June 2003 Newsletter

Contents

• President's Report by Steve Lafferty
• Membership Update
• June Meeting with Jim Smith
• May Meeting with Jim Brochin and Adrienne Jones
• Towsontown Spring Festival
• Nominating Committee
• Howard Dean Fund Raiser
• Come Back to East Towson Day
• Change in Web Site Administrator
• Expect Lasting Harm from Budget Cuts
• Strengthening and Renewing the Federal Assault Weapons Ban
• Plan to Phase Out Social Security is On Track Again
• Membership
• Upcoming Club Events
• What Do You Think?

President's Report by Steve Lafferty

The Governor's veto of the proposed tax package has some of his allies shaking their heads. Congressmen are scrambling to find a way to make up the difference in the drastic cuts to local governments and in Medicaid. Comptroller Schaefer has rebuked Ehrlich for the harm that the cuts will entail. In Montgomery County, members of the business community question the depth of the Governor's commitment to helping them.

The anger and frustration with the Republican Governor's veto of the tax increase on corporations and cuts to higher education, local government, and health care are palpable. People are equally frustrated and angry with the Republican President's decisions to go into Iraq, eliminate environmental protections, and to cut taxes. And where is the national Democratic response? Should we take the lead from the "Killer D's" of Texas, who were brilliant in their "go to Oklahoma" strategy?

I attended what was advertised as an open meeting of the 42nd District Delegates and Senator last week. The attendance was pathetic - no more than 12 people. Democratic Sen. Jim Brochin was the most articulate. Among the Delegates, all Republicans, we heard a comment that the Glendening administration engaged in frivolous spending. However, there were no specifics nor details and that Delegate left early. We heard misrepresentations about the management of the state pension system, that gross savings could be realized through basic efficiencies in the way agencies are run and that the problem with the Thornton Commission proposal is the undue burden on teachers. While the level of attendance was very disappointing, so was the performance of the Republican Delegates. I hope they were more responsive at other forums.

So, how do we, as a Club, harness this frustration so that we can provide effective alternatives and an organized response? For one, members should closely examine the voting records of the elected Republicans. How did they vote on education, health care, the environment, and other issues of concern to you? How else should we address the positions of Republicans and demonstrate how they fail to address family and community needs? What are your ideas?

A few random thoughts: If you were 16, would you register to vote in Baltimore city? What a fantastic organizing chance this is. Well, with the Republicans raising money in the city, maybe there is a foothold which complacent Democrats cannot ignore. As Delegate Adrienne Jones pointed out at our May meeting, the appointment of Al Redmer as Insurance Commissioner presents a great opportunity for the election of a Democrat to that seat in the next election. Let's plan ahead.

As a result of the April meeting, the Board is developing strategies for our future. We will continue to have speakers on important issues that affect us. We will continue our outreach to bring more Democrats together to share ideas an develop actions that can advance our concerns.

As we move into the summer, let me remind you that we will not have membership meetings in either July or August. The Newsletter will continue and the Board will meet, though, and we need your suggestions about what our future issues and activities should be. I urge each of you to contact me or a Board member with your ideas and recommendations. Our membership has grown to an all-time high of 129. I am extremely thrilled by his level of enthusiasm and want to hear from all of you. Best wishes for the summer.

Steve Lafferty

The Club's membership has climbed to 129 people!

This is a sign that we offer a lot - networking opportunities, information on issues, candidates and ways to organize activities, and a place where Democratic values are shared and advanced. We know that people have joined out of frustration with the national and state Republican policies, the terrible Republican leadership and the need to get together with others who share their values. We thank all of you who have recently joined and invite you to become more involved to further strengthen the Club.

June 10 Meeting Preview

Baltimore County Executive Jim Smith will be the Club's Guest Speaker at the regular June 10 meeting. The County Executive, in office barely seven months, has had to confront snow storms, a tough legislative session and budget, new education mandates and highly publicized conflict with some members of the County Council. Please join us and hear his comments about his time in office and plans for the County's future. Because the meeting is near Flag Day, a display of 60 historic flags will be set up for this meeting.

Remember, we will begin with a social time at 7 p.m. followed by the County Executive at 7:30 p.m. We look forward to seeing you.

