Ehrlich, O'Malley Get Testy on Taxes and Spending Records

Maryland's two leading candidates for governor tangled over taxes yesterday, with Gov. Robert L. Ehrlich Jr. and Baltimore Mayor Martin O'Malley stepping up efforts to exploit weaknesses in the other's fiscal record just two weeks before the election.

Holding the first in a series of events to contrast his record with that of his Democratic challenger, Ehrlich ticked off several "burdensome tax hikes" on Baltimore residents since O'Malley was elected in 1999: a 20 percent income-tax increase, higher water and sewer fees, a new tax on cellphones and an energy tax on nonprofit groups.

"This is the record of someone who wants to represent working families? Forget it," Ehrlich said at an event at Arundel Mills Mall. "People aren't buying it."

But O'Malley suggested that it was Ehrlich who would have a hard time selling his fiscal stewardship as responsible.

"I look forward to a comparison of records with $3 billion Bob," O'Malley said at a news conference on transportation.

O'Malley was referring to his campaign's tally of the cumulative effect of tax, fee and toll increases imposed on Marylanders during Ehrlich's tenure. The O'Malley campaign's $3 billion figure is similar to tallies by nonpartisan legislative analysts.

Ehrlich has kept a promise not to raise income or sales taxes. But he agreed to a significant increase in the state property tax and in fees that Marylanders pay when they register their vehicles, pay sewage bills and file corporate documents with the state.

In a news release, the O'Malley campaign branded Ehrlich "the biggest tax and spender in Maryland history." That claim rests in part on a 31 percent increase in state spending that has occurred in the past four years.

Ehrlich aides say much of that spending can be attributed to growth in the state's health insurance program for the poor and education spending increases mandated by the legislature -- neither of which Ehrlich has much control over.

Yesterday's skirmish was the most intense so far over taxes in a campaign dominated by such issues as crime and education. Neither candidate has spotlighted the other's tax increases in TV ads -- in part because they recognize their own vulnerabilities, aides suggest.

Ehrlich and O'Malley inherited challenging budgets upon assuming office.

Ehrlich had combined deficits of about $2.1 billion in the first two budgets he faced. After several rounds of revenue increases and spending cuts -- and a boost in the economy -- the governor is finishing his term with a surplus, which he emphasized yesterday.