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Statement from Governor Robert L. Ehrlich, Jr., and Lt. Governor Michael S. Steele on the Death of Coretta Scott King

For Immediate Release
Contact: Shareese N. DeLeaver
Tuesday, January 31, 2006
410 974.2316
410-353-2731

Today we mourn the loss of civil rights icon Coretta Scott King. More than the widow of Dr. Martin Luther King, Jr., Coretta Scott King was an activist and educator in her own right. She dedicated her life to fulfilling her husband’s legacy of peace and equality for all. In honor of her husband, she fought tirelessly to have Dr. King’s birthday declared a national holiday – a victory that came to fruition in 1983 when President Reagan signed the bill into law. Her quiet tenacity and fortitude made her an effective advocate for equal rights in the United States, and across the globe. Her legacy will be missed, but her dream of equal rights for all lives on.

Governor Ehrlich Unveils FY 07 Capital Budget Proposal
Emphasis on Education, Public Safety and Chesapeake Bay

For Immediate Release
Contact: Shareese N. DeLeaver
Monday, January 30, 2006
410 974.2316
410-353-2731

BALTIMORE, MD (January 30, 2006) – Standing on the campus of Towson University, Governor Robert L. Ehrlich, Jr., today unveiled his Fiscal Year 2007 Capital Budget of $1.45 billion and reaffirmed his commitment to education, public safety and the health of the Chesapeake Bay. Governor Ehrlich’s proposal, which highlights the five pillars of the Ehrlich Administration, includes:

$530 million dedicated for education-related projects;
$54.1 million to improve healthcare across the State;
$615 million to meet the Administration’s goal of improving water quality and restoring the Chesapeake Bay;
$67.2 million to fund projects to improve the safety of our neighborhoods;
$40.8 million to promote Maryland’s thriving tourism industry and revitalize economically challenged areas;
$143.5 for additional projects including grants to local government, non-profit organizations and communities.

"This capital budget upholds my Administration’s commitment to ensure quality K-12 and higher education, public safety through the construction of and improvements to our State’s educational institutions and correctional facilities, and restoration of the Chesapeake Bay,” said Governor Ehrlich. "The projects included in my FY 2007 Capital Budget will continue to secure Maryland’s foothold as a leader in the priorities of my Administration: Fiscal Responsibility, Education, Health and the Environment, Public Safety and Commerce.”

Fiscal Responsibility: With a nearly $1.5 billion capital budget, 82 percent of Governor Ehrlich's capital budget is dedicated to education, health, and the environment. Governor Ehrlich proposal includes an additional $181 million in school construction funding and significant increases for land preservation and Chesapeake Bay restoration efforts.

Education: Governor Ehrlich's FY 2007 Capital Budget includes $281 million in public school construction funding – the largest allocation in 34 years – and over $240 million to improve the State's higher education facilities. Major funding initiatives include:

$192.8 million for the State’s four-year institutions of higher education;
$161 million for the University System of Maryland institutions;
$31.4 million for Historically Black Colleges and Universities, including $14.2 million for Morgan State University;
$45.2 million for a new College of Liberal Arts Complex and safety improvements at Towson University;
$49.6 million for a new Teacher Education and Technology Complex at Salisbury University;
$1.7 million for a new building for the Perdue School of Business at Salisbury University ($33 million commitment over the next five years);
$15.0 million for an Academic Technology Support Center at University of Maryland University College;
$9.7 million for St. Mary’s College of Maryland;
$8.0 million for the Maryland Independent College and University Association (with $2.7 million designated to each of The Johns Hopkins University for a new School of Nursing facility; the College of Notre Dame of Maryland for library renovation and expansion; and Washington College for a Fine Arts Academic Center);
$51.3 million for the Maryland Higher Education Commission Community College Grant Program.

In addition, $24.6 million is provided for a new elementary, family education and student support services complex at the Maryland School for the Deaf.

Health and the Environment: Resulting from the Ehrlich Administration’s Chesapeake Bay Restoration Act, the capital budget includes $144 million to upgrade Maryland's wastewater treatment plants to reduce nitrogen discharge to the Chesapeake Bay. Land preservation programs will receive a record $383 million to protect environmentally sensitive lands essential to protecting the Chesapeake Bay. Maryland's hospitals and community health facilities will receive $54.1 million to improve patient care across the State, including $21 million to improve the State's community hospitals and academic medical centers at the University of Maryland and Johns Hopkins.

Public Safety: Governor Ehrlich has proposed $30.3 million for the fourth 256-Cell Housing Unit to complete a 1024-cell housing complex for maximum-security prisoners at the North Branch Correctional Institute and $14.5 million for fire safety and electrical improvements at Patuxent Institution.