May Meeting with Senator Brochin and Delegate Jones

The Club held its May general meeting at the East Towson Community Center in East Towson. The Club's debut of a new monthly meeting format was successfully welcomed by members and visitors alike. Before the meeting, we had a social half hour to greet Club members and visitors and to share light snacks and soft drinks. The general meeting commenced at 7:30 p.m. The Club presented two speakers on the topic of the 2003 Maryland Legislative Session.

State Senator Jim Brochin, a member of the Senate's Judicial Proceedings Committee, reported that he co-sponsored a bill reducing to a $100 fine the penalty for a person's use of marijuana if used only for medical purposes. He pointed out that the bill does not legalize the use of marijuana and that it is a good bill because it eases people's pain. [This was a companion to Del. Dan Morhaim's House bill, which was enacted and signed by the Governor.] Senator Brochin stated that he is a fiscal conservative. He stated that he supported the unsuccessful bill to permit slot machines at race tracks, because he believes that money needs to be raised for education and that the people of Maryland do not want their taxes raised. Senator Brochin explained that he voted against Governor Ehrlich's nomination of Lynn Buhl, Esq., because she does not have a good record on the environment and that he believes strongly that our environment needs to be protected. He stated that he voted 100% for the environment and 100% for unions during the 2003 Legislative Session.

With respect to helping business, Senator Brochin stated that he introduced a bill to obtain an additional 6 liquor licenses for restaurants in Baltimore County and that he was able to obtain 3 additional liquor licenses.

State Delegate Adrienne Jones, the Club's second speaker, a member of the House Ways and Means Committee and Speaker Pro Tem of the House, stated that the Governor's attempt to pass legislation legalizing slot machines for the purpose of raising money for education is bad public policy. She stated that over the summer there will be a series of hearings on the topics of slot machines and gambling as revenue generators. Delegate Jones pointed out that Governor Ehrlich did not make good appointments to the State's Department of Transportation, and she emphasized that transportation is very important for the State of Maryland. She also pointed out that next year the legislative issues will include health care costs and affordability, education, especially high school education, and the environment.

After the presentations of our two speakers, the Club membership present appointed two persons, Nancy Slaterback, and Meg Ferguson, to serve on the Club's nominating committee, completing the appointments.

Steve Lafferty, Club president, invited the many guests at the meeting to join our Club and to become active members. Six guests signed up. WELCOME TO: Adelaide Bentley, Bob Brown, Florence Fields, Todd Metcalfe, Peter Sheehan, and Marge Wolf.

Rudy DeMeo

Towsontown Spring Festival

Our booth was again a success this year. Twenty volunteers staffed the booth both days. We always had at least two, and sometimes even 3 or 4 volunteers at all times. Volunteers from Jim Smith's Campaign for County Executive shared the booth with us, handing out balloons to any child that passed by. We signed up several new club members, as did the Young Democrats. WELCOME TO: Judith Finifter and Bobbi Seabolt.

Unlike previous years, we did not have a "give-away" item this year, but we discovered that handing out candy was a very successful strategy (the kids attracted to the candy bring mom and dad along). We made some aesthetic improvements to our booth, including brochure racks and making sure our banner was out front where it could be seen. Ron Bowers lent two of his historical flags, the Ft. McHenry flag and the First Naval Jack (once again flown from all Navy ships) as a backdrop on Saturday. And, of course, there were plenty of Jim Smith balloons.

Next year is an election year, and we will be planning for even more activity at our booth, with candidates and election literature. I believe we have a great location (on West Pennsylvania, right across from the Old Courthouse and right next to a crabcake stand), so look for us in that spot again next year!

Thanks to the following volunteers:

Kathleen White, Central Committee
Tracy Urban, Central Committee
Prescott Gaylord, Young Democrats
Kyle McNair, Young Democrats

Margie Brassil

Nominating Committee Set

This is an election year for the Club. This Fall, the Club will choose the Officers and Directors for the next two years. A committee, chaired by Ray Suarez, with Andrea Vernot, Meg Ferguson, Nancy Slaterbeck and Bob Derbyshire, will be meeting over the summer to consider candidates for all of the positions. If you are interested in serving the Club as an Officer or as one of the Directors-at-large, please contact one of the people on the Committee. Ray can be contacted at 410-828-6403 or rsuarez@mstanea.org.

Howard Dean Campaign Fundraiser

A House Party in Support of Governor Howard Dean for President will be held on Saturday, June 7, 2003, 4 to 6 pm, at the home of Bill Meyer in Towson. Suggested donation is $100 -$250. For more information, contact Bill at 410-821-6373 or billm@usastats.com.

