Lost On The Shore

Items of Interest

It's been a soggy couple of days on the Shore and we're looking at a few more before we finally break into our late spring and summer weather.  While I'm waiting I want to catch up on a few items of interest that caught my eye over the past week.

Energy prices continue to rise. Gasoline prices set a new record in Maryland this week.  Gasoline prices nationwide reached an average of $3.67 a gallon and oil reached $126 a barrel.  Gas prices here on the Shore ranged from about $3.55 to $3.65 while in the high priced areas of Montgomery County prices were in the $3.75 - $3.85 range with one station posting $3.97 and a station in DC was asking $4.05 for regular.  Diesel prices are higher everywhere. 

The tourism industry here on the Shore relies heavily on vacationers driving over the Bay Bridge from the DC/Baltimore area and down from the Philadelphia area.  With the peak summer driving season starting in a few weeks, the ability of consumers to absorb these increases could have a dramatic impact on the economy here.

On the electricity side, BG&E posted their new rates and PEPCO Holdings announced that their first-quarter profits doubled from last year.  It looks like a difficult summer on the electricity front, also.

Transportation  In a related development, the New York Times today reported that higher gas prices are driving record crowds to mass transit.  Mass transit systems are struggling to cope and equipment shortages are becoming apparent as is apparent both in Baltimore and Washington.  With a huge proportion of the state's transportation budget tied up in the InterCounty Connector, the state and local jurisdictions are going to have to look hard at their budgets to see where they can free up some funds to expand mass transit options.

Here on the Shore, there's little mass transit to speak of.  In Ocean City, though, the town is encouraging visitors to rely on its bus system while visiting there.  A crowded summer weekend can easily overtax the system there and they are going to have to be careful to ensure they have enough capacity.

On a brighter note, the state has announced that construction will begin next year on the MARC station in Edgewood.  With thousands of new jobs coming to the Aberdeen Proving Grounds, this station will be a critical part of the transportation infrastructure there. 

Health  A recent study in New England shows that teenagers in places with strict smoking bans in restaurants were forty percent less likely to become regular smokers.  Apparently, huddling outside restaurants and bars to take a puff isn't 'cool'.  Lower smoking rates among teens will help keep health care costs from growing so fast.  Every little bit helps.

Real Estate The number of home sales continues to decline in Maryland.  The National Association of Realtors, as they have every recent month, said that the turnaround is about to start, but almost no one else seems to think so.  Spring is normally the peak selling season, but it doesn't seem to be happening, at least here on the Shore.

In many states, local jurisdictions are facing severe budgetary problems as falling assessments lead to reductions in property taxes.  Here in Maryland, the problem is not quite so urgent as our three-year assessment system means that assessed values are still rising in most jurisdictions.  Some counties, though, like Montgomery and Prince George's, which have come to rely heavily on transfer taxes, are suffering as home sales decline sharply.  All local jurisdictions need to be very careful in committing to future costs, though, as the same three-year assessment cycle which is helping them now will be hurting them in the future as new assessments drop.

[The photo is of Thomas Point Shoal Light] 

Slots

Progressive Maryland blogs, including those over at Free State Politics and over at Politicker MD are filled with posts about the evils of slot machines and how slots will be easily defeated in the upcoming referendum.  I don't agree.

As I understand them, the arguments against slots are that:

• Slots are just the foot in the door - gambling interests really want full casinos in Maryland;
• Gambling of any kind is immoral;
• Slots represent a regressive tax on the poor;
• Slots will create or exacerbate problems for the State as compulsive gamblers and those with low impulse control will gamble away more than they can afford;
• it's ridiculous to subsidize horse racing with slot machines, horse racing is a dying industry anyway; and
• the state shouldn't raise money from gambling, it should raise the money it needs through taxes.

Some of these arguments have merit but some are just nonsense.  Let's take a look.

Slots are just a foot in the door to get casinos in Maryland

Sure, that's possible; and funding for mass transit is just a foot in the door to forcing all Marylanders out of their cars.  It's possible, but not if we don't allow it.  Given the huge, protracted fight over getting slots, I doubt that Marylanders are going to approve full-blown casinos the next year, not that there would be a problem with that.