The source of the Governor’s FY 2007 Capital Budget includes $716.8 million in general obligation and revenue bonds and $734.2 million pay-as-you-go capital funds, which are provided in the FY 2007 Operating Budget as general, special and federal funds. A county-by-county listing of capital projects and more information can be found at www.dbm.maryland.gov

GOVERNOR EHRLICH ANNOUNCES $14 MILLION IN RURAL LEGACY GRANTS AND $6 MILLION IN PROPOSED FEDERAL FUNDING FOR CORSICA RIVER RESTORATION

For Immediate Release
Contact: Shareese N. DeLeaver
Wednesday, January 25, 2006
410 974.2316
410-353-2731

ANNAPOLIS – Standing on scenic farmland in northwestern Baltimore County, Governor Robert L. Ehrlich, Jr. was joined by U.S. Environmental Protection Agency (EPA) Administrator Stephen L. Johnson in announcing $6 million of proposed new federal funding to aid in the Corsica River Restoration project. Governor Ehrlich also announced $14 million in Rural Legacy grant awards and the designation of the Mattapany Rural Legacy Area in St. Mary's County.

"The Corsica River Restoration project is an unprecedented environmental effort involving multi-levels of government," said Governor Ehrlich. "We applaud the EPA for its support in our efforts to restore an entire river system. The Corsica River project solidifies Maryland's role as the state leader in Chesapeake Bay Restoration efforts."

"President Bush's $6 million dollar budget proposal for the Corsica River once again illustrates his commitment to preserving the natural wonders of the Chesapeake Bay," said Administrator Johnson. "With the leadership of local and state partners like Governor Ehrlich, we will ensure the Bay remains a national treasure for future generations."

The Federal FY 2007 Budget submitted by President George W. Bush requests $6 million for the Corsica River Restoration project and future targeted watershed initiatives. This model project will demonstrate the effectiveness of an integrated approach to watershed management that will implement the processes, partnerships, assessment, and implementation tools needed in restoring water quality and removing a nutrient-impaired watershed from EPA's 303(d) list of "dirty" waters.

The project brings together multiple state, federal, and local government agencies with an initial focus is on reducing nutrient pollution and sediment runoff through a proven set of urban, suburban and agricultural best management practices, and restoring bay grass acreage and oyster habitat.

"Today is another landmark day in our efforts to reduce nutrient runoff and restore the Chesapeake Bay," said Governor Ehrlich. "Conserving these lands in key watershed areas will directly improve water quality feeding into the Chesapeake Bay."

The $14 million of Rural Legacy grants for 13 counties and land trusts for land conservation in 20 Rural Legacy Areas across the state are to be presented to the Board of Public Works (BPW) for approval. The Rural Legacy Program (RLP) provides grant funding to protect large, contiguous tracts of land and to enhance natural resource, agricultural, forestry and environmental protection while supporting a sustainable land base for natural resource based industries. Through cooperation with local governments and land trusts, the program helps conserve land through easement and fee simple purchases within designated rural legacy areas.

This year the Rural Legacy Advisory Committee and Rural Legacy Board received requests for over $80 million in grants. The Board consists of the Secretaries of the Maryland Departments of Natural Resources (DNR), Agriculture (MDA), and Planning (MDP). The Advisory Committee and Board reviewed the requests following the instructions of Governor Ehrlich and the BPW to focus conservation investments on land that directly impacts the Chesapeake Bay and its tributaries and Maryland's most significant natural resources.

Today's announcement was made at the Trenton Mills Farm, which is part of the Piney Run Rural Legacy Area (PRRLA) near the border between Baltimore and Carroll Counties. Under the proposal, PRRLA will receive a grant for $1.5 million. Since the Board approved the designation of the PRRLA in 1998, over 3,600 acres and 22 miles of riparian buffers have been protected using RLP funds.

"Protecting these lands improves the water quality for the Prettyboy and Loch Raven Reservoirs, two of the drinking supply reservoirs for the Baltimore Metro area and protects one of the largest, contiguous easement blocks of land supporting agriculture and natural resource systems in the Eastern United States," said Governor Ehrlich.

The newly designated Mattapany Rural Legacy Area (MRLA) in St. Mary's County along the Chesapeake Bay was awarded $1.5 million. The grant will be used to acquire conservation easements and fee simple interests to protect MRLA's rich farmland, forests, wetlands, historic sites, and wildlife habitat. Conservation within the MRLA will provide water quality benefits to the Chesapeake Bay and the Saint Mary's River watershed, which has been described by the Smithsonian as the most beautiful and pristine estuary on the western side of the Chesapeake Bay. Protection of property in the MRLA will also provide open space buffer to the military installation, Patuxent River Naval Air Station.

