Budget Cuts and Hunger in Montgomery County

Today, Seventh State is pleased to present a guest post by Manna Food Center CEO Jackie DeCarlo. Manna is a nonprofit dedicated to ending hunger in Montgomery County through food distribution, education and advocacy.

The holiday season is upon us, which means hunger relief organizations all over Maryland are welcoming an uptick in volunteerism and donations. While the individuals who organize food drives, pick up and deliver food, and volunteer at food pantries are critical to addressing hunger in our communities, their efforts will be undermined if threats to our social safety net currently working their way through Congress come to fruition.

Specifically, the federal tax plan headed for passage—and cuts to vital programs like the Supplemental Nutritional Assistance Programs (SNAP) that will likely accompany the price tag for that plan—will cause more Marylanders to tumble further into the kind of poverty that comes with inevitable hunger.

Even though Maryland is the wealthiest state in the nation, one in eight households struggles against hunger and programs like SNAP improve the lives of those neighbors on a daily basis. In Montgomery County, one of the richest counties in our state, one in three of our schoolchildren is food insecure, and there are large pockets where high unemployment and poverty rates prevail. Every day at Manna Food Center, we see the value of SNAP and other social safety net mainstays such as housing assistance programs and low-income tax credits.

A case in point is Sasha, a woman Manna has had the honor to serve. Sasha immigrated to the United States ten years ago, married and had a child, then was forced to leave an abusive husband. She didn’t have a job and found it hard to provide for her children, but the food she received from Manna helped her make it through an incredibly difficult time in her life, and eventually stand on her own.

There are countless stories like Sasha’s, which is why it so upsetting to see the budget Congress is debating on the heels of untested approaches to tax “reform.” Cuts being considered would likely cause millions of Americans to tumble further into the kind of poverty that comes with inevitable hunger. Regardless of political affiliation, there seems to be agreement that more responsibility is falling to local governments and local businesses.

Already in Montgomery County, our local government is trying to do its part to address hunger and poverty. This year, elected leaders worked with the food assistance community to develop a five-year strategy to reduce the number of food insecure neighbors by 22 percent. The plan aims to address the root causes of poverty and economic disparities through programs such as workforce training and youth skills building that ensure no one is left out of our county’s rapid development and growing prosperity.

The council also recently passed, and the County Executive signed, legislation securing a $15 minimum wage, a great step toward giving people financial autonomy – and one Governor Hogan should emulate so all of the state’s low-wage workers can enjoy a boost in earning. Even with those positive measures, however, the reality is that the minimum wage increase won’t be enough to raise people out of poverty, and none of our local government’s commendable plans amount to a silver bullet that will end hunger.

Therefore, the commitment of the local business community will also be required. Food businesses, in particular, can play an important role in alleviating hunger throughout Maryland. Through Manna’s Community Food Rescue network, Montgomery County farms, grocers, food service companies and restaurants donate unsold and surplus food that gets matched through an app and delivered by volunteers to food assistance organizations. In its first two years, the CFR network has recovered more than 2.3 million pounds of food—the equivalent of 1.9 million meals. As more businesses recognize the importance of getting food to people who need it, instead of to the landfill, the potential impact of food recovery programs here and across the state is tremendous.

Even with these positive local steps, ending hunger and poverty will be impossible without strong federal programs like SNAP, which helps ensure low-income families have enough to eat. SNAP benefits equal about $1.40 per person per meal, and if the budget passes with proposed SNAP reductions, food assistance organizations won’t be able to fill the gap.

While we have many reasons to be grateful this holiday season, I am concerned about what we stand to lose. The commitment of volunteers and donors who do their part to end hunger in communities nationwide must be matched by the commitment of businesses and, especially, policymakers at all levels of government. Rather than watching idly as a tax plan that does significant harm to those in greatest need gets passed, our local and state leaders should emphatically convey to Congress and the administration that their recklessness is unacceptable, and they will fight for the preservation of our social safety net.

Jackie DeCarlo is the CEO of Manna Food Center, a nonprofit dedicated to ending hunger in Montgomery County through food distribution, education and advocacy.

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Gabe Albornoz Qualifies for Matching Funds

The following is a press release from Gabe Albornoz’s campaign for an at-large seat on the Montgomery County Council:

Press Release:

FOR IMMEDIATE RELEASE: Wednesday, December 6, 2017

Gabe Albornoz Reaches Matching Funds Threshold for At-Large County Council Race

Kensington, MD – Gabe Albornoz, a Democratic candidate for an At-Large seat on the Montgomery County Council, announced that he had received over $20,000 and 250 contributions from Montgomery County residents. Albornoz’s campaign will be qualified to receive matching funds from the Montgomery County Public Campaign Financing Program upon certification by the Maryland State Board of Elections.

