This three weeks' long session has been a baptism by fire!  I'm not only on the Ways and Means Committee, I'm on the Revenues Subcommittee, which means I've been intricately involved with most of what we've been doing in Annapolis the past 3 weeks – raising revenue.   I've held off on sending you an update because things have changed so quickly, it's been hard to keep it straight.  I'd rather send you something you can count on than something that may be outdated before I hit "send."
 
We convened on October 29th, by the request of Governor O'Malley, to close a $1.5 billion budget deficit.   When I look back on what's been involved in finding money and shaving planned-increases to the budget, it's amazing that we've managed to do it, but we have!   It has involved a lot of risks, compromises and faith, but we've been successful. 
 
First, thanks so much to the many of people who contacted me either through e-mails, letters, phone calls, or face-to-face meetings to let me know their views.  Here's a brief summary of the topics I heard were of most concern:

 

 □  Slots – I heard from those who hate them, and from those who'd like to at least consider having them here in Maryland.   In the end, there will be a referendum on slots on next November's ballot.  I voted to put it to the voters, primarily because most people want to have a say in that issue, and I saw it as the best way to get rid of slots as an issue for years to come.   I voted against the actual slots bill (I lost that one), and I'm hopeful that the impending onslaught of campaigning for and against slots will educate voters, and that we will all make an informed decision NOT to have this harmful activity brought into our state.
 
 □  Prince George's Hospital Center – The health care bill that expands eligibility for Medicaid to 100,000 uninsured people also includes $50 million for the hospital.  While there is still a requirement that a long-term solution to the future of the hospital be in place before the money is released, there is one big change to this contingency:   Either  the state and Prince George's County must reach a Memorandum of Understanding OR through an Act of the General Assembly before the money is released.   I'm optimistic that small word will make a big difference in being able to resolve the hospital system's crisis.  I was, of course, glad to vote for this bill!
 
 □  Tobacco Tax – An additional $1 tax on each pack of cigarettes will raise $162 million in 2009, and a little less each year after that, as more people are encouraged to quit smoking.  I supported that measure.
 
 □  Tax on Computer Services – this tax was a Senate proposal that the House accepted as one of those compromises I mentioned earlier.   I admit I'm somewhat skeptical that it will actually bring in the $203.7 million projected, as it will be difficult to enforce.  It won't cover internet access, which is a question that's come up frequently.   And keep in mind that some of the covered computer services are already taxed in Washington, D. C., Delaware and West Virginia. (See attachment).
 
 □  Green Fund -- About $50 million each year will go to the Chesapeake Bay 2010 Fund, to help clean up the Bay.   This money will come from redirecting the motor fuel tax and the sales tax on rental cars from the general fund to this Bay Fund.  I was pleased to vote for it!
 
The taxes that were proposed on landscaping, vehicle repair, and property management services were each removed from the bill.
 
The most important tax issues that I supported, and that Governor O'Malley will soon sign into law, are the one cent sales tax increase the implementation of a more progressive income rate tax structure. There will be a penny increase in the sales tax, which will now be 6 cents on each dollar.    That will bring about $700 million into the state!  In addition the income tax rates will now be more progressive, ranging from the current 4.75% for individuals who have a net income of up to $150,000 and couples with a net income of up to $200,000; to 5.25% for the remaining income up to $300,000 (individuals) and $350,000 (joint); and 5.5% for the amount over $500,000.    Keep in mind that each rate doesn't apply to the entire taxable income, but rather to the dollar amount over that limit amount.  There is also an increase in exemptions, depending on your net tax, and an increase in the Earned Income Tax Credit.    Middle income earners should see either no change or a slight decrease in their taxes.
 
We also cut about $500 million from the budget, primarily through reductions in planned increases (which makes sense, after you think about it!).   With the cuts and the new money coming in, Marylanders can look forward to a solid financial footing that funds education from Pre-K through the university level, increased access to health care, improvements in our transportation infrastructure and a cleaner Bay, as well as the other services the government provides that we all come to take for granted.  
 
My number one concern is representing the citizens of the 47th legislative district.    Please continue to share your views, concerns and ideas with me.  I really do listen, and I really do appreciate it.  You may reach me at (301) 858-3478 or via my e-mail address:  Jolene.ivey@house.state.md.us.