BLACK & DECKER; SCHAEFER STATUE Stanley Works, the Connecticut based hardware and home improvement manufacturer, has acquired for $4.5 billion the Black & Decker Company, Maryland-based tool manufacturer and largest in its field for the past century. While this transaction has been positioned as "corporate togetherness", there is a reason for concern as Maryland loses another corporate headquarters. Expressed in blunt terms by the Jacob France Institute’s economic research division's director Richard Clinch, "I am surprised. I always thought Black & Decker was a technological and marketing leader in its industry. I thought they would be the buyer, which is what its history has been. It is a sad time for the Baltimore region and the state." Bottom line: the Baltimore region and will lose a corporation headquartered in this region for nearly 100 years.

There is another bottom line, not too far distant from what Constellation Holdings has faced in its process for a merger with a foreign energy corporation. In that case, Maryland's government was not an ally in a corporate initiative that stabilizes what I call "economic muscle" held by companies headquartered in a state or region. It can be a private sector bottom line.

What is that bottom line? With Black & Decker, it may be a bit blurred. Per recent commentary, columnist Dan Rodricks reports that, in the face of strong B&D sales, reported in 2000, Maryland economic officials made available $5.5 million in State loans, grants, and tax credits. Rodricks indicates that high expectations by both government and business often exceed results, citing examples from Black & Decker's challenges in dealing with Maryland executive agencies and the Legislature.

A big change came during B&D CEO Nolan Archibald’s era of management - more remote and less engaged in business and civic life than Al Decker, the longtime and highly talented leader of the company whose goals were broad reaching to higher education and other civic needs of this region. With Decker's help, Johns Hopkins and Washington College were enabled to strengthen their missions over the past 30 years. As a member of the Washington College Board, I had the benefit of early volunteer training in fundraising from Al Decker. As a Co-Chair of the College's first "Campaign for Excellence", Al Decker "shaped me up", when I asked for a definition of my title of "Deputy Chairman". His answer was a wonderful example of honest teaching: "George, you are going to work as hard as a first-year employee of Black & Decker ".

That advice was highly motivating and in the spirit of the outstanding corporate leadership that has carried B&D through challenging times. It is the "Decker spirit " that should be the framework for a partnership with, not dominated by Stanley Works.


SCHAEFER STATUE DEDICATION

A bright light now shines on Maryland and Baltimore's Inner Harbor. In the midst of revenue shortfalls ($1 billion this year and a projected $2 billion for next), that bright light is not coming from State government's current leaders whose talk exceeds actions to control waste and manage operations. It comes from the example of William Donald Schaefer, a symbolic bright light who reminds us that Maryland government can return to better management.

Just a few days ago, I saw the brightness of that light of the past as the seven foot bronze statue of Schaefer was unveiled on his 88th birthday. The statue is a sculpture by Rodney Carroll that shows Schaefer's determined side. There is also an extended wave to those citizens who walk by along Baltimore's Inner Harbor, but the hand holds a bronze "paper" memo, with three words: "Do It Now". Those words were directed for many years at bureaucrats, business executives and politicians who specialize in rhetoric.

In these days of more rhetoric than results from politicians, the highlight of the occasion was talking to the former Governor, Comptroller, City Council member and most memorably, mayor of a city trying to turn itself around during the 1960's, 70's and 80's when he chose to act and not just talk. Don Schaefer's first words to me near a crowded platform were, `“What are you doing for people these days? Working hard ...right?"

At the unveiling, public officials, business leaders, and concerned citizens once again received that "Do It Now" message. It was given during Schaefer's spontaneous remarks just after the statue came into full view. "Willie Don" reached out to the over 1,000 people gathered for his 88th birthday celebration.

To our finest Governor and Mayor: Thanks for your "straight talk"!  9:44 AM •  1 Comments •

Tough Transitions As we enter the autumn season, the transition from summer is always a little trying. For this Citybizlist analyst and blogger, it means leaving an idyllic Maine summer filled with kayaking, painting and good times with family and grandkids. It’s back to the drumbeat of business and civic work. There is an obvious visual change from quiet coastal dirt roads along Pemaquid Lake to Beltways 495 and 695, and an almost visceral change back to the fast lane of Maryland and national issues, accompanied by some unexpected traffic problems:

Maryland has a nearly $2 billion Fiscal '11 shortfall. Newspaper headlines carry the message "State Budget Gap Soars. 2010 Shortfall Near $2 Billion. Deeper Cuts Needed".