“I’m humbled and honored to receive this support. The Campaign Finance Program is working and has ensured that Montgomery County residents set the tone of our politics. I’m pleased that our campaign is playing a role in democratizing our county’s politics to give more power to people,” Albornoz said.

“I am very pleased to hear that Gabe has achieved this important milestone in his campaign. He has earned a reputation for strong leadership, collaboration and commitment to public service, which is why I’m happy to endorse his campaign,” said Councilmember Nancy Navarro.

At-Large candidates for County Council must receive at least 250 qualifying contributions, totaling at least $20,000, in order to qualify for a public financing, according to a law previously passed by the Council. Only contributions of up to $150 per election cycle from Montgomery County residents qualify for matching funds. Candidates in the program cannot accept any contributions from special interest groups, businesses, political action committees, unions, or political parties. Participating candidates are eligible to receive up to $250,000 in matching funds during the primary and general election campaigns.

“We are grateful to Gabe’s many supporters and their confidence in him to represent them as a member of the County Council. Gabe’s message of optimism for Montgomery County has been enthusiastically received,” said Campaign Chairman Chuck Short.

Albornoz is a lifelong Montgomery County resident and a past Chairman of the Montgomery County Democratic Central Committee. He is the current Director of the Montgomery County Recreation Department. He was appointed to that role by County Executive Ike Leggett in January 2007.

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Lost in Potomac: Stuart Rothenberg Eviscerates the Trone Campaign

National Political Pundit Stuart Rothenberg wrote a devastating account of his meeting David Trone:

Maryland Democrat David Trone, who is running for Congress in the 6th Congressional District, came to my Potomac community to talk about his candidacy – and he brought plenty of wine for residents to sample while they chatted with neighbors before turning their attention to the candidate. . . .

What made all the politicking odd is that my community is not in the 6th District but rather in the 8th, currently represented by Democrat Jamie Raskin, who beat Trone in the Democratic primary last year. In other words, Trone touted his credentials, talked about his views and supplied wine to a roomful of people who could not vote for him next year.

Oops.

But it gets even worse:

[My] second question involved my doubts that he is suited to being a lowly freshman who would have little influence. I noted his self-funding and his previous race, as well as the fact that he had flirted with running for county executive before deciding on a second race for Congress. I also noted that his earlier comments about leadership, about the county government and about his experiences in the private sector suggested he would be more effective in an executive position.

Trone seemed to dislike the question. He turned away from me and addressed others in the audience, insisting that his wealth was an asset not a liability, emphasizing that he would be politically independent, and promising that he could bring change. He was passionate, certainly, but he didn’t address my concerns about his temperament, district-shopping and suitability for a legislative office.

Trone took another question but suddenly had to run. He never stressed his Democratic label, instead embracing the “no labels” movement in response to a question and talking about his pro-business bent.

Running as the “no labels” candidate in a Democratic primary gives the impression that he thinks he has it sewn up. No voter likes being taken for granted or having his questions given the “talk to the hand” treatment–something you would think someone who runs a business with excellent customer service would know.

Rothenberg concluded his analysis with some sage advice for Trone:

His odds will improve if he campaigns among voters who actually live in the district where he is running.

I’d be glad I owned a liquor store after reading this piece.

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Moon Country Club Bill Could Generate $10 Million for MoCo

By Adam Pagnucco.

A local bill introduced by Delegate David Moon (D-20) that would end property tax breaks for country clubs would eventually generate $10 million a year for Montgomery County Government according to General Assembly analysts.  That’s welcome news for the county, especially considering its current budgetary difficulties.

Under current state law, the State Department of Assessments and Taxation (SDAT) is allowed to strike agreements with country clubs having golf courses to cap the assessed value of their land.  To be eligible for such agreements, the clubs must have at least 100 members who pay dues averaging $50 or more annually for each member; restrict use of their facilities primarily to members, families, and guests; have at least 50 acres of land; and have a golf course with at least 9 holes and a clubhouse.  In practice, the agreements limit assessed land values to $1,000 an acre.  In return for the assessed rate, a club with an SDAT agreement must agree not to sell its land for subdivision and to not discriminate on race, color, creed, sex or national origin.  If a club with an agreement does sell its land for subdivision, it must pay back taxes equivalent to what it would have been paying without an agreement.

