All posts by David Lublin

Raising Money in Public Financing Takes a Long Time

By Adam Pagnucco.

Former Council Member Phil Andrews’s public financing system is in use for the first time during this election cycle.  It has already changed MoCo’s political landscape, with 33 county candidates – a majority of those running – so far enrolled.  It’s a bit early to say exactly how it will impact specific races, but two facts about the system are starting to become clear.

It’s cumbersome to use.  And candidates who use it need a long time to raise money.

We have already written about the burdensome administrative aspects of the system, especially in demonstrating residency of contributors.  (The system only provides matching public funds for in-county individual contributions of up to $150 each.)  An additional difficulty is meeting the thresholds for triggering eligibility for matching funds.  In order to collect matching funds, Executive candidates must receive contributions from 500 in-county residents totaling at least $40,000; at-large council candidates must receive contributions from 250 in-county residents totaling at least $20,000; and district council candidates must receive contributions from 125 in-county residents totaling at least $10,000.

So far, just seven of 33 participating candidates have reached the thresholds for public matching funds.  Council District 1 candidate Reggie Oldak was the fastest to qualify, hitting the threshold in 112 days.  But Oldak is a district candidate, meaning that her threshold is the lowest, and her district is the county’s wealthiest with the greatest concentration of political contributors.  At-large council candidate Hoan Dang hit his threshold in 148 days, barely beating out Bill Conway (155 days).  Council Members Marc Elrich and George Leventhal, who are running for Executive, needed more than 200 days each to qualify despite having large donor bases going back many years.

Then there are the other 26 candidates who have not yet qualified.  Six of them have been running for more than 200 days.  (District 4 incumbent Nancy Navarro will only be eligible to receive matching public funds if she gets an opponent.)  Eleven more have been running for at least 100 days.  Many of the non-qualifiers have been working hard for months.  It’s just tough to meet the thresholds.

Why is it taking so long to get matching funds?  One reason is that Andrews, the system’s architect, did not design the system to be easy.  He explicitly intended that public dollars only go to candidates who were viable in the sense that they had actual grass-roots support.  Another reason is the nature of fundraising itself.  Candidates who raise money turn to families and close friends first; past contributors next (if they have run before); then extended networks of professional connections, acquaintances and supporters’ networks; and finally complete strangers.  As each network gets further away from the candidate, the marginal difficulty of raising dollars increases.  In a public financing context, the first fifty contributions are easier than the next fifty, which in turn are easier than the fifty after that.  The last few contributions to reach the threshold are the hardest to get.

At-large candidate Danielle Meitiv has been working to hit the threshold with a video on Facebook.

Similar observations can be made about traditional fundraising with this exception: the private system has no single trigger that activates a stream of cash all at once.  The candidates in public financing will be weeded into two groups: the ones who get matching funds and the ones who don’t.  The latter group will be doomed to failure.

There’s one more lesson here for candidates: don’t get into a race late and expect to raise lots of money quickly through public financing.  Even if you have a history of donors going back more than a decade like Elrich and Leventhal, the public system is not built for speed.  If you are a late starter, chances are you will need either traditional fundraising or self-financing to close the gap and have a chance to win.

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Committee for Montgomery Breakfast to Feature Candidates for Governor

Following is the press release from Committee for Montgomery.

Politics for Breakfast

Maryland Candidates for Governor to Serve Up Buffet of Answers

Media Contacts:
Adam Pagnucco
acp1629@hotmail.com
Jim Neustadt
neustadtjim@gmail.com

Bethesda – November 16, 2017 – It’s time for the Maryland 2018 Governor’s race to start cooking. On December 14th, 2017 the state’s candidates for Governor will dine and then digest many of the controversial issues of the day at the Committee for Montgomery’s (CfM) Annual Legislative Breakfast at the Bethesda North Marriott Conference Center.

