation funds are raided so regularly in many states, Maryland included, I just call it the state transportation ‘cookie jar.’ That’s a problem,” he said. “[AAA] has supported higher gas taxes but first we want the trust fund better protected.”
Ferro said the trucking industry, which produces 40 percent of Maryland’s transportation funding, is also a major factor in what is happening in Maryland’s economy and transportation funding.
“By virtue of the slowdown and the slackening in the trucking industry we’ve hurt the Transportation Trust Fund,” she said. “Fuel tax revenue are down because of trucking, toll revenue are down significantly, and we are also hurting the title tax—people are not buying trucks of any size these days.”
She added that the economic downturn and high cost of gas prices have caused several truck drivers to seek other employment or raise their rates for transport, which is reflected in the cost of goods.
“We’re small business owners predominately and it’s a straight cash flow issue. I’m going to fill a 200-gallon tank today to transport a load that I might not get paid for 30 to 45 days,” she said. “I think it’s a significant hit and I think everybody sees it in the prices that you pay for things.”
The panel said that while all the factors combine to create the current challenges for transportation funding, they each have separate solutions, which will then affect transportation funding in a different way. The panel added that though the present outlook seems grim, they are hopeful for actions to be taken by the new White House administration and new investments in infrastructure.
“We hope a new administration in the White House might mean a new commitment to and a redefinition of the important role that the federal government should play in transportation funding,” Anderson said. “We think the federal government should not only continue to be a major funding source for transportation, but more importantly, the federal government can provide dynamic leadership that can guide the states in better ways to manage their finances, rather than being the leading example in how to bankrupt the federal highway trust fund. “
Legislative Leaders Preview 2009 Session
The Maryland General Assembly’s Democratic and Republican leaders discussed the upcoming legislative session during the Maryland Chamber’s Business Policy Conference last week. The leaders all expect the state’s budget deficit to dominate the session.
The 2010 budget is going to be a big challenge,” House Speaker Michael Busch (D-Dist. 30) said. “We are going to have to make the tough decisions on where to cut to make up $1 billion. I do not see any appetite in Annapolis for new taxes.”
House Minority Leader Tony O’Donnell (R-Dist. 29C) said the state has to do a better job controlling spending. “If we continue to spend at a level that is unsustainable, higher education will be jeopardized, health care will be jeopardized, the environment will be jeopardized, transportation funding will be jeopardized,” he said.
Other topics the lawmakers discussed included the re-emergence of legislation the Maryland Chamber has fought to defeat in the past, including last year’s green house gas bill, combined reporting legislation, and universal health care funded by a payroll tax on employers. With the prospect of rolling brownouts and blackouts by 2011, the legislative leaders also discussed Maryland’s looming energy crisis. They encouraged business people to stay informed and ensure their lawmakers know where they stand on important issues.
“This is where you as a chamber have to be on the alert,” Senate President Thomas V. Mike Miller said. “The trend in the economy being what it is, you’ve got to be very watchful, very involved, because there are going to be some very tough issues that are not going to be, in my opinion, conducive to your best interests and conducive to the best interest of the state. “
On the Green House Gas Bill
Senate Minority Leader Allan Kittleman (R-Dist. 9) said, “It was pro-labor and pro-business folks coming together to defeat that bill last year. It was amazing to have the steelworkers and management come together on an issue like that. ”
Busch said, “The question is what’s in the specific legislation. I think it’s important for your government affairs people to make sure that you know, within the legislation, what you can live with and what you can’t live with. Where are there areas to compromise?”
On Universal Health Care Funded by a Payroll Tax
Miller said, “There is going to be a move for a payroll tax to help pay for universal health care coverage. To me, it’s pie in the sky, it’s utopian. I don’t think it’s going to happen. Universal health care coverage is a good idea, but we certainly can’t afford it.”
Kittleman said, “We are taking on more spending in Maryland. While there may be good intentions behind some of the spending initiatives, we just don’t have the money. Health care is a big issue in that regard. We’ve got to find ways to reduce the cost of health care, not increase state spending.”
On Maryland’s Looming Energy Crisis
O’Donnell said, “2011 is looming. We have energy transmission problems and we have generation problems. One of the things we can do, although it won’t solve the problem immediately, is to produce generation that does not produce green house gas emissions. That includes nuclear. We very strongly need the third unit at Calvert Cliffs. It’s something this state needs desperately.”
Panel Discusses the Future of Employment Law at Business Policy Conference
A panel of experts discussed changes to employment laws and regulations expected in 2009 and beyond at the Maryland Chamber of Commerce’s 2008 Business Policy Conference. Attributing the revisions to several factors, including the economy, the rising unemployment rate, the transition to a new Congress, and entrance of the Obama administration, the panel referred to the changes to come as “seismic.”
The panel was moderated by Elizabeth Torphy-Donzella, Partner with Shaw & Rosenthal, LLP and included Ron Adler, Chairman of the Maryland Chamber’s Unemployment Insurance Subcommittee and President of Laurdan Associates Inc.; Mike Levin, Chair of the Maryland Chamber’s Workers Compensation Subcommittee and Managing Partner of Dirska & Levin; and Darrell VanDeusen, Partner with Kollman & Saucier, P.A.
Adler said businesspeople should be concerned about the reintroduction of two bills defeated last session. The first bill deals with the definition of part-time workers. The second would address maximum weekly benefit amounts.
Listen to Adler’s take on the outlook for employment law in the 2009 General Assembly Session.
Levin said that despite negative forecasts for other aspects of employment law, the outlook for workers compensation is positive. He said that with a rate reduction just approved in Maryland and the continued stability of companies insuring Maryland’s businesses, the state’s ranking among programs across the nation is rising in terms of quality of service. He also said that Maryland businesses have made great strides toward preventing more accidents, which has benefited the insurance industry.
Listen to Levin’s overview of the current state of the insurance industry in Maryland and the outlook for its future.
Van Deusen spoke about changes that occurred last session and changes expected in the 2009 General Assembly as well as changes on the federal level in regard to employment law. He spoke about actions taken last year and changes expected this year to legislation including Maryland’s Flexible Leave Act (H.B. 40/S.B. 344), the Americans with Disabilities Amendments Act of 2008 (H.R. 3195/S. 1881), the Patriot Employers Act (S. 1945), the Lily Ledbetter Fair Pay Act (H.R. 579/S. 1843), the Healthy Families Act (H.R. 1902/S. 1085), and others.
Listen to VanDeusen discuss what happened in the last Maryland General Assembly Session and the future of legislation passed.
Listen to VanDeusen’s overview of what happened in the last legislative session and what to expect on the federal level this year.
In preparation for the 2009 Maryland General Assembly session, the Maryland Chamber’s grassroots program, the Chamber Action Network (CAN), is launching a new website. The goal of the new site is to keep you informed about important public policy issues that could impact your business and to seek your feedback on how proposed legislative and regulatory action could impact your business.