Gambling of any kind is immoral

If you think gambling is immoral, then so be it.  But research has shown that people are quite fickle about this.  Many who are adamant about the immorality of gambling don't seem to hesitate to buy a lottery ticket or play bingo.  Besides, if you think gambling is immoral, don't gamble, but don't impose your morality on me.  There are those who think driving cars is immoral, or eating meat, or sex, for that matter.  We can't impose every individual's moral code on the entire state.

Slots represent a regressive tax on the poor

Well, this might be true.  I'm not sure.  I know a fair number of people who go to Delaware or West Virginia or even Atlantic City to play the slots from time to time.  They are generally middle class and older.  They play the slots not because they expect to win money, but for entertainment.  Frankly, I like to go bet on the ponies from time to time.  I bet a few dollars here and there and have a wonderful time cheering on my nag.  I never lose more than $20 - $30, but then I never expect to win either.  It may be true that low-income people spend more on gambling than higher income people, I haven't seen convincing evidence.  But keep in mind that most of the state's share of income from slots is targeted toward education.  If there ever was a regressive tax on the poor, it's lack of education.

Slots are going to exacerbate problem gambling in the state.

Well, this is probably true.  Some of the projected income from slots is targeted toward dealing with this problem.  But the fact is that everything has unwelcome side effects.  Bad television stunts the growth of the mind and causes people to buy things they don't need, rock concerts create traffic jams and may promote drug use, newspapers lead to deforestation and generate waste.  We don't ban these things because of the side effects, instead we try to mitigate the side effects and enjoy our bad TV, rock concerts and newspapers. 

It's ridiculous to subsidize horse racing

I agree.  I've written about this before.  If it were possible to vote for slots without the horse racing, I'd welcome it.  But that's not the situation we find ourselves in.  If we were to only accept legislation that is perfect, there would be none. 

The state shouldn't raise money from gambling, it should raise the money it needs through taxes.

An interesting argument and, in a perfect world, a winning argument.  In a perfect world we would all see the benefit of the services the government provides us, the government would provide those services efficiently and effectively at all times and without showing favor to one group or another and we would gladly pay our taxes to support those services.  In this world, however, taxes are anathema to most.  The chances of getting an additional $500 million of taxes passed in Maryland are nil.  So we're faced with either approving slots or foregoing the money (or, more to the point, giving to to Delaware, Pennsylvania and West Virginia).  I'll go with the slots.

[Note, the photo, taken between 1890 and 1900, is of the public garden and casino in Vienna, Austro-Hungary and was included in a book 'Views of the Austro-Hungarian Empire' published by the Detroit Publishing Company in 1905]

Odds and Ends

I just want to follow up on some earlier posts and take another look at the upcoming General Assembly session.  Some issues will be raised that will be difficult to deal with and might cause us to wonder who's in charge up there.

Chickens!

First, as I posted earlier, large farm operations in Maryland should have to get pollution permits just like any other large polluter.  According to this article in the Baltimore Sun, the Maryland Department of the Environment has proposed regulations that would require about 200 of the largest chicken farms in Maryland to get state pollution control permits and follow a few simple regulations for reducing pollution.

Predictably, the Delmarva Poultry Association called the proposed regulations 'unnecessary' even though the Maryland poultry industry produces about a billion tons of manure a year and is a significant polluter of the Bay.  In my view the regulations could be a bit tougher, requiring the industry to do more to stop polluted runoff from reaching the Bay, but I think they're a good first step.

Of course the poultry industry will complain loudly and lobby vigorously to block the regulations, but I think they'll lose this time.  Of course, all of this could have been avoided if they had taken responsibility for dealing with the problem at the beginning, but that's too much to ask.

Taxes!

During the recent special session, the General Assembly balked, in the face of heavy industry lobbying, at extending the sales tax to massage parlors, health clubs, real estate management companies and a few other areas.  Instead, in their wisdom they decided to place a sales tax upon many computers services - a complete surprise to Maryland's thriving IT industry.