Not long ago, your author asked SDAT for all of its agreements with country clubs in Montgomery County.  SDAT sent us ten of them but we later learned that there are actually fifteen of them in the county.  One of them was signed in 1980 and three more were signed in 1981; all four of these are fifty year agreements.  Two more were transferred from prior owners.  One agreement, for the Lakewood Country Club in Rockville, was signed in 2017.  In tax year 2016, when the agreement was not effective, the club’s 175 acres had an assessed land value of $1.94 million.  Once the agreement takes effect, the club’s assessed land value will be $175,000 – a 91% reduction.

Moon’s local bill would abolish such agreements with country clubs in Montgomery County as of their expiration or June 30, 2029, whichever date is earlier.  Because Maryland’s state constitution requires uniform rules for the assessment of land, Moon’s bill takes the form of a constitutional amendment carving out MoCo country clubs and golf courses from that requirement.  The amendment would have to be approved by voters.  We understand that Moon may also introduce a statewide bill to deal with SDAT agreements everywhere.

The fiscal note on Moon’s bill indicates that MoCo country clubs with SDAT agreements have a combined 3,000 acres currently assessed at $3 million.  In the absence of the agreements, the fiscal note estimates that the club’s assessed land value would be $983.3 million.  So once the agreements are all gone by Fiscal Year 2030, the fiscal note estimates that the state would collect an additional $1 million a year in property taxes from the clubs and the county would get an additional $10 million annually.

That’s right, folks – if the country clubs simply pay property taxes at the same rate the rest of us do, the Montgomery County Government would get an extra $10 million a year.

Delegate Moon’s country club bill is the biggest no-brainer of all time.  There is no justification for the richest of the very rich to get a property tax break that no one else does.  And if they are required to pay the same as everybody else, the county government would get a nice revenue bump to help it deal with our significant and increasing needs.

We hope every single MoCo Senator and Delegate will join David Moon and support his bill.

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Frick Attacks Opponents for Budget Shortfall

Montgomery County is facing a budget shortfall and across-the-board operating budget cuts of 2%–and warning that’s just a start. Del. Bill Frick is highlighting the cuts to go after his three opponents in the Democratic primary for county executive who have served for many years on the County Council:

It is time for new leadership in Rockville.  Our councilmembers ignored warnings from County Executive Leggett to restrain spending.  Despite an increase in the recordation tax, and a nearly 9% increase in property taxes, we find ourselves without sufficient revenues to pay for these councilmembers  pet projects, and, as a result, public services are being cut.  Our county deserves better.

The full press release and supporting documents are posted below.

Frick Press Release on MoCo Budget Shortfall by David Lublin on Scribd

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GOP Tax Bills Discriminate Against Maryland

By Adam Pagnucco.

Much has been written about the tax bills passed by the U.S. House and Senate in recent weeks.  Overall, both bills offer small tax cuts to the poor, modest ones to the middle class and large cuts to the wealthy and corporations.  But in order to partially offset the massive tax cuts going to those at the top, the bills do something else.

They discriminate against taxpayers in Maryland.

Why do they do that?  One key feature of both bills is that they abolish the ability of individuals to deduct state and local income taxes from their federal incomes.  (Property tax deductions would still be allowed up to $10,000.)  According to IRS data for Tax Year 2015, U.S. federal taxpayers deducted a total of $334 billion of state and local income taxes from their incomes, more than the amounts they deducted for mortgage interest ($278 billion), charitable contributions ($222 billion), real estate taxes ($187 billion) and state and local sales taxes ($17 billion).  Abolishing the state and local income tax deduction hits people who itemize their deductions and pay significant amounts of state and local income taxes.  Marylanders are targeted on both those measures.

Itemizing Deductions

According to the above IRS data, 46% of Marylanders itemized their deductions on their federal tax returns in 2015.  That’s the highest rate in the country, far surpassing the national rate of 30% and red states like Arkansas (22%), Mississippi (23%), Louisiana (23%), Texas (24%), Alabama (26%), South Carolina (27%) and Georgia (33%).

State and Local Income Tax Deductions

In terms of state and local income tax deductions per return (including non-itemized returns), Marylanders ranked fifth in the nation at $4,217 per return.  Maryland trailed New York, D.C., Connecticut and California.  Virginia ranked tenth, indicating that the abolition of this deduction will hit the Washington, D.C. metro area particularly hard.  The states least impacted are mostly red states and those with little or no income taxes.

Inside Maryland, the impact will be felt differently across the state.  That’s because residents of some jurisdictions pay much more in state and local income taxes than others.  According to 2015 income tax data from the Comptroller, MoCo and Howard County residents pay by far the most state and local income taxes in Maryland.  Residents of many parts of Western Maryland and the Eastern Shore pay the least.

