Montgomery County GOP

  The 2010 Maryland General Assmbly is winding down.  Governor O'Malley and State Democrats continue to pursue job-killing policies that raise taxes and ignore fiscal responsiblity.  Here are two good links to read about highlights of this year's session:

http://www.mdgop.org/
http://mdsenategop.com/
 
Franchot Raises Red Flag Over Lucrative "Closed Door" Slots Contracts

At the Board of Public Works meeting this week, Governor Martin O'Malley voted in favor of a State Lottery Agency proposal to spend up to $200 million for the purchase of gaming machines for the state's slots program. The vote had been delayed because Comptroller Peter Franchot balked two weeks ago when the original contract would have allowed $800 million gaming industry procurements.

However, Franchot was still concerned about the "irregular" procurement process approved by O'Malley. As reported by Adam Kerlin of the Capital News Service: "'I'm speaking in your own defense, you don't want this,' Franchot said to the lottery's representatives. 'It's a really toxic mix of things.' Franchot has been opposed to any contract that allows the lottery to sign subcontracts with game manufacturers without approval from the Board of Public Works. He said the negotiations with 'in the dumps' gambling industry shouldn't be made behind closed doors." (To read the entire article, click here)

In light of these lucrative contracts that will now be awarded by the "irregular" procurement process behind closed doors, O'Malley should abide by the highest ethical standards in state government and not accept any campaign contributions from any gaming companies (and their officers) who are vying for or have secured contracts with the State Lottery Agency.

Don't Count Your Budgetary Chickens Before They Hatch

Governor Martin O'Malley rolled out his FY11 state budget in January claiming to have balanced the budget with federal stimulus funds and one-time fund swaps to erase his $2 billion deficit. Upon closer inspection, however, legislators realized that O'Malley's balancing act includes almost $400 million of federal Medicaid funds that have not been appropriated.
Last week, Congressman Steny Hoyer spoke from the State Senate rostrum and advised the legislators to develop a Plan B for that $400 million. Nice trick by O'Malley - now that the General Assembly has the budget, it is their job to cover his phantom $400 million.

Maryland's overspending in Medicaid is in part due to O'Malley expansion of benefits during a recession according to Marc Kilmer of the Maryland Public Policy Institute. In a opinion piece published today, Kilmer states, "Spending has increased dramatically in recent years and will continue to do so because those in Annapolis lack the political will to reform a broken system. Instead of looking for ways to control Medicaid's growth, the governor and legislators expanded the program in 2007. While other states, such as Florida and Georgia, were restructuring their Medicaid programs to contain costs, Maryland policymakers preferred to ignore the problems in the system." To read Kilmer's entire article click here.

In a second article entitled "O'Malley's Big Spending Budget," Kilmer provides basic budget facts that counter the spin that comprises the O'Malley messaging on the state budget - click here.