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The Budget Battle Ahead Attorney General A short honeymoon? Facing a vote – or not Familiar challenges await It’s unclear if Crittendon Mansion incoming USM chancellor 8A project needs council OK. 5A Monday, December 22, 2014 Volume 126 | Number 055 TheDailyRecord.com Ciraolo to get post at Justice She’s to be appointed to tax division role BY LAUREN KIRKWOOD [email protected] Caroline Ciraolo, a partner in Rosenberg Martin Greenberg LLP’s tax controversy practice group, will be appointed by the U.S. attorney general in January to a position in the Department of Justice’s Tax Division. Ciraolo will join the department as the tax division’s deputy assistant MAXIMILIAN FRANZ attorney general for policy and plan- ning, and will also serve as the princi- pal deputy assistant attorney general, she said. If President Barack Obama announces a nominee for assistant attorney general of the tax division, Ciraolo will become acting assistant The budget battle ahead attorney general. At Rosenberg Martin, Ciraolo de- fends individuals and businesses in Hogan, legislators face ‘difficult decisions’ with deficits growing federal and state civil tax controver- sies, civil tax litigation and criminal BY BRYAN P. SEARS Hogan, who will LIS S very difficult de- challenges facing the state, tax investigations and prosecutions. [email protected] be sworn into PO U cisions because said he did not wish to scare Although she’ll be on the prosecu- A M public office for N M state govern- residents. tion side of the courtroom soon, her In roughly 30 days, Larry the first time N I ment cannot “What’s good for state ultimate goal as an attorney isn’t that T Hogan will be sworn in to in January, A continue to government is good for Mary- different, she said. office after running a cam- maintains that spend more landers,” Hogan said. “If we “I’ve always said all tax profes- paign focused on improving he was sent to than it takes can take the strong medicine sionals are really working to bring the state’s business climate, Annapolis with in,” Hogan said now, I believe we can begin taxpayers into compliance with fed- reducing taxes and mending a mandate to re- 2015 during a recent to heal the state economy eral and state tax laws, and I think the state’s budget process duce spending meeting with the and that will benefit all Mary- that’s true on both sides of the table,” that routinely yields hun- and right the SIXTH IN A SERIES press on the bud- landers. We cannot continue she said. dreds of millions of dollars in state’s economy and business get. to say ‘yes’ to every demand The tax controversy practice at shortfalls annually over the climate. Hogan, who said his style last decade. “We have to make some is to speak bluntly about the SEE BUDGET 3A SEE CIRAOLO 11A Richard M. Karceski, chairman of Commission: General Assembly should the Governor’s Commission to Reform Maryland’s abolish ‘inherently unfair’ bail system Pretrial System, said the proposals BY STEVE LASH form Maryland’s Pretrial System called in the final Steve [email protected] the state’s bail system inherently un- report fair. Low-income defendants are too ‘serve as an often held in custody pending trial due A Maryland commission on pretrial important step reform Friday called on the state to to their inability to pay, while wealthier forward for stop requiring people to post bond after defendants are released because they pretrial reform arrest as a condition of being released can foot the bill, the commission stated. in Maryland.’ from custody before trial. SEE BAIL 11A The Governor’s Commission to Re- FILE PHOTO Auction sales 28A News briefs 4A Lawyer to lawyer 12A $269 per year For subscriptions Calendar 6A Law briefs 11A Public notice 13A call 1-800-451-9998 or email Employment 7A Litigation support 12A Sealed proposals 14A INDEX $2 per copy [email protected] 2A THEDAILYRECORD.COM Monday, December 22, 2014 ONLINE TODAY BLOGS UPCOMING SPECIAL Cole: ‘We want IN CASE YOU MISSED IT to be Baltimore’ PUBLICATIONS AND READ Mistakes to avoid during estate planning In the Baltimore De- Pete Pichaske FOCUS SECTIONS Business Buzz velopment Corp.’s Com- Professional estate planners can easily tick off long lists of what can go wrong in planning for what happens to your Eye on Annapolis prehensive Economic January 16 money and property when you die, but they pretty much Development Independent Generation J.D. agree on the worst mistake you can make: Doing nothing. Strategy Re- Schools Guide “The biggest mistake anyone can make is to not do any Ground Up port, it com- Special pares Charm estate planning at all,” said Tom Byers, a tax partner at Ellin On the Record Publication City