This message translates into the plain fact that the Legislature faces the largest projected deficit in our history when it convenes in January 2010. But a more immediate budget concern, according to the Bureau of Revenue Estimates, is that Maryland expects $ 12.3 billion for fiscal 2010 - about $683 below estimates; and for fiscal 2011, $921 million.

What is the current action plan? Not much. Senior Department of Budget and Management bureaucrats estimate that Governor O'Malley will cut up to, but not
more than $300 million from budget projections. This is no way to manage operations in State government. Flooding in Dundalk and bad road conditions on major arteries in and out of Baltimore are unfortunate examples.

Political rhetoric from the politicians rings hollow. The best answer comes from the private sector, as illustrated by a July observation in a "Daily Record" column by Don Fry, President and CEO of the Greater Baltimore Committee, " When the recession's economic carnage recedes and Maryland's leaders have to sort out the fiscal remains, they will have to build a solid strategic game plan: NOT just good intentions, short term tactics and overly optimistic projections."

What a contrast with the observation of one Democratic party delegate: "I don't believe there will be any looking at revenues this coming session because it is an election year". And the Speaker of the Maryland House Michael Busch echoes with "I don't think there is a lot of political will to look at revenues now right now".

Where is your political backbone, Mr. Speaker?


Constellation Energy's Merger/ Sale of Nuclear Business to EDF

As Governor O'Malley and Maryland legislative leaders weave and bob on fiscal discipline under the current $2 billion State deficit, opportunity knocks with an option by Constellation, the largest utility holding company in Maryland. Constellation has improved its credit rating in the past year by two options, accepting a $4.7 billion merger agreement with a subsidiary of Warren Buffet's Berkshire Hathaway, and the cancellation of that option by accepting a $4.5 billlion offer in December '08 from EDF, a French power company. EDF has offered to buy half of Constellation's nuclear business. Just one year after Constellation's selling off of risky businesses and significantly improving its credit rating, this utility holding company has become a political football for the Governor. A plus in the EDF deal is a 3rd nuclear reactor at Calvert Cliffs that could potentially reduce Maryland 's electricity rates by 12%, and significantly increase generation capacity. The failure of a joint venture with EDF holds financial risks including a $130 million income tax windfall that could help offset the State's huge budget deficit. The Public Service Commission must, for once, make a business (not a political) decision to allow a credible acquisition by EDF. In advocating what he has described as "ratepayers interests", O'Malley is looking at an election year impact, but it is short term. A better solution is reflected in the position of the Maryland Chamber of Commerce as stated by its CEO Kathleen Snyder, before the Public Service Commission:

"This project will not only protect the public interest, but also strengthen it by ensuring that we have more reliable energy generated here in our home state".

Stand by, taxpayers, and see where the PSC goes. Will it act independently of Annapolis’ political maneuvering or bend to election year pressures in 2010?  4:24 PM •  0 Comments •

SUMMER CROSS CURRENTS: PAST & PRESENT Even in the quietude of a downeast Maine "summah", there are cross currents. The currents across Pemaquid Pond that the Wills' cottage overlooks prompted the youngest of four grandkids to doubt if he could dive off the dock and swim into the wind.

"Papa George, will I come to the top of the water, once I get in?"
“Yes, but you must kick your feet and paddle.” But it was not my reassurances, nor those of his Mom and Dad that gave him the confidence to do it. It was the actual experience.

CROSS CURRENTS AHEAD: "THE FISCAL WINDS STRENGTHEN TO GALE FORCE"

These words of warning are from a recent column by Barry Rascovar, Maryland State House columnist, who usually applies wisdom to Maryland economic and business news. Rascovar puts it on the line when, in his mid-July column, there is the call for reality in the rhetoric from Gov. Martin O'Malley. Revenues for the fiscal year that ended June 30 fell $400 million short of lowered expectations and might hit $500 million.

I agree with Barry's point that it is time for the Governor to update his superlative warning of almost two years ago, "We now face one of the toughest fiscal challenges in our State's 373-year history". The record $1.7 billion deficit grappled with in 2007 pales next to the current huge shortfall of over $2 billion.

