Wednesday, May 16, 2012

Issues for 2012 on Menu at Annual Chamber Breakfast

By George Berkheimer

December 5, 2011

Posted in: News

Elected officials from all levels of government accepted an invitation from the Howard County Chamber of Commerce (HCCC) to present an overview of issues and expectations for the coming year at the chamber’s annual Legislative Breakfast in November.

Topics receiving the lion’s share of discussion included transportation, the potential for a gas tax increase and (of course) jobs.

Sen. Ben Cardin (D-Md.) said he and Sen. Barbara Mikulski (D-Md.) have used the Base Realignment and Closure (BRAC) process as a model program on expanding opportunity and job growth. “If we have more people paying taxes and less people using governmental services, we’ll have a better federal budget and a better economic future,” he said.

Cardin pointed to unresolved questions in terms of the tax code, regulatory structure and appropriations as contributing factors to continued instability.

“We need to give you predictability, not just on a two-month basis but on a longer-term basis,” he said. “There’s too much money sitting on the sidelines, too many consumers who want to get engaged but [have concerns] about our future. I think the model of this county is what we need to use throughout Maryland and the nation.”

Gas Tax Redux

Democratic members of Howard County’s state delegation argued the need for an inflation-based incremental increase in the gas tax.

“We haven’t had a gas tax increase since 1992, and the longer you wait to do things, the harder they become to do politically,” said state Sen. Ed Kasemeyer (D-Dist. 12).

That argument rang hollow with Sen. Allan Kittleman (R-Dist. 9), however.

“I haven’t had a new wife since 1986, and I doubt my wife would say it’s time to have a new one,” he countered.

Perhaps most problematic is the fact that the current economic atmosphere has nudged consumers toward more fuel efficient vehicles and thrift, precipitating a reduction in gas tax revenue.

“We’re not undertaking any significant road construction projects [and] the impact of that in terms of construction workers; truck drivers; sand, gravel and asphalt [suppliers] is phenomenal,” Kasemeyer said. “I believe there will be an effort [to raise the tax] next year, but I think the governor will have to be involved in actively supporting it. It’s going to be difficult politically.”

Del. Guy Guzzone (D-Dist. 13) said his office has received mixed messages on the gas tax. A show of hands from chamber members in attendance who support an increase — with the guarantee of a lockbox, of sorts, for the Transportation Trust Fund — validated that conclusion.

“I would probably support it, but my biggest concern is for people at the bottom of the income bracket,” said Del Liz Bobo (D-Dist. 12B). “We can’t say we want BRAC and then say we don’t want to spend more money [on transportation and transit projects]. It just can’t work that way.”

Should the increase pass, Kittleman said his biggest concern is that the funds not be mismanaged, and that money goes to areas where it’s needed, not to areas where people might vote for the tax. “There are a lot of people in Maryland who pay this tax and don’t get the benefit of it,” he said.

“I think we need to be careful, because the feds have not authorized a transportation bill in years,” said Del. Gail Bates (R-Dist. 9A). “They are way behind on that, and that’s where most of our money for transportation comes from. Before we start looking at a … gas tax increase we need to look at a lot of other things and find ways to control our costs.”

Legislative Priorities

For Howard County Council members, the focus also will be on transportation. “We need to ensure that not only do we have the appropriate infrastructure of roads, but we need to be looking at transit, pedestrian [and] bike, and ensure that there is a balanced approach,” said Council Chair Calvin Ball (D-Dist. 2).

Councilman Greg Fox (R-Dist. 5) called on the chamber to take an active and leading role in considering the expansion of Central Maryland Regional Transit service or forming other Transportation Management Authorities focused on Columbia, Columbia Gateway, Route 40 and Route 1. “Those are things that can bring together private, public, nonprofit sources of transportation and start developing the ways to make that happen,” he said.

Councilwoman Courtney Watson (D-Dist. 1) cited the Route 40/Route 29 interchange as emblematic of problem areas where congestion tends to cascade. “There are solutions that have been planned, but they need to be funded,” she said.

Kittleman, Bates and Fox identified keeping government spending within means as a top priority for 2012. For Kasemeyer and Guzzone, the focus will be on erasing the deficit by the end of next year.

“We started last year with a $1.9 billion deficit,” Kasemeyer said. “We’re now down to $1 billion. My no. 1 goal is to continue that effort.”

For Watson and Ball, the top priority is to move the Downtown Columbia General Plan forward.

Green Home Credit

At the November legislative hearing before the Howard County Council, public testimony favored a bill sponsored by Ball that would give property tax credits to new homes that achieve at least a silver rating under the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating system.

“Green homes can save the county money by having less impact on infrastructure and can even bring in revenue, long term, through higher assessed values on the home,” said Michael Harrison, director of Government Affairs for the Home Builders Association of Maryland.

Kesa Bruce, HCCC’s director of government relations, said the legislation would put Howard County in line with other jurisdictions offering similar credits for residential construction, and would promote a competitive and pro-business environment.

Councilman Fox, however, questioned the impact that the bill would have in comparison to refocusing its scope.

“We really need to be looking at some other things regarding this, because the amount of energy efficiency … and the value of the energy efficiency that you would gain is minimal compared to alternatives in what could be done on the existing construction side,” Fox said.

Charles Alexander, an architect and former county resident, argued that the proposed legislation should target a large- scale audience.

“If we’re going to have an impact on the environment, then you’ve got to implement that change on the houses that are done 100-fold, not the one-off houses,” he said. “It’s important that there’s incentive for multiple home builders to feel like there’s a market for something that’s a step up or a better product.”

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