Consider this.  If you itemize your deductions, are paying $5,000 in state and local income taxes – roughly the average in Maryland – and your effective federal income tax rate is 15%, you will owe $750 more to Uncle Sam because of the abolition of the state and local income tax deduction.

Does that mean you will owe more federal taxes overall?  That depends.  If you are wealthy, you could get huge offsetting cuts because of changes to the top income tax brackets and tax cuts on pass-through income from your businesses.  If you are poor or middle class, you could benefit from an increase in the standard deduction and an increase in the child credit, but that could be offset by an elimination of the personal exemption.  An analysis of the Senate bill two weeks ago by the Institute on Taxation and Economic Policy found almost all of the tax benefits from that bill going to the top quintile of Maryland taxpayers.  Changes prior to the Senate floor vote and in conference committee may tweak the details but not the overall impact.  And it could get worse: wealthy Republican donors are already complaining that their tax cuts are not big enough.

There are many evils in the GOP’s tax bills: redistribution to the one percent, big tax breaks for multi-nationals who ship jobs overseas, losses of insurance coverage under the Affordable Care Act and more.  But for Marylanders, the additional slap in the face is that the bills shift the federal tax burden away from states like Texas, South Dakota, Alaska and Mississippi and onto residents of the Free State.  All Marylanders, including Republicans, should oppose that.

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Ron George: “Leftist Democrats” Believe Businesses are “Slave Plantations”

By Adam Pagnucco.

Former GOP Delegate and gubernatorial candidate Ron George, who is running for State Senate in District 30, said on Facebook that “leftist Democrats” think businesses are “running sweat kitchens or slave plantations.”  When challenged on his language by a reporter, he did not back down.

The Facebook exchange occurred on Daily Record reporter Bryan P. Sears’s page.  When Sears posted a video of Delegate Luke Clippinger weighing in on Governor Larry Hogan’s newest sick leave proposal, George wrote:

This helps no one. Employees will take it. Why not? Currently, I do not question my employees when they call in sick. It is their decision if they are too sick to work or have a personal need. But the small business owners I know in other states that have this say it is felt it is owed to them (the employees) and suddenly the business owners are simply paying for people not working. Why are the leftist democrats always thinking business owners are running sweat kitchens or slave plantations. Most treat their employees like family. I am responsible for my employees providing for their families and I feel responsible to do well for them and they feel the responsibility to do well for the business. Most owners put in many extra hours because of our responsibility to our employees and work extra hours for them. It ain’t easy.

George owns a jewelry store on Main Street in Annapolis.

When Sears raised the possibility that George’s reference to “slave plantations” might be viewed by some as “racially charged,” George replied, “In office I heard many comments speaking of business owners in disgust as if they are cold, heartless, inhumane.”  The full exchange appears below.

We get that as a business owner, George may not particularly enjoy the government setting his workplace practices.  But multiple polls find that huge majorities of Marylanders support paid sick leave.  Even Governor Hogan has introduced not one but two sick leave bills.  Are they all “leftist Democrats” who believe that business owners treat employees like slaves?  Or is Ron George as out of touch with Marylanders as he is inclined to the use of racially charged rhetoric?

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Washington Challenges Conway, Part II


Today, we continue our look at the upcoming Democratic primary challenge by Del. Mary Washington to incumbent Sen. Joan Carter Conway (D-43).

Del. Mary Washington brings a record of serious work on issues and constituency service to her challenge to incumbent Sen. Joan Carter Conway. She has been keenly interested in expanding community schools that help link students and their families with services that can help in times of crisis or to overcome barriers to gaining an education.

Washington has also gained attention for her effort to prevent homes for being sold for unpaid water bills—a real problem in Baltimore City because of spiking rates and major glitches in the new water billing system that have led to over 1000 homes and churches facing the threat of sale. These are serious problems for people on fixed incomes.

Washington is poised to make a more serious bid to challenge Conway than Henry’s unsuccessful effort in 2014. First, Washington will have already represented the exact same constituents as Conway for eight years. Additionally, she ran a strong campaign for the House twelve years ago, so she’s well-known in the district and on the ballot.

Second, Washington is much more strongly positioned form a financial perspective. Her last report revealed that she had $81,572.45 in her campaign account. While less than Conway has, or will be able to bring to bear in a tough primary, Washington already has enough to afford key expenditures for a serious challenge.

On the other hand, the two sitting delegates, Maggie McIntosh and Curt Anderson, have made clear that they will stick with Conway. Like Sen. Mike Miller, who will also back Conway, Del. McIntosh is an experienced, skilled politician who can bring significant dollars to bear and plays for keeps. They’re key backers that Conway needs—and has—and not the sort of opponents anyone wants to face.