We can now expect O’Malley to call for round two of stimulus funding, a pleasant, but ineffective pacifier to the barons of the Legislature. But now is the time to look at real options, and there are good examples cited by Rascovar with additional points that I support:

1. Permanently reduce State employee pension benefits for $100 million in annual savings.

2. Freeze State education aid to local schools at last year's level, shifting from excess administrative bureaucracies to teachers less dominated by automatic promotion pushed by their unions for $165 million in annual savings.

3. Gradually eliminate 10% of the State workforce, except for public safety employees, for $140 million in annual savings.

4. Face reality in health care costs: keep and increase doctors in practice here in Maryland, without the threat of lawsuits by an increasingly selfish plaintiffs' bar. Then, there is less excuse for increasing insurance premiums. It’s time for Maryland's political leaders to call in the markers on recognizing that it is doctors and hospitals that constitute health care reform. As we watch progress on national health care reform, there will hopefully be a bottom line where the President meets and produces with moderate, result-driven Congressional leaders, not just lobbyists.

For rational, balanced and businesslike health care management, it "ain't going to be easy.

CALIFORNIA ACTS - WILL MARYLAND?

Maryland has small numbers compared to California, but as we enter the last week of July 2009 the west coast headline reads: "California Legislature Approves Budget That Closes $26 Billion Gap."

Gov. Schwarzenegger has gone from acting to action in a grinding round of work with Legislative leaders to produce an agreement with more than $15 billion in cuts to services. He spares local governments from serving as unwilling cash machines for the state's general fund and discards a plan to drill for oil off the Santa Barbara coast.

What will Maryland do? The only way for leadership to be exercised is for the politicians to act, not talk. We have recently seen the rhetoric from Comptroller Franchot, not in the tradition of his predecessors Louie Goldstein or William Donald Schaefer. Beyond pronouncing himself as in favor of State budget discipline, there are no specifics from a big spender.

As Winston Churchill said about Russia in 1939, Maryland government in 2009 seems to be "a riddle wrapped in a mystery inside an enigma". That must change, and in the words of William Donald Schaefer, “We must do it NOW”.

Let’s see if the politicians, like the Wills grandkids on a Maine lake, can jump in and keep their heads above water.

FINAL NOTE: THE PASSING OF WALTER CRONKITE

My indelible 1963 impression of television's greatest journalist was on a two week naval reserve duty with the Office of Naval Intelligence. Our early afternoon work was interrupted by a Dallas, Texas bulletin from ONI's Washington headquarters: "President Kennedy has been shot". Turning on a television set in the Baltimore office, we saw the reassuring countenance of CBS announcer Walter Cronkite remove his glasses and pause as tears welled up in his eyes: " Flash; we have just learned from a wire service report that President Kennedy has just died ... Vice President Johnson is expected to take the oath as our new President, before leaving Dallas."

Cronkite has been described as "proxy for a nation". By a combination of experience, timing and luck, this midwestern reporter began his first assignment during the Nazi bombing blitz in London, working for Edward R. Murrow. There is good fortune of learning from an exceptional first boss. I have understood that feeling under the guidance, training and friendship of Milton Eisenhower, President of Johns Hopkins. In fact, the first time I met Walter Cronkite was at a speech gave at a Hopkins convocation. His earthy personality came through instantly. As several of us, including "Dr. Milton", talked with him before he went to the platform, he smiled and said: "I know what you guys are thinking. He's shorter than he looks on the evening news".

The first really believable television news anchor, Walter Cronkite's death was like the passing of the last veteran of the world-changing war. Yet, he had the perception to understand different forms of change. As things got tough in Vietnam and President Lyndon Johnson continued caution in moving towards a negotiated settlement, Cronkite took on the assignment of on-site investigation of the conflict. At the conclusion of that battlefield tour, these words: "We can no longer believe in a silver lining in Vietnam ... and that's the way it is."

Viewing that evening news commentary from an "Oval Office television, LBJ' s blunt, but honest reaction: "If we've lost Cronkite, then we've lost middle America."  11:32 AM •  0 Comments •

HISTORY LESSONS For days global and national news has consisted of rioting, arrests, and killings in Iran, as demonstrators showed outrage at questionable election results. Hundreds were arrested as voters for reform mobbed the city of Tehran.

