TAXPAYER BREAKING NEWS, March 2006,
continued from MTA Home Page

March 31, 2006. Student Protests Grow, Spread to Maryland, report Tara Bahrampour and Jamie Stockwell in the Washington Post. "And at Montgomery County's Einstein, one student reported that many teachers left their classrooms and clapped to show support."

March 29, 2006. Tim Chapman reports on Boehner statement on Online Freedom of Speech Act."The House will closely monitor the implementation of the new rule to ensure it protects bloggers and others engaging in politics online. If the new rule does not offer the appropriate protection, of if there are efforts to expand its regulatory scope, the House will resume plans to consider the Hensarling bill in order to guarantee freedom of speech on the Internet."

March 29, 2006. The American Flag Comes Second--Michelle Malkin reports on the pro-illegal immigration rally at Montebello High School in Whittier, California. "You will not see this heart-stopping photo on the front page of the NY Times or on the lead story of the major news networks, but you should."

March 28, 2006. Maryland Moves To Overhaul Utilities Commission report Ann E. Marimow and John Wagner in the Washington Post, 3/28/06. "Under a bill that was rewritten and cleared a Senate committee in a single day, the legislature would mount what is in essence a hostile takeover of the Public Service Commission, dismissing its five members April 9 and taking authority to appoint four of the five replacements April 10, before electric bills are set to rise."

March 27, 2006. Ehrlich in Awkward Spot on Rates; Governor Faces Conflicting Allegiances to Electric Utilities and Voters, report Ann E. Marimow and Matthew Mosk in the Washington Post. "Ehrlich's chief of staff, Chip DiPaula Jr., said the governor's strategy is deliberate. The administration is running through 'many scenarios' and is ready at a moment's notice to work with lawmakers. But DiPaula said the governor is not going to get out ahead of legislators before they know what they want to do. 'It comes at a price in the short term,' DiPaula said, 'but is worth it to develop the appropriate solution.'"

March 27, 2006. Schools draw criticism for political donations; Some public funds used for contributions, report John Fritze and Liz F. Kay n the Baltimore Sun. TBN suggests that these schools consider instead giving a contribution to the New Song Academy in Baltimore from any discretionary funds they may have. According to the Baltimore Sun: "This school year, New Song received $4,876 per pupil from the school system, according to budget information that Tibbels provided. That compares with $11,944 spent per pupil citywide, though much of that latter amount goes toward central administrative costs and initiatives."

March 26, 2006. House nears OK of BGE bill; Delegates are set to approve veto power on Constellation merger, reports Andrew A. Green in the Baltimore Sun. "Del. Warren E. Miller, a Howard County Republican and a member of the committee, said he thinks the bill exceeds the legislature's authority under the federal Constitution. He said that holding up the merger could lead to a number of dire circumstances, such as Constellation spinning off BGE, leaving it weakened and prone to bankruptcy. And he said he has little confidence in the impartiality of a special counsel selected by Curran, whose son-in-law, Mayor Martin O'Malley, is running for governor against Ehrlich. If the purpose of the bill is to establish leverage over Constellation to get better concessions for BGE ratepayers, Miller said, that mission has been accomplished. 'You've got the utilities' attention. They're at the table,' Miller said. 'I think they're trying to negotiate in good faith.'"

March 25, 2006. Intervention poses a mix of problems, reports Paul Adams in the Baltimore Sun, 3/25/06. "'The appropriateness of linking the merger [with rate hikes] is something I think legislators should think about, because what kind of message is that sending to all businesses in Maryland?' said Christine Tezak, an electric industry analyst for investment firm Stanford Washington Research Group. 'It's saying, 'If we don't like you for whatever reason, we're going to mess with your deal.''"

March 24, 2006. Pepco: Phasing in rates would harm credit rating; Company could face higher interest rates on borrowed money, report Douglas Tallman and Thomas Dennison in the Gazette. ‘‘'The rating action is in response to recent political, legislative, and regulatory developments in Delaware and Maryland that increase the likelihood of a material deferral of regulatory recovery of substantially higher costs that will be incurred when below market power purchase contracts expire in April and May,' according to the Moody’s letter, which was provided by Graham".

