A legislative session of big ideas — and big spending

Last Monday night the Maryland General Assembly wrapped up its 444th legislative session, the annual 90-day hustle of bill-writing, hearings, amendments, debates and voting, with Democrats and Republicans alike pronouncing it highly productive.

Even Gov. Larry Hogan, a lame-duck Republican not customarily known for his praise of the state’s 188 lawmakers (and especially not Democratic leaders), declared it the most successful of his two terms in office. And by most any standard one can name it was certainly three months of consequence, particularly coming at the end of a four-year span when delegates and senators — most with reelection on their minds — are customarily modest in their policymaking ambitions, preferring not to stir up controversy that might reflect poorly on them when their constituents are so soon headed to the polls.

So how did it come to pass that so many politicians actually delivered on their promises? There are any number of extenuating circumstances, from how the COVID-19 pandemic had put a pause on actions in previous years to proposals such as the legalization of marijuana for adult use, that had simply found their moment as part of a nationwide trend.

But here’s the real reason so many big things happened in Annapolis this year: There was a lot of money sitting around. And just as nature abhors a vacuum, state legislators can’t tolerate uncommitted tax dollars. It’s just who they are.

So billions were ultimately shoveled toward such purposes as tax cuts, including Gov. Hogan’s favored income tax credit for retirees to a 30-day gas tax holiday to new spending on K-12 public education to — well, you name it.

Seldom has the State House seen anything quite like this. It was the combination of a budgetary surplus, itself the product of a COVID economic rebound (or perhaps, more accurately, a too-pessimistic projection of state tax revenue last year), combined with President Joe Biden’s economic stimulus efforts, including the $1.9 trillion American Rescue Plan and the $1 trillion infrastructure law, that created the state government bounty.

Whether the resulting spending (or tax-cut) bills in Annapolis were short term (like the $100 million gas tax holiday) or long term (like the $1.86 billion tax cut agreement), there was plenty to move around. And those were just two of the high-profile actions. Less commented upon was the $800 million set aside to help pay for the Blueprint for Maryland’s Future, the landmark K-12 public education reform plan approved last year but never fully funded. There are many, many more examples.

The General Assembly restored some of the transportation aid that was taken from local governments during the last economic downturn, so expect to see more street repairs soon. There was money for improved cybersecurity, for up to $1.2 billion in upgrades to Baltimore’s downtown stadiums, affordable housing, improved mental health care, dental benefits for low-income adults and upgrades to state parks.

And all that spending likely had an impact on deal-making in the halls of the State House. It’s a lot easier to round up votes for controversial matters like improving access to abortion or mandating a paid-family-leave benefit when legislative priorities (aka pork barrel projects) are being financed too.

Make no mistake, this was almost certainly a one-time circumstance. Indeed, there is reason to be concerned that this kind of spending/tax cut frenzy can’t possibly be sustained.

Worse, an economic downtown could send legislators scrambling to reverse course and cover budget deficits in future years. At the moment all is well on the front, but let voters be wary of any claims by state office-seekers, who might try to convince you that the fiscal good times will continue — if you will just send (or return) them to Annapolis.

The session was surely a success, but it didn’t come cheap.

Here’s the real reason why so many big things happened in Annapolis this year: There was a lot of money sitting around.