Of course, the IT industry has now woken up to the threat, has hired their own lobbyists and raised such a stink that there is a strong likelihood that the tax will be repealed during the coming session with the Montgomery County delegation leading the way for their many IT constituents. 

Of course that raises the question of how to fill the $200 million dollar hole in the budget that the repeal will leave.  The choice is either to raise some other tax or cut spending by $200 million.  Since a chunk of the money was to be devoted to transportation spending, raising the gas tax by a couple pennies seems like a reasonable idea, but I'm not sure how many delegates want to hit people with a gas tax increase even as the price of gasoline continues to rise.

The other option is to cut spending by another $200 million (on top of the $500 million plus already mandated).  The difficulty here is that such a cut would likely come from transportation funding, which the suburban delegations very much like or in the Geographical Cost of Eduction Index, which primarily benefits.....Montgomery County.  Look for a possible surprise increase in the alcohol tax which, I believe, hasn't changed since 1955.

Same-Sex Marriage

The Maryland Court of Appeals effectively tossed the ball back to the General Assembly on this issue by ruling that the state's existing marriage law, which defines marriage as being between a man and a woman, remains valid.  Equality Maryland and other gay-rights organizations have announced they will lobby hard to pass a law to legalize same-sex marriage and they have a lot of support.

There's a lot of opposition, too.  Mike Miller, the President of the State Senate, has announced that he would oppose any such bill.  A lot of churches and religious organizations will oppose it, along with some of the generally conservative parts of Maryland. 

While I personally would like to see some kind of marriage equality act passed, I don't think it has much of chance in this session.  The question is whether a halfway approach - authorizing civil unions - would be acceptable to a majority.  I'm sure there will be lots of noise over this one.

I'll have more tomorrow or Monday.

[The photo is of a poster for the 1899 musical comedy, Hotel Topsy Turvy]

Making It Interesting

The decision to put the slot machine issue in Maryland to a referendum adds a lot of interest to next year's general election.  After all, there's no real presidential contest in Maryland - our electoral votes will go to the Democratic candidate, almost certainly by a significant margin.  There is no Senate race this year in Maryland. 

There are a few significant primary elections at the Congressional level - here in the first district and over in the fourth district where Donna Edwards is trying to unseat Al Wynn in the Democratic primary.  But unless Wayne Gilchrest gets bumped off in the primary, there are not likely to be signficant congressional contests in the general election.

But, ah...the slot machine referendum gives us something to look forward to.  People are passionate about this issue and it's likely to be a bitter, divisive and close campaign.  I look forward to it.  We've had four years of handwringing, hypocrisy, backbiting, moral grandstanding and posturing in the Maryland legislature and now we can look forward to lots more of the same all over the state as the question is put to the electorate.

Opponents of slot machines can be counted upon to inveigh against the moral bankruptcy of gambling (probably while taking a break from their church bingo games), point to the supposed regressive nature of slots and claim that they will produce a new generation of addicts, broken homes, lost jobs and general moral decay.  Churches in Prince Georges County and progressives in Montgomery County will collect enormous sums of money to help defeat slots.

Supports will point to the millions of dollars already wagered by Marylanders in neighboring states, talk about how slots will somehow support open space, call it a 'voluntary tax' and a 'harmless form of entertainment' and mention repeatedly how much of the money will go to support education.  The horse-racing industry and the gambling industry will raise their own enormous sums of money to promote a 'yes' vote.

The real winners will undoubtedly be the TV and radio stations, the newspapers and the sign-makers who will be happy to receive all the money that is raised to flood our airways, newspapers, streets, roads and front yards with advertisements for and against.  Every political pundit, editorial commentator and blogger in the state will be working overtime to voice their considered opinions on who will win. Oh, how exciting!

In that spirit, I would like to offer my initial opinion - it will be very, very close.  Aside from those who are morally opposed on the one hand and those who see their jobs and/or profits dependent on slots on the other hand, I think most Marylanders are on the fence on this one.  Recent polls show that Marylanders support slots by a small margin.  On the other hand, gambling has been defeated in most recent contests in other states.  All I can say for sure is that the contest will be fun to watch.

