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Lines drawn in advance of 2025 session, budget debate

December 17, 2024 by Maryland Matters Leave a Comment

Lawmakers and Gov. Wes Moore (D) are staking out budget positions with less than a month before the start of the 2025 legislative session that will likely revolve around an “enormous” budget problem.

A debate over taxes, the economy and business climate, and education will all dovetail into efforts to solve billions in projected deficits over the next five years.

“I got to tell you, we have some big issues to share, big issues,” House Minority Whip Del. Jesse T. Pippy (R-Frederick) said Friday to county officials attending the Maryland Association of Counties winter conference in Cambridge. “We haven’t seen a budget deficit like this since the Great Recession. We have big discussions on education, which coincides with the budget issues we’re facing.”

Layered on top, Pippy said, is “an energy crisis in our state. We’re still dealing with the impact of inflation. At the end of the day, all of these things have impacts on everyday, hardworking Maryland taxpayers. It’s becoming simply unaffordable to live in our great state.”

Moore and lawmakers face a projected $2.7 billion deficit for the coming budget year. By the end of the current five-year projection, that deficit explodes to almost $6 billion — nearly all of the shortfall in the outer years is driven by costs related to implementing the education reforms in the Blueprint for Maryland’s Future.

Latest projections released Thursday by the Board of Revenue Estimates showed only marginal improvement in the outlook for the state’s coffers.

“It’s not going to be filled with putting alcohol in grocery stores, I’ll tell you that,” Pippy said, referencing the governor’s call for lawmakers to pass legislation by the end of the session authorizing the sale of beer and wine in grocery stores and other retail outlets.

House Majority Leader Del. David Moon (D-Montgomery) told county leaders a year ago that it was time to “pull up some grown-up pants and do something” or face the potential for drastic reductions.

“My message is pretty much exactly the same, that we need to roll up our sleeves, do the hard work, make the tough decisions and not kick a can down the road,” Moon said. “It is my hope that whatever this conversation is, it is one that is looking at the out years, and not just a short-term Band-Aid fix to this problem.”

Budget deficits in Maryland are not rare. Lawmakers are frequently reminded by budget analysts that the state’s ongoing expenses typically increase by about 5% annually. Ongoing projected revenues grow by about 3%.

But in the past, fiscal leaders in the legislature have often taken a one-year-at-a-time approach that leaves wiggle room for the following year.

Moon said he believes the legislature is “swimming” toward a change in dealing with the issue.

The leader of the House Democrats called for a focus on housing, energy, and child care policies, as well as addressing stagnant population growth in the state. He called for six-year plans on each, with benchmarks to monitor progress toward growing the state’s economy.

House Democrats proposed a $1.3 billion revenue package in the 2024 session that they said would address ongoing budget issues. That plan was rejected by the Senate and by Moore.

Both the governor and Senate President Bill Ferguson (D-Baltimore) continue to say they have a “high bar” on the need for broad-based tax proposals.

Last month, Ferguson said “everything is on the table” when it comes to resolving the budget problem, but stopped short of voicing support for broadly increasing taxes.

Some have talked about the potential for making changes in how education reforms are implemented.

On Thursday, Moore warned counties of the difficult budget decisions to come. In an address to MACo, he said he does not favor cuts alone. Instead, he hopes to implement reforms to make the state more business friendly, though he did not provide specifics. He also called for reforms to the Blueprint.

Republicans and many county leaders – Democrats and Republicans — would also like to see changes as they attempt to absorb the share of the costs passed on to their budgets.

Senate Minority Leader Stephen S. Hershey Jr. (R-Upper Shore) said it’s important “the governor to take a look at that and say simply some things that we can’t afford within the Blueprint. And I do think that we will stretch that (implementation) out.”

Moon said Democrats in the House have a “very high bar for changes to the Blueprint.”

by Bryan P. Sears, Maryland Matters
December 13, 2024

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State confronting ‘two storms,’ Moore tells county leaders

December 13, 2024 by Maryland Matters 1 Comment

Gov. Wes Moore (D) has used his semiannual speeches to the Maryland Association of Counties to deliver sobering fiscal news before and Thursday night’s address, at the MACo winter conference in Cambridge, was no exception.

Using nautical language inspired by the State House’s proximity to the Naval Academy, Moore described the “two storms” state and local governments are confronting.

“I know we are facing steep challenges,” Moore said, according to prepared remarks provided by his office. “Maryland is in the path of two storms: First, we face an historic budget crisis, the likes of which we haven’t seen in decades. And second, we are about to swear in a new administration in Washington, D.C., that casts uncertainty on our future.”

Moore blamed the state’s looming $2.7 billion budget shortfall on the “sugar high” of federal largesse doled out to help states deal with the economic slowdown caused by the pandemic, along with sluggish financial growth. The state’s ongoing, complex education reform plan, the Blueprint for Maryland’s Future, also continues to strain government resources.

“We need to grow,” Moore said. “It’s the key to securing Maryland’s future. Anyone who thinks we can just cut our way to greater prosperity isn’t being honest. Anyone who thinks we can just tax our way to greater prosperity is not being honest. Now is the time for us to make the hard choices that will help us build a durable economy – one that is business-friendly and invests in growth.”

Moore proposed jump-starting the state economy in different ways. He said he would issue an executive order – “the most sweeping economic executive action I have taken since being sworn in” – to make Maryland more business-friendly by cutting red tape on permitting; prioritizing three sectors of the economy, life sciences, I.T., and aerospace and defense, taking advantage of the resources that already exist in the state; and better coordinating with local jurisdictions on economic development strategies.

Moore also said he would introduce a bill in the upcoming General Assembly session to increase the state’s housing supply and said he would seek some alterations to the way the Blueprint for Maryland’s Future is being implemented. While calling the education reform plan “a central piece of our education strategy,” he proposed pausing a provision of the Blueprint providing teachers with more “collaborative time” out of the classroom.

