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MARYLAND
TAXPAYERS ASSOCIATION URGES PASSAGE OF SB 633 Prepared
Testimony of MTA vice president Richard Falknor Chairman Hoffman, Sponsor Mooney, and members of the committee, I am Richard Falknor, vice president of the Maryland Taxpayers Association (http://www.mdtaxes.org) . Our statewide grass-roots volunteer organization strongly supports Senator Mooney's measure that carries the promise of transforming MEDCO to a more publicly accountable agency, focussing on its original charge of creating or preserving existing jobs where they are most needed. As you know, the Maryland Taxpayers Association (MTA) opposed legislation (HB 790) enacted last year which, in our view, unwisely expanded the powers of MEDCO while diverting that agency from job creation in truly distressed areas. MTA, committed to a free market or "opportunity society," believes there is serious danger to Maryland independent businesses from MEDCO's broadened reach as local or state elected officials steer MEDCO to compete with existing enterprises. Independent observers believe MEDCO already followed this ill-advised path in Anne Arundel County. State competition with existing private businesses is bad economics and iniquitous in good times, but unconscionable in bad times when existing, proven jobs are threatened. Indeed, for MEDCO to compete with "going concerns" in Maryland is itself a kind of taking but without compensation. We believe the public-notice and review provisions of Senator Mooney's proposed reforms can limit potential misuse of MEDCO's now expanded powers. MTA would also urge you to exercise your oversight powers over MEDCO's current and planned project portfolio to ensure that MEDCO ventures are well-managed and have some prospect for success in creating additional permanent employment for our citizens. For example, through documents released by MEDCO in response to our Maryland Public Information Act requests and from media reports, MTA believes that MEDCO's "Rocky Gap Lodge & Golf Course" project in western Maryland could be in some financial difficulty. Please note the attached AP story of June 1, 2001 entitled "Rocky Gap resort gets new management | State agency refuses to give reason for change." Consequently, we would ask your committee to cause to be reviewed all MEDCO records on their "Rocky Gap Lodge & Golf Course" projects, and to make your findings available to the General Assembly and to the Maryland public. MTA would be grateful if you would make our legislative and oversight recommendations on SB 633 a part of your permanent record of hearing. Please call MTA whenever we can be of help in your consideration of SB 633, or in your oversight of MEDCO. Thank you. |