March 22, 2006. MTA joins coalition for tax competition in urging immediate withdrawal of proposed Clinton-era IRS regulation. " The Center for Freedom and Prosperity Foundation, joined by more than 30 of the country's largest and most influential free-market groups, urged Treasury Secretary John Snow to immediately withdrawal the Internal Revenue Service (IRS) regulation 'first proposed by the Clinton Administration three days before President Bush's first inauguration over five years ago.'"

March 21, 2006. Don't Just Stand There--The nation won't follow unless the president leads, writes Brendan Niniter in the Wall Street Journal: "On just about every major domestic policy issue, Mr. Bush is not now leading the nation. After suffering a defeat on Social Security reform last year, the White House has instead passed the buck to special commissions that will study major reforms for the tax code as well as Medicaid, Medicare and Social Security. Meanwhile, Congress has to do something. So the House has lately taken to setting out foreign-investment policy, and the Senate is making its contribution to tax and spending policies. In this environment spending is being driven by the special political interests of members of both houses of Congress and the president was handed the Dubai ports debacle. The lesson here is that when the occupant of the Oval Office doesn't put big issues on Congress's plate, members will feast on whatever is of parochial interest--and the president will get indigestion anyway". [From a subscribers-only article.]

Delegate Herb McMillan and MTA chief Dee Hodges: Give the voters the final say on tax and spending hikes: Tax groups push for a Maryland Taxpayers Bill of Rights, March 9, 2006.

March 20, 2006. TINKER TO EVERS TO CHANCE, writes David Frum in the National Review. "For this reason, there is no parallel in 2008 to the situation of 1988. Back then, most Republicans affirmatively wanted a third term for Ronald Reagan--and accepted Reagan's loyal vice president as the next best thing. (They were mistaken, but that's another story.) But while today's Republicans admire George Bush's strong character and support his foreign policies, I daresay that very few would want more of the same at home--and even fewer would want to continue the same closed, isolated, we-know-best style of government of the past 6 years. So why submit to it? If Condoleezza Rice wants to be president, let her run."

March 19, 2006. Jersey Justice."Before the week was out, the 57-year-old suburban real estate agent and grandfather would be arrested, thrown into one of the country's most notorious jails, strip searched and inoculated against his will," reports Glen Warchol in the Salt Lake Tribune. "The soft-spoken Utah native would be on his way to becoming a poster child for the National Rifle Association in a $3 million lawsuit."

March 18, 2006. Leaders warn against rushing to cap power rates, reports S.A. Miller in the Washington Times. "The increases are partly the result of a 1999 utility-deregulation plan passed by the Democrat-controlled legislature and signed by Gov. Parris N. Glendening, a Democrat.The plan included rate caps that kept electric bills artificially low for the past six year and discouraged competition from entering Maryland's partially deregulated utility market."

March 17, 2006. Governor offers $25 million to ease BGE rate increases, reports Jill Rosen in the Baltimore Sun. "Ehrlich, on the steps of the State House, also vowed to stop the drastic increases. 'Seventy-two percent will not stand," the governor said after what he called a "very productive meeting' to discuss the rates situation with House Speaker Michael E. Busch. 'Anything close to 72 percent will not stand.'"

March 17, 2006. Ehrlich Seeks to Fund Voting Machine Change; Request Part of Supplemental Budget, reports Ann E. Marimow in the Washington Post. "The decision by the election board adds uncertainty about how Maryland voters will cast ballots this year. 'I don't think it's a setback," Ehrlich's policy director, Joseph M. Getty, said of the decision by the five-member panel, which includes four Ehrlich appointees. 'They recognize the shortcomings with the equipment. The governor's position is whatever is worked out needs to have a paper trail.'"

