GOP Proposes Cuts in Place Of Computer Services Tax

By Annapolis Notebook
Thursday, January 31, 2008

House Republicans yesterday outlined their plan to repeal the expansion of the 6 percent state sales tax to computer services, one of the more controversial measures passed during November's special session.

GOP lawmakers want to void the tax, which is projected to raise about $200 million a year, and instead make spending cuts in the state's budget that would total $203 million.

The proposed cuts include eliminating an additional 500 vacant positions in state government; slowing spending growth at community colleges, and other education initiatives; and deferring proposed funding for stem-cell research projects.

Leaders in both chambers of the Democrat-controlled legislature have vowed to keep the computer services tax unless another source of revenue is found.

-- Philip Rucker

Montgomery County Weighs Public Campaign Funding

Montgomery County could establish a public financing system for County Council and county executive campaigns under a bill introduced by Del. Susan C. Lee (D-Montgomery).

Lee joined other lawmakers, county officials and interest groups at a news conference yesterday calling for campaign finance reform.

"I think it's getting some legs," Montgomery County Council Vice President Phil Andrews (D-Gaithersburg-Rockville) said. "I think it's going to move."

The Montgomery House delegation was expected to decide today whether to advance the legislation.

The push comes as candidates are spending more than ever on campaigns in Montgomery. In 2006, several council candidates spent more than $100,000, and candidates for county executive spent more than $1 million.

-- Philip Rucker

Board of Public Works to Eliminate 500 State Positions

The Board of Public Works yesterday voted to eliminate 500 vacant state positions, a move mandated by the legislature during November's special session in an effort to cut the state's operating budget.

Positions are being cut from nearly every state agency, with the majority of positions coming from the departments of Health and Mental Hygiene, Transportation, and Human Resources, according to a plan detailed by Budget and Management Secretary T. Eloise Foster.

All positions have been vacant for at least eight months, Foster said, and no employee is being laid off. The board's three members, Gov. Martin O'Malley (D), Comptroller Peter Franchot (D) and Treasurer Nancy K. Kopp (D), voted unanimously to approve the plan.

-- Philip Rucker

'Hope-a-thon' for School Construction Requests

Dozens of local school officials were at the State House yesterday for the annual school construction appeals hearing before the Board of Public Works. But the event traditionally known as the "begathon" got a new nickname yesterday.

"Welcome to Hope-a-thon Wednesday," Gov. Martin O'Malley (D) said.

O'Malley aides said "begathon" is demeaning to local officials who plead for state dollars to build or repair schools.

O'Malley and Comptroller Peter Franchot (D) disagreed over attendance at the hearing, which in prior years drew scores of lawmakers, leading critics to say they were consumed with political fanfare.

The governor wanted this year's hearing limited to school superintendents; the comptroller wanted it keep open to other officials.

In the end, some county leaders were present, but few lawmakers attended.

-- Philip Rucker

Muse Proposes Extra Tax on Smoking Paraphernalia

Bongs and water pipes are sold as tobacco accessories, but a Maryland lawmaker says everyone knows they're used to smoke illegal drugs, and should be heavily taxed.

Sen. C. Anthony Muse (D-Prince George's) proposed a bill yesterday to add a $20 tax to tobacco paraphernalia. Muse said tobacco accessories are subject to only the regular 6 percent state sales tax. He said the $20 tax proposal is not intended to raise revenues, but to act as a deterrent for young people who smoke marijuana.

"Bongs are not used for cigarette smoking," Muse said. "They're used for illegal drugs. I think people recognize immediately what they're used for."

-- Associated Press