In order to create jobs we need to get our budget house in order. That is why we need to set priorities and make tough choices.
Raising your taxes again and postponing decisions aren't the right solutions. Nor should Maryland become like California and ask for a federal bailout.
Too many times politicians - including Republicans in Washington over the last decade -- talk about fiscal responsibility but then spend like they are
not accountable to the voters.
Conventional wisdom says that in an election candidates running for office need to avoid talking about making cuts, but I would argue that we
need to be honest about the problem. We must make the tough choices now. If we don't then we will follow the path of becoming more like
the state governments in California, New York, and New Jersey, three states on the verge of various forms of bankruptcy due to fiscally irresponsibility.
Why is practicing fiscal responsibility so important?First off, it is the moral thing to do to not leave future Marylanders to clean up our mess.
Moreover, while Maryland has a constitutional requirement to balance the budget, for too long this has been achieved through questionable
accounting methods, such as borrowing from the Rainy Day Fund. We can do better.
As a voter you deserve better. It is also important to
maintain Maryland's AAA Bond rating. The bond rating is important to economic growth and creating jobs. Though we currently have this
rating from from all three major rating agencies, we risk losing it. Moody's, widely recognized as the best of the three agencies, called
Maryland's depleted retirement system a "credit challenge." The $33 billion system has only 65 percent of the funds needed to meet future
obligations, and the analysts concerns echo a sentiment raised in February by The Pew Center on the States. According to the Baltimore
Sun, Moody's pointed out that Maryland's retirement system is funded at "a lower level than most similarly rated states." So what can we
do together? There are some necessary fixes that will improve the fiscal situation if implemented and will change the spending culture in
Annapolis. There are also ideas on how to tackle the much larger structural deficit problems.
:
Privatize Non-Critical Operations:
New Jersey Gov. Chris Christie and Virginia Gov. Bob McDonnell are privatizing emission stations and rest stops, respectively. Privatizing non-critical operations can be beneficial if done correctly.
Purposeful and Transparent Budget Analysis:
Indiana Gov. Mitch Daniels signed a law requiring all budget items to "answer the questions" as to "Why they are important enough to spend
taxpayer money on" and "How are we going to measure the use of the money to make sure we were successful?" This should be replicated in Maryland.
Place Temporary Freeze on Non-Essential Government Hiring:
As your State Senator I would champion legislation that forces government to do more with less and optimize advances in technology.
Private companies are forced to do more with less but government seems to do more with more, and fails at more. Bloated government
bureaucracies continue to expand while private companies become more efficient. Legislation should limit the scope of government
spending so the government can use taxpayer's dollars more effectively instead of inefficiently wasting its resources.
Identify and Eliminate Pork Barrel Spending:
Before we can eliminate unnecessary Pork Barrel Spending, we need to establish a consensus on the definition of type of spending. Then we must use
open source collection of information more effectively to spotlight where money is going and who is receiving the contracts. A few examples of these projects are
the nearly combined $4 million used to construct the concert hall a Montgomery County and a closed bridge in Baltimore County.
Independent Audit of State Spending that Identifies Program Effectiveness:
If elected I will work to ensure that there is an independent audit of state spending. Gov. Martin O'Malley promised this and still has
not delivered. Meanwhile, he has increased the number of positions in his own Executive Office while cutting positions in public safety and corrections.
Gov. O'Malley has raised salaries (over $600,000 in top management positions) demonstrating his spendthrift policies and disregard for tax dollars. He
cut positions in Veteran's Affairs, but protected the more than 7,000 political appointees he gets to select. We need to change this tax and spend culture
that exists in Annapolis
Evaluate Necessity of Commissions and Potentially Eliminate Some:
Maryland has over 300 commissions and not too long ago Maryland had less than 100. We should review each one and see if it is costing the state any money and what type of benefits they are providing.
Review Whether Maryland Should Increase Auditing of Pharmacy Reimbursements:
In North Carolina a recommendation was made to audit pharmacy overpayments in the state's Medicaid program. In Washington State they did this and there was an average 162 percent return on investment for the audit.
Join a multi-state consortium to buy Medicaid drugs, heavy equipment, etc:
Another recommendation by the North Carolina report on saving money was to take advantage economies of scale and participate in purchasing coalitions to negotiate deeper discounts for prescription drugs covered in their Medicaid program. For instance, the state of Louisiana reported a savings of $301 million in fiscal year 2009 due to their participation in a multi-state drug purchasing coalition.
Acquire Federal Waiver to Ease Costs of Medicaid and Improve Delivery of Care:
Medicaid takes up a large amount of the budget each year. As such, we need to consider doing what other states across the country
have in terms of applying for a waiver, so we can make reforms that will improve care and save money. Look at Louisiana. Governor Jindal plans to
steer working-poor Medicaid recipients out of the current "fee for service" program, where the state pays a set rate for all health-care charges
(some $54 million this year). Instead, the they would 'choose among private managed-care plans, with Louisiana paying a fixed per-patient amount,
adjusted for health risks." Essentially, Mr. Jindal wants to use Medicaid dollars to fund something like private insurance. That way, physicians and
hospitals will be compensated for outcomes -- rather than volume of visits and procedures -- and get incentive payments for good performance.
Such a "defined contribution" plan is one way to get health costs under control. Though this isn't a proven idea, it is something Maryland should look at.
Other states are pursuing reforms too. Medicaid allows states the flexibility to experiment like Mr. Jindal, but it requires a federal waiver.
Maryland needs to get a waiver as well to pursue reform in whatever shape it takes.
Limit Health Care Costs for State Employees:
I will push for Annapolis to enact a program for its state employees similar to Indiana's. Indiana Gov. Daniels explained in the Wall Street Journal that state employees who select to be in the "Hoosier HSA" program receive $2,750 per year to put into a self-regulated account that they keep and use for future medical expenses if they do not spend it during the year. This incentive encourages employees to be more conscious about how they spend their money. In 2009, over 70% of the 30,000 Indiana state workers chose to participate in the program, and according to an analysis done by Mercer Consulting, the state reduced its total costs by 11% solely because of the HSA option.
Deal with Pension Obligations in a Fair but Honest Way. Do not pass the buck:
People who have organized their retirement and played by the rules need to receive the pensions they earned. However, we must renegotiate
with state workers to ensure that our government's financial outlook remains sound and structured for success.
Propose Across-the-Board Budget Cuts for Agency Planning:
I would propose a law that would require us to prepare for 2% budget cuts in the next four sessions. Agencies
would thus be required to develop a plan for operating more efficiently.
It would be essential that agencies prepare for how to make these cuts rather than the governor just calling for them.
The cuts would be approached under the leadership of people in the agency who are interested in improving the effectiveness of the department.
We the people trying to make government more efficient and we need to see budget cuts to accomplish this goal. The law would require the
governor to create a budget proposal based off of the secretary's recommendations. Forcing departments to identify budget cuts will actually
allow the government to be more responsive to citizens at a lower cost. And by having the cuts designed from within, they will be done in a
manner that keeps the integrity and mission of the department as much as possible.