March 16, 2005. Md. Weighs Remedies for Rate Hikes; Regulation of Utilities, Fund Returns Considered, report Ann E. Marimow and Terence O'Hara. "The tough talk from the General Assembly and public outcry follow the Public Service Commission's announcement last week that electricity bills would soar this summer. For BGE's 1.1 million customers, the typical household bill would increase $743 a year. For the 500,000 Maryland customers served by Pepco, the average increase would be $468 or 38.5 percent. "

March 16, 2006. House Bill 1510, known as the Son of Wal-Mart bill, would add even more taxes on families, reports Maryland Business for Responsive Government. "No one informed of the collapsing Canadian system should want to bring such a system to Maryland. Instead, practical and realistic solutions exist, such as those embodied in Senate Bill 530, solutions that unleash the private sector's ability to provide health care for consumers in the way that virtually all other goods and services are efficiently and affordably provided."

March 15, 2006.Senate trims $200 million from Ehrlich budget; GOP lawmakers oppose cuts for employee health care, scholarships, bay, reports Andrew A. Green in the Baltimore Sun. "Sen. Ulysses Currie, D-Prince George's, said Ehrlich proposed increasing spending by about 11 percent while revenues are expected to grow by only about 5 percent next year."

March 14, 2006. United Nations Proposal: World Taxation Without Representation, reports Paul M. Weyrich. "Among the $200 billion in new taxes which the UN is proposing to levy are: Taxes on air transport: this tax, Kincaid reports, was said to make “economic sense.” Taxes on aviation fuel: this tax was sold on the basis that it would have a positive impact upon the environment. Taxes on airline tickets: this tax, according to the UN, easily could be implemented because there is no legal obstacle, and it would generate $8 billion per annum. The UN also seeks an indirect tax on air-flight corridors, which should generate $10 billion per annum, to be followed by an indirect tax on passenger transportation, to raise $20 billion per annum. An international currency tax would generate $60 billion. A tax on carbon emissions which at five cents per gallon of gasoline would bring in a whopping $130 billion per annum."

March 11, 2006 Howard County Executive James N. Robey vetoes GOP cut in tax caps reports the Baltimore Sun. "Republicans have argued that with a $20.4 million surplus last fiscal year and revenues running $19 million ahead of predictions this year, more tax cuts are needed."

March 11, 2006. Lawmakers going one step at a time to bolster pensions, reports Alan Brocy in the Gazette. "The state teachers union is backing a bill by Senate Majority Leader Nathaniel J. McFadden (D-Dist. 45) of Baltimore that would boost the multiplier to 2 percent and provide full retroactivity to the teacher’s hire date.But Del. Murray D. Levy, a member of the Special Joint Committee on Pensions, said full retroactivity would cost $6 billion. 'That’s equal to all the outstanding [general obligation] bonds in the state of Maryland,' said Levy (D-Dist. 28) of La Plata. 'That is the most expensive variable.'”

March 10, 2006. Give the voters the final say on tax and spending hikes: Tax groups testify, push for a Maryland Taxpayers Bill of Rights. MTA's Richard Falknor, accompanied by two other Maryland independent business veterans, Spear Lancaster and Larry Helminiak, testified Friday March 10, before a panel of the House of Delegates Ways and Means Committee, in behalf of delegate Herb McMillan's Taxpayers' Bill of Rights HB1444. National Taxpayers Union chief John Berthoud submitted prepared testimony.

March 10, 2006. McMillan to state: Give money back to taxpayers, writes David Abrams in the Annapolis Capital. "At a news conference in Annapolis yesterday, the group's leaders backed a bill sponsored by Del. Herb McMillan that would allow the state to increase the budget only by the rate of population growth and inflation. If Maryland had done that over the last three years, the budget would be $21 billion. Instead, it's $30 billion. 'Maryland, with its spending and taxing, has been in danger of catching a European disease,' said Dee Hodges, president of the association, comparing the state to socialist countries. 'It's called Euro Sclerosis.'"

March 10, 2006. Maryland House of Delegates Approves Paper Ballots reports Ann E. Marimow in the Washington Post. "The 137 to 0 vote in the House and the endorsement of the plan this week by Republican Gov. Robert L. Ehrlich Jr. represents a stunning turnaround for a state that was on the leading edge of touch-screen voting in 2001, and it reflects a national shift toward machines that provide a paper record."

