State House Update January 20, 2021 Message to Members While the day-to-day business of governing goes on in Maryland this week, many hearts are saddened by the passing of Maryland Senate President Emeritus Thomas V. "Mike" Miller, who died Friday. He was 78. He served for more than 50 years in the state Senate and House of Delegates and was a commanding presence in the legislature. Senator Miller will lie in state at the State House January 21 and 22 with limited visitation. A private funeral Mass is scheduled for January 23. As I noted in a statement issued January 15, "The Greater Baltimore Committee mourns the loss of Thomas V. "Mike" Miller, the longest serving Senate President in Maryland's history. His record of public service and legislative accomplishments are legendary. He loved the Maryland General Assembly and respected its members irrespective of party affiliation. A student of history, he will be treated in the annals of Maryland's history as a giant." During my time as an elected official (1991-1999) in the House of Delegates and the Senate, I, like many others, came to see Senator Miller as a one-of-a- kind dedicated public servant. Upon his retirement from politics about a month ago, I noted in a statement that "Senator Miller has been a remarkable public servant for Maryland and retires with an historic political career that few in the state or nation can or will match. As Senate President, he encouraged a bipartisan approach, expected respect of the Senate of Maryland as an institution, demanded civility among legislators, and oversaw important legislation and programs that improved the lives of many Marylanders. The entire state owes Senator Miller a great deal of gratitude for his commitment and legacy as a legislator who served with dignity, honor and respect." Miller's legacy of helping to improve many Marylanders' lives will live on for generations, and hopefully elected state officials will follow his civil, bipartisan approach during the current Maryland General Assembly session and for years to come. As always, if you have questions or concerns please feel free to contact me. Sincerely, Donald C. Fry President and CEO Transportation Funding a Major Focus in 2021 Session A bill that would set minimum capital funding for the Maryland Transit Administration (MTA) each year for Fiscal Years 2023 to 2028 and prohibit reductions in MTA's operating funding levels during the same period is scheduled for a hearing January 27 before the Senate Budget & Taxation Committee. The GBC strongly supports the bill, Senate Bill 199, the Transit Safety and Investment Act. It was introduced by Senator Cory McCray (D-45) and Senator Craig Zucker (D-14). The bill has been cross-filed by Delegate Brooke Lierman (D-46) in the House of Delegates as House Bill 114. The legislation passed the House of Delegates last year, but did not move through the Senate due to an abbreviated session brought on by the COVID- 19 pandemic. Advocating for adequate transportation and mobility infrastructure in the Greater Baltimore region has been a longstanding priority of the GBC. One of the GBC's Legislative Priorities for 2021 is advocating for balanced transportation and mobility policy and funding priorities that create interconnected, multimodal transportation networks and promote equitable investment in systems across regions, modes, and communities. As the GBC notes in testimony that will be submitted in support of the bill, "The current level of disinvestment of state dollars in the Greater Baltimore region’s transit network is unacceptable." In July, 2019, the MTA released a Capital Needs Inventory report that identified $4.6 billion in capital needs over the next 10 years to maintain the current system in a state of good repair, but $2 billion was unfunded. As the GBC testimony notes, despite the capital needs outlined in the report, the Maryland Department of Transportation continues to propose deep cuts to the MTA's capital budget while in 2018 the Maryland General Assembly passed legislation guaranteeing funding levels for the Washington Metropolitan Administration. "The GBC supports Senate Bill 199 as a necessary step to ensure that MTA is adequately funded to provide safe and continuous operations of the transit system and to ensure that residents of the Greater Baltimore region have sufficient access to jobs, education and training programs, and health care," the testimony states. Governor Hogan Highlights Parts of His FY 22 Budget Governor Larry Hogan discussed highlights of his FY 22 budget proposal at a press conference on January 19, but did not disclose the entire budget or its cost. He will formally introduce his budget to state legislators today, January 20. At the press conference he said no discussion of the state's budget can begin without recognizing the "enormous and unprecedented fiscal challenges" that the state and nation have faced from the COVID-19 pandemic. But, the Governor said, early budget actions during the pandemic to cut costs, as well as