Category Archives: Adam Pagnucco

A Request for the State Board of Elections and the General Assembly

By Adam Pagnucco.

One of the purposes for the disclosure of political contributions is to help voters decide whom to support in elections.  In order to serve that role, contributions should be disclosed with enough time remaining before the election so that voters can review them before proceeding to the voting booth.  But that’s not quite the case in Maryland.

Recently, we wrote that the percentage of voters who vote early has been rising for years.  That percentage hit a high of 31% in the 2016 general election and could be between 20% and 25% in the upcoming primary.  Unfortunately for some of those voters, they will not have access to the latest campaign finance reports when they vote.  Consider the following entries on the state’s election calendar.

Primary Election

Annual 2017 campaign finance report due: 1/17/18 (11:59 PM)

Pre-primary 1 campaign finance report due: 5/22/18 (11:59 PM)

Early voting begins: 6/14/18

Pre-primary 2 campaign finance report due: 6/15/18 (11:59 PM)

General Election

Pre-general 1 campaign finance report due: 8/28/18 (11:59 PM)

Early voting begins: 10/25/18

Pre-general 2 campaign finance report due: 10/26/18 (11:59 PM)

The above calendar shows that people voting during the first two days of the early voting period will have no way to know about the contents of the last pre-election campaign finance reports when they vote.  This is potentially important because there are sometimes surprises in those last reports.  In 2014, the Baltimore Sun reported on October 26 that Democratic gubernatorial candidate Anthony Brown received a $500,000 loan from the Laborers Union in his final pre-general report, an unusual event that far exceeded the $6,000 limit on PAC contributions.  However, early voting started on October 23.  According to the State Board of Elections, 101,537 people voted during the first three days of early vote in the 2014 general election and would have not seen that report in the Sun.  One can easily imagine similar surprises occurring with regards to big self-funding checks, bundled corporate contributions, out-of-state PAC checks or the like.

To remedy this problem, we request that the State Board of Elections and/or the General Assembly change the due date of the final pre-election campaign finance report to 72 hours before early voting begins.  This will give the media time enough to report on anything interesting in those last reports and for voters to consider it before they head to the booth.

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MoCo Mailboxes: “God Help Us”

By Adam Pagnucco.

Mailboxes across MoCo are reeling from fatigue as they are crushed daily by tidal waves of political mail.  On Friday, your author received mailers from Action Committee for Transit, the sitting judges, Council At-Large candidate Will Jawando, District 18 Senate candidate Dana Beyer and District 18 House candidate Emily Shetty.  The next day your author received mailers from County Executive candidates David Blair and Roger Berliner, Council At-Large candidates Bill Conway and Evan Glass, District 18 House candidates Leslie Milano, Joel Rubin and Jared Solomon and the Maryland Realtors on behalf of District 18 Senate candidate Jeff Waldstreicher.  That’s thirteen political mailers in two days.

District 18 is an unusually busy place.  It has at least six General Assembly candidates with six-figure campaign budgets, or close to it.  But lots of places around MoCo have serious competition, including Congress District 6, Council Districts 1 and 3 and all the state legislative districts except 14.  In addition, there are strongly contested races for Governor, County Executive and Council At-Large.

Candidates line up to door knock at a Super Democrat’s house.

In the old days, the rule of thumb was that early mail was a waste of money.  Now we wonder about that.  There was a time not so long ago when Congress District 6 candidate David Trone, County Executive candidate David Blair and District 18 Senate candidate Dana Beyer – all self-funders – had the mailboxes largely to themselves.  Now the mailboxes may not be big enough to hold each day’s batch.  Everyone’s mail is getting lost in the shuffle.  And when so much of it looks the same – almost everyone is a “progressive leader” who promises to fund schools, fix congestion and resist Trump – it’s unclear that anyone can win through mail.  It’s going to take something else to get across the line.

The best of the mailers: District 18 House candidate Emily Shetty and her adorable son.

Collapsible Background/Collapsible Backdrop/Pop Up Backdrop/double side backdrop

Lately, your author has been performing a cruel experiment.  Our son just turned nine.  He much prefers Star Wars, nerf guns and video games to politics, but he understands that he has an eccentric Dada whose strange wishes must be occasionally tolerated.  So when the new batches of mail come, your author gives them to him and asks which ones are his favorites.  At first, the oppressed son dutifully complied and gave curt opinions.  (He likes Will Jawando because he met him and David Blair because he owns Badlands Playspace.)  But now, the requests for review are met with eye rolls and crankiness.  “Do I really have to look at this stuff?” he groans.

We suspect more than a few MoCo voters might agree!

