On the Trone Campaign

Once this election is over, Democrats all over the Eighth Congressional District are going to feel jilted as the never ending stream of direct mail from David Trone comes to a sudden halt. So I’m playing this one in advance of primary day.

Seriously though, David Trone is running an excellent campaign. Many wealthy people decide to run for office but are completely oblivious to their lack of political expertise and spend their money badly. David Trone has hired experts, and he has hired good ones.

Trone’s direct mail is not only plentiful, it’s attractive and well-designed. It comes in a variety of formats. If you don’t read the postcard, maybe you open the letter. It’s also targeted; I received at least two pieces based on my ethnicity.

His television ads are similarly well done based on the few I’ve seen. Thanks to the blessings of Tivo, I see fewer political ads than many. (Some friends are impressed that I manage to watch TV not see most of Trone’s ads.) Increasingly, I suspect, viewers of commercials on television skew older. But that’s not bad in a primary because so do the voters.

Younger viewers may have been forced to watch when they viewed shows online, as most do nowadays. I imagine I might’ve seen more videos for Trone if I clicked on the many net ads, though I wonder greatly if they are effective.

Trone also has a large staff of paid canvassers. They’re way better than paid people that I’ve seen in most state legislative campaigns, who usually can’t wait to dump the literature and get home. Nonetheless, Trone’s people remain less passionate and knowledgeable than volunteers. Scratch the surface of his pleasant crew, though I am not sure many do, and they don’t know much about their guy.

The canvassers are also well targeted. Anyone who requested an absentee ballot soon had a Trone canvasser at their door. And Trone has very heavily promoted absentee ballot requests from people who have not voted in primaries previously.

If Trone loses, it won’t be because he spent his money badly.

The real question remains why Trone wants to be a freshman member of Congress. It doesn’t seem to be any particular issue passion. A clear campaign weakness is that his stances on public policy are cookie cutter and undeveloped.

Beyond wanting this to acquire this particular political success and to highlight his considerable business acumen, one wonders why he doesn’t run for an office where he could really shake things up. A Trone campaign for County Executive would sure unsettle the plans of most of the County Council.

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Senators for Corporate Welfare

The General Assembly couldn’t manage to pass an increase in the Earned Income Tax Credit (EITC) even though both houses supported it. In contrast, the bill giving Northrup Grumman a $37.5 million tax credit sailed to passage.

Who in the Maryland Senate supported this fine example of corporate welfare?

One Republican Against Corporate Welfare

Just about every Republican voted for the bill. Sen. Michael Hough (R-4) was the sole Republican who voted no, possibly because he is a conservative who (1) wants a simple tax code, (2) doesn’t think government should interfere in the free market by helping out only favored businesses, and (3) wonders why his tax paying constituents shouldn’t get the break instead of Northrup Grumman.

Democrats for Corporate Welfare

Nineteen Democrats joined the twelve Republicans who voted for the bill. The following chart lists them in decreasing order of support for Democrat Anthony Brown in the last election:

DforNGThough seven represent legislative districts that voted for Hogan, the rest hail from districts won by Brown. Nine of the 19 represent extremely safe Democratic districts. In these nine, Brown won by 59% or more, and all won election in 2014 by 62% or more.

Four more represent districts carried only narrowly by Brown (i.e. 50-52%). But even these senators do not face serious general election danger. Obama fared much better in the same territory, and Democrats won them by 57% or more in 2014 despite the terrible electoral fortunes faced by Democrats around the country.

Sen. Craig Zucker (D-14), recently appointed to replace retired Sen. Karen Montgomery, is tacking to the right of his predecessor. Besides voting in favor of giving money to Northrup Grumman, he also supported the tax cut for the wealthy. An interesting strategy as incumbent Sen. Rona Kramer lost to then-Del. Montgomery the primary after being attacked as too pro-business.

Dumb Politics

The politics of the legislation make little sense. It’s not even a question of alienating liberals. It’s hard to see how Democrats win more votes here from anyone. Are moderates, let alone liberals, really going to vote Democratic because Northrup Grumman received a tax giveaway?

The icing on the cake is that the Senate simultaneously killed off an increase in the EITC by standing firm in favor of a tax cut for the wealthy instead of for the middle class.