But he vowed to help school districts build out their pipelines for recruiting teachers and said that pausing the “collaborative time” contained in the Blueprint would give school districts more time to recruit and retain teachers.

“Growth is the most powerful tool we have in our toolbox,” Moore said. “But it is not – and cannot be – the only one. We are in a moment of profound consequence, and we are willing to use every tool in our toolbox if it means getting Maryland’s fiscal health on track.

“There will be choices in our new budget that some of you will not like. Quite frankly, there will be choices in our new budget that I don’t particularly like,” he said. “But we need to make hard choices now if we want to unleash our full potential as a state and lay the foundation for a brighter future.”

by Josh Kurtz, Maryland Matters
December 13, 2024

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Superintendents seek ‘partnership’ with Moore on changes to Blueprint education reform plan

December 11, 2024 by Maryland Matters Leave a Comment

Some state school superintendents are saying it’s “clear that adjustments are needed” on the Blueprint for Maryland’s Future education reform plan as the state faces a looming fiscal crisis, and are asking to work with the Moore administration on potential changes.

The Nov. 27 letter from the Public School Superintendents’ Association of Maryland comes as the association is preparing to release legislative and policy recommendations this week to Gov. Wes Moore (D) and other state officials on some changes they believe are needed on the Blueprint.

The letter, signed by five of officers of the association – Baltimore County Superintendent Myriam Rogers, Calvert County Superintendent Andraé Townsel, Cecil County Superintendent Jeffrey A. Lawson, Charles County Superintendent Maria Navarro and Washington County Superintendent David Sovine – is careful to note support for the Blueprint, which the superintendents say has “inspired significant progress and optimism.”

But it also notes “clear that adjustments are needed” in the plan, “not to compromise the mission of the Blueprint, but ensure its long-term success.”

“We can offer modifications to the Blueprint that are grounded in real-world experiences, data analysis, and the guiding principle of enhancing student growth and achievement,” the letter says, asking the administration to collaborate with superintendents on changes.

Mary Pat Fannon, executive director of the superintendents’ association, said in an interview Friday that the superintendents want to help find ways for state lawmakers to prioritize spending on the plan as they grapple with a budget crisis in the 90-day legislative session that begins Jan. 8.

“This is a letter of partnership and cooperation and not like a flamethrowing exercise,” Fannon said. “We’re three years in [on implementing the Blueprint]. We’ve identified some issues and some refinements that we think would go a long way for student improvement and operations in the system.”

The letter was also distributed to the legislature’s presiding officers, chairs of the Senate and House committees on fiscal and education policy, and other state officials.

The letter and planned release of legislative and policy recommendations from the association come as two other superintendents – Sean Bulson from Harford County and Dereck Simmons from Caroline County – are scheduled to talk about the Blueprint plan Thursday at the Maryland Association of Counties (MACo) winter conference in Cambridge. The superintendents will be joined by local school district Blueprint coordinators from Garrett and Charles counties.

Fannon acknowledged one state lawmaker who has been outspoken on the plan’s lack of local autonomy: Sen. Mary Beth Carozza (R-Lower Shore), who will moderate the Blueprint discussion at MACo.

That session, entitled “What We’ve Learned About Learning: The Blueprint in Year Three,” is slated to highlight how Blueprint successes in one jurisdiction represent challenges in another based on the plan’s five pillars, or priorities: hiring and retaining high-quality and diverse teachers, early childhood education, providing additional resources for students in need, preparing students for college and technical careers, and governance and accountability.

“When you give the local flexibility and the local authority [to school leaders], they are in the best position to know of the Blueprint goals,” Carozza said Friday. “It’s needed even more so because of the budget challenges that we currently face in the state of Maryland.”

by William J. Ford, Maryland Matters
December 9, 2024

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Supporters optimistic this is the year for beer and wine in grocery stores

December 11, 2024 by Maryland Matters 3 Comments

A renewed effort to expand alcohol sales beyond liquor stores has the backing of a powerful new ally — Gov. Wes Moore (D) told Maryland Matters that he “wants something on my desk at the end of the session.”

The General Assembly has tried before to allow alcohol sales in grocery stores — and perhaps other retailers. Moore said that while he will not make the bill an official part of his 2025 legislative package, his office will push for passage of a bill in the coming session.

“I think it’s time to address this issue because it’s something that I have heard literally in every single corner of the state from Western Maryland to the Eastern Shore. From Oakland, Ocean City, Montgomery County and everywhere in between,” Moore said. “This is an issue that people are asking about.”

Supporters point to surveys that show overwhelming support for allowing such sales, which would bring Maryland in line with laws in Virginia, Pennsylvania and the District of Columbia. Besides being convenient for consumers, supporters see the change as an economic benefit, an employment and revenue generator for the state and a potential solution to food deserts.

But opponents appear steadfast in their criticism of expanded alcohol sales, which they say will further burden communities that already suffer from a disproportionate number of licensed alcohol retailers, or drive mom-and-pop stores out of business.

“I know the Maryland families and small businesses that run the independent stores are going to be very disheartened to hear that the governor has sided with these big corporate supermarkets without even hearing from them directly,” said Jack Milani, owner of Monaghan’s Pub in western Baltimore County and legislative co-chair of the Maryland Licensed Beverage Association. “This is going to put some independents who put their life savings into their stores out of business, and you can bank on that.”

House Economic Matters Chair C.T. Wilson (D-Charles), long a critic of bills to expand alcohol sales, said that, “Overall, bringing a vice — i.e. more liquor — into my community is never a great thing.” While he understands the public support for expanded sales, and would welcome a discussion, Wilson said that anything that brings more alcohol into Black communities that “for decades, have just been punished by excessive amounts of liquor” remains a “grave concern.”

