Gov. Wes Moore (D) told leaders of counties across the state that he stands behind $3.3 billion in transportation cuts and told them to brace for “a season of discipline.” Photo by Bryan P. Sears.

Gov. Wes Moore (D) told a gathering of county leaders still reeling from news of deep cuts in transportation projects that he backs the proposal, describing it as hard medicine.

For two days, officials from around the state have grumbled about $3.3 billion in cuts including deep reductions to highway user revenues, the primary source of local road repair funding for counties.

“I know that our trust is being tested,” Moore said during a dinner speech at the Maryland Association of Counties winter conference in Cambridge. “I believe the course we’ve taken is the right one.”

Moore’s speech also included some details of a dozen bills that will be his legislative agenda for the 2024 session.

“The year will be hard,” he said. “But I have never been more optimistic about the future of our state. Because we will tackle this moment together. I’ve always believed you can never learn anything about anyone when times are easy. You learn about someone when times are hard – when you’re tested – when the only choices left are tough choices. That time is now.”

The speech is a public recognition by Moore of the anger expressed by many county leaders who complained about the 11th hour nature of delivering news of extreme cuts. Moore vowed to repair any damage to the relationship.

“Trust demands transparency and truth, even if it’s hard,” said Moore. “This evening, I offer both – to you and to the people of Maryland. And if there’s one argument I hope to make clear before I leave the podium, it’s this: In this challenging time, we have a duty to act with discipline. Because discipline is what the people of Maryland deserve; And by acting with discipline, I believe we can build a better state for the long-term – and strengthen the bonds of trust.”

The governor also acknowledged the economic pinch felt by Marylanders. His speech contained no mention of tax increases.

“So, at a time when Marylanders are feeling squeezed and skeptical, we need to do more than tighten our belts – we must rethink how state government does business,” he said. “That work won’t happen overnight. Our administration is still gathering a deeper understanding of where structural gaps exist – and why we keep coming up short. But we must start doing the hard work now. That’s what our transportation proposal is about.”

But Moore added: “I don’t have all the answers right now.”

For the better part of a year, Moore has traveled the state preaching the gospel of false choices, promising to do bold things even if the mechanism for paying for those promises was not always clear.

Earlier this week, Paul Wiedefeld, Moore’s transportation secretary, released plans to cleave $3.3 billion in transportation funds. The cuts hit every corner of the state and in many cases, projects long expected by the state’s 23 counties and Baltimore City.

Moore said the state is now “forced to reckon with structural challenges that have plagued our state for years.”

“If we don’t make hard choices now, Maryland’s budget challenges will grow,” said Moore. “We will have fewer resources to supercharge our economy; We will have less power to win the decade; And the public won’t trust us to use their taxpayer dollars responsibly.”

Moore, in his prepared comments, appeared to walk back the idea that the state could do “everything all at once.”

And he laid blame on his predecessor, Gov. Larry Hogan (R).

“We’ve seen the last administration preside over transit lines that were late, over-budget, and unfinished,” said Moore. “Just today, light rail cars in Baltimore that were purchased years ago had to be taken out of service because they were deemed unsafe. Marylanders feel like they’re paying a lot – and aren’t getting the best in return. I believe we have a responsibility to invest in our priorities. But first, we need to build a strategy for investment that shows the public we can deliver results in a sustainable way. Here’s the hard truth: We’ve spread ourselves too thin.”

Moore, who never mentioned Hogan by name, said the Republican “turned away from making hard choices on what we should and shouldn’t prioritize as a state government.

“So, we say we’ll invest in everything – without the resources to do it. And the budget gap is the result,” Moore said.

The comments could also be a hint of self-criticism from the first-year executive.

Moore has promised major projects including easing traffic congestion on the Capital Beltway and I-270 as well as a new American Legion Bridge — a project first promised by Hogan.

Hogan vowed to complete the project as a public-private partnership. Moore nixed that plan but has yet to identify funding.

Similarly, Moore announced this summer he would build an east-west “Red Line” corridor in Baltimore that was canceled in 2015 by Hogan, who called it a “boondoggle.”

Moore has not identified how that project would be paid for.

Moore also criticized the current way the state pays for projects through the Transportation Trust Fund, including revenue from the state’s gas tax.

“The transportation trust fund has become so outdated that fixing it requires a comprehensive look at how we fund transportation in the first place,” he said.

But Moore did not mention his call this summer to end automatic annual increases of the gas tax tied to the rate of inflation. Moore said the increases are disproportionately unfair to low- and middle-income workers.