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EITC Increase Dies But Northrup Grumman Gets Corporate Welfare

One of the big battles of the General Assembly’s now ended legislative session centered around proposals to increase the Earned Income Tax Credit (EITC) and to cut taxes. Both the Senate and the House proposed an increase in the EITC. But while the Senate tied it to a cut in marginal rates for the top 11.1%, the House passed a broad based tax cut.

No EITC or Middle Class Tax Cuts

Conference negotiations resulted in stalemate, as the Senate held out for its tax cut on the wealthy. As a result, no tax cuts and no increase in the EITC. The political sense in the Senate’s position was lost on me. The Democratic-controlled Senate held the EITC hostage to a tax cut for the wealthy for which the Governor would inevitably claim all the credit. Bad policy and bad politics.

Don’t Worry, We Have Northrup Grumman’s Back

Meanwhile, the General Assembly passed a $37.5 million tax credit for Northrup Grumman. The Senate even voted down an amendment that proposed to make it nonrefundable. While the legislature made progress on other fronts, the General Assembly bombed the fundamentals on tax policy.

Heck, Republicans should have opposed this turkey too. If you really believe in the free market, then you should also believe that government should not pick winners and losers or give some businesses special treatment.

Sen. Rich Madaleno, who opposed the tax cut for the wealthy and the corporate welfare for Northrup Grumman, summed up the situation well in a tweet: “Sadly only Northrup Grumman gets expanded EITC.”

How Did They Vote?

That’s for tomorrow’s post.

 

 

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House of Delegates Tax Bill Vastly Superior

The Maryland Senate has passed a tax cut that is directed at the top 11.1% of taxpayers. It would reduce marginal tax rates for individual taxpayers who make more than $100,000 and joint taxpayers who make more than $150,000, while the people who earn less than this receive no cut in their rates and get peanuts – or more specifically, money enough to buy a meal at Chipotle.

In contrast, the House of Delegates has passed far superior tax legislation. Instead of focusing the benefits on wealthy Marylanders, the House bill would lower the marginal rates on income earned between $3001 and $100,000 (and up to $150,000 for joint taxpayers). The wealthy would still get a break but this bill, appropriately, directs far more of the benefit to the much-squeezed working and middle classes. Like the Senate bill, the House bill also expands the Earned Income Tax Credit (EITC).

Politically, it should be a no brainer to junk the Senate bill and adopt the House legislation, particularly for Democrats. While maintaining the EITC changes much needed by the working poor, the House bill distributes the tax cut far more widely and equitably. Let’s hope that the House and the Speaker stand firm.

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The GOP Bench, Part IV

The following is a guest post by Adam Pagnucco:

Most attention concerning the next round of state and local elections centers on the Governor’s office. Can the Democrats find a nominee to knock off Larry Hogan or can the Governor earn a second term? But the playing field is much larger than that. In truth, we are about to find out whether Maryland is on its way to becoming a genuine two-party state.

For most of the last few decades, the Maryland Republican Party has been almost irrelevant. Their sole Governor from the seventies through the early 2000s, Bob Ehrlich, was ejected after one term. Their presence in the General Assembly was negligible. Most of the large local governments were controlled by Democrats most of the time. The great debates of the day were driven by discussions within the Democratic Party and were not affected very much by those on the outside. But there is a real question now as to whether that sort of Democratic dominance will continue.

Regardless of whether Governor Hogan is reelected, the GOP enjoys a stronger position for future elections than anyone can recall in recent times. In 2022, the County Executives of Anne Arundel, Harford and Howard could very well be running for the GOP gubernatorial nomination whether Hogan wins a second term or not. If and when they do, Republican council members and/or state legislators will run to fill those Executive seats and become the next generation of local leaders. Competition for local council seats will be fierce in swing jurisdictions like Frederick, Howard and Baltimore County. Term-limited local officials will run for the General Assembly. In other words, in the absence of an earth-shattering event (like a Donald Trump presidency) or a mass revival of the Maryland Democratic Party, the Republicans’ recent gains could become self-sustaining.

