A Computer Exec's Effort to Decode Annapolis

Facing New Tax, Novice Builds Lobby On the Fly

When his wife was in the hospital in December having a baby, Tom Loveland was by her side, reading transcripts of debate from the Maryland General Assembly.

For the life of him, Loveland, the founder of an information technology firm, could not understand why the legislature had just imposed a new tax on his industry's services during a special session intended to fix the state's finances.

It soon became apparent to him that the computer services industry was not well represented in Annapolis, something he felt he needed to change -- and quickly -- if there was any hope of reversing the legislature's action before it was too late.

"I'm trying to think: How do I learn the game?" Loveland recalled. "I knew I was unwilling to sit on the sidelines and hope that the standard players would take care of this."

The three months since then have provided a remarkable case study on how Annapolis works.

Loveland and a fellow high-tech executive founded the Maryland Computer Services Association, which has mobilized dozens of others to tell lawmakers how the tax will affect their business.

The organization retained two lobbying firms, one of which includes the former chief of staff to Senate President Thomas V. Mike Miller Jr. (D-Calvert). The group also tapped the services of two public relations firms, including one led by Gov. Martin O'Malley's former communications director.

And now, with just three weeks left in the current legislative session, many in Annapolis are betting the tax will be repealed before it takes effect in July. Last week, O'Malley (D) added his voice to those calling for the legislature to replace the tax with other revenue, saying he had come to realize how important the information technology sector is to Maryland.

"They've gone from zero to 60 in three seconds," House Majority Leader Kumar P. Barve (D-Montgomery) said of Loveland's group. "I think they've succeeded in making their case."

The remaining hurdle -- and not a small one -- is an agreement on how to compensate for the $200 million a year the computer services tax is projected to yield.

Loveland, who testified at a legislative hearing last week, was not a complete stranger to Annapolis. In the early 1980s, he spent a couple of years at St. John's College before transferring. Loveland joked that his time in Maryland's capital at least familiarized him with the historic city's alleyways and bars.

But like most in his industry, Loveland, a Baltimore resident, has been far more focused in recent years on his business than on the machinations of Maryland government. His company, Mind Over Machines, has served several hundred clients since 1989, including Ikea and the National Institutes of Health. Besides its Owings Mills headquarters, the company operates a Bethesda office focused on federal contracts.