And it’s unclear if other lawmakers are ready to join the governor. Senate President Bill Ferguson (D-Baltimore) said he is willing to consider a change, but that both sides need to come to a consensus and “at the moment I don’t see a path.”

The issue, he said, is protecting existing small business license holders while opening the door to competition to larger companies with greater buying power.

“The issue is the impact on small business owners in Maryland and not being overwhelmed by large corporate grocers,” he said.

Moore’s stance runs headlong into what has so far been an intractable debate, but he said it’s a debate that needs to end.

“I’ve asked my team, and I just continue to get, ‘This is the way it’s always been,’ and that is never a satisfactory answer for me,” Moore said.

Maryland ‘out of step’ with country

Maryland is one of five states, including Alaska, Delaware, Minnesota and Rhode Island, where it is currently not legal to buy beer, wine or liquor except in a liquor or packaged goods store, according to the Maryland Retailers Association, which backs expansion.

“We’re out of step with the rest of the country,” Moore said.

Maryland’s current law was implemented in 1978. At the time, some stores were already selling alcohol, including distilled spirits, and were allowed to continue to do so. Today, about 30 grocery or convenience stores continue to sell beer and wine and in some cases liquor.

Supporters say expanding the law would be widely popular. Online polls conducted in November for Blended Public Affairs found that 60% of respondents in Prince George’s County favored expanding the list of merchants who can sell alcohol, compared to nearly 30% who opposed the idea. In Baltimore County, 66% favored allowing beer and wine sales in grocery stores while 21% opposed. The polls have a margin of error of 4.9%.

“The support is absolutely there,” said Cailey Locklair, president of the Maryland Retailers Association.

“When you poll this issue, it is amongst the highest polling and support that I’ve ever seen,” Locklair said. “When you poll and ask people, ‘Do you want to be able to purchase beer and wine in a grocery store?’ it’s almost 80% of Marylanders across the board, demographically, age, sex, Democrat, Republican.”

The debate is not new in Maryland. Over the years, lawmakers have tried and failed to make a change, but supporters are approaching the 2025 session with renewed optimism.

Del. Marlon Amprey (D-Baltimore) was lead sponsor of a bill last year that would have let grocery stores buy existing licenses and then sell beer and wine only. While details are still being hammered out, he said he will sponsor a similar bill this year in the House. Sen. Cory McCray (D-Baltimore) said he will sponsor companion legislation in the Senate.

Food deserts and alcohol access

Amprey said his bill can alleviate food deserts in underserved communities, by allowing grocery stores to make the profit they need to survive.

Del. Marlon Amprey (D-Baltimore), will sponsor a bill that could allow grocery stores and some other retailers sell beer and wine. Photo by Bryan P. Sears.

“I think the real thing this will help with is ensuring that those grocery stores in Black and brown communities and impoverished communities in those food deserts have a way to create a better profit margin so they can sustain themselves and keep fresh food available for those who need it the most,” he said.

Amprey said it would help grocery stores “with their bottom line, that they could have a higher profit margin and take some losses that happen in the first two or three years with fresh groceries. They can take on those losses because they’ll be able to sell beer and wine.”

Traditional grocery stores were not the only retail outlets that could have qualified to sell beer and wine under the 2024 version of the bill, which would have let stores with a minimum of 3,200 square-feet — about the size of a traditional convenience store — qualify for a license.

Amprey said he wasn’t prepared to discuss changes in the bill prior to drafting. He did say it was possible that one provision — requiring stores to buy existing licenses — could be replaced with another allowing for new licenses to be created.

But skeptics doubt that more liquor access can solve the problem of food accessibility in impoverished communities.

“Black and brown communities are statistically awash in greater volumes of alcohol,” said Raimee Eck, chair of the Maryland Public Health Association’s Alcohol, Tobacco & Cannabis Network. “They have greater access to alcohol, cheaper alcohol, and suffer greater harms from the alcohol that’s available in their communities.”

Eck said research shows that increased availability is linked to increases in violence and emergency room visits. Increasing alcohol density is “how you increase alcohol-related harm,” she said.

“There is absolutely no research to show that alcohol can lead to any reduction in food deserts. It’s quite the opposite in that excess alcohol availability is in places where food deserts tend to be, which are lower-resource communities,” Eck said. “So, there’s definitely no research showing that alcohol access decreases food deserts.”

Wilson agrees.

“I don’t believe bringing more liquor into any community is a great idea. I don’t believe in easier access to alcohol is a great idea,” the Charles County lawmaker said.

“While I understand that this is something that obviously the public may, in fact, be interested in, I’m interested in discussion. I would like my issues resolved prior to anything passing the House and hitting his [Moore’s] desk,” Wilson said. “So, the governor can make his point that that’s what he desires. Well, I desire answers to make sure that we’re moving in the right direction.”

But Moore touted the benefits of expanding access, saying it might allow stores to stay in business or expand. Allowing grocery stores to sell beer and wine is separate and distinct from the issue of communities already impacted by alcohol access, the governor said.

“Allowing beer and wine inside of grocery stores is not saying that we want to have a liquor store on every single corner,” Moore said. “I think these are two separate issues.

“I agree with the concerns that we have of not proliferating (licenses) in some of our most vulnerable communities … where you’re just, you’re inundating them with these measures of vice,” he said. “I actually understand that issue. I also don’t think that the conversation around allowing beer and wine inside of grocery stores is that. I think those are two separate issues.”

Wilson rejected Moore’s argument.

“You’re saying the areas that … are food deserts, which also happen to be areas that are high poverty, areas that already have a great deal of liquor access would be helped by even more liquor?” Wilson asked. “Again, that is not two different conversations. Those are the exact same conversation.”

A ‘perverse economic tool’

Del. C.T. Wilson (D-Charles) said he has concerns about allowing more alcohol access in Black communities already flooded with alcohol licenses. Photo by Bryan P. Sears.