Moore offers peek at legislative agenda

Moore also used the speech to touch on a few of the dozen bills that will form the legislative agenda in his second year. He offered no specifics on any of the bills he will propose.

In that package will be legislation to promote data centers in Maryland.

The governor also plans to introduce a bill “addressing the current workforce shortage in law enforcement so we can do a better job of keeping our communities safe.”

He said he plans to “unveil a package of housing bills” next week including legislation focused on affordable housing.

By Bryan P. Sears

A third presentation to the Historic District Commission by Christopher Frank of Hammond Wilson architectural firm for approval to build a 6,000 sq ft house at 206 Cannon Street was tabled during Wednesday night’s HDC meeting.

The third iteration of the structure indicated a second reduction in size based on floor sq ft, not full structural size, to approximately 6,000+ sq. ft.  Structural diagrams will be shared with Spy readers when available.

The HDC’s long-running concern with the structure has been whether the house design complements a historic district’s overall aesthetics.

The house would face Cross Street (Rt. 289)—across from the railroad boxcars. The large lot is between the old police station and Sumner Hall and from Cross Street to Cannon Street.

Commissioner Michael McDowell commented first after the presentation.

“The first time that you came, I was most concerned with the size of the building. I credit you for coming back with revisions that reduced the size, but the more I have considered this and having read with due diligence several times the submissions, the more concerned I am and think that even the reductions still create a problem in terms of bulk, size, and length. I would be quite uncomfortable in voting for this,” he said.

No vote was held. Most public comments criticized the building plan for being out of step with Chestertown’s historic identity.

Whether the proposed building as newly presented eventually meets HDC’s guidelines remains to be seen. Mr. Frank will return in January with additional information about the proposed structure and landscaping designs.

Video excerpts of the meeting and images of the current architectural rendering will be presented to the public as soon as possible.

Proposed block layout by Hammond Wilson Architects, Annapolis. Does not show current house size reduction as per Wednesday architect’s presentation to the HDC.

Photo taken from Cross Street (Rt. 289) looking toward Cannon Street.The design proposal indicates the house will face Cross Street.

Panorama of 206 Cannon Street area. Does not include public parking lot to the right.

County officials and legislators are lashing out at a plan to cut billions in transportation projects across the state.

State Transportation Secretary Paul Wiedefeld, in an interview Tuesday, said the department is forced to address $3.3 billion in shortfalls. To close the gap over the current six-year spending plan, the agency will impose across the board budget cuts, hiring freezes, fee and parking rate increases as well as defer hundreds of millions in projects across the state.

“This is not a new problem for our state,” Wiedefeld said. “In 2020, the Department of Legislative Services identified that Maryland’s transportation program had a structural issue with operating costs increasing faster than overall revenues. Since 2020, these issues have been exacerbated by historic inflation impacting labor and materials costs, depleted COVID-19 relief funding, and the gradual decline of transportation’s largest revenue source – motor fuel tax revenue.”

To close the gap, the department will cut roughly $1 billion from its operating budget. Another $2 billion will be cut from its capital budget. Local governments will see a $400 million reduction.

In an interview with Maryland Matters, Wiedefeld said his department will look to increase fees at the Motor Vehicle Administration as well as increase parking rates at BWI Thurgood Marshall Airport. The changes could bring in an additional $80 million, a fraction of what is needed.

“Some of it’s nickels and dimes, to be frank,” Wiedefeld said in describing fees the department could increase on its own. “It’s $1 at the port. Some tipping fees and some relatively minor things. The big availability of funds is in MVA and parking at the airport, because that’s where you have the biggest sources”.

Wiedefeld said the fee increases still leave “a very large hole” that needs to be closed.

“So, then you look at the operating budget,” he said. “So, then you say, Okay, well, let’s reduce across all modes 8%. So basically, what we said to each mode — meaning the airport, transit, MVA highways — you all manage your budgets, reduce it by 8%.”

That will include hiring freezes, Wiedefeld said. That move comes at a time when Gov. Wes Moore (D) has vowed to “rebuild state government” by filling an estimated 10,000 state worker vacancies.

Moore has already fallen behind the pace needed to reach his goal of 5,000 new employees hired in his first year.

The agency will also make cuts to transit, according to Wiedefeld, including:

• Reductions in commuter bus service.
• A 40% cut in state aid to locally operated transportation systems.
• State aid for local road projects through Highway User Revenue will be flat-funded at the current level.
• Reductions in MARC commuter rail service.
• Reductions in maintenance of roads and guardrails.
• Reductions in highway litter removal and grass cutting.
• Cuts to maintenance of buses and commuter rail equipment.

