THIS PROGRAM IS MADE BY MPT TO ENRICH THE DIVERSE COMMUNITIES THROUGHOUT OUR STATE AND IS MADE POSSIBLE BY THE GENEROUS SUPPORT OF OUR MEMBERS.

THANK YOU.

CONNECTING MARYLANDERS TO THEIR GOVERNMENT, THIS IS "STATE CIRCLE".

>> Jeff: HELLO FROM THE STATE HOUSE WHERE THE 2025 SESSION OF THE MARYLAND GENERAL ASSEMBLY ENDED AT MIDNIGHT ON MONDAY.

>> MOVE THAT THE SENATE OF MARYLAND STAND ADJOURNED SINE DIE.

>> WITHOUT OBJECTION SO ORDERED.

>> Jeff: AMONG THE TOP ISSUES LEGISLATORS ALLOWED JUDGES TO RELEASE CERTAIN INMATES AFTER 20 YEARS.

LAWMAKERS ATTEMPTED TO CAP THE STATE'S LIABILITY FOR ABUSE OF JUVENILES IN ITS CUSTODY.

AND A MEASURE TO STUDY SLAVERY REPARATIONS WAS APPROVED.

AND SPENDING CUTS AND TAX INCREASES.

THE NCOME TAX WILL GO UP FOR THE TOP 6% WITH OTHERS RECEIVING A CUT.

LOCAL GOVERNMENTS WILL BE ALLOWED TO INCREASE THEIR INCOME TAX RATES.

DRIVER ALSO PAY HIGHER REGISTRATION FEES AND A IS YOUR AS TAX -- IS YOUR TASS ON TIRES.

THE SALES TAX WILL BE AMENDED TO COVER SERVICES, VENDING MINISTER OR PLACING SPORT BETS WILL FACE HIGHER TAXES.

THE GOVERNOR'S PROPOSAL TO EXPAND THE CORPORATE TAX WAS OBJECTED.

AND HE WON PARTIAL CHANGES ON THE EDUCATION BLUEPRINT.

>> WE CAME IN AMBITIOUS AND WE HAVE TO MAKE HISTORIC INVESTMENTS WITHIN PUBLIC EDUCATION AND PUBLIC SAFETY THAT ALSO MEANS MAKING SURE THAT YOU ARE GETTING THE BLUEPRINT DONE WHICH MEANS MAKING ADJUSTMENTS TO THE BLUEPRINT AS WELL.

WE HAD TO FOCUS ON PROVIDING A MIDDLE CLASS TAX CUT AND THAT MEANT THINGS LIKE YES, WE WERE GOING TO HAVE TAX REFORM.

BUT THAT MEANT IT CANNOT BE AND OT BACKS OF MIDDLE CLASS FAMILIES AND MIDDLE CLASS FAMILIES NEED TAX RELIEF.

>> Jeff: WE WILL HEAR FROM LEGISLATIVE LEADERS ABOUT THE SESSION.

SUE COPPIN SAT DOWN WITH SENATE PRESIDENT FERGUSON.

>> PRESIDENT FERGUSON, THANK YOU AGAIN FOR TAKING A FEW MINUTES OF YOUR TIME TO TRY AND LOOK BACK AT WHAT JUST TRANSPIRED OVER THE LAST 90 DAYS.

YOU HAD SAID THIS HAS BEEN THE HARDEST CHALLENGING, UNCERTAIN SESSION AND IT ONLY SEEMED TO GET WORSE.

>> YES.

I SAY THIS IS NOW MY 15TH YEAR IN THE LEGISLATURE AND THIS WAS MY SIXTH SESSION LEADING AND THIS INCLUDES THROUGH COVID AS THE PRESIDING OFFICER IN THE SENATE AND WITHOUT A DOUBT THIS WAS THE MOST CHALLENGING YEAR WE'VE HAD.

IT STARTED WITH THE STRUCTURAL DEFICIT THAT HAD THE ISSUES WE WERE FACING WITH INCREASED COSTS FOR MEDICAID, THE SLOWDOWN OF COVID-19 DOLLARS THE BUDGET REALITIES WE WERE FACING REALLY WERE AN OVERARCHING CLOUD AND WITH THE NEW FEDERAL ADMINISTRATION IN THE TRUMP ADMINISTRATION EVERYDAY SEEMED LIKE A NEW THING WAS HAPPENING THAT WOULD THROW EVERYTHING INTO CHAOS.

SO WHEREAS IN COVID-19 ALL OF US WERE ROWING IN THE SAME DIRECTION TO GET THROUGH THINGS AND PROTECT PEOPLE.