One out of every five acres in Maryland is currently under conservation. To date, the Ehrlich Administration has preserved nearly 60,000 acres of fields, forests, open space, and farmland. For a list of Rural Legacy grant awards by County, please see the attached PDF file or visit www.dnr.state.md.us/dnrnews/

GOVERNOR EHRLICH RESPONDS TO MURDOCK DECISION ON GAY MARRIAGE

For Immediate Release
Contact: Shareese N. DeLeaver
Friday, January 20, 2006
410 974.2316
410-353-2731

ANNAPOLIS – Governor Robert L. Ehrlich, Jr. today responded to Baltimore City Circuit Court Judge M. Brooke Murdock’s Circuit Court decision regarding Gay Marriage by confirming his commitment to the institution of marriage and pledging to assist in the appeal of this decision. The Governor has called upon Attorney General Joseph Curran to appeal Judge Murdock’s ruling, which is stayed pending an appeal.

“I am disappointed in the Court’s decision. I firmly believe the institution of marriage is for one man and one woman only, as stated in section 2-201 of the Family Law Article, which was passed into law in 1973,” said Governor Ehrlich. “I am evaluating all options available to guarantee that marriage in Maryland remains a protected union between a man and a woman. I have asked the Attorney General to immediately begin a vigorous appeals process.”

Governor Ehrlich has pledged additional resources necessary, including outside counsel, in supporting the State’s appeal of the Murdock decision.

Maryland law currently states that only marriage between a man and woman is valid in this State. The Murdock decision holds that the current State law violates the State’s constitution, specifically a 1972 Equal Rights Amendment that states, “equality of rights under the law shall not be abridged or denied because of sex.”

Governor Ehrlich Introduces 2006 Legislative Package

For Immediate Release
Contact: Shareese N. DeLeaver
Thursday, January 19, 2006
410 974.2316
410-353-2731

ANNAPOLIS – Governor Robert L. Ehrlich, Jr. today unveiled his legislative package for the 2006 legislative session. Governor Ehrlich briefed legislative leaders on his initiatives this morning. The Governor’s legislation will be formally introduced in the legislature Monday.

“Our intent is to improve quality of life in Maryland by protecting children from sex offenders, increasing safety on our roads, strengthening our victim and witness protection laws, and providing tax relief to homeowners, military retirees, and others,” said Governor Ehrlich. “I look forward to working with the legislature this session. I believe this legislative package should have broad appeal on both sides of aisle.”

Governor Ehrlich’s legislative package can be found online at http://www.governor.maryland.gov

Governor Ehrlich Introduces Fiscal Year 2007 Budget

For Immediate Release
Contact: Shareese N. DeLeaver
Tuesday, January 17, 2006
410 974.2316
410-353-2731

ANNAPOLIS – Governor Robert L. Ehrlich, Jr., today submitted a balanced, sustainable FY 2007 operating budget. For the fourth consecutive fiscal year, Governor Ehrlich balances the State budget without raising sales or income taxes, while making record investments in education and health care.

"Since taking office, we have turned $4 billion in inherited deficits into a $1.2 billion surplus through prudent fiscal management," said Governor Ehrlich. "We have made government leaner and more responsive to the citizens of Maryland. This budget makes new investments in programs that make Maryland a cleaner, safer, and a more prosperous place to live while returning a portion of the surplus to the citizens of Maryland."

Fiscal Responsibility: Governor Ehrlich saves for the future by allocating $644 million for the State's "Rainy Day Fund" and establishing a $670 million reserve for Fiscal Year 2008 expenditures. The Governor proposes tax relief for military retirees, homeowners, caregivers, and small businesses, among others. The Governor also invests $100 million in future retiree health care. Maryland is one of only six states to retain its coveted "AAA" bond rating.

Education: To improve public schools, Governor Ehrlich proposes a record $462 million funding increase for K-12 education and $281 million for school construction, the largest allocation in 35 years. In addition to record investments in higher education, Governor Ehrlich proposes a $19.5 million (28 percent) increase in need-based college scholarships. Governor Ehrlich has doubled funding for need-based scholarships since taking office, helping more than 12,000 students go to college. Governor Ehrlich also launched a $1.5 billion capital campaign for the University System of Maryland.

Meeting Maryland's Needs: The Governor proposes a $370 million increase in Medicaid and related programs to care for 770,000 vulnerable Marylanders and $43 million to fund wage increases for community health care workers. His budget also proposes full funding for Program Open Space to better preserve environmentally sensitive land. To attract and retain high-quality law enforcement officers, the Governor also proposes salary adjustments for police and correctional officers.

