Effects of the Recession on Maryland Communities Hearings
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EFFECTS OF THE RECESSION ON MARYLAND COMMUNITIES HEARINGS BEFORE THE SUBCOMMITTEE ON INVESTMENT, JOBS, AND PRICES OF THO JOINT ECONOMIC COMMITTEE CONGRESS OF THE UNITED STATES NINETY-SEVENTH CONGRESS FIRST SESSION JANUARY 11, 12, 14, AND 15, 1982 Printed for the use of the Joint Economic Committee U.S; GOVERNMENT PRINTING OFFICE 95-758 WASHINGTON: 1982 ,&.*. 'R 9 r `4 JOINT ECONOMIC COMMITTEE (Created pursuant to sec. 5(a) of Public Law 304, 79th Cong.) HOUSE OF REPRESENTATIVES SENATE HENRY S. REUSS, Wisconsin, Chairman ROGER W. JEPSEN, Iowa, Vice Chairman RICHARD BOLLING, Missouri WILLIAM V. ROTH, JR., Delaware LEE H. HAMILTON, Indiana JAMES ABDNOR, South Dakota GILLIS W. LONG, Louisiana STEVEN D. SYMMS, Idaho PARREN J. MITCHELL, Maryland PAULA HAWKINS, Florida FREDERICK W. RICHMOND, New York MACK MATTINGLY, Georgia CLARENCE J. BROWN. Ohio LLOYD BENTSEN, Texas MARGARET M. HECKLER, Massachusetts WILLIAM PROXMIRE, Wisconsin JOHN H. ROUSSELOT, California EDWARD M. KENNEDY, Massachusetts CHALMERS P. WYLIE, Ohio PAUL S. SARBANES, Maryland JAMES K. GALBRAITH, Executive Director BRUCE R. BARTLETT, Deputy Director SUBCOMMITTEE ON INVESTMENT, JOBS, AND PRICES HOUSE OF REPRESENTATIVES SENATE HENRY S. REUSS, Wisconsin, Chairman EDWARD M. KENNEDY, Massachusetts, PARREN J. MITCHELL, Maryland Vice Chairman CHALMERS P. WYLIE, Ohio PAUL S. SARBANES, Maryland CLARENCE J. BROWN, Ohio WILLIAM V. ROTH, JR., Delaware MARGARET M. HECKLER, Massachusetts (I) CONTENTS WITNESSES AND STATEMENTS MONDAY, JANUARY 11, 1982 Sarbanes, Hon. Paul S., member of the Subcommittee on Investment, Page Jobs, and Prices, presiding: Opening statement- 1 Heintz, Frank O., executive director, Employment Security Administra- tion, Maryland Department of Human Resources, Baltimore, Md 3 Hutchinson, Donald P., Baltimore County executive, Towson, Md -12 Wasserman, Mark, representing Hon. William Donald Schaefer, mayor, city of Baltimore, Md --- 23 Pines, Marion W., executive director, mayor's office of manpower resources, city of Baltimore, Md ------ __ 25 Berkowitz, Bernard, president, Baltimore Economic Development Corp., Baltimore, Md -_ 41 Lakein, Warren, Lakein Jewelers of Hamilton, Baltimore, Md -45 Jeffein, Gerald, William, Kaufman & Co., Baltimore, Md -_ 47 Boucher, William III, General Motors representative, Baltimore, Md -_- 49 Bradley, Tom, president, Maryland State and District of Columbia AFL- CIO, Annapolis, Md ------------- 55 Kollein, Henry, Jr., president, Metropolitan Baltimore Council AFL- CIO Unions, Baltimore, Md ------------------------------- 57 Harmon, James C., executive secretary, Local 33, Industrial Union of Marine and Shipbuilding Workers of America, AFL-CIO, Baltimore, Md ------------------------------------------------------------ 58 Van Gelder, Philip H., chairman, Maryland-District of Columbia AFL- CIO Committee on Unemployment Insurance, Baltimore, Md -_____- 60 Voelkel, Robert E., Jr., president, Mercantile Mortgage Corp. and Mary- land Mortgage Bankers, Baltimore, Md -_ 66 McCuan, Patrick, president, McCuan Development Corp. and State of Maryland Institute of Home Builders, Columbia, Md -_ 67 Sills, CreSaundra, director of career planning and placement, Loyola College, Baltimore, Md- 72 LeMire, Francis J., director of placement, Towson State University, Tow- son, Md -_ 74 Pelletier, Dennis M., director of career planning and placement, University of Baltimore, Baltimore, Md ------ 87 Martello, John, acting director, office of cooperative education, University of Maryland, Baltimore County, Catonsville, Md - 95 Roberts, James L., director, Center for Career Development, Morgan State University, Baltimore, Md - 96 Carey, Michael, director, career programs, continuing education and community service, Catonsville Community College, Uatonsville, Md 97 Thornton, James H., director, career planning and placement, Coppin State College, Baltimore, Md - 101 TUESDAY, JANUARY 12, 1982 Sarbanes, Hon. Paul S., member of the Subcommittee on Investment, Jobs, and Prices, presiding: Opening statement -111 Foltz, David A., research analyst for western Maryland, Maryland Em- ployment Security Administration Hagerstown, Md -114 Wyckoff, George, Jr., cochairman, Cumberland Area Labor Management (CALM), and president, Cumberland Steel Co., Cumberland, Md - 122 (m) IV Zorick, Stanley, cochairman, Cumberland Area Labor Management (CALM), and president, Western Maryland Central Labor Council, Page Cumberland, Md - -123 Kocsis, Stephen E., executive director, Tri-County Council for Western Mayland, Cumberland, Md - -128 O'Rourke, Patrick J., Allegany County zoning administrator and repre- senting the Allegany County Economic Development Co., dumberland, Md-------------------------------- 135 