March 10, 2006. Maryland Senate approves stem-cell legislation, reports Jon Ward in the Washington Times. "The Senate approved the bill, with only one Republican, Sandra B. Schrader, of Howard County, voting for it. Five Democrats voted against it."

March 9, 2006. Lawmakers rush to curb power rates, reports Kara Rowland in the Washington Times. "Maryland deregulated its electric utilities in 1999, capping rates at 6.5 percent below 1993 levels and staggering when the caps would be removed. The rate increase for BGE is particularly high because its current rate caps, which have been in effect since 2000, are set to expire June 30. Caps on Pepco and Delmarva expired in 2004; Pepco raised rates in 2004 and 2005."

March 9, 2006.Kendel Ehrlich says Comcast job doesn't present conflict with state, writes Andrew A. Green in the Baltimore Sun. "The first lady said she believes her job constitutes no conflict of interest because Comcast negotiates cable franchises with local governments, not the state. She said she was unsure whether the company is regulated by the Maryland Public Service Commission."

March 7. Honing their budget knives; Senate panel eyes cuts to Ehrlich budget in stem cell research, horse racing, reports Andrew A. Green in the Baltimore Sun. "For much of the past week, Ehrlich has been engaged in an unusual public lobbying campaign to ward off cuts to his budget proposal. He held three news conferences last week to protest cuts legislative staffers suggested in his budgets for public safety, the environment and people with disabilities. Democratic leaders said the governor should be negotiating with them directly, and they criticized Ehrlich for raising fears about spending reductions that were only suggestions."

March 7, 2006. Voting bill may clear House; Measure would change Md. ballot machines, reports Kelly Brewington in the Baltimore Sun. "A proposal to replace the state's electronic voting equipment with a system that provides paper verification could pass one chamber of the General Assembly this week, House Speaker Michael E. Busch said yesterday."

March 7, 2006. Prominent Ties Among Comcast Hires; Politicians' Relatives, Ex-Officials on Payroll, report Matthew Mosk and Eric Rich in the Washington Post. "'Comcast has to go before every governing body in the state for something,' said Bobbie Walton, executive director of Common Cause Maryland. 'If they're giving jobs to people because of who they are, it looks a lot like payola.'"

March 3, 2006. Tax Break Festival in Full Swing, reports Douglas Tallman in the Gazette. "Bohanan said he would like to find tax breaks for several groups, offering incentives for teachers and firefighters to afford homes. 'We try to parcel these out carefully,' he said."

March 2, 2006. Stop over-spending, declares Paul Jacob in townhall.com. "In states and localities across the country — from Maine to Oregon — voters are taking matters into their own hands. They are placing initiatives on the ballot to control the seemingly irrepressible growth of government. These initiatives, called Stop Over-Spending, are improved adaptations of the Taxpayer Bill of Rights that has worked in Colorado to restrain spending growth and spur the state's economy. But . . . voters in charge? Nothing scares the politicians and trough-feeders more."

March 2, 2006. Tim Chapman gives a lobby "reform" update on townhall.com. As TBN never tires of pointing out, the McCain-Feingold Act restrictions on political speech, and its clones are tumors that never stop growing. If we had had a Republican White House, the bill would never have been signed, right?

March 2, 2006. Governor's supporters cool their heels in Annapolis; Long-delayed testimony on Ehrlich bills seen as partisan snub, reports Andrew A. Green. "The hallway outside the committee room, furnished with a few couches and speakers broadcasting the proceedings inside, was packed for most of the day. Dr. Carol Ritter, a Towson gynecologist who has been active on medical malpractice issues, said she had written off the day to come testify. 'Maybe I should go shopping,' she said as the gay marriage debate headed into its third hour.
TBN comforts the governor with the observation that any center-right proposal--not just his--is likely to appear at the bottom of a committee schedule, or to be otherwise unpredictably and inconveniently scheduled. The reception accorded a center-right measure-- judging by the frequent uncomprehending stares of many committee majorities--will likely be more appropriate to proposals from another planet than from fellow Marylanders. This is the result of decades of one-party domination of the General Assembly, and of an Annapolis culture of unquestioned governmentalism.