Dear Friend,

Here is a quick rundown on budget issues and other key matters that came before the General Assembly during the legislative session that ended April 7th.

Foreclosure Legislation.  The Senate Judicial Proceedings Committee, which I chair, reported a package of bills that gives homeowners additional protections during the foreclosure process.  Borrowers will receive better notice of default and additional time to cure a default before a foreclosure sale.  The measures also make the worst foreclosure “rescue” scams subject to criminal prosecution and prohibit transitions that trick owners into signing over the equity in their homes.

Judicial Proceedings Committee.  The committee also approved measures expanding the state’s DNA database to include people charged with crimes of violence or burglary (DNA samples of those not convicted will be removed) and a measure establishing a commission to study the death penalty.

Environment. I am pleased that a bill I sponsored, which allows adequate funding of the state's Clean Air Program, was enacted in the session's final minutes. At present, the Department of Environment has only 18 inspectors for nearly 12,000 stationary sources of air pollution. The measure we enacted will raise the fees polluters pay so that the Department can properly enforce the law.

And more than 20 years after it was established, the Critical Areas program underwent a major overhaul this year. The program protects vital buffers along the Chesapeake and coastal bays and their tributaries. The new law will provide better protection for state waters and enhance enforcement as well.

Energy Efficiency.  Several important energy-conservation and demand-side management bills won approval.  The newly-recreated EmPOWER Maryland program will reduce the state’s electricity consumption 15 percent by 2015.  A complementary piece of legislation will direct the auction proceeds from a carbon cap and trade program to energy conservation and electric customer rebates.  A third measure will double the amount of electricity that suppliers must provide from renewable sources.

Budget.  Declining state revenues, caused by the worsening U.S. economy, forced legislators to cut the budget again, despite a special session called last November to deal with the deficit. The final budget of $31 billion for fiscal year 2009 was $441 million less than the governor’s initial request.  Spending cuts over 18 months have topped $1 billion. Notwithstanding the reductions, many key priorities have been preserved.  I was pleased to see that state support for K-12 education remains strong and that the Geographic Cost of Education Index finally will be implemented, which provides critical support to Montgomery County and other high-cost areas.

Sales Tax on Computer Services.   The General Assembly repealed a sales tax on computer services that was adopted late in the special session. The tax, which struck me as unwise, would have been the first in Maryland‘s history on services.  It targeted one of the most promising sectors of our state’s economy.  Removing the tax opened a $200 million hole in the budget.  That was filled in the session’s final days by additional budget cuts and a temporary surtax on incomes over $1 million.
         
Domestic Partners.  Two significant bills passed affecting the rights of unmarried couples.  One--important to some older couples and others--allows people in domestic partnerships to make medical and end-of-life decisions for their partners.  The second bill allows partners to transfer property to their joint ownership without paying transfer taxes or recordation fees.

Items of Note:

• A coalition of conservatives and liberals joined to pass legislation requiring the Department of Budget and Management to establish a searchable database of state expenditures over $25,000.  You’ll be able to find out who gets what when the database goes on line in January 1, 2009.   
• The Kids First Act establishes an outreach program to encourage low-income families to use state programs that provide insurance to their children.
• People working for businesses with more than 14 employees will be able to use their paid leave to care for immediate family members who fall ill starting this October.

I truly appreciate the people who take time to contact me during the session about issues before the legislature. I hope you will continue to share your views with me now that the session is over.

All the best for a good spring and summer.

Sincerely,

Brian E. Frosh