The GOP will probably never be the majority party in Maryland in our lifetimes, but they don’t have to be. All they have to do is become competitive. That will enable them to become a factor in public policy debates both through their ability to win and hold elected office and through the threat of their doing so. We may already be seeing the effects of this as a bill to steer public funding to private schools has passed the Maryland Senate. Of the 25 Senators who voted in favor it, 14 were Republicans and some of the Democrats came from competitive areas like Anne Arundel, Southern Maryland and the Eastern Shore. The House did not pass the Senate’s proposal, but did agree to use public money to fund private school scholarships for the first time in the budget. Rising right-wing influence may also be a factor in the Senate’s passage of tax cuts for the rich. This is a reversal from the Senate’s approval of tax hikes for “half millionaires” (those making $500,000 or more) in 2012 and the General Assembly’s approval of a temporary millionaire tax in 2008.

Another consequence of the GOP’s ascent could be the empowerment of its extremist elements. Governor Hogan presents a moderate face to the public. But a recent Baltimore Sun poll found that 34% of Republican primary voters supported Donald Trump for President and another 25% supported Ted Cruz. That is sure to capture the attention of Republican elected officials and influence their behavior. Republicans like race-baiting Delegate Pat McDonough (labeled by the Sun as “the Trump of Baltimore County”); neo-Confederate Anne Arundel Council Member Michael Peroutka; Delegate Neil Parrott, who wants to require HIV victims to get tattoos to obtain medicine; Hogan-appointed anti-LGBT and anti-immigrant Baltimore County school board member Ann Miller; and Frederick County Council Member Kirby Delauter are all part of the GOP bench. Imagine what they would do with real power.

The challenge facing Maryland Democrats is not just Governor Hogan – it’s also the growth of the GOP in areas other than the two Beltways and the portion of I-95 connecting them. Will the Democrats respond with a sweeping statewide effort to regain their past dominance? Or will Republican gains at the local level be entrenched? That may be an even bigger question than the identity of the next Governor and it could set the political table for many years to come.

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Broadcast TV Spending in CD8

The following is a guest post by Adam Pagnucco:

Unlike most state and local races below the level of Governor, the contest in Congressional District 8 has seen a lot of television ads.  These ads are trackable, although not easily.  Today we present a first cut on who is advertising where, and for how much.

The Federal Communications Commission (FCC) requires TV and radio stations to report on political ad purchases.  In 2012, the FCC required broadcast TV stations to post political ad purchases on the agency’s website, but with a large caveat: the files are in pdf format.  They are not accessible through spreadsheet or database software, and are therefore not readily crunchable.  They are also not searchable.  A researcher has to go through every relevant station, one at a time, review all pertinent folders and manually enter the data to prep it for analysis.  This is a challenging and time consuming task!

The data is also incomplete.  Cable and satellite TV stations and radio stations are not currently required to report their political ads to the website, although they will be starting in the next cycle.  Furthermore, the reports do not include production costs.  They only include amounts paid to the TV stations, both gross and net of commissions.  So the information reflects only a portion of candidate spending on TV.  That said, broadcast TV is an important part of large-scale federal elections and data on it is worth looking at.

We assembled political ad data for all CD8 candidates in the year 2016 for all of the Washington area’s broadcast TV stations.  Contracts often cover a week or more into the future, so the most recent ones we obtained are active through April 16 – ten days before primary election day.  The broadcasters reported a combined total of 127 contracts through noon, April 4.  Here is the number of spots and gross amount for each broadcaster reporting.

Broadcast TV Spending by Network

Unsurprisingly, the big four networks dominate.  Also not surprising is that WRC-TV, long the top-rated local network, is a runaway leader in ad spending.

Broadcast TV Spending by Month

David Trone kicked off the 2016 ad season on January 26, when he began advertising on every network in our dataset.  On February 7, he paid for five spots worth $200,000 on WUSA on Super Bowl Sunday.  (That amount is more than what most candidates for State Senator and Delegate spend in their entire campaigns.)  Kathleen Matthews began advertising on February 8.  Jamie Raskin joined in on March 24 and Kumar Barve followed on April 6.  The drop in total spending between February and March was caused by a decline in Trone’s spending, part of which is due to the fact that there was no Super Bowl in March.  April spending is down because the contracts have not all been reported yet.