Who:  Candidates for Governor
What: One-Hour Panel Discussion
When: December 14, 2017, 7am-10am
Where: Bethesda North Marriott Conference Center, 5701 Marinelli Rd, North Bethesda, MD 20852

Moderator: Josh Kurtz, Founder and Editor of Maryland Matters

Confirmed Participants:

  • Rushern Baker, Prince George’s County Executive
  • Maya Rockeymoore Cummings, Founder, Global Policy Solutions
  • Ben Jealous, Former President/CEO, NAACP
  • Kevin Kamenetz, Baltimore County Executive
  • Rich Madaleno, State Senator, Montgomery County (District 18)
  • Alec Ross, Former Senior Adviser, U.S. State Department
  • Jim Shea, Former Chair, Venable LLP
  • Krishanti Vignarajah, Former Policy Director, First Lady Michelle Obama

Invited Participant:

  • Larry Hogan, Governor

With a board made up of leaders from business, non-profit, labor, education and civic organizations, Committee for Montgomery formed more than twenty five years ago to encourage recognition that all residents of the County share common interests and needs that can be met through sound public policy. CfM works with elected officials at the State level of government to enact those policies. “This forum provides an early look at the candidates as the election is now just seven months away,” says CfM’s Chair, Marilyn Balcombe.  “This is a great opportunity to see all of the candidates in one setting.”

Josh Kurtz, the Founder and Editor of the fast growing political website, Maryland Matters, is the moderator. “The Committee for Montgomery Annual Legislative Breakfast is a powerhouse event, so it’s not surprising that the candidates for Governor want to be there, says Kurtz.  “It’s early in the campaign and they’re refining their messages, so it ought to be illuminating and fun.”

Members of the media are invited. Details regarding credentials, parking, access to candidates and other logistics will be relayed to you in the week prior to the event.

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George Leventhal: Name One Program You Would Cut

Name one program in the county budget that is not working and can be cut.  Tell us how much in annual savings that would yield.

I will work diligently with the Office of Management and Budget, and with every department, to find savings and process improvements if I am elected to lead this government. I understand the mission of every county department. I have low tolerance for redundancy. I am prepared to prioritize, and to say no to additional spending where saying no is warranted. One place we could start is by looking at how the county provides health care to its employees.

Montgomery County will spend $245 million in FY2018 on employee health coverage. In 2011, I commissioned a Task Force on Employee Wellness and Agency Consolidation, which recommended adoption of an employee wellness program. It took the Leggett administration until 2015 to get the program fully up and running. Between 2017 and 2018, health claims dropped by $3 million, although it is not clear this is statistically significant, or directly caused by participation in employee wellness programs. I am confident that continued implementation of employee wellness efforts will lead to continued reduction in utilization of health benefits, and increased savings.

The task force also recommended consolidating procurement of employee health coverage between county government, the school system and Montgomery College. The school system and the college have declined to adopt this recommendation. School employee unions feared their members might lose their more favorable benefits. However, the county’s Office of Human Resources already administers health benefits among different bargaining units, and could easily administer health benefits for school system and college employees, resulting in substantial overhead savings, and savings from group purchasing. I will continue to advocate for unified administration of health benefits among all three agencies.

Additional overhead savings, and efficiencies from volume purchasing, could also be achieved by consolidating procurement of all goods and services for county government, MCPS and Montgomery College in a single office.

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Marc Elrich: Name One Program You Would Cut

  1. Name one program in the county budget that is not working and can be cut. Tell us how much in annual savings that would yield.

While there’s no one program we could cut that would produce enough savings to fund the education, transportation, and other investments the county needs, I want to explain how I would take a different approach to how the county makes budget decisions.

Montgomery County faces enormous economic and fiscal challenges: slow job growth, federal budget cuts, an aging population, poverty and its attendant social costs, inadequate infrastructure, and rising school enrollment.  Revenue projections indicate that just maintaining current services will continue to be a challenge, not to mention dealing with the costs necessary to address some of the critical unmet needs facing us.  We have to find ways to maintain the services our residents expect while addressing challenges that can impact our quality of life.

The next County Executive will need to get as much value as possible from every tax dollar, and the only way to do that is to bring a new way of thinking to how we spend our $5 billion budget.  While that’s easier said than done, my record shows I can deliver.  During my first term on the County Council, for example, I recognized that the proposed renovation of the Circuit Courthouse had morphed into an incredibly expensive total replacement.  The project didn’t make sense.  I challenged the assumptions behind the change and I ultimately helped save the county tens of millions of dollars by demonstrating that a renovation could be done much more efficiently.

If elected, my team will move away from the county’s traditional budgeting approach, which starts with last year’s spending and adjusts it incrementally.  We won’t balance budgets with across-the-board cuts that punish good programs and protect poor performers.

Our budgets will instead be built from the ground up to achieve the outcomes residents want, such as closing the opportunity gap, reducing commute times, making housing more affordable, and improving public safety.  We will work to foster a culture of innovation, cooperation, creativity, and transparency so we can move away from a “this is how we’ve always done it” mindset into a model of continuous improvement.