Fostering Economic Growth: The Governor proposes $20 million for stem cell research and $13.5 million for a new Center for Regenerative Research to attract world-class researchers. His budget also makes new investments in the biotechnology tax credit and nano-biotech to solidify Maryland's reputation as a national leader in the technology economy. Governor Ehrlich also increases investments by $3 million (60 percent) for the Community Legacy Program to revitalize urban, suburban, and rural communities throughout Maryland. The budget also invests $10 million in state support for Maryland's horse racing industry.

Governor Ehrlich Announces Funding to More Effectively Protect and Restore Maryland’s Natural Resources

For Immediate Release
Contact: Shareese N. DeLeaver
Monday, January 16, 2006
410 974.2316
410-353-2731

BALTIMORE COUNTY – Governor Robert L. Ehrlich, Jr., today announced significant new funding for his fiscal year 2007 environmental programs to more effectively protect and restore the Chesapeake Bay and Maryland’s environment. The Governor’s announcement includes full funding for Program Open Space, new funding for energy efficiency, and targeted investments to help restore the Chesapeake Bay, including the first-in-the-region Corsica River Restoration Project, and future targeted watershed projects.

“This budget builds on our efforts to make government a more effective, results-oriented steward of the environment,” said Governor Ehrlich. “While I am very proud of our accomplishments to date, this budget accelerates our efforts to restore the Bay, to protect our open space and farmland, and to reduce our energy consumption. In addition to fully-funding Program Open Space, this Administration will lead by example on energy consumption by purchasing an unprecedented ten percent of state government’s energy from Tier 1 renewable energy resources.”

Governor Ehrlich’s Fiscal Year 2007 budget will include the following environmental highlights:

$258 million for a fully funded Program Open Space, including $90.5 million for state land acquisition, $138.5 million for local projects, and $29 million for capital improvements to parks, trails and beaches. To date, the Ehrlich Administration has preserved nearly 60,000 acres of fields, forests, open space, and farmland;
$11 million for Chesapeake Bay restoration programs, including $5 million for the first-in-the-region Corsica River Restoration Project, which seeks to remove the Corsica from the EPA’s list of impaired waters, and future targeted watershed projects. The Governor also includes $5 million in additional funding for implementation of the Tributary Strategies and $1 million to plant bay grasses;
$115 million in additional land preservation efforts including $84.6 million agricultural land preservation and $29 million for Rural Legacy;
$9 million dollars to support the use of clean, renewable energy and energy efficiency, including $1.5 million for the State to purchase an unprecedented 10 percent of its energy from Tier 1 renewable resources; $2.5 million for the solar grant program; $5 million in tax credits for installation of energy efficient heating equipment; and a change in the law to credit customers who generate more electricity than they use;
$75.5 million for Wastewater Treatment Plant Upgrades, septic improvements and cover crops as a result of Governor Ehrlich’s Chesapeake Bay Restoration Act;
$24 million for additional agricultural programs, nearly doubling the amount of cover crops planted and more than doubling last year's funding for manure transport, and;
$25 million for the Waterway Improvement Fund, a 25% increase to provide waterway access and enhancements for the boating public, the highest level of funds in almost 20 years.

Governor Ehrlich Makes Unprecedented Investment in Maryland’s Public Safety & State Employees
Announcement is a part of pay raise plan for State Employees

For Immediate Release
Contact: Shareese N. DeLeaver
Friday, January 13, 2006
410 974.2316
410-353-2731

ANNAPOLIS – Governor Robert L. Ehrlich, Jr., today applauded the dedication and service of Maryland State employees, especially those serving within the law enforcement community, by unveiling his plan for a pay raise. It is the third year in a row that employees will receive such increases. During the last three years, Governor Ehrlich has included a total of more than $500 million to State Employee pay. Today’s announcement represents increases of more than 15% to salary and fringe payments for State employees over the past three years.

“I am proud of the hard work and professionalism displayed by Maryland’s State workforce,” said Governor Ehrlich. “We often say ‘thank you’ with words. Today we match those words with action.”

Governor Ehrlich added, “Since coming into office we’ve been committed to making government leaner and more efficient. We recognize that State employees play a huge role in the improvement we’ve seen in the delivery of services.”

State employees will receive step increases and a two percent cost of living adjustment (COLA). The COLA will cost $71 million.