Candidate and Cost per Spot

Trone dominates this category of spending, accounting for the majority of spots and roughly three quarters of gross amounts paid to broadcasters.  There are big differences in the costs paid by the candidates, and that reflects their strategies.  All four candidates advertise during news programs and those shows tend to charge the highest rates.  Matthews mixes in cheaper daytime television like The Meredith Viera Show, Days of Our Lives, Who Wants to be a Millionaire, CBS Soaps and The Insider.  Raskin is keeping his costs down by running 15-second spots, half the length of his competitors.

Candidate and Month

Trone’s edge in TV has been eroding over time.  He had January all to himself.  But his CD8 TV market share dropped to 82% in February, 73% in March and 44% in April (so far) as other candidates have gone live.  (That April number could change a lot!)  Late TV commercials may mean more than early ones because many voters, especially casual ones, make up their minds late.

A few other things are worth mentioning.

  1. Trone’s real dominance may not be on TV or in mail, but in his digital advertising program. His ads are everywhere on the Washington Post and Bethesda Magazine websites.  There is no known source of reporting on those ads outside of the candidates’ campaign finance reports, and even they may be a bit murky.  In any case, Trone is making a big bet on digital and his opponents are not.
  1. Matthews reported an end-of-year cash balance of $1.1 million, but this data shows that she has spent over $800,000 on broadcast TV alone. Matthews has a formidable campaign operation, with staff, field, mail, office expenses and more.  This suggests that she has had a strong fundraising quarter, or is self-financing, or perhaps both.
  1. Raskin is emphasizing mail over TV. He has the second-most extensive mail program in the race behind Trone.  This is a deliberate calculation.  Mail is much easier to target than broadcast TV.  Mail can be sent to regular Democratic primary voters – the people who tend to pay closer attention to elections than others – while TV ads are sprayed into the ether to be viewed by regular voters, casual voters, non-voters, members of other parties and residents outside the district.  Raskin believes that regular voters will support him if they know that he is a) very liberal, b) very experienced in passing liberal bills and c) has a better chance to win than the other liberal elected officials running against him.  (That message has offended Barve, who has been in office for sixteen years more than Raskin and is a high-ranking member of House leadership.)  All three publicly disclosed polls in the race show Raskin at close to 30% of the vote.  If he can hold on to his supporters and his mail strategy gets him another five points, could that be enough to win?

How much does TV spending matter?  John Delaney won his seat in Congress in part through TV ads, and David Trone has so far spent at least double his total.  Kathleen Matthews trails, but she has spent enough to be heard.  The other candidates have not made a major commitment to TV.  Will they pay a price for that?

We will have an update on this data shortly before the primary.

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Who Supports the Senate’s Tax Cut for the Wealthy? Bueller? Bueller?

The Maryland Senate passed a cut in marginal tax rates that will only benefit the top 11.1% of Maryland taxpayers. It’s a tax cut that literally gives the wealthy enough to buy a nice iPad but leaves the middle class with barely enough to buy a meal for one at Chipotle (but they only get even that if they have exemptions).

The bill has crossed over to the House of Delegates. Lots of people and groups testified against the bill at the hearing before the House Ways and Means Committee, including:

Maryland CASH Campaign
Maryland Center on Economic Policy
Maryland Nonprofits
Health Care for the Homeless
Maryland State Education Association
Advocates of Children and Youth
Maryland Alliance for the Poor
League of Women Voters of Maryland
MD/DC State Council of SEIU
Maryland Working Families
AFSCME

The following groups also signed on to a letter protesting holding the increase in the Earned Income Tax Credit (EITC) hostage to a tax cut for high earners:

Advocates for Children and Youth
AFSCME Council 3
Baltimore CASH Campaign
Baltimore County Arts Guild
Baltimore Neighborhoods, Inc.
CAFÉ Montgomery
CASA of Baltimore County
Council for Bile Acid Deficiency Diseases
Fuel Fund of Maryland
Health Care for the Homeless
Job Opportunities Task Force
Laurel Advocacy and Referral Services
League of Women Voters of Maryland
Maryland CASH Campaign
Maryland Center on Economic Policy
Maryland Disability Law Center
Maryland Education Coalition
Maryland Nonprofits
Maryland PTA
Maryland State Education Association
Maryland Working Families
NAMI Maryland
National Association of Social Workers, Maryland Chapter
Pain Connection-Chronic Pain Outreach Center, Inc.
Public Justice Center
Progressive Maryland
SEIU Maryland Council
The Way Out Program

So who testified on the bill at the House Ways and Means Committee hearing?

