The Washington Post

Md. Senate Demands House Action on Slots
Miller, Colleagues Stop Budget Work in Protest

By Craig Whitlock and Tim Craig
Washington Post Staff Writers
Friday, April 2, 2004; Page B01

The Maryland Senate halted work on the state budget yesterday, with its leaders saying they would not cooperate with the House of Delegates unless their counterparts act on a gambling plan that has been bottled up for weeks.

The stalemate comes 11 days before lawmakers are scheduled to adjourn for the year, with little progress reported on the biggest legislative proposals in Annapolis: slot machines and taxes. Top lawmakers met throughout the day to discuss possible compromises but said they remained far apart.

Senate President Thomas V. Mike Miller Jr. (D-Calvert) refused to appoint a conference committee to resolve differences between the House and Senate on the proposed $23.6 billion state budget until House Speaker Michael E. Busch (D-Anne Arundel) showed more of a willingness to forge a deal on gambling.

Miller said he would press Busch to meet with Gov. Robert L. Ehrlich Jr. (R), who wants to legalize slot machines but has refused demands from House Democrats that he accept a major tax increase in return. All sides are looking for ways to raise money to solve Maryland's chronic financial problems. The budget deficit is projected to drop to $1 billion a year from now.

"We need to finish the session with results, not rhetoric," Miller said. "We are going to find some way to do this. . . . I'm not going to wave the white flag of surrender. That's not my style."

Ehrlich said that Miller might be willing to push the session into overtime to get a slots bill. "That is a very strong message he has sent, and it's very welcome," he said.

Ehrlich's top aides held extensive meetings yesterday with Busch and one of his lieutenants, Del. Sheila E. Hixson (D-Montgomery), chairwoman of the House Ways and Means Committee. They did not report any breakthroughs but promised to keep talking.

Busch said he had "a pretty detailed discussion" with Ehrlich's budget secretary, Chip DiPaula Jr., about Maryland's long-term financial straits and the need for more taxes, whether on gambling profits or other sources. But he said DiPaula showed no sign that the administration would accept any portion of the $1 billion in new income and sales taxes that House Democrats have endorsed.

"I don't think we're close to a solution," Busch said. "But this is the first time we've had an honest dialogue about how to solve the problems."

Ehrlich has refused to consider any increase in the sales or income tax, although he has proposed hundreds of millions of dollars in new user fees and other taxes to balance next year's budget. House leaders said they want the governor to accept additional tax increases of at least $600 million.

DiPaula said that figure "far exceeded" anything Ehrlich might consider, but he added that negotiations will continue.

"The governor wants to -- has agreed to -- review various revenue options," DiPaula said. "Fruitful discussions take a while. . . . I think it's fair to say hope is very much alive."

Although Miller and Ehrlich are pushing the House to vote on slots, Busch said the Democratic leadership is unlikely to pass any gambling legislation without a compromise on taxes. He said delegates fear that the General Assembly will still be forced to make deep spending cuts next year even if slots are legalized. Legislative analysts project that the state would not reap substantial money from slots operations for at least two years.

Busch also criticized Ehrlich for seeking slots primarily as a way to bail out Maryland's ailing horse industry. "Is it important to have slots, or is it important to balance your budget?" he said. "Is the primary thing we're trying to do is make sure the guy who owns the racetrack succeeds while our schools fail?"

In addition to differences over taxes, lawmakers aren't close to consensus on the details of any gambling legislation. The Senate passed a bill last month, with Ehrlich's strong support, that would legalize 15,500 slot machines at three racetracks and three other sites across the state.

House leaders said that if they do pass a slots bill, it will look very different. Busch and Hixson have said they prefer a public ownership model under which the state would build and own any slot operations.

Del. Clarence Davis (D-Baltimore), a senior member of the Ways and Means Committee, said the panel would likely consider putting slots at the Ocean Downs racetrack outside Ocean City and the State Fairgrounds in Timonium -- two sites that Ehrlich has vigorously opposed. "All areas of the state are on the table at this point," Davis said.

Other delegates said they doubted a slots bill could make it out of committee, regardless of its makeup. "People who in the past supported slots are finding reasons not to support what's been presented so far," said Del. Carolyn J.B. Howard (D-Prince George's). "Right now, there's nothing that a majority of members can support."

The governor, however, testified this week that he is open to compromises on gambling. Miller, too, said he'd be willing to entertain any slots measure that the House is able to pass. "Nothing is a poison pill as far as I am concerned," he said.

Staff writer Lori Montgomery contributed to this report.

© 2004 The Washington Post Company

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