with & Tucker and leader of the Baltimore accounting firm’s Es- TWITTER Boston, Phil- tate Tax Planning and Compliance Group. adelphia and “For many, it’s a difficult topic to approach,” he added. Adam Bednar LIS PO SU January 30 FOLLOW Oakland. “No one likes to think of their own passing, and many peo- A M N M N I William ple start thinking about it too late. But it’s something every- T Annapolis A @MDDailyRecord one needs to do.” ... Summit Cole, president and CEO of @annaisaacs Special the corporation, said that it 2015 @bgrz in no way implies the city Publication @Bmorejourno is angling to be like those @bpsears areas. @Lauren_Kirkwood “We’re not trying to be- @Steve_Lash come any of those three February 20 @TDRAlissa cities. We want to be Bal- Summer Camp @TDRDanny timore and the best Balti- Guide @TomBaden more we can be,” Cole said during a meeting Thursday FACEBOOK morning before the report LIKE was approved. The five mddailyrecord year plan guides economic strategy and still must be March 6 LINKEDIN given final approval by Wealth Mayor Stephanie Rawl- Management CONNECT ings-Blake. ... RADIO Special the-daily-record Tune in to WBAL 1090 AM Tuesday at 6:50 a.m. Publication for top stories from The Daily Record on the radio. SOUNDCLOUD VIMEO LISTEN WATCH ALERTS INSIDER the-daily-record mddailyrecord For breaking news alerts, Sign up on our homepage for daily emails text TDR to 313131 with the top headlines. Monday, December 22, 2014 THEDAILYRECORD.COM 3A Budget >> Legislators and new governor face tough choices in plugging budget gap Continued from 1A the revenue estimates decline and we ‘What’s good find ourselves in a situation where the for state for increased spending. The people are public, rightly, feels that we really didn’t government demanding we go in a different direction manage the budget properly and spend is good for and it means we’ll have to have the cour- too much money,” Kasemeyer said. “We Marylanders,’ age to say ‘no.’” certainly face, what looks like from the Gov.-elect Currently, spending in the budget outside, legitimate criticism that we Larry Hogan is growing at a rate of about 6 percent didn’t manage the situation properly.” says. ‘If we can take the strong annually. Much of this increase is being Last week, the Board of Revenue Es- medicine now, I driven by the fact that 81 percent of the timates issued a downward revision of believe we can budget is mandated. Formulas for items projected revenues of $271 million over begin to heal such as the repaying state bonds, the the next 18 months. the state pension and retiree health benefits are “It is sobering that our revenues are economy increasing faster than the 4 percent aver- not coming in as projected,” said Sen. and that will age annual growth in revenue, according Roger Manno, D-Montgomery County benefit all to Democratic former state Sen. Robert and co-chair of the legislative Spending Marylanders.’ L. Neall, Hogan’s senior adviser on the Affordability Committee. “We have to budget. take note of the fact that this is not an BRYAN P. SEARS “We’ve got to set a clear set of con- unusual occurrence and we’ve sort of sistent decisions that are grounded in learned to live in that world where rev- principles and eliminated some options. situation worse. sound fiscal discipline to reduce the size enues don’t come in at the levels they “A truly balanced budget is expenses, Hogan will face significant challenges and scale of general fund expenditures are projected by the Board of Revenue recurring expenses, fully supported by in both the House and Senate where, de- not withstanding these obligations,” Estimates.” recurring revenue with a little left over spite gains by Republicans, Democrats said Neall. for a rainy day,” said Neall. hold overwhelming majorities in each Warren G. Deschenaux, director of the “I believe fiscal ‘16 must be a thought- chamber. Many of those Democrats say The debate ahead Office of Policy Analysis, told the state ful departure from the way things have they are ready to “man the barricades” But some Democratic legislators say Spending Affordability Committee in No- been done and preparing that budget over any cuts to education. Hogan, who claims a voter mandate to re- vember that it had one of two choices in is going to require a re-basing of every “If he wants to just hammer educa- duce taxes while controlling spending, is fixing the ongoing budget problem. major expense we have flexibility on,” tion as a way to cut the budget and cut not the only one coming into the session “Increase economic activity or Neall said. taxes, he will find very few friends in the facing high expectations from voters.
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