Increases for positions within various law enforcement agencies include:

CORRECTIONAL OFFICERS

An across the board pay raise that averages over six percent for all correctional officer personnel. This $32.3 million increase benefits the range of correctional officer ranks including officers, lieutenants, captains, major, security chiefs and wardens.
A jump from $28,126 to $33,413 per year in starting salaries for correctional officers.
A retention bonus of $500 for full performance and above for correctional officers with less than five unscheduled absences within a preceding 12 month period.

“This significant increase is the first pay raise for corrections personnel in more than ten years,” said Public Safety Secretary Mary Ann Saar. “The pay boost and retention bonus recognize the importance of our correctional work force to the overall safety of Maryland’s communities.”

STATE POLICE, NATURAL RESOURCES POLICE, DEPARTMENT OF GENERAL SERVICES POLICE AND POLICE EMPLOYED BY OTHER STATE AGENCIES

A two percent market adjustment to the police salary schedule in addition to the COLA increase. This market adjustment will cost about $3.2 million.
A seven percent adjustment to the General police salary schedule (primarily affecting Department of General Services Police) in addition to the COLA increase and two percent provided to all police salary schedules. This adjustment will cost about $400,000.

INSTITUTIONAL EDUCATORS

Employees with advanced professional degrees who teach offenders in juvenile and correctional facilities will receive an average pay increase of 14%. It is the first market pay increase for institutional teachers since 2001. The total cost is $1.7 million.

Governor Ehrlich also announced the allocation of $100 million towards a dedicated purpose account to help the State pay for the health care needs for future retirees.

Governor Ehrlich Announces Family Caregiver Relief, Senior Initiatives
Will serve seniors currently on waiting lists; tax credits for homeowners

For Immediate Release
Contact: Shareese N. DeLeaver
Thursday, January 12, 2006
410 974.2316
410-353-2731

Governor Robert L. Ehrlich, Jr., today announced his Fiscal Year 2007 budget for the Department of Aging, which addresses several areas of senior living including senior assisted living group homes, senior care and nutrition, as well as responsible tax relief for homeowners and caregivers. The Governor’s budget will improve delivery of services to seniors by increasing access to senior care and programs and reducing waiting lists.

“This budget is aimed at helping seniors live and work as independently as possible, while remaining in their familiar communities,” said Governor Ehrlich. “Under the leadership of Secretary Jean Roesser, my Administration hopes to not only improve access to and quality of services, but also the quality of living for Maryland’s senior citizens. I'm also pleased to team up with Delegate Michael Gordon, a champion of tax relief for caregivers, to fund and pass legislation for our families caring for loved ones in their homes."

Included in Governor Ehrlich’s FY 2007 budget is:

Senior Assisted Living Group Home Subsidy Program, providing low- and moderate-income seniors who cannot live independently with access to quality assisted living in small group homes and will serve all seniors on the waiting list;
Senior Nutrition, providing nutritious meals to homebound seniors, which helps them to remain in their communities;
Older Adult Waiver-program, providing 175 additional slots to enable Marylanders to remain in a community setting, even though their advanced age or disability warrants placement in long term care institution
Older Adult Waiver-program administration, providing oversight for processing eligibility determination, statewide tracking system, claim and compliance reviews, and site visits;
Senior Care, providing coordinated, in-home services to seniors who are unable to care for themselves with many daily tasks, so they can remain in the community, reducing the waiting list by 13 percent;

Two efforts to provide tax relief, the Homeowner’s Tax Credit and Caregiver’s Tax Relief will greatly benefit seniors and those who care for them. The Homeowner’s Tax Credit will extend tax credit to those who qualify with income up to $55,000 and homes valued up to $300,000 and will benefit approximately 3,200 seniors. The Caregiver’s Tax Relief will provide relief to caregivers with incomes up to $150,000 who are providing care in their home to relatives with disabilities, to help with the added expenses involved will benefit approximately 63,158 caregivers. Both are contingent of the passage of legislation this current session.

"The National Multiple Sclerosis Society is extremely pleased to hear about the Governor's support for tax relief for Family Caregivers,” said Thomas J. Liberatore, Advocacy Director for the Maryland Chapter of the National Multiple Sclerosis Society. “The care and support provided by these individuals allows their elderly or chronically ill family member to remain in a caring environment that fosters their connection to their loved ones and the community. We support the Governor's efforts to provide much needed assistance to these families".

The Governor’s FY 2007 budget for seniors represents a 15.6 percent increase compared FY 06.

Governor Ehrlich Proposes Estate Tax Modernization

For Immediate Release
Contact: Shareese N. DeLeaver
Thursday, January 12, 2006
(410) 974.2316
410-353-2731

BOWIE, MD (January 12, 2006) - Governor Robert L. Ehrlich, Jr., today announced plans to modernize the State’s estate tax by tying it closer to the Federal estate tax.