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Why Progressives Need Economic Growth

By Adam Pagnucco.

For progressives, few issues should be more important than the need for economic growth.  Why do we say that?  First, let’s see what happens when there is no growth.

We have previously written about what happened to the county budget during the Great Recession but we may not have done it justice.  During that time, the evaporation of revenue required the county to implement a series of huge cuts.  Consider what happened to this sample of programs during the recession’s three worst budget years.

These programs are the very essence of the best of progressivism: protecting people from discrimination, funding arts and humanities, paying for community grants to non-profits, helping those with special needs and creating affordable housing.  All were gutted during the recession.

Believe it or not, the above understates the impact of revenue absence.  Consider county employees.  Their collective bargaining agreements were broken and they went without raises for three straight years.  In FY11, they were furloughed.  In FY12, their benefits were cut.  MCPS employees were not immune as the county cut its local contribution per pupil for three straight years.

Perhaps cruelest of all was the county’s cut in its local earned income tax credit (EITC).  MoCo is one of the few counties in the U.S. that has its own EITC and it was once set to match the state’s credit under county law.  During the recession, the county changed its law to allow its EITC to vary and it was cut by almost a third.  How bad is it to cut a tax credit for the working poor during a recession?  Your author’s former employer, Council Member Hans Riemer, later introduced a bill to restore the EITC to its full amount.  After a tremendous fight, he passed it.

We don’t intend to criticize the County Executive or the County Council for making these cuts.  The economy went south and they didn’t have any money.  That’s the whole point here: without economic growth there is no money.

We are no longer in a recession but revenue growth is not as strong as it once was.  Consider the history of county revenue growth, excluding intergovernmental aid, since FY98.  Red bars in the chart below refer to years in which tax increases were levied.

From FY98 through FY09, revenue growth excluding intergovernmental aid rose by an annual average of 6.1%.  In the years since, it has grown by just 2.7% a year – and that includes the year in which the county implemented a 9% property tax hike.  The County Executive’s recommended FY19 budget includes a scant 1.3% growth in revenue excluding intergovernmental aid.  How much more spending on progressive programs can be financed with that?

It’s not a coincidence that the slow years for revenue overlap with the years in which county employment has barely grown, higher-paying wage and salary jobs are being replaced by lower-paying self-employment, business formation has flat-lined and taxpayer income outmigration has hit record levels.  Stagnant revenues are a result of a stagnant economy.

This dynamic is playing out right now.  Some on the County Council would like to expand pre-k education, a huge progressive priority and a great idea.  The problem is that it would cost – at minimum – tens of millions of dollars to be meaningful.  And when the county is already relying on tens of millions of dollars in employee and retiree health insurance money just to fund its current budget, there is no way that’s going to happen.

Tax revenue is the fuel in the engine of progressivism.  That’s because nearly everything that progressives want to do costs money, like funding schools, colleges, youth programs, senior services, social workers, support for vulnerable people, affordable housing and the like.  Conservatives don’t have this problem.  They think government is incompetent at best or evil at worst, so in their view, money given to government is bound to be wasted.  Progressives actually need tax revenue from economic growth MORE than conservatives do because it is essential to the success of their policy agenda.

Here’s the bottom line: you can’t say you’re a progressive and then oppose the growth in tax base needed to pay for a progressive agenda.  Any candidate with that position will be unable to implement progressive priorities if elected.

Progressives need economic growth.  Because without it, they can’t be very progressive at all.

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Is This the Most Expensive Facebook Ad in MoCo Politics?

By Adam Pagnucco.

County Executive candidate David Blair wants you to know that the Washington Post has endorsed him.  Wait, that doesn’t do it justice.  He really, REALLY wants you to know that.  Why do we say so?  Because he may have purchased the most expensive Facebook ad in the history of MoCo politics to publicize it.

Most Facebook ads from state and local candidates cost less than a hundred bucks and run for a few days.  The more you pay, the bigger the audience, but there is considerable variability in exposure and targeting.  Still, a $50 ad on something good is a cheap way to get your name out there.  If every exposure costs two cents (a VERY rough guesstimate with a lot of spread), that fifty bucks could get you on 2,500 feeds and draw a few dozen interactions.

The exact stats on ad cost and engagements are available only to the advertisers.  But Facebook has a political ad tracker that reports stats in ballpark ranges.  Here’s a report of an ad that Council Member George Leventhal is running on his hilarious Avengers-themed campaign video.  He spent up to $100 on the ad and it showed up on 5,000-10,000 feeds.  (The actual people count will be less because some will have seen it more than once.)  This is a very typical ad in MoCo politics.