40 years ago I was in Iran as part of a small delegation of White House Fellows who spent five weeks in the Middle East visiting and interviewing leaders in Iran, Egypt, and Israel. White House national security advisor Henry Kissinger put together a small group of individuals who could access decision-makers in these three countries, but who would not attract attention. With Mike Armacost as our coordinator, this team of ten worked the corridors of power in a part of the world where tension and conflicts were, as are now, present. Just two years after the '67 War, the tensions were between Israel and Egypt. Iran appeared deceptively calm under the control of the Shah of Iran as we met quietly with senior government officials.

Overthrown in subsequent years, the Shah, a seemingly invincible leader was clearly in charge. During those meetings, we took notes to report back to the senior staff of the National Security Council. We had to do a layover"in Greece for reasons undisclosed to us - apparently a decision by the two antagonistic nations with weapons. The ability to communicate through Twitter and Facebook at this period would have been impossible to fathom!


TOUGH TIMES

Let us travel forward to Maryland’s tough times with three recent headlines in a single issue of the reliable Baltimore Business Journal.

"Streuver Stops Work on City Projects"

Bill Streuver's respected Streuver Brothers, Eccles & Rouse has suspended plans for a business park in Locust Point and development of a "Digital Harbor" office and residential complex in the Inner Harbor, former location of an Allied Signal chrome plant due to lack of financing.

"Public Service Commission Advised to Assert Authority of Constellation Deal"

This is a classic conflict to keep an international corporation's role in acquiring Constellation Holdings to a level not dissimilar to that of large auto corporations structured to permit government intervention and regulation. What will happen to customer utility rates that have grown under the once locally managed Baltimore Gas & Electric (BGE)? What will happen to the nearly $60 million bonus being proffered to Constellation's CEO as part of the ownership control to the international EDF Group?

“Baltimore Convention and Visitors Center Tries to Recoup Loss of Rite Aid"

Here, financial pressures have forced Rite Aid Corp. to back off from a “massive convention” that would have attracted 3,000 visitors and filled hotel rooms in Baltimore.

“O'Malley v. Constellation Holdings”

I am not often in accord with the Sunpapers's editorials, but a recent commentary on the seemingly unending battle between State government and holding company Constellation Energy seems to be on target with its article: "Separate politics, power" (June 15). The O'Malley Administration seems in favor of the Constellation deal, to sell half of its nuclear business to Electricite de France on the grounds that EDF could have the power to directly influence its new subsidiary, Baltimore Gas & Electric. Where does this leave the customers who face monthly uncertainties from the meter readers who check homes and businesses? Whatever happened to the 2006 campaign rhetoric that utility rates would be kept rational? No semblance of reality has occurred since. And, to boot, a prospective $87 million severance package for Constellation CEO Shattuck could be in the offing.

"INNOVATION: THE KEY TO PROSPERITY".

I recently had the opportunity to attend a Baltimore Museum of Industry luncheon honoring "Industrialist of the Year" Aris Melissaratos, former Westinghouse executive and Maryland Secretary of Economic Development (as good as State government has ever had) and now Senior Advisor to the Johns Hopkins University President. Aris' current responsibilities fall into the must happen category: technology transfer, corporate partnerships, and enterprise development. Aris is truly carrying forward the vision of my boss, Milton Eisenhower. An earlier President of Hopkins, Eisenhower often said that that "the primary constant in management is to recognize, understand change and put it to work".

Aris is following "Dr. Milton's" advice and has completed a new book which may make the case, "Innovation: The Key to Prosperity".

Technology and America's Role in the 21st Century Global Economy

During informal conversations at this award event with two former Maryland Governors, Bob Erhlich and Marvin Mandel, we came to a unified conclusion: Aris will cut through the B.S. with this book. I make that observation with two points made in the opening chapter:

1."How We Lost Our Technological Nerve"

The U.S. enters the 21st century as hostage to interests controlling fuels for obsolete technologies. It is a mistake to believe the myth of technological inevitability.

2."The Coming Together of All Sciences"

The positive energies of scientific and technological innovation must be seen as an integrated enterprise rather than a fragmentary collection of projects. Computer science is a new "lingua franca" among technologies and sciences.