Moore said in an interview that he strongly supports the bill as an economic development tool.

“When you think about how grocery stores operate at some of the lowest margins in the retail industry … lifting the ban will also provide more incentives for them to have growth and continued operations within our counties, and particularly in areas that have struggled to keep large-scale retailers inside of their jurisdictions,” he said.

Eck called the expansion of alcohol licensees a “perverse economic tool.”

“An economic tool is considered perverse when it goes against the goals of the sponsor of the tool,” said Eck, who said studies show that the cost to the government to cover the economic harms of alcohol is larger than what is collected in taxes.

“So, I look at it as being a perverse economic tool, because it’s not going to lead you to the outcomes that you think it should or that you would like it to,” she said.

The effects on small businesses — specifically current license holders — is a mixed bag.

Small grocery stores would likely benefit from an ability to sell beer and wine, but current liquor stores and packaged goods stores might see a decrease in business, according to an analysis of a proposal in the 2024 legislative session.

That could have other impacts on communities of color, particularly immigrants, for whom beer and wine stores might be “the last vestige of mom-and-pop retail in our community,” Sen. Ben Kramer (D-Montgomery) said.

“The Amazon effect, the giant box stores, Walmart, Target, have wiped out our mom-and-pop retail businesses,” Kramer said. “The last standing mom-and-pop businesses in retail are our beer and wine stores.

“I don’t want to see them also wiped out by having giant grocery chains shutting them down, because there’s no question, they will not be able to compete,” he said. “It will be just a short period of time before you see them closing shop if we permit beer and wine sales and liquor, whatever it may be, alcoholic beverages in our grocery stores.”

Kramer said policymakers have a responsibility “to our minority community and to our small mom-and-pop business entrepreneurs to give them a chance to participate in retail business.”

“They’re the ones who often — and this has been the case in many of our beer and wine stores in our community — new immigrants who go into business. Then they are able, through their hard work and their labor, to pay for college educations for their children,” he said.

Kramer, Ferguson, Eck and the licensed beverage association all expressed concerns that big retail outlets would engage in price cutting to drive out the competition from smaller businesses.

In 2022, Colorado residents voted to allow wine sales in grocery stores over the objections of small store owners who feared they would be forced out of business. Since then, dozens of small operators have gone out of business. As many as 400 more are expected to close by the end of 2026, according to an analysis by the Denver Gazette.

Amprey said he does not believe that has to be the fate of Maryland’s small businesses.

“We can talk about theory or we can deal with reality,” Amprey said. “I was in Texas recently and saw all types of beer in grocery stores and packaged goods stores. They all live together. I saw mom-and-pop stores of every variety from grocery stores to small stores. When I go to California, same thing. You can travel around the United States and see that the fears of people are just not real.”

While it’s not part of his legislative package, Moore said his administration won’t just be “whipping the votes. The General Assembly will know that I want something on my desk at the end of the session.”

“There are members of the General Assembly who have already taken leadership on it,” Moore said. “I’m not going to take the bill away from them, but they know they are going to have me as an ally in this work.”

But Ferguson noted that the bill will face a lot of competition for lawmakers’ attention in the coming session.

“This is a tough issue, and I would say that with all the other issues we have — balancing the budget, keeping the state competitive, energy stability in the state — that’s where our attention should be,” he said.

by Bryan P. Sears, Maryland Matters
December 11, 2024

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Maryland’s flagging economy and transportation infrastructure linked

December 10, 2024 by Maryland Matters Leave a Comment

Efforts to bolster Maryland’s flagging economy and ease projected budget deficits may hinge on improving the state’s transit and road systems.

But the fund that pays for roads and transit is projected to have a more than $1 billion shortfall over the next six years, and lawmakers will return to Annapolis next month facing the prospect of “enormous” deficits in other parts of the budget.

That was the challenge laid out recently at a conference of state officials and business leaders, who said efforts to grow the state’s economy may depend on improving the state’s transportation system.

“Investing in Maryland’s transportation network will make the state more attractive to business,” said David Smith, head of government affairs for Martin Marietta, during the symposium last month held by the Maryland Chamber of Commerce.

A debate about tax increases that began earlier this year is sure to resume when the General Assembly convenes in January. Gov. Wes Moore (D) and Senate President Bill Ferguson (D-Baltimore) have so far rejected broad-based tax increases, favoring a focus on growing the state’s economy.

But the state’s economy is stagnant. The operating and Transportation Trust Funds are in the red.

Smith pointed to a July CNBC ranking of top states for business, in which Maryland ranked 31st overall and 37th for infrastructure. By comparison, Virginia ranked first overall and third for infrastructure. Pennsylvania ranked 17th overall and 20th for infrastructure.

Del. Marc Korman (D-Montgomery), chair of the House Environment and Transportation Committee, said employers “want to be near transportation that works.” But even the systems already in place in the state are struggling.

“A great example is the Light Rail system in Baltimore City, which is being held together by MacGyver with duct tape and chewing gum,” Korman said. “It could be a really great transit option for lots of businesses, if you get it working and get better service again. So, if we can create those opportunities around the state, we’re in a great position.”

Maryland faces an “enormous” projected operating budget deficit. Recent estimates predict the gap between revenue and spending will be $2.6 billion in the coming fiscal year, and approach $6 billion by fiscal 2030.

“Budget deficits are an inherent reality of government,” Lt. Gov. Aruna Miller (D), told attendees of the half-day conference. “Make no mistake on that. In fact, 18 of the past 21 state budgets had built-in deficits, underscoring the balance between making critical investments and maintaining fiscal responsibility.”

Much of the gap, especially in the out years of the Department of Legislative Services projections, is driven by higher costs of the education reforms in the Blueprint for Maryland’s Future.

Coupled with the operating budget gap is another, more than $1 billion, gap over six years for transportation projects.

Any solution for transportation funding would have to come with solutions for paying for the costs of the Blueprint, according to Korman.