Wiedefeld said current budget constraints limit some transit improvements, particularly in Baltimore, that would improve the quality of service. Those efforts cannot be paid for now. Maintenance to improve safety would be prioritized, he said.

“If there’s an imminent safety issue. We just do it,” he said.

Transportation on the minds of county leaders

Details of the reductions come as officials from the state’s 24 major political subdivisions gather in Cambridge to discuss the upcoming General Assembly session at the Maryland Association of Counties (MACo) winter conference.

Transportation officials and Moore are expected to attend.

“I have been engaged in conversations with the governor, lieutenant governor, and their team regarding the challenges with MDOT Funding. We understand the need to ensure Maryland has an adequate transportation system while also balancing our current fiscal realities,” said Howard County Executive Calvin Ball (D), who is also president of MACo. “As MDOT and the General Assembly consider cuts to our transportation system, I continue to urge them to prioritize and sustain funding for basic system preservation and operations, which includes grant funding to local government and critical state system safety projects that address the increase in injuries and fatalities on our roads.”

Reaction from local and federal elected officials has been mixed, ranging from optimism that deep cuts can be averted to concern about current proposals to close the shortfall.

“It is evident this administration inherited challenges from the previous administration, but we believe funding cuts that shortchange residents in Baltimore County – and across the entire Baltimore region – should not be the solution,” said Baltimore County Executive Johnny Olszewski Jr. (D).

In western Maryland, Frederick County Executive Jessica Fitzwater (D), vowed to fight to retain funding for projects in her county.

“From daily commutes to high-profile incidents like the tanker explosion in March, the US 15 project has a very real and direct impact on the quality of life in Frederick County and all of Western Maryland,” Fitzwater said. “Furthermore, the decision to abandon the expansion of MARC service along the Brunswick line does damage to our shared transit goals.”

Anne Arundel County Executive Steuart Pittman (D) and leaders of some of the state’s larger jurisdictions have excused Moore from blame. Instead, many are content to point the finger at former Hogan, the Republican former governor, and Wiedefeld.

“The person who is delivering the message is not the governor, it has been Secretary Wiedefeld,” said Sen. Cory McCray (D-Baltimore). “He’s got to be able to articulate it. That’s why he gets paid the big bucks.”

Even as Wiedefeld discusses plans to balance the transportation budget, counties still await an updated version of the state’s six-year Consolidated Transportation Plan.

The agency has produced a plan that has a $2.1 billion gap between proposed projects and available funding. It is the first time in the history of the spending plan that an agency has produced one that is unbalanced.

Wiedefeld said it is likely that a balanced proposal will not be available before a deadline to deliver the budget to the General Assembly in January.

“We remain optimistic that we can continue working with the Moore administration and legislative leaders to ensure that Baltimore County and our region are more equitably supported in the final CTP submission to the General Assembly in January and in the years ahead,” Olszewski said.

Legislators take issue with cuts

State lawmakers were also taken aback by the cuts.

McCray said the proposal is potentially devastating for Baltimore and other areas.

“The spending cuts outlined by the Maryland Department of Transportation risk doing more harm to the well-being and livelihood of all Marylanders, especially those in the Baltimore region,” McCray said. “If passed in its current form it would undermine the Baltimore Region’s economic recovery and economic growth for years to come.”

McCray said the proposal “pits region against region and asks Baltimore city to shoulder a disproportionate share of the burden of today’s fiscal realities. This simply must not happen.”

The proposal was also panned by the legislature’s Transit Caucus.

“As leaders of the bipartisan and bicameral Maryland Transit Caucus, we are extremely disappointed in the dramatic cuts made in the updated final draft Consolidated Transportation Plan (CTP) released by the Maryland Department of Transportation (MDOT). In cutting nearly $1 billion from transit, bicycle, and pedestrian investments, MDOT is disproportionately harming those who can least afford any alternatives,” the caucus said in a statement. “These cuts are also shortsighted, making it more difficult for our state to fight climate change and meet our carbon reduction targets. Our state CTP should be a reflection of our values and our goals for the future, and this falls short. We call on MDOT and the Moore Miller Administration to honor their commitments and engage in a serious conversation with communities across the state in raising the necessary resources to move Maryland’s infrastructure into the 21st century.”

‘This is a reality check’

Others, such as Pittman, said the news was not unexpected and held out hopes it could be avoided.

“I do think it’s important to note that the sky is not falling,” Pittman said. “This is a reality check on where things stand. Now, we’ve got to put our minds together and our commitment together and decide whether or not we want to create the revenue to fix it.”