[Note: the painting above is by William Hogarth - part of his 1755 series 'The Humours of an Election'.  This piece is entitled: 'The Polling'. ]    

Singing a Happy Song?

Well, Governor O'Malley should be singing a happy song.  The special legislative session, which could have turned out disastrously, gave him a good chunk of what he wanted.  Let's take a quick look at the results.

Sales Tax The legislature approved the Governor's proposal to increase the sales tax from 5% to 6%.  His proposal to extend the tax to include tanning salons, accountants, landscapers, etc. was rejected but the legislature inexplicably decided to tax computer services.  There doesn't seem to be any explanation for this.  Perhaps our legislators use tanning salons much more than computers; I wouldn't be surprised.  The sales tax holiday which the Governor proposed for back-to-school shopping was approved - but not until 2011, so if you decide to have children now, they'll be just about school age when the tax holiday kicks in. 

Income Tax The Governor got his wish to make the income tax a bit more progressive, but, in a transparent bow to their wealthier constituents, the Montgomery County delegation trimmed the top rate below the Governor's proposal.  The personal exemption was increased for most taxpayers which will lower their taxes a bit.

Tobacco Tax The Governor's proposal to double the cigarette tax from $1 a pack to $2 a pack was approved.  Smokers are everyone's whipping boy these days and fair game for any tax anyone dreams up.

Corporate Income Tax The Governor proposed raising the corporate income tax from 7% to 8%, closing a loophole that allowed corporations to sell real estate without paying transfer tax and implementing something called 'combined reporting' which would reduce the ability of corporations to shift income from high tax states to low tax states for tax purposes.  The legislature decided to raise the tax rate from 7% to 8.25%, eliminated the transfer tax loophole but decided to 'study' combined reporting.  Now, of course, multi-state corporations have even more incentive to shift income out of Maryland for tax purposes.  Apparently big corporations have better lobbyists than cigarette smokers.

Titling Tax The Governor proposed increasing the automobile titling tax from 5% to 6% to beef up transportation spending.  The legislature adopted the increase but exempted the value of a trade-in. 

Property Tax The Governor proposed reducing the state property tax by 3 cents per hundred dollars of assessed value.  The legislature rejected the cut.

Gas Tax O'Malley wanted to index the gasoline tax to inflation to provide more money for transportation.  The legislature rejected the proposal, allocating some additional money from the sales tax increase to transportation.

Slots The legislature approved the Governor's proposal for a referendum on slot machines in Maryland.  The vote will be held in November, 2008.  After four years of wrangling over slots, the Governor and the legislators decided to punt the question to the voters.  More on this later.

Budget Reductions The Governor had proposed trimming the projected increase in school spending by almost $250 million.  The legislature approved this and some $80 million in additional cuts but asked him to come back with some $220 million in addition cuts to the projected state budget in January.

Overall, it looks like the Governor got the bulk of what he wanted - he should be pleased.  The whole package is not as progressive as was originally proposed, but at least he's put the tax issue behind him.  It remains to be seen how this plays politically, though.  No one ever likes their taxes to go up and most voters have pretty good memories.

The Slots Just Keep Coming

It seems that everyone has something to say about slot machines in Maryland, and the debate doesn't always bring out the best in people.  Anne Arundel County Council Member Josh Cohen seemed to sum up the opposition to slots this way:

...Slots will do nothing to improve our quality of life. Their social ills are well-documented. They encourage gambling addiction and lead to more child neglect, divorce, bankruptcy and broken families, not to mention prostitution, illegal drug use and organized crime...

I'm a little surprised he didn't mention dandruff and bad breath.

Comptroller Peter Franchot led a small group of 40 or so slots opponents in a demonstration in front of his office.  He referred to supporters of legalized slot machines as "forces of evil".  A short distance away, horse-racing supporters demonstrated in support of slot machines saying they would save education, and, by the way, horse racing, and carrying signs saying that 'Franchot Must Go".

