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The 2011 Maryland General Assembly Session was dominated by issues surrounding the State’s fiscal year 2012 budget. Starting the Session with a budget deficit of almost $2 billion, the legislature decided that in addition to closing this year’s budget deficit, it would set a also set a goal to reduce the long-term structural deficit by one-third per year during this term in order to bring revenue and expenditures in line with each other. In the end, they closed this year’s budget gap and the long-term structural budget deficit by 42% by making significant changes to state employees’ health and retirement benefits, increasing numerous fees, increasing the sales tax on alcoholic beverages, and reducing funding in health care and human service programs.
Alcohol Tax Increase Success
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Early in Session, the Lorraine Sheehan Act of 2011 was introduced (HB 121/SB 168). The bill, championed by a broad and large coalition of organizations, would have increased the alcohol excise taxes dedicated funds for addiction treatment, mental health, Medicaid and developmental disability services. Despite a national anti-tax fervor and a formidable opponent in the alcohol industry, the General Assembly passed an increase in the sales tax on alcoholic beverages, from the current 6% to 9% beginning in July 2011 (SB 994 and HB 1213). In the first year, funds will be directed to backfilling cuts to K-12 education, school construction, and the Developmental Disabilities Waiting List.
Many of Public Policy Partners’ clients worked in support of this effort and we raise a glass to our collective success!
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We expect that there will be a Special Session of the Maryland General Assembly this fall. The purpose of the session will be to approve a redistricting plan. During any special session, the legislature can address any issue its leadership decides. There are rumors about discussion of revenue enhancement measures. Public Policy Partners will keep our clients posted about any developments
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On April 12, the Governor signed HB 166/SB 182 – Maryland Health Benefits Exchange. The legislation is the cornerstone of Maryland’s efforts to implement the Affordable Care Act’s requirements to establish a Health Insurance Exchange. The governance structure of the Exchange includes a 9-member board appointed by the Governor and a robust advisory committee system. In the next year, the Exchange must make recommendations to the Governor and General Assembly on major policy decisions about how the Exchange will structure its portion of the insurance market. Stay tuned for news about appointments to the Board and the advisory committee, as the Governor is expected to act before the beginning of the fiscal year.
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The Maryland Department of Health and Mental Hygiene has established a Task Force on Regulatory Efficiency to conduct a cross-agency review of DHMH facility regulations. The purpose is to recommend changes to existing regulations that will make the DHMH’s oversight of facilities and programs more effective and efficient. The Task Force will solicit public input for ideas through two comment periods and will later propose draft recommendations for public comment before finalizing them for presentation to the Secretary. The review will cover regulations of all facilities licensed by DHMH.
For more information and to access the electronic comment form, visit http://www.dhmh.state.md.us/regulatoryefficiency/index.html
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Governor O’Malley will sign hundreds of other successful pieces of legislation in public ceremonies on April 25th, May 10th, and May 19th. The bill signings start at 10:00 and take place in the State House. Anyone can attend and have your picture taken with the Governor. The list of bills to be signed only becomes public in the evening before the bill singing dates on the Governor’s website: http://www.gov.state.md.us/legislationchecklist.asp. Public Policy Partners will alert our clients as soon as we have information.
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Public Policy Partners is a proud recipient of the Daily Record’s Innovator of the Year Award for its Advocacy Leadership Training Program. For more information, contact info@policypartners.net.
Robyn Elliott, a partner with Public Policy Partners, was elected as Vice President of the Annapolis Business Association.
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