Now here is the ad Blair is running on his Post endorsement.  The report indicates that he spent between $10,000 and $50,000 and it showed up on more than a million feeds.

By the standards of MoCo politics, that’s unheard of.  Even David Trone rarely spends more than $1,000 on his Facebook ads.  We know of one ad – on men’s mental health – on which Trone spent between $1,000 and $5,000, receiving between 10,000 and 50,000 impressions.

So if you live in MoCo and have a Facebook account, we bet you know that David Blair has been endorsed by the Washington Post.  And if you didn’t, well… you need to log in!

Disclosure: Your author supports Roger Berliner and spends way too much time on Facebook.

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What Percentage of Voters Will Vote Early?

By Adam Pagnucco.

Long ago, the overwhelming percentage of voting occurred on Election Day.  Absentee and provisional ballots played roles mainly in tight races.  So campaign activities were performed on tight, escalating schedules and reached a climax on the one day when voters headed to the booth.  But in the era of early voting, it’s not so simple anymore.

Early voting in Maryland was established by a state constitutional amendment passed in 2008.  It was first used in the 2010 elections.  Usage of the option started slowly, with only 10% of voters voting early in the 2010 primary.  But in the 2014 general and 2016 primary, 18% of voters voted early and the percentage spiked to 31% in the 2016 general.  Democrats tend to vote early at higher rates than Republicans and unaffiliated voters.

Early voting has been less heavily used in MoCo than in the rest of the state but MoCo closed the gap in 2016.  In that year, MoCo’s early voting percentages were very close to state averages.

There are huge variations in early voting between counties.  Talbot County, on the Eastern Shore, is the early voting champ.  Forty-five percent of Talbot’s voters voted early in the 2016 general election.  Kent, Prince George’s and Queen Anne’s Counties also stand out.  On the other side, early voting is least frequent in Western Maryland’s Allegany and Washington Counties.

What percentage of voters will vote early this time?  Our hunch is that the huge spike in the 2016 general election was anomalous and related to strong feelings about the presidential candidates.  If we throw those results out, the long term trend is still up.  Our best guess is that between a fifth and a quarter of Democrats at the state level and in MoCo will vote early in the upcoming primary.  We shall see if we are right!

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This Type of Employment is Growing Rapidly in MoCo

By Adam Pagnucco.

Data from the U.S. Bureau of Economic Analysis (BEA) confirms something we have reported before: wage and salary employment has been stagnant in MoCo for a decade.  But BEA data indicates something else is happening too: proprietor (self-employed) employment has been growing rapidly here and it pays less than wage and salary jobs.  That may not be a great sign for the county’s economy.

Unlike the U.S. Bureau of Labor Statistics (BLS), which we have cited in the past, BEA tracks two kinds of employment: wage and salary and proprietors.  (Check here for a summary of methodological differences between the two agencies.)  Proprietors are self-employed and operate through sole proprietorships (integrated with their personal income on their income tax returns), partnerships and tax-exempt cooperatives.  According to the Census Bureau’s Survey of Business Owners program, less than one in five of MoCo’s businesses have paid employees.  The county has a lot of self-employed people and little is said about them.

Here is the change in wage and salary employment between 2006 and 2016 for the seventeen Washington area jurisdictions tracked by BEA.

This data tells a similar story to BLS data we have previously presented: MoCo has trailed most of the region in job creation over the last decade.  Only Alexandria City and tiny Clarke County, VA have fared worse.

However, proprietor job data tells a much different story.  MoCo’s rate of proprietor job creation (36% over the last decade) is almost identical to the region as a whole.

Proprietor jobs aren’t inherently bad and it’s good that MoCo has SOME kind of employment growth.  But proprietors have much less security than full-time wage and salary workers.  Proprietors have sole responsibility for their health and retirement benefits and many of them have little cushion when contracts and/or clients dry up.  They also make less.  In 2016, the average wage and salary plus employer contribution to pensions, insurance and government social insurance totaled $89,337 per wage and salary employee in MoCo.  By contrast, the average earnings per proprietor totaled $66,498.

This isn’t happening just in MoCo; it’s a regional phenomenon.  But MoCo is an outlier.  The chart below compares wage and salary job creation and proprietor job creation by D.C. area jurisdiction between 2006 and 2016.  In the region as a whole, 1.2 proprietor jobs have been created for every wage and salary job over the last decade.  MoCo led the entire region in proprietor job creation with 53,672 jobs – a 36% growth rate.  But MoCo was one of the worst performers in creating wage and salary jobs as one of just three jurisdictions with an absolute job loss.  The result is a significant shift in MoCo away from wage and salary employment towards lower-paying contingent employment by a magnitude not seen in most of the rest of the region.