I am a political scientist by academic training, an entrepreneur by instinct, and a participant in the interaction between free enterprise and government. Aris' exciting new book will open doors to testing these areas of interest and experience as I read by the lake at the Wills camp on Maine's Pemaquid Pond. Combined with my passion for creating coastal Maine watercolors, kayaking and swimming with grandkids, Aris Melissaratos will contribute to a super summer!  8:57 AM •  0 Comments •

SPRING CLEANING Maryland's spendthrift Comptroller Peter Franchot complains that the number of taxpaying millionaires are "disappearing", meaning fewer collections of the new 6.5 % tax bracket than anticipated. The Mike Miller/Martin O'Malley team pushed the tax increase through the Legislature, after repeal of the computer service tax 1 year ago. Brad Wills and I had the professional and personal pleasure of helping the computer services executive Tom Loveland and his Maryland Computer Services Association, a statewide coalition of small businesses that took on the task of repealing that discriminatory tax.

What's next? Fiscal discipline!

Maryland's Comptroller cannot continue to mourn the exit of taxpayers from Maryland. The real need is to act, per sound advice recently given by the Baltimore Business Journal and the Daily Record. From the Daily Record: "Instead of addressing Maryland's long term, structural fiscal issues, the General Assembly applied a giant Band-Aid in the form of $4 billion in federal stimulus money, crossed their collective fingers and gambled that state revenues will rebound before the day of reckoning."

The commentary concludes by contrasting the Governor's finger-crossing with Baltimore County Executive Jim Smith's putting a rein on his local government's 2008 budget by a hard choice: limits on cost of living and benefits increases of County employees. One year later, much needed teacher salary increases of 3.5 % in Baltimore County were made possible by budget restraint where needed. Franchot should take a lesson from Smith.


Good News

As we look ahead to summer heat, there are some "good news" items to appreciate.

1. The Chesapeake Bay: Long overdue, Maryland and Virginia are taking a stronger regional approach to block continued passivity to serious cleaning up of the pollution of America's greatest watershed. In no small measure, much is owed to the Chesapeake Bay Foundation's pushing, prodding and use of a lawsuit for more direct EPA work on environmental problems having a ripple effect on people in the mid-Atlantic region.

2. The Arts: A coalition to increase support for the arts got moving this year. As one with strong interest in arts education, I have been moved by the work of an after-school program in east Baltimore. The Club at Collington Square brings painting lessons related to history to needy children through the leadership of an honors graduate of MICA (Maryland Institute College of Art). This program director Julia DiBussolo gives meaning to the words "community art".

3. Public Broadcasting: We all can be proud of Maryland Public Television and its mission of programming that informs - from "The American Experience" series to last week's two hour documentary of "Humor History", funny stuff from W.C. Fields of long ago, followed by Bob Hope and, of recent vintage, Tina Fay as Sarah Palin !

Despite the need for "housecleaning", these three "good news" reports do prove that spring has really sprung!  11:18 AM •  0 Comments •

SPRING HAS SPRUNG After weeks of rain in Maryland, the sun has emerged bringing the welcome green of a new season. Now that spring has sprung, what is really happening?

Recent news has been infected with nasty headlines, proving that raw politics can still dominate the internet and front pages of the "good ole" print press: “Cheney Denies Colin Powell” and “John Edwards Denies Elizabeth Edwards”.

In a "Face the Nation" interview, former Vice President Dick Cheney stated, "In terms of being a Republican, I'd go with Rush Limbaugh ... my take was that Colin Powell had already left the party. I didn't know he was still a Republican".

Having known both General Powell and Dick Cheney, here's my blunt reaction: The former V.P. is losing objectivity. Colin Powell and I both served White House Fellowships at the Office of Management & Budget. If he had decided to run for President during that "draft Powell" movement, I would have volunteered to help. Dick Cheney is not helping the Republican party nor authentic bipartisanship by speaking negatively about a fine American who also served as Secretary of State during an extremely difficult period. Rush Limbaugh? Get serious, Dick Cheney!

Another sad imposition is the holier than thou, self-serving presidential candidate John Edwards who put his wife, Elizabeth, through hell as he pursued his ambition. As an aggressive, anti-doctor trial lawyer, Edwards has personified the worst elements of political ambition: greed and deception. He is not alone; but where was his consideration for a loyal wife facing terminal cancer? Her recent interviews have underscored her decent and forgiving character, making her husband appear the worst of scoundrels.