With today’s rising real estate values, combined with life insurance and pension plans, many more Marylanders are surprised to learn that they are subject to this tax.

“Many Marylanders who have spent their lives building up small businesses or farms will no longer have to worry that their savings and other assets will be lost through the tax system when they pass,” said Governor Ehrlich. “Modernizing this tax is a fiscally responsible way to provide tax fairness for farmers, small business owners and their families while simplifying an already-burdensome tax code.”

Historically, taxes levied by most states were linked, or “coupled”, to their corresponding federal taxes. Recent actions by the Maryland General Assembly have severed some of these links, adversely affecting taxpayers. This “decoupling” led to a rise in Maryland state taxes and caused an increase in the complexity of an already complex tax system.

Surveys show that these so-called “death taxes” are the least favored types of taxes, both among wage earners, small business owners and farmers. Congress recognized this and has passed legislation that raises the amount exempt from federal death taxes from $1 million to $3.5 million over time. However, as a result of the decoupling, the Maryland estate tax only exempted $1 million in assets. In addition, the Maryland estate tax is imposed when the first spouse of a married couple died; historically, this tax was not imposed until the surviving spouse died.

As a result of decoupling, a married couple in Maryland worth over $1 million, including the price of a home, small business or farm, could be faced with a Maryland estate tax of $64,400 this year and rising as high as $229,200 in 2009. These taxes are due within 270 days of death.

Governor Ehrlich’s proposal will eliminate this unfairness by recoupling the federal and Maryland estate taxes. As a result, beneficiaries of owners of many small businesses, farms or homes that have significantly appreciated in value, will no longer have to face the situation of selling that asset to satisfy a massive state tax bill. In addition to benefiting the business owner, it will also protect the jobs of those who work for a small business or farm.

Governor Ehrlich Proposes Property Tax Relief, Overhaul of Homeowners’ Property Tax Credit

For Immediate Release
Contact: Shareese N. DeLeaver
Monday, January 9, 2006
410 974.2316
410-353-2731

RANDALLSTOWN – Governor Robert L. Ehrlich, Jr., today announced plans to reduce the state property tax by 15 percent, providing Maryland homeowners with sorely-needed relief in an era of steadily rising assessments. Governor Ehrlich will also introduce legislation to overhaul the Homeowners’ Property Tax Credit Program to ensure that as many as 50,000 qualified homeowners are not forced from their homes due to rising assessments.

“These proposals will ensure that Marylanders who have earned the dream of homeownership can keep it,” said Governor Ehrlich. “My Administration is doing its part to ensure that every Maryland homeowner receives some of the State’s surplus. This money belongs to the people, not the government. I call upon our partners in local government to follow our lead and reduce the property tax burden on the local level.”

Governor Ehrlich is proposing a two-cent state property tax cut, from 13.2 cents to 11.2 cents per $100 of assessed value, for a 15 percent reduction. In fiscal year 2006, the average statewide residential assessment in Maryland was $205,889. The Governor’s tax relief plan would equate to $42 in state tax relief for the average Maryland homeowner. The plan, which applies to both residential and commercial property, will cost $98 million in property tax revenue in FY 2007.

The Homeowners’ Property Tax Credit Program assists homeowners with low and moderate incomes with their property taxes. The Governor’s proposal will reduce the average current recipient’s July 1, 2006 property tax bill by $167. The legislation will also assist an estimated 2,000 additional homeowners with their property tax burden.

The Governor’s proposal will increase the maximum assessment on which a credit may be granted from $150,000 to $300,000. The maximum assessment was last increased by the General Assembly in 1989. Since that time, residential assessments have risen over 91 percent.

In order to help the lowest income individual, the Governor is proposing to change the income brackets so that zero percent of a homeowner’s first $8,000 is earmarked as able to be contributed to property taxes. The income brackets were last changed by the General Assembly in 1998. Governor Ehrlich also proposes that defined contribution plans such as a 401(k) not be counted as a part of an individual’s net worth when applying for the tax credit.

The Homeowners’ Property Tax Credit Program is based on the theory that some property owners can only pay a certain level of property taxes based on his or her income. The program was designed so that no homeowners are taxed out of their home. The proposed legislation establishes a maximum household income of $55,000 for eligibility.

In 2005, the Homeowners’ Tax Credit program assisted over 48,000 property owners by paying over $39 million in property taxes Statewide. The proposed legislation will cost an additional $12.6 million in Fiscal Year 2007.

