http://www.carrollcountytimes.com/articles/2007/10/16/news/local_news/newsstory2.txt

Special session: O'Malley is 'optimistic' for consensus

Associated Press

Printed in Carroll County Times

October 16, 2007

ANNAPOLIS - Gov. Martin O'Malley formally called Monday for a special session to grapple with Maryland's $1.7 billion budget deficit, and the governor said he was inclined to support a referendum on whether to legalize slot machine gambling.

The special session will begin on Oct. 29, and O'Malley said he was "very optimistic" lawmakers could reach consensus on his broad budget plan of new taxes and some tax cuts, proposals he contends will ultimately save about 80 percent of state residents some money.

"This is a forward-looking plan," O'Malley said. "It is broad enough and it is flexible enough for the men and women of the General Assembly to arrive at a consensus."

But not everyone has been a fan of holding a special session. House Speaker Michael Busch recently cautioned the governor against trying to tackle so much in a special session, which he has said would be "unprecedented" in its scope. Even Senate President Thomas V. Mike Miller, who has been a supporter of holding a special session for months, has had some questions about whether it's a good idea, without more certainty enough lawmakers will support O'Malley's proposals.

Miller, D-Calvert, said he spoke to O'Malley on Sunday night, and that the governor told him he doesn't have enough votes to support all of his plan so far.

"There is not a consensus ... The governor doesn't have the votes," Miller told reporters shortly before O'Malley's announcement.

Still, Miller said O'Malley was working hard to sell his plan in meetings with lawmakers and that he supported the governor, who is battling a budget problem he has mostly inherited.

"The only responsible thing to do is to go into a special session and help this governor fund the budget that we haven't provided the funds for in the past," Miller said.

Despite some concerns about how things have gone so far, Miller said he was confident the governor would at least make some progress in passing components of the plan in a special session.

"Some aspects of the plan, if not all the plan, are going to pass," Miller said.

O'Malley said the session could last up until Thanksgiving, giving lawmakers more than three weeks to move legislation through both chambers.

"We do not want this to be a slapdash process," the governor, a Democrat, said.

The special session is needed, O'Malley argues, because the state needs to get new revenues on the books, such as a sales tax increase from 5 to 6 percent, by Jan. 1. If lawmakers wait until the General Assembly's regular 90-day session in January, the tax increases won't go into effect until July, causing the state to miss out on nearly $600 million and worsening the budget crunch.

There are a variety of sources in the governor's plan to fill the budget hole. The four biggest parts include changing the state's income tax structure for the first time in about 40 years to create two higher tax brackets for Maryland's wealthiest 3.7 percent, the sales tax increase, a slight reduction in the property tax and legalizing slot machine gambling, a contentious issue that has bedeviled lawmakers for more than five years.

Republicans have come out against the special session, saying it's just an excuse to raise taxes, instead of reducing growth in spending. They have said they won't support the governor's slot proposal in a special session, dealing a setback to the slots portion of the plan.

David Brinkley, R-Frederick, said he didn't believe the special session was necessary, calling it "certainly high risk" and a gamble on the governor's part, because the consensus O'Malley is seeking hasn't been reached yet.

"The sole purpose of the special session is to raise taxes so that they can try to pay for some campaign promises," Brinkley, the Senate Republican leader, said.

In a concession to lawmakers who find slot machines an especially prickly issue, O'Malley has sounded the possibility of having the state's voters decide the matter. He said he was leaning toward the referendum idea.

"There are many people who are elected members of the General Assembly who feel that the only way we'll get this behind us is if we put it to referendum and allow the people to decide," O'Malley said, adding after he was asked for his view, "I'm inclined that way."

REACTIONS

Sen. David R. Brinkley, R-District 4, Minority leader

"Our perspective is we don't need a special session. ... The special session is merely to raise taxes. Our position is that the state has a spending problem not a revenue problem."

Sen. Larry E. Haines, R-District 5, Senate delegation chairman

"I don't think a special session is necessary. I don't think a special session is fair to the taxpaying citizens of Maryland."

Del. Nancy R. Stocksdale, R-District 5A, Delegation chairwoman

"The Republicans presented an alternative budget plan, which would increase spending by 3.5 percent rather than the 9 percent in the proposed plan. ... The leadership has not taken our alternative budget plan seriously. The special session will not give citizens enough opportunity to express their views about the tax increases and the slots proposals."

Del. Tanya T. Shewell, R-District 5A

"With a special session things can be done in a vacuum without linking [the proposals] to the budget. They impact the public without them having any input."

Del. Susan W. Krebs, R-District 9B

"[Gov. Martin O'Malley] has not put out a definite plan. There is nothing for the public to look at. ... He's putting out a proposal on how to raise revenue, but he's not put out the budget. I don't know how any one could vote without looking at the big picture."

Sen. Allan Kittleman, R-District 9

"It's unfortunate the governor chose to call a special session. I think it's much better for us to look at the comprehensive picture of the budget and what revenues are going to be coming in rather than look at the revenues by themselves."

Del. Donald B. Elliott, R-District 4B, was unable to be reached for comment.