What does that mean?  We will work with our employees, nonprofit partners, and our customers – both residents and businesses – to ensure that our service delivery follows best practices and meets our customers’ expectations.  We will insist on accountability and make funding decisions based on performance.  We will publish an annual report, available to everyone, showing how tax dollars were spent, the measurable progress we are making toward our outcomes, and where we need to do better.

I have no doubt that, by realigning work to reflect best practices, insisting on performance accountability, and creating a culture of teamwork, we can operate existing programs more efficiently.  Doing so will allow us to pivot existing human and capital resources to better address the challenges facing us.

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Elrich: Without Rent Control, Purple Line Will Cause “Ethnic Cleansing”

By Adam Pagnucco.

In response to a question about just cause eviction and rent control at the Progressive Neighbors County Executive forum, Council Member Marc Elrich stated that the Purple Line would cause “ethnic cleansing” without a rent control law.  Elrich said:

I support rent stabilization and I think we need to be honest with ourselves about this.  If we throw up our hands about this and say the market will determine the price of housing and the market alone will determine that, then we are going to wipe out neighborhood after neighborhood in Montgomery County.  If you did that, then if you did not put rent stabilization around the Purple Line stops, for example, then the neighborhoods around the Purple Line will not continue to exist.  They will be bought, they will be repurposed and they will go to other people.

When we did the Long Branch plan, and Park and Planning came in and said we want to rezone all the existing housing in Long Branch, I accused the Planning Board of ethnic cleansing.  And I said some people do it with the gun, you guys are doing it with the pen but the truth is those folks would be gone and they would be gone forever…

Elrich’s remarks begin at the 2:29 mark of this video taken by Ryan Miner.

Disclosure: Your author is a long-time supporter of the Purple Line and is a publicly listed supporter of Council Member Roger Berliner for Executive.

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Roger Berliner on Jobs

Job growth has been stagnant in Montgomery County over the past few years. What would you do to encourage increased job growth?

Increasing prosperity — and having that prosperity shared more broadly — is the central platform of my campaign.  As in most things, achieving this will be a multi-prong effort:

1.  In our county, small business is big business. And for far, far too long, businesses in Montgomery County have seen our county as a foe, not a friend.  We need to be a partner to business, not an obstacle.  That is what prompted me to be the lead sponsor on legislation that created both the Small Business Navigator and the Business Solutions Group in county government — to put in county government resources that are intended to make life easier for our small business community. When we adopt new programs and regulations in our county, we need to make sure we are doing so in a manner that will not harm small businesses.  That is how I have done my work on the Council and it is how I will do my work as County Executive if I have the privilege of leading our great county.

2.  We need to attract businesses to Montgomery County. We have extraordinary assets. Amazon’s request for proposals for its new H2Q brought that home:  Montgomery put checks in all the important boxes.  Smart, skilled work force — check. Transit — check.  Vibrant urban amenities – check.  Awesome quality of life — check.  Diverse population- check.  Good government-check.  Strong, national business leaders-check.  We need to do a better job of promoting our county.  As County Executive, I will be a passionate, ceaseless champion of our county.

3.  What are the fundamentals that create economic growth and opportunities? A skilled workforce, which is why I have been the leading champion of workforce development; world class transit, which is why I have championed fixing Metro, building the Purple Line & Bus Rapid Transit and supporting Ride On Extra; affordable housing, which is why I sponsored legislation that requires our county to consider co-locating affordable housing on county property and increases the obligation of developers to provide affordable housing; creating vibrant urban nodes, with world class architecture, that attracts millennials and businesses like Marriott and Fox 5 to Bethesda; embracing innovation, which is why I led the way to create the Office of Innovation in our county government — we either lean forward or fall back.

4.  Build a “green economy”. Under my leadership, our county has become one of the most sustainable communities in our country.  Those efforts have not only led to our county government being “carbon neutral”, but to creating good green jobs.  Solar companies are thriving; energy efficiency firms are flourishing; composting and organic farming is growing; and our commitment to storm water management should increase jobs and job training opportunities.  A green economy is a healthy economy.

5.  Support our immigrant entrepreneurs. Immigrant-owned businesses are the fastest-growing segment of the county’s economy. Often, these businesses need only a little help to get started. That is what motivated me to lead the effort to create our county’s first micro-loan program, modeled after successful programs around the world.

6.  Pay people a decent wage, which is why I support increasing the minimum wage to $15 an hour consistent with the County Executive’s proposal.