Statement from Governor Ehrlich on the Wal-Mart Tax

For Immediate Release
Contact: Shareese N. DeLeaver
Thursday, January 5, 2006
410 974.2316
410-353-2731

“Our economy is thriving in Maryland. We’ve seen 90,000 private sector jobs created in three years; our unemployment rate remains one of the lowest in the nation; business confidence is at a ten-year high in Maryland, and our welfare caseloads are at their lowest levels since 1963. We’ve accomplished this growth by defeating unnecessary tax hikes and encouraging businesses to grow and prosper.

“Unfortunately, Maryland’s anti-jobs, anti-consumer lawmakers are putting our economic growth at risk and setting a dangerous precedent for the nation. They have singled out one employer to spend at least 8 percent of its payroll on employee health care benefits or be forced to pay a new 8 percent payroll tax.

“I vetoed this tax last May to protect jobs and growth, though Maryland’s anti-jobs lawmakers hope to override the veto this month. In fact, Vincent DeMarco, the lead advocate for the so-called Wal-Mart bill, said he would like to see the concept expanded to target smaller employers in Maryland.

“This is the first step toward government-run health care. Maryland would be the first state in America with a government-imposed, arbitrary payroll tax based on a private employer’s health care expenditures.

“The bill is driving away employers who want to create jobs in Maryland. Roughly 800 jobs hang in the balance in Somerset County, where Wal-Mart plans to build a new distribution center. These new jobs would average $12 an hour wages, $2.50 more than Somerset County’s current average. Somerset County resident George Godfrey put it best: ‘We need this…Being as how we're the poorest county in the state, it'd be a big help. It'd be great for us.’ WBOC-TV, 12/12/2005

“The Wal-Mart bill will also drive up costs on low and middle-income consumers. Just like the General Assembly’s two percent health insurance tax, the Wal-Mart tax will be passed down to those who can least afford it – the customer.

“Today, special interest groups announced plans to expand the Wal-Mart bill to 30 states nationwide, hoping to spin a web of government-run health care across the country. The Wal-Mart tax is bad for consumers, bad for growth, and bad for the small businesses that will be targeted next. Together, we’ve made Maryland a more prosperous place to do business. I call on our lawmakers in Maryland to protect jobs and growth and sustain my veto of the Wal-Mart tax.”

Governor Ehrlich Announces Record Funding Increase for Maryland Public Schools
Governor Also Proposes $281 Million for School Construction

For Immediate Release
Contact: Shareese N. DeLeaver
Thursday, January 5, 2006
410 974.2316
410-353-2731

DUNDALK – Governor Robert L. Ehrlich, Jr., today proposed an all-time record $462 million increase in public K-12 education funding, bringing his total K-12 education investments for fiscal year 2007 to a record $4.47 billion. Governor Ehrlich also proposed a total of $281 million for school construction statewide.

"This new budget builds on our considerable successes to date in K-12 education," said Governor Ehrlich. "We have fully-funded our public schools with a record $1.4 billion funding increase since 2003 and have more than doubled school construction funding over that same time period so that Maryland students can learn in safe and modernized schools."

Governor Ehrlich's school construction proposal includes $261 million plus a reallocation of almost $20 million of existing funds.

Governor Ehrlich's education budget also includes:

$1.2 Million increase for the Maryland Meals for Achievement Breakfast Program for 27,000 more school children to have school breakfasts, bringing the total to 75,000 statewide;
$2 Million increase for Adult Basic Education to ensure parents of schoolchildren have the skills necessary to help their children learn and succeed in society themselves;
$2 Million to create a Science, Technology, and Mathematics Academy to focus children in these subject areas to keep Maryland competitive in the 21st century;
$1.455 Million to improve services for people with Autism and launch a pilot program to screen children for Autism;
$700,000 increase for school based health centers to improve student health in our public school systems;
$500,000 to begin a new program, the Governor's Teacher Excellence Award, for which 20 awards, determined by MSDE, for $25,000 each will be awarded to excellent teachers annually;
$750,000 increase for Maryland Child Care Resource and Referral Network to ensure access to resources for early childhood programs;
$1 Million increase for private school textbooks;
$1.875 Million to pilot an Early Childhood Mental Health Consultation model in 12 jurisdictions, serving an estimated 2,400 children with behavior problems and/or special needs who are at risk of being expelled from child care;
$200,000 to provide support and technical assistance to entities establishing charter schools;
$1.5 Million to promote Environmental Education among under-served sixth grade students.

Governor Ehrlich Calls for Measures to Contain Electricity Rates

For Immediate Release
Contact: Shareese N. DeLeaver
Wednesday, January 4, 2006
410 974.2316
410-353-2731

ANNAPOLIS – Governor Robert L. Ehrlich, Jr., today called on the Maryland Public Service Commission (PSC) to work to reduce anticipated increases in consumer electric rates in 2006. The anticipated rate increases are a result of electric industry restructuring laws enacted by the Maryland General Assembly in 1999.