“I know, at least speaking for my colleagues in the House of Delegates, if I can be so bold, that is a big issue,” Korman said. “We are not interested in solving one very important part of our economy, which is transportation, but not another, which is education. And so, these things all have to be done together.”

A derailed TRAIN

Earlier this year, when the House and Senate clashed over tax plans, the House wanted to abolish the Transportation Revenue and Infrastructure Needs Commission — the TRAIN Commission — before the panel handed over a menu of options to modernize the Transportation Trust Fund.

Instead, the two chambers dissolved the original 31-member panel and reconstituted it as two panels: A smaller commission that would author a final report by January and a second, larger panel composed mostly of advocates, to advise the commission.

Lawmakers called on the panel to deliver a final report before the 2025 session, but that’s unlikely to happen. Members of the two new panels have not been announced. The groups have yet to meet, and the window for meeting is closing as the holidays approach.

Frank Principe, chair of the original commission, said solutions will require the governor and legislative leaders to reach some consensus on options.

“I think that the low-hanging fruit is pretty limited,” Principe told the chamber audience. “The bigger changes and needs for resources that we’re going to need to get to where we want to be requires us to make bigger and bolder steps. And I think that’s just political will to do that.

“The TRAIN Commission is more than happy to create menus of options and opportunities for conversations around what we need and what could potentially bring the resources that the department needs to be able to move on projects that we all agree need to happen,” he said. “But that really starts at the top. Without that direction, it’s going to be hard for us to get us where we need to be.”

Miller and others are looking to Principe’s panel for options.

“Currently, yes, we do have a funding shortfall that is driven in part by many different factors, including the less-than-expected revenue for the state gas tax, reduced federal funding and an end to the federal COVID-19 aid and increased construction costs,” Miller said. She said the TRAIN Commission, is making recommendations to stabilize funding.

Modernizing the Transportation Trust Fund will likely rely on several options working in concert with each other, according to Cinzia Cirrillo, director of the Center for Multimodal Mobility at the University of Maryland.

“So, there are ways that have been adopted to supplement the revenue for transportation,” Cirrillo said. “And as I tell my students all the time, in transportation, one solution is not going to work. It’s a bundle of solutions that will help raise the money that we need in transportation. And unfortunately, for transportation projects, you need a lot of money.”

Principe said there are “more choices to be made than resources that are available,” when it comes to a menu of funding options.”So, at the end of the day, we’re going to have to figure that out.”

Regional authority, local responsibility

There is plenty to figure out.

“I think that the key question is, do we want to stick with our current statewide model, or do we want to shift to regionalization?” Korman said. “I think that’s a pretty big conversation.”

But Korman said regionalization comes with a different cost for local governments.

“I think realistically, if the state was going to hand the counties additional authority, it would probably hand them additional responsibilities,” Korman said, adding that state officials would “not just give away taxing power without asking them to take on obligations.”

Other solutions could include regionalized taxes based on proximity to transit systems in the area, according to Korman.

Another possibility that is fraught with potential problems is a tax based on miles traveled — a vehicle miles traveled tax. Four states are currently piloting such programs.

Currently, the majority of transit and road projects around the state are paid for through the Transportation Trust Fund, a dedicated account funded by various registration fees and taxes, with most of its funding coming from the state’s motor fuel tax.

The state started 2024 with a proposed six-year plan that cost $3.1 billion more than the fund could support. Transportation Secretary Paul Wiedefeld later revised that projection to a smaller — but still sizable — $1.3 billion over the six years.

“There’s these tremendous pressures on the state’s revenue sources,” Wiedefeld said. “I think there’s a much greater understanding of that.”

The lack of money means projects requested by the state’s 24 political subdivisions could be delayed or even paused indefinitely.

“The problem we have is whether you’re like me and want to see three Purple lines, or like some of the other folks here and want to see three new Beltways, American Legion Bridge improvement with the Red Line … or a new Bay Bridge — whatever it is you want to see, we don’t have enough money for any of it. That’s obviously the challenge before us,” Korman said.

By Bryan P. Sears

– Maryland Matters reporter Bryan P. Sears was an uncompensated moderator of a panel during the Maryland Chamber of Commerce transportation symposium.

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Slight increases on Maryland’s annual report card, but changes could be coming

December 6, 2024 by Maryland Matters Leave a Comment

Maryland’s 1,303 public schools saw slight gains on the state Department of Education’s annual report card, which rates schools on measures including academic achievement, school quality and progress in English language proficiency.

The report card, released this week, grades schools on a scale of one to five stars, with five stars going to schools that earn a score of at least 75% on a formula that measures overall school performance. The report said 91 schools earned five-star status in the 2023-24 school year, up from 85 schools the year before.

About 41% of schools received a four- or five-star rating last year, compared with 38% in the 2022-23 school year.

Twenty Baltimore County schools earned five stars on this year’s report card, the most of any county. The county’s Eastern Technical High School received the most points in the state with 91, edging out the Academy of Health and Sciences at Prince George’s Community College and its 90.7 points.

Baltimore County Schools Superintendent Myriam Rogers said the county’s broad gains are “are evidence of the effectiveness of the targeted and comprehensive resources and supports we put in place to fast-forward student achievement.”

“We are encouraged by the growth our schools are making on key markers of progress and achievement,” Rogers wrote in a message to the school community. “We will continue to use multiple and frequent measures to evaluate student progress and assess where we need to intensify efforts to meet the needs of our students and bolster achievement.”

Montgomery County, the state’s largest school system, had the second-most five-star schools at 18, and about half of its schools scored either four or five stars. But the school system called the overall performance “disappointingly flat” in a statement, with schools receiving at least three stars increasing by less than 1%.

Approximately nine of Worcester County’s 11 schools received a four-star rating, in which schools scored at least 60 out of 100 points on the grading formula. Ocean City Elementary received five stars and Pocomoke Middle three stars.