Unemployment rates don’t capture this kind of labor market shift.  If a self-employed person working on contracts is not seeking a full-time job even if they would like one, that person will not be counted as unemployed.

Proprietor growth can be a good thing if it reflects job-creating entrepreneurship.  That might be the case in places like Loudoun, D.C., Arlington, Fairfax and Prince William, all of which saw simultaneous increases in both proprietor and wage and salary employment.  It’s possible in those jurisdictions that new proprietorships created wage and salary jobs.  But MoCo is different from the above five places.  Here, surging proprietorships coincided with stagnant wage and salary employment.  Since proprietor jobs pay less on average, that may not be a good thing.

Let’s put this together with our previous work on the county’s economy.  MoCo business formation has slowed to a halt.  Private sector employers in the county have (at least through 2016) not restored their job counts above pre-recession levels.  These factors have contributed to big budget shortfalls, a nine percent property tax hike and county usage of one-time transfers to balance the budget.  Those MoCo taxpayers who have chosen to move out have higher incomes than those who are moving in.  And in MoCo, lower paying self-employment is outgrowing higher paying wage and salary employment.

Voters, take heed.

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Balcombe’s Pitch to Upcounty

By Adam Pagnucco.

Whether they are right or wrong, MANY residents of Upcounty who communicate with your author feel that they are not treated as well by county government as their neighbors to the south.  Council At-Large candidate Marilyn Balcombe, who lives in Germantown and is the CEO of the Gaithersburg-Germantown Chamber of Commerce, is tapping into that sentiment with this mailer sent to Upcounty residents.  We think this is a smart move.  With so many at-large candidates concentrating heavily on Downcounty’s Democratic Crescent and splitting the votes there, if Balcombe has Upcounty mostly to herself, she just might be able to fly under the radar to victory.

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Campaign Finance Reports: Council Districts, May 2018

By Adam Pagnucco.

Today we look at fundraising by the Council District candidates.  As with our prior posts on the County Executive and Council At-Large races, we start with a note on methodology.  First, we calculate total raised and total spent across the entire cycle and not just over the course of one report period.  Second, we separate self-funding from funds raised from others.  Self-funding includes money from spouses.  Third, for publicly financed candidates, we include public matching fund distributions that have been requested but not deposited in raised money and in the column entitled “Cash Balance With Requested Public Contributions.”  That gives you a better idea of the true financial position of publicly financed campaigns.

Let’s start with the Council District 1 candidates.

Former Comptroller staffer Andrew Friedson is easily the fundraising leader.  His total raised for the cycle ($333,081) exceeds any of the Council At-Large candidates and his cash on hand ($245,290) almost equals the cash on hand of the next three candidates combined ($251,205).  Friedson has raised $159,257 from individuals in Bethesda, Chevy Chase, Glen Echo, Cabin John, Kensington, Potomac and Poolesville, which represents 48% of his take.  That amount is not very different from the TOTAL fundraising from others reported by former Kensington Mayor Pete Fosselman ($174,996) and former Planning Board Member Meredith Wellington ($138,820).  Of Friedson’s 1,074 contributions, 702 were for $150 or less.

The endorsement leader in District 1 is Delegate Ana Sol Gutierrez, who has the support of MCEA, Casa in Action, SEIU Locals 500 and 32BJ, Progressive Maryland and MCGEO.  But Gutierrez’s main base of voters is Wheaton, which is not in the district, and she does not have a lot of money for mail.  Friedson got a big boost when the Post endorsed him.

Reggie Oldak faces a cash crunch at the end because of her decision to participate in public financing.  Unlike Friedson, Fosselman or Wellington, she can’t get big corporate or self-financed checks to catch up late and she has already received the maximum public matching funds available ($125,000).  District 1 has by far more Democratic voters than any other district and past candidates, like incumbent Roger Berliner and former incumbent Howie Denis, raised comparable amounts to the at-large candidates.  The next County Council should consider whether to adjust the matching funds cap to avoid handicapping future District 1 candidates who enroll in public financing.

Now let’s look at the Council District 3 candidates.

Incumbent Sidney Katz and challenger Ben Shnider have raised comparable amounts for the cycle.  But Shnider’s burn rate has been much higher (partly driven by early mail) and Katz has more than twice his cash on hand.

