Slots-Tax Plan Offered to
Cool Legislative Tempers
By Stephanie Tracy
Capital News Service
Tuesday, April 1, 2004 ANNAPOLIS - A long-serving member of the
House Ways and Means Committee Thursday proposed a compromise to stop the
bickering among the state's top lawmakers over whether to use taxes or slot
machine revenue to plug the state's budget gap.
Delegate Clarence Davis, D-Baltimore City, laid out his plan one day
after House Speaker Michael Busch, D-Anne Arundel, and Republican Gov.
Robert Ehrlich brought the General Assembly to gridlock over taxes and
slots.
Busch pushed a $1 billion tax package through the House last week as an
alternative to a slots proposal, which the governor favors to solve the
long-term deficit. Busch's tax plan has received a chilly reception in the
more conservative Senate, which also backed slots.
Davis suggested a 1 percent sales tax increase combined with a slot
machine bill to raise the $800 million needed to close Maryland's budget
shortfall. He said he was optimistic a compromise could be reached, but
acknowledged both sides have hardened their positions.
"The governor has some good ideas, but he can't do it without revenues,"
Davis said. "I believe there's a way out, but it's time to stop bickering."
Busch remained non-committal about a compromise taxes and slots bill
after closed door meetings with Budget Secretary James "Chip" DiPaula
Thursday.
"We're looking for a solution to next year's budget before slots," Busch
said. "The vast majority of the leadership in the House doesn't want slots."
Busch and House leaders said Wednesday the governor's slots proposal
would remain stalled until Ehrlich made it clear what other revenue sources
he would accept in filling the budget hole.
Ehrlich responded by telling House Democrats to work out their
differences with Senate Democrats before coming to him.
The governor has unwaveringly opposed any increases in sales or income
taxes to pay for landmark education reforms and other urgent funding needs.
However, Ehrlich has said other tax increases may be acceptable, including
closing some loopholes that give businesses a break.
While the fiscal year 2005 budget is balanced without taxes or slots, the
2006 budget would be marred by a $1 billion hole in the absence of
additional revenues.
Ehrlich threatened earlier this week to fill that gap with deep cuts to
local governments and health care if slots fail for the second consecutive
year.
Senate President Thomas V. Mike Miller Jr., D-Calvert, said he would
support Davis' compromise, but doubted the proposal would receive enough
votes in the Senate to prevent the governor from vetoing it.
"Reasonable people should have found a compromise by now," Miller said.
"The speaker and myself need to bend a bit, but the governor needs to bend,
too."
Miller predicted a "train wreck come April 11 or 12" if neither side
backs down.
The annual 90-day session is scheduled to adjourn April 12, leaving
lawmakers little time to forge a compromise.
Davis said his Ways and Means subcommittee would continue working on the
Senate's revised version of the slots bill, even as Ways and Means
Chairwoman Sheila Hixson, D-Montgomery, said she would keep the bill in
committee until the governor agreed to discuss taxes.
Hixson has repeatedly said a slots bill will not make it to a floor vote
in the House without additional revenues included.
Copyright © 2004
University of Maryland
Philip Merrill College of
Journalism
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