Come Back to East Towson Day

The East Towson Community (where the Club holds its regular meetings) is sponsoring a "Come Back to East Towson Day" on June 7 from 11 am to 7 pm. This is a celebration of the community's remarkable history and of the present revitalization efforts. For more information, call 410-296-4615.

Change in Web Site Administrator

Our Club has been very fortunate that Siri Svaeren took the initiative over a year ago to set up our web site. It has been a great source of public relations, information sharing - and bringing in new members!

However, due to the growing pressures of work, family (and the hope for some free time!) Siri is stepping aside. We want to thank her very, very much for her hard work and creativity. We also want to welcome and thank Jim Metzler who has agreed to step in and take over the site. We are fortunate to have such talented people in our Club. Check the web site out at www.cbcdc.org.

Steve Lafferty

Quote:

"The only maxim of a free government ought to be to trust no man living with power to endanger the public liberty."
John Adams, Notes for a speech, (1770)

Expect Lasting Harm from Budget Cuts

May 23, 2003

We are very disturbed by Gov. Robert L. Ehrlich Jr.'s announcement that he intends to cut $450 million to $500 million from this year's budget. Just over one month ago, the General Assembly, working closely with the governor, passed a balanced budget. In fact, this year's budget has a $34 million surplus, in addition to a Rainy Day Fund balance of more than $500 million.

Part of the budget solution was a package of reasonable corporate tax provisions that brought fairness to our corporate tax structure. This was an effort to make out-of-state corporations, which now avoid paying Maryland taxes, pay their fair share, and to bring uniformity to our tax system. Corporations in Maryland now bear less than 5 percent of the state's tax burden.

Unfortunately, Gov. Ehrlich vetoed this modest package, blowing a $135 million hole in the budget. He is using this veto to justify deep cuts to this year's budget, inflicting unnecessary pain on Maryland families, while protecting corporations that don't pay their fair share. At the same time, the state's property tax rate will increase for the first time in decades, further burdening Maryland families.

The details of the governor's proposal have not yet been shared with the public. However, cuts to an already lean budget will surely impact the most vulnerable Marylanders. Recent reports have foreshadowed cuts to programs that benefit children and that protect access to health care for Marylanders.

The governor has specifically said that he intends to cut another $60 million from our University System of Maryland (USM). If he follows through with this threat, the USM will suffer a cut of almost 20 percent this year -- more than $175 million. The result: higher tuitions for middle-class families, layoffs for hundreds of workers, and permanent damage to our high quality institutions.

Several of us have been in the General Assembly since the creation of the USM in 1988. We have watched with pride as state investments have propelled every one of our institutions to national eminence. When the system was created, we looked with awe toward public institutions in Virginia, North Carolina, Michigan and California; now we meet or exceed the academic quality and reputation of those institutions.

Gov. Ehrlich's proposal will undo a great deal of the progress we have made. His cuts will set the state's commitment to the system back four years; USM's appropriation will be approximately equal to what it was in fiscal 2000, even though its institutions serve more than 11,000 more students now than it did then. That is the equivalent to adding a new institution roughly the size of Towson University without providing any new funds.

The problem doesn't end there. In Maryland, funding for community colleges and private institutions is directly tied to funding for the university system. In other words, cuts to the university system lead directly to cuts to our local community colleges and private institutions.

The bottom line is that hundreds of Marylanders will lose their jobs, jeopardizing the security of hard-working families. Tuition will go up again, placing a tax on middle-class families whose children want to attend a public school or the local community college. Our guiding principles of quality, access and affordability in higher education will be cast aside, unraveling years of work to gain national respect.

We understand the fiscal challenges the state faces, and the state Senate has been a responsible partner in the governor's efforts to bring stability to our budget situation. It disturbs us that he now intends to go around the General Assembly and unilaterally make budget cuts that will do lasting harm to our citizens.

There is another way. The governor should accept the balanced budget he proposed and helped to develop, and work with us to implement a long-term strategy when we convene in January 2004. We should not allow large corporations and out-of-state tax avoiders to be protected at the expense of homeowners, hard-working Marylanders, and tuition-paying families.

Thomas V. Mike Miller Jr. (D-Dist. 27) Chesapeake Beach, President of the Maryland Senate.