“I continue to be in awe of our schools’ positive trajectory in Maryland’s accountability system,” Worcester County Superintendent Louis H. Taylor said in a statement. “Worcester continues to outperform our counterparts across the State, and today’s [Dec. 3] release is just another example of how we are delivering dividends on the investment our community has made in our educational system.”

The state began the star system in 2018 in response to the federal Every Student Succeeds Act. The state released a second report card in 2019, but the reports were suspended in the 2019-20 and 2020-21 school years due to the COVID-19 pandemic.

Although 83% of schools recorded at least three stars in the latest report card, compared with 80% in the previous report card, there could be changes to assess overall performance.

Superintendent Carey Wright announced in April the creation of a task force to assess student achievement after disappointing scores on the Maryland Comprehensive Assessment Program, the state’s standardized tests known as MCAP. At the time of her announcement, only 47% of students in third through eighth grades scored “proficient” in English language arts and nearly 25% in math.

With the current MCAP contract set to expire in December 2026, Wright said at Tuesday’s State Board of Education meeting that it’s time to either search for a new assessment vendor, or retain the same vendor “with new requirements.”

“There were a lot of questions that were being raised about the assessment itself,” Wright said. “I’m a firm believer in accountability, always have been. This task force moved with a great deal of speed to get this done.”

The task force presented a report Tuesday with options that include revising the current ratings system, creating a system that meets federal requirements and reflects state priorities, and refining the framework on career and college readiness, which is one of the priorities in the Blueprint for Maryland’s Future education reform plan.

“We reject the theory of action that simply reporting information and hoping that people make good decisions is complete,” said Chris Domaleski, the task force facilitator and associate director of the National Center for the Improvement of Educational Assessment based in New Hampshire. “We think a more appropriate theory of action is that these systems integrate with the kinds of treatments that change curriculum, instruction and support that really uplift students in the state.”

The board voted to accept the report and continue to review it and assess any possible future changes.

by William J. Ford, Maryland Matters
December 5, 2024

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Maryland needs another 30,000 behavioral health workers to meet growing demand

December 3, 2024 by Maryland Matters Leave a Comment

Maryland needs to increase the number of behavior health care workers by about 50% to meet current demands, a “significant problem” that only gets worse in coming years unless the state finds ways to boost the workforce.

Those were the findings of a report, “Investing in Maryland’s Behavioral Health Talent,” presented recently to the Maryland Medicaid Advisory Board. Chair Nicole McCann said officials have been aware of the issue for some time, but that the report helps shed light on what can be done about the workforce shortage.

The report said that in 2023, Maryland had 34,613 people working in various areas of the behavioral health field, but it said that number was 18,222 workers shy of what is currently needed. And that doesn’t take into account the additional 14,565 workers who are expected to be needed by 2028 to meet the growing need for behavioral health care, it said.

Shannon Hall, executive director of the Community Behavioral Health Association of Maryland, called the shortage of behavioral health workers a significant problem.

“When you have those vacancies, it basically translates into your capacity to provide treatment to people is substantially lower,” Hall said in a recent interview. “You end up with waitlists. You end up with vacant rooms if you can’t meet the minimum staffing requirements.

“It just really creates a backlog that disrupts the entire system,” she said.

The report, commissioned by the Maryland Health Care Commission, is a result of 2023 legislation that created a fund to reimburse local governments or health departments for costs associated with education and recruiting behavioral health workers and to improve the shortage.

Maryland’s behavioral health workforce shortage is due to “historical underinvestment in the behavioral health system, increasing rates of mental illness and substance use and high rates of burnout and attrition has led to a national shortage of peer recovery specialists,” the report says.

If this falls by the wayside because of budget shortfalls … it’s not just behavioral health that’s going to pay for that. It’s the schools, it’s the hospitals, it’s the criminal justice system and ultimately it’s vulnerable people in Maryland.

– Shannon Hall, executive director of Community Behavioral Health Association of Maryland

The state will need to invest about $148.5 million over the next five years to help fix the workforce shortage, it says. Those funds could go toward raising wages for staff and reimbursement rates for providers, the report says. They could also go toward tuition assistance for those looking to enter the field.

In terms of policy, the report said the state could work to expedite the licensing process, so new workers can start sooner, and to increase awareness of behavioral health occupations through programs such as the Blueprint for Maryland’s Future.

Behavioral health covers a wide range of care, including mental health services, addiction and rehabilitation resources, trauma counseling and more. But without adequate staffing levels, people may sit on waiting lists, and staff providing those services might burnout and leave the field entirely.

“Based on current trends, 45% of BH (behavioral health) professionals working today are expected to retire, leave Maryland, or leave the field of their occupation over the next five years,” according to the report. “If this attrition rate persists, Maryland will need to attract 30,000 new BH workers to meet unmet need and replace workers leaving the field, roughly the same number currently employed.”

Cathie Eaton, executive director of the Maryland Counseling Association, said that not having enough behavioral health staff means that people in need of those services may sit on waiting lists.

“I have friends who have had waitlists for years, and they just can’t get new clients in because they don’t have the capacity,” Eaton said. “It leaves a lot of folks who need behavioral health services without.”

But from her perspective, the wages are not high enough to get people interested in the field.

“In general, it’s a high-stress field,” Eaton said. “It’s a very fulfilling field, but we understand that a lot of people don’t want to go into the field because of the pay scale.”

The behavioral health positions facing the greatest workforce shortage numbers include both licensed professionals as well as unlicensed paraprofessionals and assistants.

The “Investing in Maryland’s Behavioral Health Talent shows that many occupations in the field face a current workforce shortage that could worsen in coming years. Courtesy of Trailhead Strategies.

For example, 9,532 new counselors and therapists will be needed by 2028 to keep up with projected demand by that year. That includes 3,748 new workers needed to replace workers leaving the field by 2028, as well as 5,784 workers to keep up with rising demand.