Jones, Thomas D., director, Garrett County Economic Development De- partment, Oakland, Md -- 136 Burtner, Leroy, director, Washington County Economic Development Commission, Hagerstown, Md - -142 Row, John B., executive vice president of manufacturing, Kelly-Spring- field Tire Co., Cumberland, Md - -147 Oster, Clayton C., vice president, United Rubber Workers Local 26, Cumberland, Md -- 148 Goodfellow, Michael P., vice president, Goodfellow Agency, Inc., realtors, and vice president, Western Maryland Association of Realtors, Cum- berland, Md -- 152 Growden, Gerald, Growden Construction Co., and immediate past presi- dent, Western Maryland Homebuilders, Cumberland, Md - -153 Deckerhoff, Richard C., president, First Federal Savings & Loan Associa- tion, Cumberland, Md - ------------------------------------ 154 Jones, Jeri, assistant director of continuing education and past placement coordinator, Garrett Community College, McHenry, Md -158 Galligan, Carl J., dean of students, Hagerstown Junior College, Hagers- town, Md - -159 Snyder, James M., associate dean of student affairs, Allegany Community College, Cumberland, Md -164 Combs, James F., business manager, local 307, AFL-CIO, International Brotherhood of Electrical Workers, Cumberland, Md -168 Peterson, Robert, president, Greater Cumberland Chamber of Commerce, Cumberland, Md -172 THURSDAY, JANUARY 14, 1982 Sarbanes, Hon. Paul S., member of the Subcommittee on Investment, Jobs, and Prices, presiding: Opening statement -177 Boren, Joel A., general manager, Federal Land Bank Association of Salis- bury, and Production Credit Association, Salisbury, Md -179 Richardson, Roger Lee, representing Eastern Shore Farming Industry, Eden, Md -183 Bounds, Thomas, Farmers Bank of Mardela, Mardela Springs, Md -- 187 Guy, William O., representing Eastern Shore farming industry - - 188 Barnes, Robert, labor market analyst, Maryland Employment Security Administration, Cambridge, Md -194 Massey, Charles E., Somerset County administrator, and executive direc- tor, economic development, Somerset County, Md - -198 Abercrombie, Michael G., president, CATO, Inc., Salisbury, Md -- 200 Cook, Robert W., director, Greater Salisbury Committee, Inc., Salisbury, Md -202 Clarke, Hon. J. Dawson, mayor, Pocomoke City, Md., accompanied by Russell Blake, administrator -210 Muller, Bill and Ann, Bill Muller-The Toymaker, Inc., Oak Hill, Va.--- 213 Porter, R. Hursey, Jr., president, Hursey Managerial Co., Salisbury, Md-- 216 Adams, George F., vice president, Loyola Federal Savings & Loan, Salis- bury, Md -220 Hanna, Henry, president, Ahtes & Hanna Real Estate, Salisbury, Md -- 221 Gillis, Donald, W. T. Gillis & Son Co., and president, Lower Shore Home Builders Association, Salisbury, Md -222 Nadelman, Martin H., director, student services, Wor-Wic Tech Com- munity College, Salisbury, Md --------- 225 Franklin, Herman, vice chancellor, student affairs, University of Maryland Eastern Shore, Princess Anne, Md -226 Lackie, James C., director, career development, Salisbury State College, Salisbury, Md --------------------------------------------------- _228 V FRIDAY, JANUARY 15, 1982 Sarbanes, Hon. Paul S., member of the Subcommittee on Investment, Jobs, Page and Prices, presiding: Opening statement --- 235 Paunil, Dolores, labor market analyst, Employment Security Administra- tion, Maryland Department of Human Resources, College Park, Md--. 237 Saquella, Thomas S., executive assistant, Maryland Department of Eco- nomic and Community Development, Annapolis, Md -241 Crofoot, Ernest B., director of council 67 and international vice president, American Federation of State, County and Municipal Employees, AFL-CIO, Washington, D.C - -------------------------------- 245 Kle ner, Jerry D., director of legislation, National Treasury Employees Union, Washington, D.C., accompanied by C. James Spellane, director of research ---------------------------- 247 MacIntyre, Donald M., national vice president, 14th district, American Federation of Government Employees, AFL-CIO, Washington, D.C., accompanied by Donald Haines, legislative attorney -257 Cardwell, David, accompanied by Robert Dunphy, on behalf of John E. Touchstone, director, Department of Community and Economic Re- sources, Metropolitan Washington Council of Governments, Washington, D.C-266 Johnson, Mary G., director of career planning and placement, Bowie State College, Bowie, Md -------- 271 Borchard, David C., director, center for career development, Prince Georges County Community College, Largo, Md -273 Bachhuber, Thomas D., director, career development center, University of Maryland, College Park, Md., accompanied by Martha Patton - 284 Meade, J. Michael, dean of students, Montgomery College-Germantown Campus, Germantown, Md -300 Snider, Robert W., Snider Bros., Kensington, Md., and director and treas- urer,