This column also was signed by these Senators:

• Ulysses Currie (D-Dist. 25), Forestville, Chairman, Budget and Taxation Committee.
• Patrick J. Hogan (D-Dist. 39), Montgomery Village, Vice Chairman, Budget and Taxation Committee.
• Paula C. Hollinger (D-Dist. 11), Pikesville, Chairwoman, Education, Health and Environmental Affairs Committee.
• Thomas M. Middleton (D-Dist. 28), Waldorf, Chairman, Finance Committee.
• Brian E. Frosh (D-Dist. 16), Bethesda, Chairman, Judicial Proceedings Committee.
• Nathaniel J. McFadden (D-Dist. 45), Baltimore, Majority Leader.

[Source: Maryland Democratic Party Newsletter]

Strengthening and Renewing the Federal Assault Weapons Ban

The 1994 Federal ban on the production of semi-automatic assault weapons and high-capacity ammunition magazines that hold more than 10 rounds will expire on September 13, 2004 unless Congress acts to renew the law. Representatives John Conyers, Jr. (D-MI) and Carolyn McCarthy (D-NY) have introduced the "Assault Weapons Ban and Law Enforcement Protection Act of 2003," H.R. 2038. This bill, if enacted, will make the ban on assault weapons and high-capacity magazines permanent, and will significantly strengthen current law. Currently the bill has 79 co-sponsors including two Republican members, but Majority Leader Tom DeLay has promised that the bill will never reach the floor before the ban expires in September 2004.

The Senate assault weapons bill sponsored by Senators Dianne Feinstein (D-CA) and Charles E. Schumer (D-NY) differs significantly from the House bill in that it is a straight reauthorization of the ban; it does nothing to stem the tide of post-ban assault weapons ban that continue to flood our streets. In fact, assault weapons manufacturers have been so successful in circumventing the ban that Bushmaster, the maker of the assault weapon used in the recent sniper shootings in the fall, will not oppose the Senate bill. Apparently, business is booming and sales of these post-ban assault weapons remain brisk. If the intent of the 1994 ban was to remove these dangerous weapons from our communities, the ban has failed.

The McCarthy Conyers House bill, however, co-sponsored by Maryland Representatives Elijah Cummings, Ben Cardin, and Chris Van Hollen, will be effective where both the previous ban and Senate reauthorization bill fail. The House bill will close the loopholes that have allowed the continued proliferation of these weapons that are most likely to be used in the commission of violent and drug-related crime or in the killing of police officers.

If we are to remove assault weapons from our communities once and for all, it will require the concerted effort and urging of concerned citizens such as you demanding this legislation be passed. A recent survey showed that a majority of Americans support a ban on assault weapons. The gun lobby, however, brings big money and muscle to this issue that intimidates our elected officials and we can expect no help from the White House. President Bush, who ran in support of the ban and announced his support of the less effective Senate bill, has promised to do nothing to bring the bills to a vote.

Many Democrats have shied away from the issue believing that it will not be a winning issue for them. But, by stepping back from this issue, Democrats miscalculate the widespread support for a ban on these weapons and they lose the opportunity for leadership and distinction on an important issue.

Vicki Schultz-Unger

The Plan to Phase Out Social Security is On Track Again

By Ron Bowers

The national debt has two major parts (1) Debt held by government accounts, (mainly trust funds) and (2) Debt held by the public (that is, outside of the government itself). The Unified Federal Budget structure, adopted in 1969, combined the General Fund, which had a deficit cash flow, and the Trust Funds, which had positive cash flow, into one "bottom line", thus partially, at least, masking the deficit.

The 1980 election brought President Ronald Reagan and his team of "fiscal conservatives" along with a Senate majority for the Republicans. The Social Security actuaries had calculated the long range demographics of the system with its "baby boomer" growth through 2020 or so and estimated that a negative cash flow in the social security system would begin again well before that.

A Commission recommended in 1983 that Congress step up the FICA tax rates and raise the maximum covered wages in order to insure that the social security trust funds would be able to meet the "baby boomer" demands. The system would have excess cash coming in, accelerating into the hundreds of billions, which would be put into the reserves. This could then be drawn down when the negative cash flow occurred. The plan was enacted. But, the cash surplus was still placed into Federal bonds, in the "Debt held by government accounts", and this presents a long term problem.

The Reagan administration also adopted the "supply side" economic theory, which asserts that decreased taxes at the investment level will spur economic growth and the effects will "trickle down" into jobs and added buying power at the bottom of the economic pyramid, thus further stimulating the economy.