From Headlines to Serious Problems: Social Security and Medicare Pressures

The global trend in government spending as a percentage of gross domestic product keeps going up,up.up. In blunt assessment of "The GDP Question", former Senator and moderate Republican Bob Packwood observes a reality: " Even if tax increases are limited to the so-called ‘rich’, Obama's plan, compounded by state and local taxes, could slow the overall economy." Packwood reaches a rational conclusion of only two options: raise taxes on the middle class, or demand that federal, state and local governments spend less.

A "choice of the horribles"? Yes...but, in grim reality, on the mark. In yesterday's Washington Post, the front page headline was "Alarm Sounded on Social Security. Report Also Warns of Medicare Collapse" .

The report is not an ordinary one. It is a product of the trustees of a Federal agency that monitors these two massive entitlement programs for the elderly. Specifically, the nation's economic downturn has added to the fragility of Medicare and Social Security because worsening employment means that fewer workers are contributing to the two trust funds through payroll taxes. Since the recession began in December 2007, the U.S. has lost 5.7 million jobs."

Is There an Answer? Yes, It is the "Vital Center".

One of Washington's most thoughtful analysts is David Broder. This point is proven in his recent commentary, "Why the Center Still Holds".

In this commentary, Broder gives the cold truth: despite partisan divide on the recent Obama Budget Resolution (NO Senate or House Republican voted for the Resolution; NO Democrat voted for the Republican substitute), voters see reality and a need for solution. Proof of this fact is borne out by the Pew Research Center's May 2009 research report's finding: Since January of 2009, the percentage of voters who think that Democrats and Republicans are bickering more than necessary has increased by 14 points.

The independent voters are going to drive the outcome of the big policy debates. This is a trend of hope, and reflects the value of competition between the two major political parties.  10:20 AM •  0 Comments •

April Showers Bring May Flowers April Fool's Day has come and gone. The Easter Bunny has done the same. The Christians and Jews brought families together during Easter and Passover celebrations. Along with these expressions of faith is good news:

In Maryland, the Orioles won two out of three first-of-season games against the N.Y. Yankees. In world news we watched the rescue of U.S. merchant ship captain, Richard Phillips, from Somali pirate captors reminiscent of Captain Hook in the Peter Pan adventures. With impressive precision, Navy Seal sharpshooters picked off three of the assailants with direct shots to the head and the American captain escaped unharmed on a lifeboat.

These are success stories, but let us examine springtime on the horizon. As Suzanne Wills notes with her usual wisdom, there are always "dandelions among the daffodils", at least on the Wills lawn!

The Usual "Maryland Government=Politics" News

Life, limb and property are safe, once again, as the Maryland Legislature adjourns. The Stimulus continues in the spirit of "a trillion here, a trillion there, and soon we'll be talking about real money". When colorful Senator Everett Dirksen first spoke those words in the Lyndon Johnson era, the amount was only "a million here, a million there."

Remembering the words of the late and Paul Harvey: "Now, here's the rest of the story"...

"During the 90 days yearly that the General Assembly meets, both man and God fear the worst". With ironic humor, George Delaplaine, longtime publisher and writer, gives this observation in his monthly "Dear colleagues, friends and relatives" letter. George is simply expressing the view that life, limb and property will become safe again as the Maryland State House empties of politicians this week. As Frederick County's premiere commentator, George brings us his usual wisdom and wit to observations about Maryland government, best described as a "quixotic" environment. Let us look at the landscape of this "Free State's" environment:

The State Budget: Is it Really Balanced?

Two months ago, Montgomery Gazette's astute political observer Barry Rascovar described Governor O'Malley's budget as a "mulligan", the golfer's description of getting a second chance when flubbing a tee shot. With the Maryland Legislature and the Obama Administration having been at work just two weeks, O'Malley decided to postpone action on immediate budget cuts and instead take a second swing at the $31.5 billion spending blueprint AFTER Congress acted on a pending stimulus package. Maryland was given a reprieve from its ongoing habit of ignoring a fundamental problem: that politicians allow their spending habits to overshadow willingness to raise taxes.