If Conway decides to retire, Anderson has indicated that he is inclined to enter the race, though the betting appears to be that Washington would defeat him. It will be interesting to seek how tight a joint effort the other incumbents run and if Washington aligns with other challengers.

Washington’s challenge appears to be having the effect of causing Sen. Conway to dig in her heels and want to run for a sixth term. While Conway is a seasoned incumbent who has won her spurs in tough races, it remains unclear how aggressively she could or would campaign. In contrast, Washington is clearly hungry for the seat.

This will be a great race to watch.

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Not Exactly the Ideal Rollout for Turnbull

Gubernatorial Candidate Ben Jealous Introduces Susan Turnbull as his Running Mate for Lieutenant Governor

Sometimes, it’s worth doing a third take.

Apparently, a car accident outside interrupted Ben Jealous’s effort to do his introduction of Susie Turnbull as his running mate for Lieutenant Governor. After investigating, they came back and did this second take.

It contains some real clunkers. Ben Jealous speaks of removing Gov. Larry Hogan “from the White House.” This Freudian slip only reinforces the perception that Jealous is a lot more knowledgeable and comfortable speaking about national issues and his real interests lie outside the State.

Incredibly, Turnbull then makes the same gaffe by referring to when she “moved to Washington” even though she quickly realizes her mistake and attempts to correct mid-course. She ends up saying:

For the last 40 years, I’ve been engaged in politics. Since I moved to Wash <pause> to Washington and Maryland, especially to Maryland, in the last . . . years ago, what I have done is build coalitions and work in my community.

Leading with her political chops without also highlighting any specific accomplishments doesn’t help sell the message. The takeaway for many may not be their message of “change” and “doing big things” but that Jealous has chosen yet another longtime well-off political insider, much of whose work in her community consists of serving in elite party positions.

Many in the DC area think of themselves as Washingtonians and identify heavily with the metro area. Saying you’re from more well-known Washington rather than Bethesda is natural for Turnbull. Yet Washington insider is not normally the image cultivated by a Sanders candidate. Describing herself as being from “Washington” will surely play poorly elsewhere in the State.

The jiggling camera puts a Maryland spin on it by reminding people of The Wire. I suppose the low production values can be sold as a form of authenticity but I would’ve thought a campaign intending to do a roll out would’ve been prepared to film it.

Jealous has gained a running mate who will reassure the political establishment and may help him raise money – two excellent reasons for Turnbull’s selection. Many people think highly of her and we’ll have future opportunities to hear from them. But this video utterly fails to sell why the broader public should think that she is a great choice for Lieutenant Governor.

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Washington Challenges Conway, Part I

Sen. Joan Carter Conway (D-43) has not made her intentions clear regarding running for reelection but that has not stopped Del. Mary Washington (D-43) from throwing down the gauntlet and declaring her intention to run for the seat.

After winning election to the Baltimore City Council in 1995, Conway was appointed to the Senate in 1997 when Sen. John Pica, Jr. retired. Since then, she has won the Democratic nomination—tantamount to election in this district—five times. While Conway has faced stronger challenges in recent years, she has continued to win convincingly.

Past Democratic Primary Results in District 43
2014: Conway, 64.5%, Councilman Bill Henry (D-4), 35.5%.
2010: Conway, 69.5%, Hector Torres, 30.5%
2006: Conway, 92.0%, Dave Vane, 8.0%
2002: Conway, 100.0%
1998: Conway, 100.0%.

In 2014, Conway dispatched Councilman Bill Henry with ease, winning by a margin of 29%. Henry’s expenditure of $45,687.36, while not insubstantial, was below the threshold needed to take on an entrenched incumbent. Challengers don’t need to outspend incumbents but they do need enough for key expenditures.

Conway spent $146,993.41 in 2014 and this does not include any independent expenditures made on her behalf, though it does include some expenses for the general election. Though she once again contemplating retirement, having packed up her Senate office, Conway remains financially prepared to wage a serious reelection battle with $108,567.58 in her campaign account according to her January report from this year.

Conway has an interesting relationship with Senate President Mike Miller. While they don’t get along personally, Conway has long been part of Miller’s leadership team as Chair of the Education, Health and Environmental Affairs Committee. After the primary in 2014, Conway transferred $35,000 from her campaign account to Miller’s Democratic Senatorial Committee Slate and another $5,000 to conservative Sen. Roy Dyson (D-29). In short, there has been little friction on legislative or political matters even if Miller and Conway will never be BFFs.

Tomorrow, we take a closer look at the challenger, Del. Mary Washington.

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Maryland Politics Watch