Social and human services assistants — a broad category that includes outreach workers, unlicensed case managers and other paraprofessionals – is the second highest shortage in this field, with 8,029 more people needed to meet 2028 demand. That would be 4,000 new paraprofessionals to replace outgoing workers and 4,029 to to keep up with rising demand.

Adding all the other behavioral health positions facing workforce shortages, an estimated 32,786 new workers will be needed by 2028.

Hall said that the lack of personnel exacerbates burnout, as current staff need to take on a higher workload to account for the vacancies and care for patients.

“It makes people who carry extra responsibilities and a lot more stress. It’s harder for them to take time off,” Hall said. “They’re picking up the slack, so it just creates a lot more stress across the entire system.”

She said the report points to a need to “champion behavioral health as an investment, even amid a challenging budget year.”

“If this falls by the wayside because of budget shortfalls … behavioral health is not going to win that game. And it’s not just behavioral health that’s going to pay for that,” Hall said. “It’s the schools, it’s the hospitals, it’s the criminal justice system and ultimately it’s vulnerable people in Maryland. So this is an area where … either you invest in it upfront, or you pay for it in more expensive settings.”

by Danielle J. Brown, Maryland Matters
December 2, 2024

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Officials: State Center settlement marks the end of one era and the beginning of another

November 22, 2024 by Maryland Matters Leave a Comment

Political leaders said the steep settlement payment the Board of Public Works authorized Wednesday to the former developer of the abandoned State Center redevelopment project in Baltimore is a worthwhile investment and an opportunity to protect the state from potentially greater damages.

The board, consisting of Gov. Wes Moore (D), State Comptroller Brooke Lierman (D) and state Treasurer Dereck Davis (D), voted unanimously to pay $58.5 million to State Center LLC, ending a complicated and years-long dispute over the fate of the 25-acre state-owned office complex in Midtown Baltimore.

Officials described the settlement as a chance to take a fresh approach to redeveloping the strategically located property and putting to rest a controversy over a stalled project that has vexed four governors.

“This was not simple,” Moore said. “This has been a long-term challenge. I’m excited about what it’s going to mean for the future of Baltimore City. I’m excited about what it’s going to mean for state residents. I’m excited about what it’s going to mean for Maryland.”

The payment — with $40 million to be delivered to the developer next month and another $18.5 million to be doled out by July 1, 2025 — will settle all claims from a 2016 lawsuit against the Board of Public Works (BPW) and several state agencies. The suit was filed when then-Gov. Larry Hogan (R) in 2016 announced the state would go to court to terminate the proposed $1.5 billion redevelopment project. State Center LLC then counter-sued.

The redevelopment plan had been floated and debated since 2005, during the administration of then-Gov. Bob Ehrlich (R), and the BPW first approved the project in 2009, under Gov. Martin O’Malley (D). State Center, which runs parallel to Martin Luther King Jr. Boulevard through the spine of the city, consists of five ugly high-rise office buildings built in the middle of the last century that housed several state agencies.

Addressing the BPW by video Wednesday, Attorney General Anthony Brown (D) said the state could have been on the hook for more than $200 million in damages if the developers’ case against the government had gone to trial — due in part to “changed circumstances” from recent court decisions on other property disputes.

“This is really a risk-benefit assessment, as are all settlements, of course,” Lierman said. “This could be a much, much higher number if we were to litigate and potentially lose — even partially lose.”

Lierman also took a swipe at Hogan, saying “the high-dollar amount [of the settlement] illustrates the wrong-headedness of the previous administration’s approach.”

Davis, the state treasurer, who routinely asks sharp questions about proposed state settlement payments, said he had no hesitation supporting this one, in part because of the state’s potential legal exposure.

“I think I’ve been a pain about most settlements, but in this case, I’m in favor of what’s been done here,” he said.

Mostly, though, officials sought to emphasize how the settlement now frees the city and state to begin shaping a new vision for the parcel, which Lierman, a Baltimore City resident, repeatedly called “prime real estate,” near academic institutions, cultural centers, medical facilities and residential neighborhoods.

Moore said several state and city agencies will begin meeting regularly, to come up with a plan for the property. Hogan originally envisioned turning the land over to the city government, but that transfer was halted by the litigation. Even so, city officials have hired a planning consulting firm to help them develop a mixed-use plan for the land.

“Today is simply just not about a legal matter,” Marvin James, chief of staff to Baltimore Mayor Brandon Scott (D), told the BPW members. “Today is about your commitment to investing in Baltimore City.”

Due to the decaying conditions at the State Center buildings and the expectation that the property would eventually be redeveloped, at least 3,300 state workers have already been moved to offices in downtown Baltimore over the past three years. Fewer than 5,000 government employees remain, spread out over seven state agencies, though they, too, will eventually relocate.

Earlier this month, four State Center office buildings were closed for a few days, and workers told to telework, after elevated levels of legionella, a highly contagious strain of pneumonia, were found in one of the buildings, WBAL-TV reported.

by Josh Kurtz, Maryland Matters
November 20, 2024

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Health advocates: Maryland needs to improve screening efforts for lung cancer

November 19, 2024 by Maryland Matters Leave a Comment

Pamela Trombero, 68, said it was a like a “slap in the face” when she received the news in 2006 that she was diagnosed with Stage 1 lung cancer.

After her diagnosis, Trombero stopped smoking and went through six months of chemotherapy and surgery. Now, 18 years in remission, she leads a virtual cessation program to help others quit smoking and encourages her friends and family members to regularly get screened for lung cancer.

“People need to do that,” she said “People should not be afraid of it, because it’s better to prevent anything from happening.”

The American Lung Association agrees with her. According to the “State of Lung Cancer” report released Tuesday, screenings are one of the best tools to catch lung cancer early.

