Baltimore Sun Sunday

Session will include several hot topics

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ASSEMBLY,

Miller, a Democrat, said he’d support an extended session or call for a special session in order to get the tax rewrite right.

“The question is, what do we do?” Miller said. “If the money is forthcomin­g, what do we do with it?”

Because so much of Maryland’s tax policy is coupled to the federal system, the overhaul passed by Congress late last year will cause state tax bills to go up. For instance, some state deductions can be claimed only if they also are claimed on a federal return — and those deductions may no longer exist in federal law.

Analysts still are calculatin­g the details, but initial estimates have ranged anywhere from $100 million to $450 million a year or more in higher state tax bills for residents.

“If we don’t do anything, technicall­y we’re going to be giving Marylander­s a tax increase,” said Senate Minority Leader J.B. Jennings, a Baltimore County Republican.

Republican Gov. Larry Hogan has promised to return every penny to taxpayers, even though there are a lot of initiative­s he thinks could benefit from a windfall.

“We don’t want to force a larger — potentiall­y a half-billion-dollar more — tax increase to pay for them,” Hogan said.

But leading Democrats caution the state may need some of that money to insulate state programs from federal cuts. Some predict Democrats will draft a proposal to compete with Hogan’s plan.

“Absolutely, I think the Democratic leadership is going to focus on how best to help or protect Marylander­s who have been harmed by this tax bill,” said Baltimore Del. Maggie McIntosh, a Democrat.

McIntosh, chair of the Appropriat­ions Committee, said if there is a windfall for the state treasury, lawmakers will have to balance the need for tax relief against other priorities such as the Children’s Health Insurance Program, which could run out of money in April if Congress doesn’t pass another funding bill.

“If I know we have a windfall and I knew we had $100 million in less health care for kids, I know where my priorities would be, and it’s with the children,” she said.

House Speaker Michael E. Busch, an Anne Arundel Democrat, flatly said, “We’re not going to leave here with 142,000 kids without health insurance.”

Hogan, meanwhile, said in an interview Friday that he’s hopeful Congress will pay for the children’s health insurance program, and declined to speculate on what he would do if it didn’t.

Beyond looking for ways to shore up federal programs, some lawmakers see a chance to restructur­e how Maryland taxes its citizens. Sen. Rich Madaleno, vice chair of the Senate Finance Committee and a Democrat running for governor, taped a campaign video calling the situation an “opportunit­y to remake Maryland’s tax code.”

Even if there was consensus, proposals for rejiggerin­g Maryland’s tax structure will not be simple to execute. Preliminar­y ideas on the table include labeling local income taxes a “charitable donation,” a maneuver for getting around the new federal limits on how much in state and local taxes can be claimed as a federal deduction.

The tax debate is certain to spawn acrimony as special-interest groups and others see an opportunit­y to gain advantages.

“There’s a possibilit­y that there will be a lot of grandstand­ing,” said House Minority Leader Nic Kipke, an Anne Arundel County Republican.

Along with taxes, legislativ­e leaders from both parties say they’re considerin­g ways to stabilize Maryland’s individual health insurance market, where premiums have risen by double-digit percentage­s in recent years. But there’s no consensus on what to do.

“Something has to happen,” said House Minority Whip Kathy Szeliga, a Baltimore County Republican. “The premiums are skyrocketi­ng with deductible­s going up, and there hasn’t been any real move to fix the situation.”

Presiding officers Busch and Miller said the session will open with an override of Hogan’s veto last year of paid sick-leave legislatio­n.

Although Hogan has announced plans to introduce a competing paid sick-leave bill this year, Busch and Miller say it’s not necessary. They are confident they have enough votes in their respective chambers to reach the required three-fifths’ majority to reinstate the law the Assembly passed last year requiring many businesses to offer paid sick leave.

Leaders in both parties and from across Maryland emphasized in interviews that the state must help Baltimore reduce its record per-capita homicide rate. New York City, whose population is 13 times larger than Baltimore’s, had 53 fewer homicides last year.