My record on creating a more favorable economic climate in our county has led four Montgomery County Business Hall of Famers, past presidents of local chambers of commerce, entrepreneurs of the year, minority business leaders and green business leaders to endorse me.

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M-83 Supporters Get a Win

By Adam Pagnucco.

Back on November 3, David Lublin wrote that the County Council had placed the planned Upcounty highway M-83 “in the freezer.”  We agree with that take with one addition: if and when M-83 comes out of that freezer, it will be ready to serve.  That’s because instead of killing the road, the resolution passed by the County Council has preserved it for a future county government to build.

To understand what has happened, one has to consider the goals and challenges of road supporters and opponents.  The supporters want to fund its construction.  That’s tough because the road will cost roughly half a billion dollars and the county is reducing its annual issues of general obligation bonds to trim future debt service.  Opponents want to remove the road from the county’s master plans.  They believed they had a chance to do that since six Council Members said they opposed M-83 during the 2014 elections.  But that has not happened.

The council’s resolution, passed on Halloween, did not implement the agendas of either side.  Its action language is worth reading word for word.

The County Council for Montgomery County, Maryland approves the following resolution:

  1. The Council supports expanded capacity on I-270, the Corridor Cities Transitway, Bus Rapid Transit on or near MD 355, and improvements on MD 355. These improvements will provide significant, immediate relief for Upcounty residents. These improvements align with our economic development strategies, providing the broadest and most diverse benefits, and minimize impervious surface, stormwater runoff, carbon emissions, and other environmental impacts.

  2. The Council directs the Montgomery County Planning Board not to assume additional road capacity from the northern extension of Midcounty Highway when calculating the land use – transportation balance in future master plans, including but not limited to the upcoming Gaithersburg East Master Plan and the Germantown Plan for Town Sector Zone. This step ensures that any new development allowed under these plans does not rely on the northern extension of Midcounty Highway, while retaining the right-of-way for this extension in these plans.

Road supporters did not like the omission of M-83 from the list of projects supported by the council.  They should have no argument with the idea of not including M-83’s capacity in calculating infrastructure needs for future development.  That could help prevent the road from filling up immediately after it’s built (if it’s built).  But the last sentence referring to “retaining the right-of-way for this extension” is a big win for supporters of M-83.

Why does this matter?  A casual perusal of land ownership maps from the State Department of Assessments and Taxation shows massive county land holdings in the vicinity of M-83’s preferred alternative.  Identifying every one of the dozens of parcels owned by the county and county-affiliated entities there would be a time-consuming research project.

A sample of county-owned land for M-83 near Watkins Mill Road and Great Seneca Creek.

Instead, we asked the county Department of Transportation’s project manager for M-83 how much of the right-of-way for the road’s preferred alternative was currently owned by the county and state.  We received this response.

Dear Mr. Pagnucco:

Thank you for your interest in the Midcounty Corridor Study (M-83) project.  Per our preliminary assessment, approximately 60% ROW for M-83 has been dedicated or reserved and another 24% is in parklands owned by the County’s Parks.

Should you have any questions, please contact me.

Best regards,

Gwo-Ruey (Greg) Hwang, P.E.

Capital Projects Manager

That’s right, folks – the county and Park and Planning together control 84% of the right-of-way for M-83 right now.

Why does this matter?  Let’s remember the history of the Intercounty Connector.  The highway had been in master plans for decades.  As of 1997, the county and state owned more than half the right-of-way for the ICC.  The following year, Governor Parris Glendening announced he was killing the project and later told the state government to sell part of its right-of-way.  But the state did not sell off all its right-of-way and in fact purchased some of it after Glendening’s announcement.  Continued state ownership of the ICC’s right-of-way made it much easier for Glendening’s successor, Governor Bob Ehrlich, to reverse his decision and begin construction.

So it may be with M-83.  The county’s holdings of right-of-way for the project may be even greater as a percentage of its acreage than the state’s holdings of the ICC were a decade before its construction.  The resolution by the council explicitly calls for “retaining the right-of-way” in the master plans, suggesting that the county’s holdings will not be sold.  And the road has not been removed from any master plans, a key goal of opponents.

M-83 supporters should have hope.  M-83 opponents should beware.  Both sides have a lot of work to do in next year’s elections.

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George Leventhal on Jobs

Job growth has been stagnant in Montgomery County over the past few years. What would you do to encourage increased job growth?