In a letter to PSC Chairman Kenneth D. Schisler, Governor Ehrlich asked the commission "take any actions necessary to implement regulatory measures to mitigate customer impacts from dramatic increases." The Governor asked that any recommended legislative measures be forwarded to his office within two weeks. He also has reserved the right to introduce legislation to address this issue if the PSC does not adequately do so.

The Governor's letter can be read in entirety at the following address: http://www.governor.maryland.gov/pressreleases/2006/LettertoChairmanSchisler.html

GOVERNOR EHRLICH ON EDUCATION: WALKING THE WALK

For Immediate Release
Contact: Audra Miller
January 3, 2006
410-269-0113
410-353-2731

ANNAPOLIS—Governor Ehrlich announced today a record $172 million funding increase for higher education in his 2007 fiscal budget as well as a monumental capital campaign for the University System of Maryland (USM). The higher education budget includes a 14.5% increase in funding for the university system, an 18.3% increase in funding to Morgan State University, a $19 million increase for need-based scholarships, as well as increases in funding to community colleges, Maryland's historically black colleges and St. Mary's College.

Governor Ehrlich's record on education is unmatched. In addition to record investments in our colleges and universities, he has fully-funded K-12 education with a record $1 billion funding increase. He passed Maryland's first charter school law, establishing 15 charter schools in three years to give parents more choices in the school systems. He has doubled funding for need-based scholarships, helping more than 11,000 students go to college.

Maryland Republican Party Chairman John M. Kane stated, "Governor Ehrlich is the education governor. He has worked hard to opened the doors to higher education for thousands of Marylanders who could not otherwise afford." Kane continued, "On the other hand, Marylanders hear the tirades and pie in the sky campaign promises of politicians like Martin O'Malley who are quick to point fingers but who's own record on education is severely deficient and deserving of a failing grade for reading comprehension and math."

The Governor's political opponents criticize for rising tuition rates, without understanding how tuition rates in Maryland are set; namely, by the University System of Maryland's Board of Regents. Specifically, O'Malley has recommended using the state surplus to fund higher education, despite criticizing virtually every step Governor Ehrlich took to create the surplus. Any education proposal the Mayor makes should start in Baltimore City, where 90,000 school children are stuck in the worst education system in Maryland. Since 2003, O'Malley has increased education funding for public schools by $3.2 million while the Ehrlich administration has increased education funding to Baltimore City by more than $110 million in the same period.

Governor Ehrlich Proposes Preservation of Hickey School Site

For Immediate Release
Contact: Shareese N. DeLeaver
Monday, January 2, 2006
(410) 974.2316
410-353-2731

BALTIMORE COUNTY – Governor Robert L. Ehrlich, Jr., today announced plans for the Charles H. Hickey, Jr., School in Baltimore County to be preserved from development and turned over to the Department of Natural Resources (DNR). Governor Ehrlich directed DNR and the Departments of Planning (MDP) and Juvenile Services (DJS) to determine how best to preserve the land, including incorporating it into the adjacent Gunpowder Falls State Park.

"We have preserved nearly 60,000 acres of fields, parks, open space, and farmland since 2003," said Governor Ehrlich. "Adding the Hickey School property to our list of preserved lands is great for the surrounding community and fits our policy of preserving land that directly improves the Chesapeake Bay's water quality. Roughly 40 percent of the property is environmentally sensitive landscape, and would be a terrific addition to Gunpowder Falls State Park."

The Hickey School sits on 219.28 acres of land in northeastern Baltimore County. Established in 1908, it historically served as a detention center for troubled youth committed by the courts to DJS custody. Governor Ehrlich ordered the school closed this year as part of his plan to change the juvenile justice system and establish a wraparound approach to services for youth with an emphasis on community-based services.

"We received inquiries regarding future use of the land at the Hickey School since the Governor's directive to close the committed programs at Hickey," DJS Secretary Kenneth C. Montague said. "We welcome the opportunity to now respond that the Governor is preserving this land and protecting it from development."

Under Governor Ehrlich's direction, the three agencies will coordinate transfer of stewardship, and DNR Secretary C. Ronald Franks will lead a thorough evaluation of the property. Over the next six to nine months, the agencies will work with Baltimore County officials, community stakeholders and elected officials to determine the best uses for the remainder of the property. Any uses considered will prohibit future development of the property.

"We are thrilled to have this addition to Gunpowder Falls State Park and welcome Governor Ehrlich's call to protect these sensitive landscapes," said Secretary Franks.