“We know that not enough people are getting screened, and I think Maryland falls right in line with that,” said Aleks Casper, the association’s director of advocacy for Maryland, Delaware, Virginia and Washington, D.C. “If we can get somebody screened, we can get them an early diagnosis and you can get them access to treatment.”

Screening and early diagnosis were the two areas where Maryland was weakest compared to other states, according to the report, which looked at data from 2021, the most recent year for which numbers were available. The report said Maryland was 23rd of 50 states and the District for screening, and 26th of 47 states for early diagnosis.

In other areas, Maryland did relatively well. It was 16th for the rate of new cancer cases, at 50.2 per 100,000 residents, compared to a national rate of 53.6 per 100,000. It was 13th of 47 states for the lung cancer survival rate, at 30.1% compared 28.4% nationally.

Maryland did best when it comes to the number of smokers: The 9.6% of adults in the state who smoke was second only Utah. Nationally, 12.8% of adults smoked in 2022, the most recent year for which that data is available.

Overall, trends improved over the five-year period from 2017 to 2021 that the report looked at. Nationally, survival rates went up and the number of new cases went down, the report said. But close to 235,000 people will be diagnosed with lung cancer this year nationwide, according to the report, and 361 on average will die from lung cancer per day.

Dr. Panagis Galiatsatos, a spokesperson for the American Lung Association National and an assistant professor for Johns Hopkins School of Medicine, says that “more needs to be done.”

“I think we are doing fine, but there’s still plenty of room for improvement,” he said.

The people most at risk for lung cancer are those aged 50 to 80 years old who have a history of smoking or are current smokers. People who fit this category are urged to get annual lung cancer screenings.

“Screening with annual low-dose CT scans can reduce the lung cancer death rate by up to 20% by detecting tumors at early stages when the cancer is more likely to be curable,” the 2024 report says.

Another way to improve the state of lung cancer is to reduce smoking. While Maryland does well as a state in that area, the rate of smoking varies by location within the state, Galiatsatos said.

“In your rural areas and in your urban areas, you still see high rates of smoking occurring, so the state as a whole hasn’t seen a uniform drop,” he said. “It’s rather disproportionate and really falls along the lines of rural status and socio-disadvantaged neighborhoods in cities like Baltimore.”

The 2024 report also looked at which states currently insurance to cover what’s called biomarker tracking, a wide range of tests where blood, tissue or other samples are collected throughout cancer treatment to see if the selected treatment has been effective.

Maryland passed a law in 2023 requiring that insurers cover biomarker testing, one of 15 states that does so. The law went into effect for private insurers in January, and will go into effect for Medicaid enrollees starting July 2025, so long as there is money in the state budget.

Casper hopes that the biomarker law in Maryland will help improve treatment and survival rates for lung cancer patients.

“Biomarker testing is a huge opportunity … that helps determine what treatment will be the best for individuals.” Casper said. “That’s something that we’re really highlighting, that Maryland has really made steps to ensure that people who are living with a lung cancer diagnosis have access to the best treatment available and individualized treatment available through biomarker testing.”

But there is not one solution, she said. Reducing the toll of lung cancer in the state will require a multifaceted approach and that advocates, doctors and policymakers need to “continue focusing on what we can do to make people healthy.”

“We can prevent people from starting to smoke anything … and then ensuring that people have the resources to make them successful when they want to make that quit attempt,” she said. “And then the follow-up piece ensuring that we are talking about messaging, both as a consumer … but also to a provider to be talking to their patients about eligibility and talking about how to receive lung cancer screening.”

by Danielle J. Brown, Maryland Matters
November 19, 2024

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State considers replacing Bay Bridge with new, wider spans along path of current crossing – Maryland Matters

November 14, 2024 by Maryland Matters 1 Comment

State officials are seeking public input on their plan for a Chesapeake Bay Bridge that could be up to 10 lanes wide, connecting motorists to and from the Eastern Shore between Sandy Point and Kent Island.

The Maryland Transportation Authority said Tuesday it will host three meetings in December, one virtual and one each in Annapolis and Stevensville on six alternative plans for the bridge as it moves forward in an environmental study for the project.

Those plans have been narrowed down to removing the aging current spans — the two-lane eastbound span is more than 70 years old and the three-lane westbound span is more than 50 years old — and building new spans with four or five lanes in each direction. The spans would be built alongside the current structures.

The state began the formal process of studying potential new Bay crossings in 2022 by looking at 14 possible routes for a crossing, before settling on the current alignment because of its cost and environmental impacts compared to other alignments.

State officials also considered several options for the new crossing, including a tunnel, a bridge-tunnel combination and double-decker bridge, but all of those were ultimately rejected in favor of side-by-side spans.

The replacement bridge would be built one span at time near the current spans — north or south or, possibly, with one between the current spans — with older spans eventually being removed.

The replacement spans would carry a total of eight or 10 lanes, compared to the current five. The new structures would also be taller, as the state claims the current spans “do not provide desired navigational vertical clearance” for larger, modern ships heading in and out of the Port of Baltimore.

Bigger shoulders, bike and pedestrian lanes and bus service improvements are also being considered. So too is congestion pricing for drivers who use the crossing.

The state estimates the cost of a new bridge could range from $7.3 billion to $8.4 billion, depending on the number of lanes chosen. One alternative is not rebuilding the spans and instead paying to maintain them, which the state estimates would cost $3.8 billion through 2065.

The first hearing will be held online on Dec. 4, and the second will happen at Broadneck High School in Annapolis on Dec. 9. The final meeting will be on Dec. 11 at Kent Island High School in Stevensville. All three meetings will go from 6 p.m. to 8 p.m. People can also submit their comments online at any time.

By Mike Murillo

– As part of Maryland Matters’ content sharing agreement with WTOP, we feature this article from Mike Murillo. Click here for the WTOP News website.

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