Katz’s strength is not simply his incumbency but the fact that he has been a county or municipal elected official in the district longer than Shnider has been alive.  That shows up in their fundraising.  Katz is in public financing and recently announced that he will receive the maximum public matching funds contribution of $125,000.  Of Shnider’s $199,454 total raised, just $14,639 (7%) came from individuals in Rockville, Gaithersburg, Washington Grove, Derwood and zip codes 20878 and 20906.  That is a huge gap in starting indigenous support that Shnider has to close.

Here are the summaries for Council Districts 2, 4 and 5.

Council District 5 challenger Kevin Harris qualified for public matching funds so he can send mail against incumbent Tom Hucker.  But we expect Hucker and his fellow council incumbents, Craig Rice and Nancy Navarro, to be reelected.

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Looking for Michele Riley?

By Adam Pagnucco.

Would you like to find information on Council At-Large candidate Michele Riley?  It’s easy.  Just google one of her opponents.

Here’s an example.  Let’s google fellow Council At-Large candidate Jill Ortman Fouse.  See the first result?  It’s Michele Riley’s website!

Let’s try this again and google Evan Glass.  Wow, look at that!  Michele Riley is the first result – again.

This works for a LOT of candidates.  Let’s look up Hans Riemer, Hoan Dang, Ashwani Jain, Bill Conway, Marilyn Balcombe and Chris Wilhelm.  You guessed it – the first result goes straight to Michele Riley.

See folks, this makes us wonder.  We thought there were 33 Democrats running for Council At-Large.  But what if that’s not true?  What if only one person is running – Michele Riley!

It’s gonna be fun to have three special elections for the vacant at-large seats!

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Self-Financing by MoCo Candidates

By Adam Pagnucco.

Businessman David Blair is being criticized for contributing $1.9 million to his campaign for County Executive.  Council Member Marc Elrich, who is also running for Executive, told the Post, “David Blair can use money to commission polls and then create an image of himself based on poll results… We’ve had enough of buying images and elections.”  That leads us to a question.

How have other big self-funders done in MoCo?

The chart below shows all MoCo-based candidates since the 2006 cycle who have self-financed at least $200,000 in an election.

Notice something?  Only one of these folks won the election in which they self-financed at least $200,000: Congressman John Delaney.

Why did so many of these self-funders lose?  Here are a few reasons applying to various races.

They ran in the wrong district.

This might be the biggest reason Total Wine co-owner David Trone lost the Congressional District 8 race despite massively outspending the winner, Jamie Raskin.  The odds were long that CD8, with its dark blue enclaves of Takoma Park, Downtown Silver Spring, Kensington and Chevy Chase, would elect an alcohol salesman over a progressive, brainy and likeable college professor.  Trone is much better off in CD6 with its more moderate voters.  Similarly, real estate developer Josh Rales was no match for long-time Congressman Ben Cardin and former Congressman and NAACP President Kweisi Mfume in a statewide U.S. Senate primary.

They challenged an incumbent.

Dana Beyer and Amie Hoeber had uphill battles running against incumbents.  Hoeber’s entry on this list deserves an asterisk because her committee funding did not include $3.8 million in outside spending by her husband.

Their message wasn’t great.

CD8 candidate Kathleen Matthews had a very generic message primarily targeted at women.  District 20 House candidate Jonathan Shurberg’s message was indistinguishable from the other candidates in his race, some of whom were endorsed by Raskin and had the Apple Ballot.  District 19 Senator Mike Lenett ran one of the most negative campaigns in MoCo history against the man who went on to defeat him, Delegate Roger Manno.  Lenett’s Holocaust mailer was a killer mistake in the last days of the race.

They motivated the other side.

One veteran of Raskin’s congressional campaign told us, “We had a motto.  You can outspend us but you will not outwork us!”  Raskin’s door-knockers were dwarfed by Trone’s army but they were well-trained and highly motivated on his behalf.  (This was evident by their comparative performances at your author’s door!)  In the end, true-believer volunteers proved more effective than more numerous hirelings.

Delaney was the exception because he ran in a district that fit a center-left businessman, his main Democratic opponent took the election for granted, Republican incumbent Roscoe Bartlett was on his last legs and the district was gerrymandered to elect a Democrat.  But there was more: in addition to his self-funding, Delaney raised $2 million in outside money during his first win in 2012.  Most of his fundraising in his next two wins came from others and not himself.

There is no question that self-financing capacity is an advantage.  But little in MoCo’s recent political history supports the notion that elections here can be outright bought.  If Blair wins, it won’t just be because of money.  As one of the wisest MoCo election observers we know told us recently, “You know, the reason self-funders usually lose is because they have a crappy (or no) message.  But when they have a concise message… look out!”

Disclosure: The Executive candidate we are supporting, Roger Berliner, is not self-funding his race.  If he did that, his wife would kill him!

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