Down here on The Eastern Shore, the town fathers of Ocean City deplored slot machines, passing a resolution stating their steadfast opposition to slot machines on the Eastern Shore, conveniently forgetting that there are already plenty of them just up the road in Dover, Delaware.

Meanwhile, the Baltimore Sun ran an article suggesting that the slots bill, as currently structured, might not be enough to really support the race tracks in Maryland.  According to the O'Malley administration, the slots revenues would be divided this way:

• State Education Trust Fund   -50%
• Slot operators   - 30%
• Horse racing purses   - 6%
• Local governments where slots are located   - 5.5%
• State Lottery Commission (for admininstrative costs)   - 5%
• Refurbishing race tracks (not to exceed $40 million)   - 2.5%
• Minority and women-owned business investment fund   - 1%

The Governor hsa proposed a constitutional amendment to authorize the slot machines at the five locations in Baltimore City and in Anne Arundel, Cecil, Allegheny and Worcester counties.  He has also proposed legislation that would control the issuance of licenses and the allocation of the proceeds.

I guess I don't see slot machines as the source of all evil.  Sure, they have their problems, but so does everything.  The state already has the lottery, scratch-off tickets and keno but we still seem to be doing okay.  As I've said before, I'd be happy if we could consider slots separately from the subsidy for horseracing.  I think horseracing is fading industry.  Subsidizing it won't get more people to the tracks, it will just make the participants a little richer. 

And, as I've said before, I think auctioning off the licenses will help maximize revenue for the state and ensure that we're not just lining the pockets of the gambling industry.  I'd like to see some of the hundreds of millions of dollars spent by Marylanders on slot machines elsewhere stay here. 

Alright, I've said my piece, now to go collect my reward The Prince of Darkness - and no, I don't mean Dick Cheney.

Slots on the Eastern Shore?

On Friday, Governor O'Malley proposed a referendum on slots that would allow up to 15,000 machines in five Maryland locations.  The legislation, which appears likely to pass during the special session calls for a referendum in November 2008.  The referendum would put slots at five locations:

• Allegheny County, on state property near the Rocky Gap resort;
• Anne Arundel County, within two miles of the Baltimore-Washington Parkway;
• Baltimore City at a non-residential area within a half mile of Interstate 95 and Md 295;
• Cecil County within two miles of Interstate 95; and
• Worcester County within a mile of US 50 and MD 589.

Now this last one caught my eye; it's not that far from where I live.  Ocean Downs Raceway is in that area.

Since Governor Ehrlich first proposed slots in 2002, Ocean Downs has been one of the locations considered.  As the various proposals have come and gone, Ocean Downs has been included and then excluded.  Now it's in again.

There is concern in Worcester County that having a large slots venue in the county will increase congestion, increase crime and generally mess things up.  In Ocean City, in particular, opposition has been vehement, largely on the grounds that it would change the 'family' nature of the resort and drain vacation dollars that would otherwise be spent in the resort.

I see things differently.

Worcester county employment is heavily oriented toward summer resort activities, agriculture and construction.  The unemployment rate annually fluctuates between about three percent in the summer to well over ten percent in the winter.  The slots would provide a sigificant number of year-round jobs that would pay a decent wage.

The decent wage is important; according to the Maryland Statistical Handbook, Worcester County ranks LAST in the state in average wage per job.  The average wage here is only 58% of the statewide average.

Ocean City is a fine summer resort, but they have been complaining for several years that business there is stagnating.  Many people attribute this stagnation to the increased cost of vacationing there, particularly lodging costs which have inflated along with real estate prices.  The city and the county have recently decided to increase the room tax to attract more visitors (some sharp minds at work there). 

The establishment of a slots venue a couple miles away from Ocean City will significantly increase the number of visitors year-round, not just in the crowded summer months.  What Ocean City loses in money going to slots will be more than made up by the overall increase in visitors, particularly in the winter months when, on most days, you could shoot a cannon down the boardwalk and not worry about hitting someone. 

