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The Annapolis Report a Review of the 2018 Legislative Session

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The Annapolis Report a Review of the 2018 Legislative Session The Annapolis Report A Review of the 2018 Legislative Session THE ANNAPOLIS REPORT A Review of the 2018 Legislative Session BY CAROL PARK and MARC KILMER ABOUT THE MARYLAND PUBLIC POLICY INSTITUTE Founded in 2001, the Maryland Public Policy Institute is a nonpartisan public policy research and education organization that focuses on state policy issues. Our goal is to provide accurate and timely research analysis of Maryland policy issues and market these findings to key primary audiences. The mission of the Maryland Public Policy Institute is to formulate and pro- mote public policies at all levels of government based on principles of free enter- prise, limited government, and civil society. In order to maintain objectivity and independence, the Institute accepts no gov- ernment funding and does not perform contract research. The Maryland Public Poli- cy Institute is recognized as a 501 (C) (3) research and education organization under the Internal Revenue Code. Published by The Maryland Public Policy Institute One Research Court, Suite 450 Rockville, Maryland 20850 240.686.3510 mdpolicy.org Copyright © 2018 Nothing written here is to be construed as the official opinion of the Maryland Public Policy Institute or as an attempt to aid or hinder the passage of any bill before the Maryland General Assembly. A Review of the 2018 Legislative Session TABLE OF CONTENTS Introduction............................................................................................. 5 Methodology ............................................................................................ 5 Overview................................................................................................... 6 Budget ........................................................................................................... 6 Taxes ............................................................................................................. 6 Education ...................................................................................................... 6 Elections ....................................................................................................... 6 Business, Economy, and Free Markets ........................................................... 6 Crime ........................................................................................................... 7 Health Care .................................................................................................. 7 Details ........................................................................................................ 7 Budget ........................................................................................................... 7 Taxes ............................................................................................................. 8 Education ...................................................................................................... 8 Elections ..................................................................................................... 10 Business, Economy, and Free Markets ......................................................... 11 Amazon Subsidies ................................................................................... 11 Energy .................................................................................................... 12 Breweries ............................................................................................... 13 Minimum Wage ....................................................................................... 13 Occupational Licensing ........................................................................... 14 Home Sharing ......................................................................................... 14 Crime ......................................................................................................... 14 Post-Conviction DNA Testing ................................................................ 14 Termination of Rapist’s Parental Rights ................................................... 14 Gun Control ........................................................................................... 15 Health Care ................................................................................................ 15 Medicaid ................................................................................................. 15 Affordable Care Act Fallout .................................................................... 15 Interstate Licensure of Physicians ........................................................... 16 Conclusion .............................................................................................. 16 3 THE ANNAPOLIS REPORT A Review of the 2018 Legislative Session THE 2018 SESSION OF MARYLAND’S GENERAL ASSEMBLY saw little break from the typical ap- proach of past sessions. Spending increases continued unabated, and although lawmakers addressed the state’s structural deficit, they took little action to alleviate it. Notably, there will be a small “struc- tural surplus” this year, but the structural deficit will return significantly in later years. Lawmakers championed tax relief for favored businesses, most notably Amazon, but not for average Marylanders. And action to control crime came in the form of further restrictions on fire- arms possession—laws that did more to generate praise from media than to control the actions of criminals. There were some notable differences from past legislative sessions, however. Governor Larry Ho- gan and legislative leadership continued to disagree on various issues, which is not surprising since they represent two different parties. But these same legislators ignored Democratic Comptroller Peter Franchot’s proposals to reform the state’s brewery laws and passed legislation to trim his powers. This report summarizes and evaluates the 2018 legislative session’s results in major policy areas. The mission of the Maryland Public Policy Institute is to promote public policies at all levels of gov- ernment based on principles of free enterprise, limited government, and civil society. Our analysis of legislative sessions has been consistent with that mission. We note cases when legislation reduces the freedom of Marylanders or expands government intervention in people’s lives, and praise legislation that is consistent with our mission. METHODOLOGY Assigning grades to legislation is a subjective process. This report cannot consider every bill passed by the General Assembly, much less every bill introduced by legislators. Instead it gives an overview of the most important bills considered in certain broad subject areas, as well as some lower-profile bills that merit attention. The 2018 session is graded on whether lawmakers promoted free enter- prise, limited government, and civil society. 5 The Annapolis Report OVERVIEW $200 million for future expenses to implement Budget the recommendations of the Kirwan Commis- GRADE: C sion. Given their mediocre track record in the past The 2018 legislative session produced mixed re- years, it is also no surprise that legislators also paid sults for the state’s budget. The Federal Tax Cuts little attention to charter schools, school choice, or and Jobs Act of 2017 resulted in $550 million in innovating Maryland’s education sector. additional general fund revenue for Maryland, which explains the structural surplus expected Elections for fiscal year 2019. However, in a story that GRADE: D repeats itself, legislators passed bills allowing Maryland has some of the most gerrymandered future ongoing spending to exceed ongoing rev- congressional districts in the nation. Once again, enue. Therefore, a structural deficit is expected Governor Hogan pushed his proposal for a bi- to return in FY 2020 and persist afterwards. partisan redistricting commission during this Overall, legislators failed to tackle key issues year’s session, but the bill failed in the legislature. that have plagued Maryland for years: excessive Maryland also pioneered the regulation of online spending and a long-term structural deficit. political advertising, and passed bills requiring social media platforms to track all political ads. Taxes The constitutionality of this bill remains a point GRADE: C of debate. Legislators also considered bills that According to the 2018 Tax Foundation’s state would require presidential candidates to release business tax climate ranking, Maryland has the their tax returns for the previous five years, al- seventh-worst tax climate in the nation.1 Hence, though they ultimately did not pass these bills. the 2018 session should have focused on allevi- ating some of Marylanders’ tax burden through Business, Economy, and Free Markets broad tax rate cuts. Instead, legislators once GRADE: D again focused on providing targeted tax incen- State policymakers continued with their usual tives to favored groups. preference for programs favoring corporate wel- Maryland’s history of corporate welfare peaked fare during the 2018 legislative session. The this year with the Promoting ext-Raordinary In- proposal to give $5.6 billion in handouts to Am- novation in Maryland’s Economy Act,2 which azon is merely the most egregious example of would provide subsidies to Amazon if that com- the prevalent mentality in Annapolis that aims pany chooses to build its second headquarters in to grow the state’s economy by subsidizing polit- Maryland. Meanwhile, only limited tax relief was ically-connected businesses or industries.
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