Senator David Brinkley's Monthly Newsletter

After ninety long days, the 2012 Legislative Session has come to an end. It was a very tough session that concluded in a haze of confusion after Democratic leaders could not come to an agreement on some very important budgetary concerns. There were positives and there were negatives for the taxpayers of Maryland. I've attempted to provide you with the "highlights" of the session below. Some of the major legislative issues brought before the House and Senate were:

2012 Budget: The Maryland taxpayer benfits from this year's legislative session. The operating budget that passed, contains only cuts in spending: a "live within your means budget." The revenue bill (SB 523) which contained income tax hikes and the elimination of personal exemptions for taxpayers did not pass. The partial shift of teacher pension costs to the counties did not pass either. The budget conference committee reduced the Governor's proposed budget by $730 million, but it still grows by $950.9 million over last year. The budget that passed includes $72 million in "entitlement cuts", $63 million in state agency cuts and $173 in cuts to local governments.

Gas Tax Failed: SB 971 MD Transportation Financing & Infrastructure Investment Act of 2012: The Governor failed to pass his gas tax legislation. His proposal would have increased the cost of gasoline by adding a 6% sales tax on top of the existing 23.5(cent sign) per gallon excise tax we currently pay. The drastic hike was thinly veiled as an "investment in transportation infrastructure." Since 2003, over $1.0 billion of dedicated transportation revenue has been raided for the General Fund. Any discussion of a gas tax hike is entirely premature until the motoring public can be guaranteed that gas tax revenues are only going towards roads through a constitutional amdendment that prohibits the transfer of money out of the Transportation Trust Fund (TTF).

Flush Tax Passed: HB446 Environment - Bay Restoration Fund - Fees: This Administration bill is a 100% tax increase to provide an estimated $385 million in additional revenue into the Bay Restoration Fund by 2017. The "flush tax" doubles from $30 a year to $60. However, the Bay Restoration Fund, like the TTF, has been subject to mulitple raids by this Governor. Since 2010, O'Malley has taken $290 from the Fund to help pay for his operating budgets.

Septics Bill Passed: SB236 Sustainable Growth and Agricultural Preservation Act of 2012: The Governor's plan to curb sprawl and stop growth in the rural portions of the State will soon become law, albeit without key provisions that would have given the State power to override some local zoning decisions. This watered-down bill requires counties to divide their jurisdictions into "tiers" of development and incorporate them into their comprehensive plans before any major subdivisions served by septic systems can be approved. I served on the "Septic Task Force" during the last interim. The task force was the result of the failure of the Administration's septic ban during the 2011 legislative session. We met 10 times from July to November and only managed to produce a 13 page report on our work. Despite the anemic report, the Governor ignored the recommendations of the task force and introduced a bill that was far more egregious than what passed. This bill is a direct attack on the ability of the rural parts of the State to develop in a way that makes sense for them. It is another failure of a "one size fits all" approach.

Gay Marriage Passed: Same-sex marriage has been legalized, as Maryland is the eigth state to sign the bill. However, the new law which does not take effect until January 1, 2013 is expected to face a referendum challenge in the November general election.

Maryland Offshore Wind Energy Act of 2012 Failed: SB 237/HB441: The Governor's proposal to develop offshore wind energy using subsidies such as fees imposed through Marylanders' electric bills over a 20-year period to pay for the offshore wind development was rejected for a second time. The proposal although guaranteeing a revenue stream had no guarantees that ratepayers would not see continual fee increases after 2022.

The issues above were well documented in the media but there were some positive pieces of legislation which passed that did not recieve a lot of attention. Among them were:

Family Farm Preservation Act of 2012 - SB294: This bill which had overwhelming bipartisan support passed both chambers unanimously. I led the workgroup in the Senate Budget and Taxation committee that put the finishing touches on SB294. Maryland is one of the few states that imposes an estate and inheritance tax on property. The bill exempts qualified agricultural property from the estate tax up to $5.0 million. Anything over $5.0 million will be assessed at 5%. This was a major step forward in ensuring that Maryland family farmers keep farming for generations to come.

Sales and Use Tax Exemption for Veteran's Organizations - SB19: This bill repealed the termination of the sales and use tax exemption on veteran's organizations like the VFW and American Legion.

Boat and Hunting Fee Increases HB1307 and HB1419: Both of these bills introduced at the request of the Department of Natural Resources would have significantly increased the costs to boaters and hunters throughout the State. The boat fee increase (HB1307) recieved a hearing in the House Ways and Means committee but never saw any further action and failed. The hunting fee increase (HB1419) faced a rare defeat on the House floor after Republicans spoke out against the proposed changes to the fee structure.

For a more comprehensive viewing of this years session legislation please click http://mlis.state.md.us/2012rs/Wrap_up/current_issue.pdf

On a lighter note, I would like to take you behind the scences to introduce you to my staff. These folks keep the wheels turning in both my Annapolis and District offices. If you need assistance, please feel free to contact me or my staff at anytime.

We look forward to serving you!

Sincerely,
Senator David R. Brinkley