I'm sure the good people of Worcester County will vote against slots in the referendum next year, but I'm thinking that the current 70+% approval rating for slots in the state as a whole will lead to a win for the referendum.  In the meantime, get ready for lots of campaigning both ways.  It will be an interesting year.

Legislative Hearing Schedule

The schedule of hearings on O'Malley's revenue plan has been published.  Most of the hearings will be joint hearings of the House Appropriations Committee, the House Ways and Means Committee and the Senate Budget and Taxation Committee.  The schedule can be found here.

Key hearing dates include Wednesday, October 31 for hearings on transportation funding including the vehicle excise tax increase and inflation indexing the gasoline tax - also hearings on the proposed corporate tax increase and combined reporting.

On Thursday, November 1, hearings will include the proposed property tax reduction, sales tax increase, tobacco tax increase and income tax restructuring.

On Friday, November 2, hearings will include the proposed slots legislation, and Green Fund legislation. 

I'll try and post a little bit about each of these as the hearing date approaches.

Slots for Maryland

There are anti-slot machine rallies at a few locations around Maryland so I thought a few words about why I support slots would be in order.

First of all, let's look at why legalization of slot machines is being considered in the first place. 

The state faces a significant budget deficit for the foreseeable future, primarily driven by an increase in state funding for education but also partly attributable to increased costs for transportation, health care and a variety of other areas.  Of course, it's possible to address this deficit through spending reductions.  Many have proposed just that, although without providing a lot of detail as to what should be reduced.  The problem is, that while some spending reductions are certainly possible, reductions on the scale (about $1.7 billion) necessary to wipe out the deficit would come in areas such as roads and eduction where most Marylanders want to spend more.

The other way to address the deficit is revenue enhancement.  The Governor has proposed a broad range of tax increases and adjustments which will provide substantial additional revenue.  These include increases in the sales tax, the cigarette tax and the corporate tax rate as well as adjustments to the income tax structure that will increase state revenue.  While these increase, painful as they are, will raise significant amounts of money, they won't raise enough to cover the entire deficit, so the Governor has proposed to license 9,500 slot machines in Maryland to generate about $500 million a year in revenue for the state.

Of course, the Governor could simply propose additional taxes in lieu of slots.  But I think he'll have enough trouble trying to get the existing tax increases passed without trying to impose more.  Slots have been on the table in Maryland since 2002, when then Governor Ehrlich proposed them as a way to increase revenue for the state and 'save' the horseracing industry (something I don't support).

Marylanders are already spending a fortune at slot machines in neighboring states - West Virginia, Delaware and Pennsylvania - in addition to the amounts spent by Marylanders at the casinos in Atlantic City.  Allowing the state of Maryland to capture some of the money spent by Marylanders in other states seems like a good idea to me.

Many object to legalization of slot machines in Maryland.  As far as I can tell, there are four basic objections:

1. "Money spent on slots will take away revenue from other types of entertainment."  This is the refrain commonly heard in Ocean City.  Hotel and restaurant owners worry that Marylanders will spend money on slot machines rather than come to Ocean City.  As far as I can tell, there is no evidence to support this theory.  Marylanders already spend hundreds of millions of dollars on slots in other states and still come to the beach.  Gambling has seen explosive growth in the United States in the past twenty years, but Ocean City, despite some problems, still seems to be thriving.
2. "Slot machine gambling is a regressive tax on the poor."  I have seen contradictory studies on this.  The New England Gaming Behavior Survey indicated that the average slot player at the Foxwood and Mohegan casinos was a woman aged 40+ with an annual income between $45,000 and $75,000 and with some college.  Some studies indicated that lottery tickets sell better in jurisdictions with lower average income.  In any case, the fact is that tens of thousands of Marylanders are already traveling to neighboring states to gamble, often with the transportation subsidized by the casinos.  If slot machines truly are a tax, then they are a voluntary tax that millions enjoy paying.
3. "Slot machines will contribute to the problem of compulsive gambling."  Problem gambling certain does exist.  A survey by the United Kingdom Gambling Commission in 2007 indicated that 0.6% of the adult population had problem gambling issues.  Other surveys indicate the rate may be around 1.5%.  Some research seems to indicate that problem gambling is internally-driven and that problem gamblers will tend to risk money on whatever game is available rather than a particular game introducing problem gambling to otherwise 'normal' individuals.  While whatever program is approved by the state should include funding to treat problem gambling, I don't see any reason to expect that slots will exacerbate existing problem gambling. 
4. "Gambling is immoral."  Well, for those who believe gambling is immoral, I say 'don't gamble'.  I haven't seen any surveys in Maryland, but a survey in Minnesota, 15% of adults agreed strongly with the statement 'I am opposed to gambling for moral or religions reasons.'  Another 9% agreed somewhat.  Yet many of these people gamble.  More than half of those in strong agreement with the statement reported gambling the previous year as did 79% of those expressing mild agreement.  I think this shows how complex the issue is.  For those who are strongly morally opposed, I respect your belief, but don't impose your belief on me.