We have seen good news on job growth recently. County Executive Leggett’s office reported in January that the county had added 7,163 jobs since the previous January and in May that resident employment had increased by 10,900 jobs (not all located in the county) since the previous May. High-profile business location decisions recently have included Marriott’s decision to keep its headquarters in the county, Discovery’s decision to keep 230 jobs in Silver Spring rather than relocate them to Virginia, and WTTG/Fox 5’s decision to relocate to Bethesda from Northwest Washington.

Montgomery County has a great story to tell, but we need to do a better job telling it. Our quality of life is high; we have great public schools; honest and effective government; excellent cultural and recreational opportunities; beautiful natural features; proximity to airports, shipping routes, interstate highways and public transportation; high family incomes; a low crime rate, and a low unemployment rate. I supported creating the new Montgomery County Economic Development Corporation and am glad to see it is investing more than ever before in marketing our county’s excellent attributes to grow our job base and retain existing employers.

We have one of the smartest, most diverse work forces in the United States. We should advertise ourselves as the International Gateway to the Nation’s Capital, to attract employers from around the world and entice the talent our employers need to compete in the global marketplace. While our workforce already possesses more graduate degrees than any other community, and a wider array of language skills than most, we must make language education a higher priority in our schools. Language immersion should be expanded, especially in languages critical for global trade and national security, like Mandarin, Spanish, French, German, Hindi/Urdu, Arabic, Russian, Farsi, and Portuguese.

To appeal to the millennial generation of workers, and the generations that will follow them, we must continue our placemaking efforts, to build great urban communities in locations well served by transit, including Bethesda, Silver Spring, Rockville, Wheaton, and Glenmont, and we must expand transit options to economic opportunity hubs like Gaithersburg, Germantown and White Oak.

We should increase vocational training in our schools. The courses available at Edison High School are insufficient. Not all students will, or need to, attend college. Many good-paying jobs in industrial, manufacturing, information technology and other sectors can be filled by high school graduates with additional technical and vocational training.

We need to continue focused efforts to streamline our planning, permitting and procurement processes to see where they can be made more efficient and business-friendly. We must also strengthen our efforts to keep Montgomery County tax dollars in our local economy, by strengthening programs like the Local Small Business Reserve (which I originated), and minority, female and disabled business purchasing preferences.

I support designating Enterprise Zones to attract investment to areas that are struggling, like Glenmont and Burtonsville. I have also supported tax credits for investors in life science, environmental technology and cybersecurity, and I am currently exploring a county add-on to federal Small Business Innovation Research (SBIR) awards. I will seek to reduce our county energy tax, which puts our high-tech and data-intensive businesses at a particular disadvantage.

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Marc Elrich on Jobs

Job growth has been stagnant in Montgomery County over the past few years. What would you do to encourage increased job growth?

Most job growth comes from new businesses expanding in the location in which they were founded.  Surveys indicate that the quality of life and the quality of public goods in an area – including transportation systems and schools – matter far more when businesses are making their initial location decisions than the taxes and other financial incentives they might be offered.

While there is a lot about the economy that is beyond our control – there’s no silver bullet for job growth – there is much that the county can do to create the conditions for businesses to start and thrive.  To the extent that we have cumbersome and inappropriate regulations, we need to change them, and to the extent that regulatory costs are excessive, we need to lower them.  More importantly, I would focus on incubating new local-grown businesses, nurturing their growth, and improving the county’s economic infrastructure.  Other jurisdictions have creative small business incubators and we can learn from their successes to grow a stronger local economy.  The empty spaces in shopping centers and office buildings were once filled with small businesses, and we need to nourish a new generation of entrepreneurs to refill them.

The bus rapid transit (BRT) system proposal that I initiated and have been advocating for during my time on the County Council also holds real potential as a tool for job growth.  Businesses have made an issue of the lack of transit as an impediment to growth.  If we want people to create startups or expand existing businesses, we need entrepreneurs to feel confident that their employees have a reliable way of getting to and from work, that their customers can get to their stores, and that they will be able to transport the goods and services they need to stay in business.

A well-implemented BRT system would reduce future congestion and move more people than roadways alone, making the county a more attractive location for businesses of all sizes.  It would greatly benefit residents as well.

We also need to work with the school system, including Montgomery College, to make sure our students are prepared for jobs that don’t necessarily require a four-year degree but do require post-high-school education.  And we should expand apprenticeship programs in cooperation with the building trades organizations that need the next generation of skilled workers.

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