Annapolis Capital Punishment

The below was provided by House Speake Mike Busch...

November 30, 2007
Dear Constituent:

In the past few weeks, I have received letters and emails from hundreds of constituents inquiring about the special session that ended last week. Some asked me to oppose taxes, while others asked me to cut government waste. Still others asked me to stand up for education and transportation funding, state employees' salaries and pensions, Chesapeake Bay clean up efforts, and other services that affect our community.As one of three delegates representing 120,000 residents of Annapolis, the Broadneck Peninsula, and parts of South County, my challenge is to balance the competing and sometimes contradictory views of my individual constituents.
As Speaker of the House, my challenge is to work with the Governor and lawmakers from across the state to craft a comprehensive solution that is fiscally responsible, defends our investments in education, health, transportation and the environment in a way that protects our competitive advantages with surrounding states and is fair to the people I represent. From the outset, I believed containing the growth of state government was an essential ingredient to resolving our budget deficit. That's why I voted for $550 million in cuts to the budget and the elimination of 500 vacant state jobs to ensure current and future budgets are sustainable.
In total, I have voted for over $775 million in cuts to the budget this year, and I supported the Governor when he made $237 million in additional cuts this summer. I supported two bills designed to protect our investments in education and generate funds for transportation, higher education, Chesapeake Bay cleanup, and healthcare. We passed a measure to restore our Transportation Trust Fund, which was raided to balance the budget over the last five years. These raids created a $500 million hole in our transportation budget at a time when our infrastructure is strained to the breaking point.
We have an estimated $40 billion in transportation needs, and business leaders came to Annapolis to tell us to invest in our transportation system now to protect our economic competitiveness, especially as we prepare for new residents and jobs coming to Anne Arundel County with BRAC. House Bill 5 raises the sales tax and vehicle titling tax by a penny, and dedicates over $400 million in new annual revenue to transportation projects. Based on Anne Arundel County government's stated needs, this will help the County with long-term projects to reduce congestion on Route 50, reconstruct the Aris T. Allen Boulevard and Riva Road interchange, accommodate increased traffic along Solomons Island Road and re-develop Ritchie Highway, among others.
HB 5 also provides funds to replace our State Police helicopters. These aircraft provide a life-saving link between the critically injured and Maryland's Shock Trauma Center, and have helped save countless lives. Our current fleet is 20 years old and in desperate need of replacement. Between 2009 and 2012, the State Police will be able to spend $100 million on 12 new helicopters, which will ensure our trauma system can respond effectively to emergency situations.As a result of a tax cut passed in 1997, all Marylanders pay a flat 4.75% rate on income over $3,000.
The second bill we passed makes our income tax more progressive, while reducing the burden on most taxpayers. Senate Bill 2 raises the income tax to 5.0% on net taxable income over $150,000 for a single filer and $200,000 for a joint filer, 5.25% over $300,000 single and $350,000 joint, and 5.5% over $500,000. To put these numbers in perspective, there were 241,892 tax returns filed in Anne Arundel County in 2005. Of those returns, 1,638 (0.6%), were over $500,000, 2,282 (0.9%) were between $300,000 and $499,999, and 12,374 (5%) were between $150,000 and $299,999. In other words, this change will affect a small minority (6.5%) of the residents of our county, while providing the resources to continue the progress we are making in our public schools.SB 2 reduces the income tax burden for most taxpayers.
Our personal income tax exemption is currently $2,400. We increased it by one-third, to $3,200 for single filers with an income of up to $100,000 and joint filers with an income of up to $150,000. In other words, a family of four making less than $100,000 a year will receive an additional $3,200 in deductions.Taken with HB 5, the increase in the personal income tax exemption in SB 2 offsets the increased cost most consumers will incur as a result of the sales tax increase. According to the non-partisan Department of Legislative Services, the average family of four making less than $100,000 a year will see a $7.00 decrease in their state tax burden.SB 2 also closes corporate tax loopholes, raises the corporate income tax rate, and dedicates half of the new revenue to the Higher Education Investment Fund. Business leaders around the state have told me a well-educated workforce is critical to our economic competitiveness, and this fund is the first dedicated funding source for higher education in state history. It will help keep our state competitive by keeping tuition affordable and investing in world class facilities on our university and community college campuses to help drive innovation.
In addition to passing a comprehensive solution to our budget shortfall, we debated slot machine gambling. The Governor introduced two bills - one to put the issue on the November 2008 ballot and another to define the regulatory structure necessary to control gaming if the voters choose to allow it in Maryland. I have never been an advocate of slot machine gambling, but I have supported the idea of a referendum since 2004. It offers the purest form of democracy, and voters will have ample time to make an informed decision on something that will have a dramatic impact on our state.
Finally, we prioritized initiatives to promote the environment and healthcare. The Chesapeake Bay 2010 Trust Fund will support programs that have been proven successful in restoring the Bay. We passed Medicaid reform that will help uninsured adults access our healthcare system. Both provisions are contingent on adequate revenue in future years, and will not take effect if they are fiscally unsustainable.It is an honor and a privilege to serve our community, and I am proud to stand up to protect our investments in education, health, transportation and the environment. I believe we crafted a comprehensive solution to our structural deficit that protects our competitive advantages with surrounding states, and is fair to Maryland families.

Sincerely, Michael E. Busch