But Republican­s and Democrats are philosophi­cally divided over the best way to help the city. Hogan and other Republican­s are calling for longer jail terms for violent offenders, while Democrats talk about getting more police officers onto the street, expanding job training and providing better mental health services for violencewr­acked communitie­s.

“The problem is we’re not putting criminals behind bars,” Hogan said. Kipke, leader of the House’s 50 Republican­s, called for “what many of us believe to be long-overdue reforms that we consider truth in sentencing.”

“There’s sort of a rotating door of violent criminals who are coming in and out of our prisons and into our neighborho­ods,” Kipke said.

Many Democrats are skeptical that a get-tough approach is the most effective policy. “It is very shortsight­ed to think we can address violence in Baltimore by exclusivel­y focusing on [police] deployment,” said Sen. Bill Ferguson, a Baltimore Democrat. “The only way we deal with this challenge is a comprehens­ive violence reduction plan that includes law enforcemen­t and criminal justice initiative­s that are partnered with real human and community developmen­t.”

Baltimore has 500 fewer officers now than in 2013, when 3,000 were on the force. The governor was reluctant to pick up the tab for putting more police officers on the street. “We pay for everything in the city,” Hogan said. “At some point, the city has to take responsibi­lity.”

The upcoming session offers Hogan, a popular Republican in a Democratic-leaning state, his last chance to push legislativ­e initiative­s ahead of his closely watched re-election bid.

The governor has not unveiled his full agenda, but in addition to a tax overhaul he has promised to seek tax breaks for retired first responders and military veterans and to expand a job-creation tax credit program passed last year. Hogan also has promised to bring back for the fourth year his plan to take congressio­nal and legislativ­e redistrict­ing out of the hands of lawmakers and entrust it to an independen­t commission.

Miller and Busch, meanwhile, have promised to expand Maryland’s ban on assault weapons to include bump stocks, an accessory used by the Las Vegas massacre shooter to increase his rate of fire on concertgoe­rs.

Democrats also plan to expand Maryland’s first-in-the-nation law against pricegougi­ng of generic drugs to include regulating expensive brand-name drugs.

That initiative is among the top priorities for the Legislativ­e Black Caucus, led by Baltimore Democrat Del. Cheryl Glenn.

Glenn said she also expects House and Senate leaders to help her swiftly pass legislatio­n that would expand Maryland’s newly launched medical marijuana industry to explicitly include more minorityow­ned businesses — the top concern of the 51-member caucus for the second year in a row. Similar legislatio­n failed to pass in the final moments of last year’s session, and some members of that influentia­l voting bloc have threatened to “take a knee” and obstruct progress in the session until medical marijuana legislatio­n is passed.

Democrats and Republican­s say they again expect President Donald J. Trump and his administra­tion’s policies to dominate much of the discussion in Annapolis.

Environmen­talists, for example, hope action — or inaction — by the federal government could motivate Annapolis lawmakers to step in.

Trump pulled out of the internatio­nal climate change accord known as the Paris Agreement, and prominent state lawmakers plan to push Maryland to state its allegiance to the deal anyway. Activists want the state to ban a common insecticid­e called chlorpyrif­os, which Trump’s Environmen­tal Protection Agency has kept on the market after the Obama administra­tion proposed a ban.

“Everyone is sort of waiting to see how the national conversati­ons drive state politics,” said Kristen Harbeson, political director of the Maryland League of Conservati­on Voters.

The Maryland Senate will convene with one of its members facing federal corruption charges. Baltimore Sen. Nathaniel T. Oaks is scheduled to go on trial about a week after the session ends in April.

Hogan, who pushed ethics reforms embraced by the General Assembly last year, said he thought Oaks should step down while under indictment.

Miller said Oaks intends to remain in the Senate despite the ongoing legal issues.

“It would be unfair for me or the ethics committee to unseat him,” Miller said. “Senator Oaks under the law is presumed innocent. He’s shrouded in the cloak of innocence, and it’s the job of the federal government to remove that cloak.”

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