2022 Legislative Session Preview by District 36 Delegates, Part 2

This is Part 2 of the 2022 session preview of the Maryland General Assembly given by the 36th District delegates on January 10. Sponsored by the Kent County Chamber of Commerce and the League of Women Voters, the discussion featured Sen. Steve Hershey and Dels. Jay Jacobs (Kent County), Jeff Ghrist (Caroline) and Steve Arentz (Queen Anne’s). All are Republicans. For Part 1, see Common Sense, Feb. 3.

Moderator Kate Van Name, of the Chamber of Commerce board of directors, asked about the state budget and the legislative priorities for the upcoming fiscal year.

Arentz said the budget will come out during the session; the delegates haven’t seen it. He said Gov. Larry Hogan had been “a great thing for the state as far as budget issues,” and that almost two-thirds of the previous year’s budget had been in the form of grants from the federal government. He said it was important to keep in mind that the money “is still tax dollars,” though from federal rather than state taxes. He said the surplus allowed Hogan to announce a $1,500 bonus for state employees, “so apparently the budget looks pretty good on that end.” He said there is probably no need for many major state tax increases.

Arentz described the Kirwan commission’s educational reforms as “the gorilla in the room, sitting out there taking and draining dollars” from the budget. He said the problem was particularly acute for Kent County. “There’s no way Kent can afford those kind of dollars,” he said, noting that the General Assembly would need to “find a way to afford it.” There are “a lot of infrastructure projects that need to be done,” as well as workforce development and expansion of some state services. Also, he said, unemployment will continue to be an issue. He said he expected the budget to be “straightforward,” but that paying for it will “be off the backs of the taxpayers.”

Jacobs said that because of the federal grants, “There’s a lot of money flowing last year, and there’s a lot of hands hanging out looking for it right now.” He said there are a number of capital projects in the four counties that make up the district and promised the delegates would do what they could to help fund them. But “at some point, this is going to end, and we’re going to be back in reality mode and have to pay this back.” He agreed there would probably be no tax increases in the upcoming session, and the state was “in fairly good shape” as far as funding projects. He said the state needs to reduce the cost of prescription drugs for retirees, and “hopefully that’ll be addressed in the upcoming session.”

Hershey said he expects the governor to invest in capital projects, and that the delegation would be working to get state funding for the district.

Ghrist noted that the General Assembly can’t change the total amount of the budget, but it can change line items. The “faucet” of federal funding is going to be turned off, “and that’s going to force people to go back to work,” he said. If people continue “to stay on the sidelines,” it will affect state revenue, he said. He also expressed concern over the possibility of a recession, recalling the 2008 recession’s effect on the economy. “A lot of people just don’t want to work,” he said, noting that a lot of their expenses had been paid for by covid-19 relief funds. “At some point, that’s going to get cut off and they’re going to have to make their own money,” he said.

Speaking of the Kirwan Commission, Jacobs said the delegation was “really concerned about how Kent County is going to get hit by this,” as it is the smallest county in the state by population. He said the Kirwan administrators were “just adamantly opposed” to tweaking their formula, since it characterizes Kent as the third richest county in the state. That figure, however, doesn’t mesh with the high number of Kent students who receive free and reduced meals in the schools, he said. “It’s really not a fair assessment of Kent County at all,” he said. The delegation is looking at ways to adjust that perception, possibly finding a formula like the one applied to smaller colleges. Transportation funding may be one area for adjustment, he said. “That’s one of the big challenges for us here, with such a small system. It’s a very rural county, with a lot of miles driven per day.” He said he wasn’t happy with the idea of a grant payment to close the gap, because it wouldn’t necessarily continue year after year, “and you need certainty.”

Ghrist said the assessment of Kent as one of the richest counties in the state was based on capital wealth, but that it didn’t take disparities in income into consideration. Also, he noted, Kent’s tax rate is among the highest in the state, leaving no room to raise more locally. “The county’s completely tapped out,” he said. But he said he was confident that the assembly would get a solution this year.

Arentz invited Eastern Shore residents who want to listen in on the Shore delegation’s meetings with state department heads or who have other issues to email him at steven.arentz@house.state.md.us.