Not Governor Larry Hogan. His office didn’t even bother to send anyone to support the tax cut for the wealthy.

In fact, no one testified in favor of the tax cut. Maybe the House should take that as a hint and shelve it.

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The GOP Bench, Part III

The following is a guest post by Adam Pagnucco:

Far from the eyes of Annapolis, Baltimore, Rockville and Upper Marlboro, the GOP is steadily expanding its grip on county governments in Maryland. In fact, the Republicans hold majorities of almost all categories of powerful county officials.

Let’s start with County Executives (including the Mayor of Baltimore).

Executives

In 2003, six counties plus the City of Baltimore had executive positions. Only Harford County had a Republican Executive. By 2015, three more counties (Wicomico, Cecil and Frederick) had executive positions. The Democrats and Republicans are now tied at 5-5. Anne Arundel and Howard, both strategically critical suburban counties, have flipped from Democratic to Republican. The current Republican Executive of Wicomico defeated an incumbent Democrat to claim the seat. Republicans are a threat to claim the Executive seat in Frederick if they run someone other than Blaine Young, and that would give them a majority for this office.

Now let’s examine County Councils and Commissions.

Councils Commissions

In 2003, the Democrats had local legislative majorities in 11 of 24 counties. By 2015, the Democrats had majorities in 7 counties as Allegany, Cecil, Talbot and Wicomico had flipped to GOP control. In 2003, Democratic local legislators outnumbered Republicans by 77-61. In 2015, the Republicans had an 81-61 lead. Omitting the Big Three Democratic strongholds of the City, Montgomery and Prince George’s, the GOP’s edge increased from 60-45 to 81-28. The Maryland Association of Counties (MACo) is effectively Republican-held territory.

Here are the splits for State’s Attorneys and Sheriffs.

SA Sheriffs

Democrats went from having 13 State’s Attorneys in 2003 to 8 now. Among Sheriffs, Democrats went from 14 to 11. Democratic majorities turned to Republican majorities in both offices.

We’ll have some thoughts about what this means in Part Four.

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The GOP Bench, Part II

The following is a guest post by Adam Pagnucco:

The Maryland Democratic Party’s top goal is defeating Governor Larry Hogan. The Maryland Republican Party’s top goal is getting him reelected. But the context of the next election is not simply about Hogan and his Democratic opponent. The context also includes other state and local offices, and in that arena, the GOP is on the march.

To demonstrate that, we compiled data on party identification of office holders at the state and local levels in 2003 (the first year of Governor Ehrlich’s term) and 2015 (the first year of Governor Hogan’s term). The offices we examined are State Senate, Delegate, County Executive (including the Mayor of Baltimore), county councils and commissions, State’s Attorneys and Sheriffs. For Senators and Delegates we compiled results at the regional level (large individual counties and groups of small counties) because state legislative districts often cross over county lines. All local offices are reported by county.

Let’s look at State Senators first.

State Senators

The party split of Senators is identical for both 2003 and 2015: 33 Democrats and 14 Republicans. There were no major regional changes between the two years. The imbalance in favor of Democrats is preserved in this category. (Note that the change numbers in the right column don’t add to zero because some regions overlap each other.)

Now let’s look at Delegates.

Delegates

The GOP won a record number of Delegate seats in 2014, but their total (50) is not that much more than it was in 2003 (42). A few regional trends are apparent. The Democrats are down to one Delegate on the Eastern Shore. They are close to an even count in Southern Maryland, although that is because one of the area’s three legislative districts is split with heavily Democratic Prince George’s County. The two Democratic Delegates in Western Maryland come from a district that is narrowly drawn around the City of Frederick. Baltimore City has lost two Delegates who would normally be Democrats because of population shifts.

Despite these changes, the Democrats are firmly in control of the General Assembly and proved it by overriding all six of Governor Hogan’s vetoes. The REAL changes are taking place in local governments, far from the attention of Annapolis and Democratic officials in the party’s strongholds of the City of Baltimore, Montgomery and Prince George’s.

We’ll illustrate that in Part Three.

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