federal stimulus relief and the reopening of the state's economy "dramatically improved" the state's fiscal outlook. The governor said his "Economic Recovery Budget" for FY22, will provide: Immediate tax and economic relief for families and businesses in need. Record investments in education, crime prevention, public health and other priorities. A fiscally responsible foundation for a strong recovery. A 100% structurally balanced plan with no tax increases, state layoffs or cuts to essential services. Necessary reserves to maintain state's AAA bond rating The top legislative priority, the Governor said, is his Relief Act of 2021, which proposes $1 billion in tax and stimulus relief to Maryland businesses and residents. The top economic priority, the Governor said, is ensuring Marylanders can keep "more of their hard-earned money in their pockets" and blocking tax increases. On the education front, the Governor said, his budget includes: $7.5 billion for K-12 and that every school system in the state will see state increased investment. $833 million in additional school construction funding "to fulfill every funding request in every jurisdiction." $411 million in higher education project funding Other areas the Governor highlighted: For infrastructure, the budget proposes $1 billion more for roads and highways and an additional sum for mass transit projects, while also supporting the Howard Street Tunnel rail project in Baltimore. On the environment, the Governor said the budget fully funds Chesapeake Bay restoration efforts. Regarding public safety and health, the governor said, the budget includes: $746 million for police aid to local governments, including $5 million to support crime prevention, prosecution and witness protection in Baltimore City; $978 million for mental health and substantive abuse programs to help combat the opioid epidemic; and increased funding for local health departments. Senate Overrides Vetoes of Public Safety Legislation The Senate voted January 15 to override vetoes by Governor Larry Hogan of public safety legislation passed last year, which was supported by the GBC in the 2020 session. The veto overrides last week included legislation that would: Establish funding for crime prevention coordinators in 10 high crime micro-zones in Baltimore City. Allow State Police to patrol highways in the city. Provide $3 million in funding for community-based crime reduction programs. Create a state Law Enforcement Coordinating Council, which would share crime intelligence across jurisdictions among other responsibilities. The veto overrides must now be acted upon by the House of Delegates. As of now, no date has been set for the House of Delegate's consideration. GBC Backs Angel Investor Tax Credit Bill A bill that would provide a tax credit for investments made in a qualified innovation business is scheduled for a hearing January 21 before the Senate Budget & Taxation Committee. The GBC, which has supported similar legislation in past years, supports the bill-Senate Bill 246, Income Tax-Angel Investor Tax Credit Program. The sponsors are Senator Katie Fry Hester (D-9), Senator Brian Feldman (D-15) and Senator Douglas Peters (D-23). The legislation is cross-filed in the House of Delegates as House Bill 360. Specifically, the bill would authorize a tax credit against the state income tax for 50% of an investment made in a qualified innovation business, not to exceed $50,000, or $100,000 for a qualified investor that is a married couple filing jointly or a pass-through entity. As the GBC notes in testimony submitted in support of the bill, supporting angel investors has benefitted many states. Of 29 states that have angel investment tax credit programs, 22 experienced an increase in entrepreneurial activity, according to the Small Business Institute Journal. "The importance of this specific bill is that its flexibility allows it to maximize the business sectors where it can have a positive impact," the GBC testimony notes. GBC's Legislative Forum to Feature Discussions on Budget and Major Legislative Initiatives With so many major issues in the mix for state legislators this year, the GBC's annual Legislative Forum on January 25, 8-9:30 a.m., is certain to feature lively discussions from top experts on this year's panel. Panelists will discuss such topics as: The impact of COVID-19 pandemic on state revenues, the state budget and how Maryland benefits from the recent federal government stimulus package Potential overrides of the Governor's veto on education and public safety legislation Police reform legislation Racial equity and social justice legislation Efforts to accelerate economic recovery with an emphasis on small and minority-owned businesses Transportation planning and funding Workforce development Panelists include: Senate President William C. "Bill" Ferguson Senator Michael J. Hough, Senate Minority Leader Delegate Eric G. Luedtke, Majority Leader, House of Delegates Delegate Stephanie Smith, Chair, Baltimore City House Delegation David C.