Pittman called for “revenue enhancements” including a tax on high-income earners in the state as a way to ease the cuts.

Senate Minority Leader Stephen S. Hershey Jr. (R-Upper Shore) said the cuts were no more than a manufactured doomsday scenario.

“This is a script of a bad movie that we’ve seen over and over again,” said Hershey, who is a member of the Transportation Revenue and Infrastructure Needs Commission. “They come out and they claim that they don’t have enough money to do something. Then they want to put it back on the legislature and say you’re going to have to be the ones to solve the problems.”

The solution, he said, is inevitable tax or fee increases.

The TRAIN Commission on which Hershey serves is tasked with modernizing how the state replenishes the dedicated fund that pays for road and transit projects. The panel is also expected to recommend changes to how the Department of Transportation prioritizes road and transit projects.

Frank Principe, chair of the commission, is asking the panel to include recommendations setting new fees for owners of electric and hybrid vehicles and raising tolls on out-of-state motorists.

The interim report will be discussed at a meeting next week. The panel is expected to continue its work through 2024.

‘Devastating consequences’ for Marylanders

Rep. David Trone (D-6th), in a letter to Wiedefeld that was obtained by Maryland Matters, expressed concern about cuts to projects, some which directly impact his district and others that were to receive significant federal funding though the federal Infrastructure Investment and Jobs Act.

A spokesperson for Trone was not available for comment.

In the letter, Trone expressed concern that “the direction MDOT is pursuing will have devastating consequences for all Marylanders.”

Maryland is slated to receive $1.3 billion in federal funding for 33 highway projects, eight new transit projects and 15 aviation projects. All of the highway projects were fully funded in the design and engineering and construction phases.

Wiedefeld said the state will continue to provide state matching money for projects that have federal funding.

“You don’t walk away from federal money,” he said.

Trone, in his letter, said he is concerned that Wiedefeld’s plan to close the gap will strip funding from many of those projects.

“Specifically, the plan would reallocate non-discretionary funds from 12 of the 33 approved priority roadway projects, reduce transit services, and cut maintenance projects,” Trone wrote. “This is unacceptable, and inconsistent with the intent of the law as the Biden-Harris administration has clearly stated its goal of rebuilding our country’s ailing infrastructure from the inside out.”

By Bryan P. Sears

One of the most important signs of a healthy economy is local philanthropy. If people aren’t giving, the argument goes, it’s a reasonable indicator that families are tightening their belts. And one important source on local giving every year is Buck Duncan, president of the Mid-Shore Community Foundation.

And to the relief of many, Buck’s annual assessment is surprising positive for 2023.

Over the last fiscal year, MSCF granted $7.4 million in scholarships and aid, supported by $6.4 million in contributions, managing 566 diverse funds. A notable achievement includes $1.7 million in scholarships, categorized as traditional for college-goers and non-traditional for career and workforce development. They received 332 applications, awarding 267 traditional and 65 non-traditional scholarships.

In addition, the crisis in healthcare staffing in the counties led to the creation of a dedicated healthcare scholarship fund, starting with $250,000. This fund addresses the critical need for healthcare professionals. Additionally, MSCF focuses on career and technology education, having missed generations in this area. They offered 47 scholarships across various fields, benefiting 44 students.

In Buck’s update, he notes that the MSCF’s scholarship window for the next school year opens on December 1. They encourage potential applicants to visit their website.

Another initiative, Mid-Shore Gives, was just completed with impressive results in its second year. It helped regional non-profits raise $86,000 through 589 donations, supporting 77 organizations. This program is expected to grow as a vital funding source.

The Spy send a few minutes with Buck yesterday at his office at the Bullitt House in Easton to hear more of the good news.

This video is approximately five minutes in length. For more information about the Mid-Shore Community Foundation please go here. For MSCF scholarship fund support please go here.

Santa and Mrs. Claus arrived early this year from the North Pole to help kickstart the holiday season with the annual Kent County Home Holiday Parade.

Hosted by Main Street Historic Chestertown and the Downtown Chestertown Association, the popular event packed the High Street sidewalks in the Fountain Park area to watch the parade of floats, Christmas characters, marching bands, and fire trucks deliver the Clauses to their gift-giving shop at the park.

Santa will be on hand in his house at Fountain Park to give children gift bags courtesy of Twigs and Teacups from 11:00 am to 1:00 pm on December 10 and 17

For more information about holiday activities, go here. 

This video is approximately two minutes in length.