Van Name asked the delegates how members of the Chamber of Commerce could support them. Arentz said that all the members put out newsletters that constituents can follow and comment on. “I think it’s important that you get involved and follow the legislation,” he said. “We need to keep you involved in that to help us with some ideas.” Also, he invited constituents to be available to testify on bills that affect them or that they have particular interest in.

Hershey said there has never been a lack of support from Kent County, which he described as one of the most active counties, “especially for its size.” He mentioned Jamie Williams, Kent County’s director of economic development, who advocated for a plan to open up the state for data centers, a measure that was passed by the assembly and is bearing fruit in several parts of the state. He echoed Arentz’s call for residents to reach out to delegates with their ideas and concerns.

Sam Shoge, executive director of the Kent Chamber, closed out the session by passing along a few questions from other participants in the Zoom meeting. The first question, from Hope Clark, asked about the effects of climate change on residents and businesses on the Shore, and what the delegates were doing to address it.

Jacobs said he hadn’t seen any significant trends in the amount of coastal flooding in Rock Hall, his hometown. He said he saw more floods in the 1970s, when he was in the seafood business, than he does now. There are a lot more built-up areas now, and there are definitely areas around the state that are prone to flooding. “I can tell you there’s no shortage of legislation in my committee on climate issues,” he said. Anyone interested can go on the General Assembly website and see bills that have been pre-filed, he said. He invited anyone to reach out to his office if they have questions on the issues.

“Honestly, there probably isn’t any policy that the State of Maryland is going to pass that will affect these prevailing weather patterns,” Hershey said. He said the district delegation has advocated for projects for reconstruction, shoreline stabilization, and stormwater management and diversion. He called attention to the Conowingo Dam as an on-going issue, which he characterized as the source and cause of flooding in the Bay and on the Shore. “We need our federal partners to help us with that,” he said, noting that Congress has recently passed a “huge” infrastructure program. He wasn’t sure if any funds were earmarked for the dam, but he said that cleaning up the problems with the dam would do more for Maryland’s environment than any policies for renewable energy, offshore wind farms, or the like. “I ask that we focus our efforts more on that than on the amount of renewable energy that is coming into the State of Maryland,” he said.

Linda Weimer, of the Maryland League of Conservation Voters, asked whether the availability of surplus funds from the federal government would make this a good time to transition the state’s fleet of vehicles to electric power, and to require higher levels of energy efficiency in new buildings.

“I think we’re seeing legislation on both of those issues,” Hershey said. “Once again, I think it’s a cost issue.” If the progress so far hasn’t been sufficient, he said, he expected to see more action on those issues.

John Peterson said that taxes on federal pensions need to be more like Delaware’s, so that residents aren’t forced to move out of the state upon retirement. He asked if the delegates plan to address that issue. “Hear, hear!” said Jacobs.

Hershey said the governor has proposed legislation to remove taxes on pensions and has done so for his entire time in office. He said that many residents would find that to be a better use of the budget surplus than electrifying state vehicles. He said he thought it was more important to “take care of our retirees” and keep people in the state. He noted that retirees play important roles by volunteering in local communities, especially on the Shore. “We have to make sure that those people are able to stay in Maryland, and that they’re not being enticed by other states because of the tax policies.” He said he would strongly favor ending taxes on retirees.

“We lose in many ways,” said Jacobs, noting that retirees have less money to donate to local causes and nonprofits because of tax policy.

Ghrist added that retirees often consume less in government services than other residents. Also, he said, retirees aren’t going to get raises to help them deal with inflation “going through the roof.” He said the delegates and the governor’s office would do something to respond to the issue.

In closing, Shoge thanked the delegates for their efforts on behalf of the 36th District, and thanked Van Name for moderating and the League of Women Voters for sponsoring the forum. He wished them best of luck for the upcoming session. He said the Chamber would conduct another meeting at the end of the General Assembly session, sometime in April, for the delegates to report on what took place and how it will affect the district.

The discussion is available in its entirety for viewing. The event runs just over an hour.

Peter Heck is a Chestertown-based writer and editor, who spent 10 years at the Kent County News and three more with the Chestertown Spy. He is the author of 10 novels and co-author of four plays, a book reviewer for Asimov’s and Kirkus Reviews, and an incorrigible guitarist.