Chairman’s Message:
How many jobs were added in Montgomery County out of the 400,000 new jobs created in the Washington metro area in the past decade?
Answer: None - We lost jobs.
In the past 10 years, Montgomery County has not created any net new jobs, at the same time the Washington metro area created 420,000 new jobs. Although Montgomery's population - about 1 million - grew by 100,000 from 2000 to 2010, the county lost about 5,500 jobs. According to the U.S. Bureau of Labor Statistics, in 2010 we had 441,706 jobs, 45,000 of which were in federal government.
The DC area generated more new jobs than any other metro area in the country. In effect, the second largest jurisdiction in the country's most economically dynamic metro area was the hole in the proverbial donut. Maryland's statewide numbers are not any better. From January 2001 to August 2011 our state added only 6,000 more jobs.
Other communities may be tempted to attribute their lack job growth to the industries they depend on. For example Detroit was among the largest job losers during the decade as the result of the automobile industry. However in the midst of the growth that Washington experienced, the only factor that differentiates Maryland and Montgomery from Virginia is our extremely hostile business environment.
The Tax Foundation's State Business Tax Climate Index ranks Maryland 44th, sixth from the bottom. The Foundation's Index compares states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Our neighboring states are ranked as follows: Delaware (8th), Pennsylvania (26th), West Virginia (37th) and Virginia (12th).
Given our county and state's most recent policy initiatives, we will not be improving our ranking any time soon.
Consider Governor O'Malley's "PlanMaryland" proposal, which would allow the state to limit local growth by dramatically increasing Annapolis' land use authority in order to impose so-called "smart growth." State zoning ideologues want to prevent families from living where they want to by restricting development to high density areas. See http://mcgop.net/chairmans_message_planmaryland.aspx
For many employers choosing a new location, energy costs are an important consideration. Governor O'Malley has supported a rise in almost every state resident's electric bill for the next 20 years in order to subsidize private offshore wind power producers. He would have added a surcharge on Maryland electric bills to subsidize uneconomical wind power production. Analysts told the legislature that it would have cost Maryland ratepayers an extra $3 billion over time. http://mcgop.net/chairman's_message_green_energy.aspx
How do our state business lobbyists respond? The Maryland Chamber of Commerce, Montgomery County Chamber of Commerce, the Greater Washington Board of Trade and the Greater Baltimore Committee have all lined up in support of a higher gasoline tax of at least 10 cents a gallon. Their strategy to make Maryland more competitive is to actually campaign for even higher taxes. See http://mcgop.net/chairman's_message-gas_tax_so_dumb.aspx
In Montgomery County, a fierce campaign has been launched to prevent "large box" retailers from locating more stores in the county. Spearheading the anti-Wal-Mart effort is the union representing Giant and Safeway employees, UFCW Local 1994. Legislation being considered by the County Council would allow community groups to "negotiate" with retailers on requirements for hiring practices, operating hours and "community assistance." See: http://mcgop.net/chairmans_message__memo_to_gas_tax.aspx
This past summer Montgomery County officials attracted national attention and gave the county a black eye during the US Open by fining the parents of a group of pre-teen kids $500 for operating a lemonade stand near the tournament without permit. See http://mcgop.net/chairmans_message_lemonade_youre_fined
The last story is all the more remarkable for these kids' family background - they are the grandchildren and great grandchildren of the CEO's of Montgomery County's largest private employers, Marriott and Lockheed Martin. Executives across the region no doubt shook their collective heads in dismay. If the Marriott and Augustine families have trouble opening a lemonade stand with the intent of raising money for charity, what possible reception could other businesses expect from Maryland officials?
Throughout the Washington area entrepreneurs and investors are still in the process of planning new businesses. Can there be any doubt as that the message Montgomery and Maryland officials are sending is: "Go into business somewhere else."
Mark Uncapher
Montgomery County Republican Chairman