As of this week's closing of the General Assembly session, Maryland lawmakers plan to finalize a $14 billion budget that does not escape the plain simple truth: the politicians are delaying the most difficult decisions! Even with the Federal stimulus money, the Legislature will reconvene in another 9 months facing a budget gap that could exceed $1 billion.

Is this a failure to act with fiscal discipline, or is it just the Governor's "over-optimism" that an acquiescent Legislature will go along with the politics of postponement? The truth will come in 2010 when honest fiscal choices have to be made. The corresponding requirement is straight answers. Annapolis double talk will not work.

Neither will the maneuver of avoidance work; crossing one's political fingers does not guarantee that the economy will get better. There must be a willingness to deal with real fiscal problems in the same way that small businesses have to have sufficient income to cover expenses. Sufficient income applies to large corporations, as well as government. We have already seen bad outcome for some financial giants in avoiding fiscal discipline by the increase of corporate bonuses, beyond reason, untrammeled by reality.


Politics and the Preakness

Amidst all the political winds criss-crossing the State House, here's another: place the historic Pimlico racecourse in an "eminent domain" status to the Preakness race. Good or bad? Hard to prove either, but a local indicator of tough times during the current economic downturn does not necessarily warrant government control of the horseracing industry. Turning racetrack sites to eminent domain status is a disincentive to healthy competition that creates a better end result, particularly as we look to slots becoming part of changed racetrack operations. Somehow, the image of powerful Senate President Mike Miller, as a "legislative jockey" - even on a betting favorite - is not realistic. Magna is on the road to bankruptcy, and turning the Pimlico racecourse site into a shopping mall is not the answer. But, there are other entrepreneurs who are checking the racing landscape. Give them a chance without the interference of O'Malley, Miller, and Busch who will need to do serious budget balancing and management. Eminent domain is not a stimulus.


Problems and Prospects


Beyond the 90 days of rhetoric, some results from the General Assembly session are positive. But the bottom line remains: Maryland was able to avoid long-term hard decisions because of 2009 Federal stimulus help. Serious budget discipline will have to be applied in the coming months, including the willingness to exercise leadership from those who set fiscal policy. This challenge is well described by Delegate Susan Aumann this week.

A member of the Conference Committee for the 2010 Budget, Susan has been "where the rubber meets the road". Her summary recognizes the stimulus funding impact: "Growth in government spending is outpacing revenues and causing a deficit in Maryland ... I believe we should reduce the tax burden on our families and small businesses. During our deliberations, the Board of Revenue Estimates reported a downturn in revenues, and we had to trim the budget further."

As one who began a small public policy and communications business coinciding with the beginning of the Reagan era of 1980, I saw the impact of that Administration's move to reduce taxes on small business and individual executives as a core element of stimulating free enterprise to work. This policy is different from "super bonuses" to insulated executives who may need to face what I remember as a tough way to get started each morning: "Which client could fire me today?" Not easy, but it is only fair to recognize disproportionate taxes on small businesses is wrong.

Prospects

This commentary concludes with good news about wonderful Baltimore art centers, traditionally thought of as "museums". These special places are home for art in all of its creative forms and meaning.

The Baltimore Museum of Art, known to many of us as the BMA, home of the Cone sisters’ collection that brought Matisse, Picasso and their contemporaries to Baltimore, is a special place tied to childhood memories when BMA's Adelyn Dohme Breeskin, a second cousin, was the first woman director of a major national museum. It was cousin Adelyn who brought the Cone collection to Baltimore.

The American Visionary Art Museum, founded by the talented and energetic Rebecca Hoffberger, brings life, excitement and events to Baltimore's Federal Hill. The recent "Illuminated Exotic Ball' is as good as it gets for an evening of lively art as the environment for creatively dressed and motivated aficionados of modern art.

The Contemporary Museum is celebrating its 20th anniversary on Saturday May 9th at its 100 West Centre Street location. The Contemporary is proving that art is exciting and connected to celebration and is "going to Bollywood" to prove it!

Finally, congratulations to "Maryland Citizens for the Arts" that led the charge for lessening budget cuts for the arts initially planned by the Legislature. I was encouraged by BMA Director Doreen Bolger to combine my passion for art and watercolor with public interest lobbying. It was exciting to contact legislators to give art its fair share during these challenging economic times.  12:25 PM •  0 Comments •