2010 - Bad Session Unless You Were A Special Interest

The 2010 session of the Maryland General Assembly accomplished little unless you were a special interest group that supports the Democrat party and Governor Martin O’Malley’s re-election campaign. However, the trial lawyers, teachers unions and environmental lobby scored big wins in Annapolis this session.

Priorities were mostly misplaced as O’Malley and legislative leaders did little to put the state’s fiscal house in order. The general fund was reduced approximately 0.3% over last year but the budget was balanced primarily by one-time transfers and federal funds (due to expire after next year). This reliance on fund shifts instead of ongoing revenues means that O’Malley’s budget policy leaves the next Governor with $8 billion of deficits over the next four years.

The most astonishing special interest accomplishment was the widespread Democrat support in Baltimore City and Prince George’s County to raise auto insurance rates on the working poor. House Bill 825 would hike the minimum security required on a motor vehicle liability insurance policy from $20,000/$40,000 policy limits to $30,000/$60,000 policy limits. This will affect the poorest of the working poor who maintain automobile insurance at the minimum standards. Over 200,000 of these Maryland citizens will see their annual premiums increase over $350 per year. The Department of Legislative Services estimated that this will cost the working poor over $8.1 million per year. The only major group supporting this bill was the Maryland Association for Justice (the trial lawyers) because it will boost contingency fees in personal injury cases.

The state teacher’s union has long-desired a separate labor relations board and O’Malley promised it would get done this year. The fact that power is being stripped away from elected officials in those counties that elect their Board of Education was no deterrent to the Democrats’ need to reward the labor union. The so-called “Fairness in Negotiations Act” (Senate Bill 590 and House Bill 243) received unanimous support from Democrat legislators.

Rapidly rising consumer electric bills was a flashpoint in the 2006 election. O’Malley’s flashy television ads promising to “roll back the rate increases” tapped a populist theme that resonated with voters. Four years later, electric bills are higher than ever.  Yet, O’Malley still introduced major energy legislation (renewable energy portfolio standards) at the behest of the environmental lobby that will add to the cost of your electric bill instead of lowering it. At least the House of Delegates scaled back O’Malley’s original $1 billion solar energy tax to only $200 million.

There is no doubt that this year was a time to reward the special interests that played a major role in O’Malley’s 2006 election and to make sure the Democrat campaign pump is primed for 2010.