Marginal income taxes rates, especially at the top, were reduced in 1981 while FICA taxes were raised in steps beginning 1984. Meanwhile, the Defense budget was dramatically increased over the next 10 years. This combination caused annual budget deficits to explode and the national debt went from about $600 billion when President Carter left office to over $4 trillion by 1992. There were three tax increases (or restorations) but none large enough to fully restore the cuts of 1981-3. Since 1984, the growing trust fund surpluses has masked an increasing share of the huge annual budget deficits.

In 1993 Congress enacted income tax increases on the wealthiest Americans as proposed by the Clinton Administration. The economy of the country had unprecedented growth and by 2000, the General Fund account also had positive cash flow. The budgets were netting surpluses.

As deficits were eliminated under the Clinton plan, there emerged reciprocation between growth in the amount of the national debt held by government accounts and decrease in the amount held by the public. The long term result, if this continued, would be conditions under which the trust fund reserves could be exchanged for new borrowing from outside of government, reversing the reciprocation without harming the general economy. Social Security payments would be assured.

The FICA cash flow will go negative in 10 years, depending upon employment and wage levels. While having the appearance of actuarial soundness until about 2030, in fact, the latent long term problem will be exposed negative cash flow as the cash income from FICA no longer exceeds cash outgo for benefits. At that time, bonds in the Trust Fund reserves will have to be converted back to cash if benefit rates are to be maintained. The Clinton plan would have allowed for exchanging trust fund bonds into new debt held by the public since that amount would have been radically reduced had the economy continued in the growth pattern.

However, the Republican capture of the Presidency in 2000 as well as holding their majority in Congress, brought in a new rush to return to the "supply side" theory of lowering taxes at the investment level in the hope that favorable results will "trickle down". The hoped for effects of the 2001 tax reduction at the investment level was lost in the stock market losses of as much as 20 percent of value; and the whole economy headed downwards.

With new increases in defense expenditures and a much larger negative cash flow returning to the General Fund account from loss of revenue, the flexibility to convert debt held in the social security reserves into debt held by the public is disappearing.

Many people may believe that the Trust Fund bonds are equal to the savings bonds they may be holding. The idea that the Congress must honor the bonds held by trust funds so as to provide cash for benefits when cash flows turns negative is unfounded. Article I, section 8, of the Constitution authorizing Congress "to borrow money on the credit of the United States" and "to pay the debts" do not apply to debt held within the government itself because these holdings are debts owed by one account of government against another account of government - there is no external debt in these holdings. There is no Constitutional requirement to redeem the Trust Fund reserves. The obligation is merely political. There would be no right to contest in any Court a default on the social security reserves.

A continuation of a Republican President and Republican majority in Congress and the emphasis on lowering income taxes at the investment level, may very likely succeed in preventing conversion of the social security reserves into cash to meet the "baby boomer" benefits demands. Conservatives might then call for raises in FICA taxes and/or lowering benefit rates rather than cashing in the reserves. It could result in phasing out the social security programs. I am convinced that this last result has been the Republican plan all along.

We Democrats better put a stop to this plan in 2004!

Quote:

"They never open their mouths without subtracting from the sum of human knowledge."
Rep. Thomas Reed commenting about two of his colleagues (1914)

Membership

Regular membership in the Club is open to any person who is registered as a Democratic voter in Maryland. The current annual dues are only $20.00 per person You may be receiving this newsletter even though not a member. This is one of our ways to reach out to concerned citizens and Democrats. We encourage you to be a part the Club in our effort to build a stronger base in the central part of the County.

The label shows your status, including the last year for which you are paid up if a member. If your dues are current, we thank you. If not, or if you want to join our club, please send the coupon and your $20.00 dues to: Herb Lodder, 120 W. Seminary Ave., Lutherville, MD 21093.

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Upcoming Club Events

Regular Meetings begin at 7:30 PM and are open to all

Meetings are held at the East Towson Community Center, Lennox and Jefferson (left onto Jefferson from Towsontown Blvd East of York Rd.)

What Do You Think?

Members of the CBCDC are invited to send their own articles and letters of about 300 words or less. Send yours to the editor as the text of an e-mail message (not as attachment!).

We reserve the right to edit for grammar and space and to exclude anything we judge to be inappropriate for this publication. The opinions expressed are always those of the writer and not necessarily those of the Club.

	CBCDC News
	Editor
	404 Kilree Rd. #301
	Timonium, MD 21093

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