So we'll see how it goes.  I think it is a very complex issue and, as I've said before, I think the use of slots to subsidize horseracing is basically subsizing a failing industry for no good reason.  Other than that, I support slots so we can keep that money in Maryland and use it to meet some of our needs.  I'll keep an eye on the legislature to see how it goes.

This and That

Just catching up on a few things....

First District Race

Former Governor Ehrlich last night endorsed conservative State Senator Andy Harris in his primary race against nine-term Republican Congressman Wayne Gilchrest.  Further muddying the waters, Robert Banks, a former Ehrlich appointee, recently filed papers to enter the race.  Banks does not live in the district, but apparently feels that is no impediment.  Congressional candidates must live in the state they represent but are not legally required to live in the district.  Banks believes he represents a middle ground between conservative Harris and moderate Gilchrest. 

Gilchrest, meanwhile, in a vote sure to infuriate his conservative opponents, voted to override the President's veto of the SCHIP authorization.  Gilchrest seems to have the support of the Republican establishment in Washington, receiving contributions from the House Minority leader and other Republican leadership.  He's attending a meeting with President Bush in Easton this weekend.

Frankly, the whole thing mystifies me.  It seems as though the Republicans have been making a concerted effort to purge themselves of the moderate wing of the party.  Of course, some in the Democratic party have been trying to do the same thing to their own moderates.  One of the keys to the Democrats success this past election was the ability of Rahm Emmanuel, Steny Hoyer and others to successfully recruit and support moderate Democrats to run in districts where a liberal Democrat couldn't win.  I suppose, though that many progressive Democrats and conservative Republicans believe it's better to be ideologically pure than to have the majority in Congress.

Slot Wars

The Washington Post's Maryland Moment reports that Maryland Senate President Mike Miller and Maryland Comptroller Peter Franchot had a little sparring match at the Rural Maryland Council's annual awards banquet last night.  Miller left the room when Franchot arrived, refused to talk to him and then criticized Franchot for the public comments he has been making regarding O'Malley's plan for slot machine licensing.  The Baltimore Sun reports that slot machine referendums, of the type that Governor O'Malley is considering, tend to fail. 

The Associated Press reported today that Pennsylvania has recorded more than $1 Billion in slots revenue since authorizing slot machines three years ago, even though three of the largest planned casinos won't open until 2009.  This is sure to provide fodder for those pushing slots for Maryland, particularly since a good portion of that revenue probably came from Marylanders.  I'd be happy to see some of that revenue staying in Maryland.

Growth and Sprawl

The Sun reports today that a poll of Marylanders finds that a majority of Marylanders believe the state is growing too fast with traffic congestion a major concern.  More than two-thirds disagreed with the idea that Maryland has enough open space and most felt the public has too little input to planning decisions.  While the poll is a bit suspect, being commissioned by an organization that supports 'smart growth' the results do echo findings from a number of earlier polls. 

It would be good if the state and the local governments actually listened to their citizens on this issue, but I'm not holding my breath waiting for that to happen.