IT JUST FELT LIKE AS WE WERE GOING THROUGH THIS SESSION BECAUSE OF WHAT WAS HAPPENING AT THE FEDERAL LEVEL THERE WASN'T THAT UNITY OF SPIRIT WITH THE FEDERAL GOVERNMENT TO KNOW THERE WOULD BE ANOTHER SUPPORT STRUCTURE WE KNEW IT WAS GOING TO BE MARYLAND OR NOT.

IT MADE A CHALLENGING YEAR.

>> EVERYTHING KIND OF EMANATED FROM THE BUDGET.

$67 BILLION BUDGET AS YOU SAID, YOU HAD TO DEAL WITH A $3 BILLION SHORTFALL.

WHERE ARE WE AT THIS POINT?

>> SO WE TOOK WHAT WAS A $3 BILLION BUDGET DEFICIT AND TURNED IT INTO A SURPLUS.

IT REQUIRED VERY DIFFICULT CHOICES ABOUT CUTTING REALLY IMPORTANT PROGRAMS AND BENDING COST CURVES AND THAT WAS OUR FIRST APPROACH WE HAD TO REIN IN SPENDING AND TIGHT ESPECIALLY OUR BELTS AND LOOK AT PLACES WHERE WE COULD ADJUST.

CUT VACANT POSITIONS REDUCE THE NUMBER OF STATE EMPLOYEES AND THE FINAL BUDGET IT ENDS UP WHERE IT IS ABOUT HALF A BILLION TO A BILLION DOLLARS LESS IN REAL DOLLARS THAN THE GENERAL FUND WAS LAST YEAR.

WE REALLY TOOK A CUT FIRST APPROACH TO REALLY BE MORE EFFICIENT AND FIND PLACES TO TURN DOWN SPENDING.

BUT WE DID REVENUES.

AND NO ONE WANTS TO DO REVENUES.

WE DID NOT WANT TO DO ANYTHING TO FEES AND TAXES WE WANT TO KEEP MONEY IN THE HANDS OF MARYLANDERS.

BUT WE HAVE TO PROVIDE FOR THE MOST VULNERABLE IN MARYLAND AND WE HAVE TO HAVE A GREAT PUBLIC SCHOOL SYSTEM, AND INVEST IN OUR ENVIRONMENT AND ECONOMY.

IT WAS A BALANCED APPROACH.

IT WAS TOUGH CHOICES NO ONE WANTS TO GET A CUT OR RAISE TAXES.

AND SO WE HAD TO REALLY MAKE TOUGH CHOICES.

AND I FEEL GOOD ABOUT WHERE WE LANDED.

I THINK WE HAD ABALANCED APPROACH THAT ASKED THOSE THAT HAVE MADE THE MOST TO DO A LITTLE MORE.

WE'VE MODERNIZED OUR SALES TAX CODE AND MAKE CHANGESES TO FEES THAT HAD NOT BEEN TOUCHED IN A LONGTIME AND THE THING WITH FEES THEY ARE PAID FOR BY THE PEOPLE THAT USE THOSE SERVICES.

SO THEY ARE DIRECTLY RELATED TO THOSE COSTS THAT ARE CREATED.

IT'S THE MOST EFFICIENT WAY TO GET TO BALANCE THE BUDGET.

>> LET'S LOOK AT THE TAX AND ADDITIONAL FEES.

THE TECH TAX.

>> THE MODERN ECONOMY HAS CHANGED WHEN WE LOOK WHERE WE WERE WITH THE SALES TAX IN HISTORY, IT USED TO BE THAT ABOUT 50% OF ALL BOUGHT AND SOLD THINGS WERE GOOD AND 50% WERE SERVICES THAT SHIFTED OVER THE LAST 30 YEARS.

60% OF THE THINGS WE CONSUME ARE SERVICES AND NOT GOODS.

WHEN WE LOOK AT THE BIGGEST EXAMPLE OF THAT IS IT THROUGH TECHNOLOGY.

IT IS A PART OF EVERYTHING WE DO.

AND IT HAS BECOME A GOOD IN AND EVERY ITSELF.

THE PROPOSAL WE HAVE EXPANDS THE BASE OF THE SALES TAX TO INCLUDE TECHNOLOGY, IT AND DATA SERVICES.

BUT IT DOES IT AT THE HALF THE RATE OF GOODS.

LIKE OTHER STATES THAT DO THIS, TEXAS, WASHINGTON D.C., OREGON WE ARE EXPANDING THE BASE OF OUR SALES TAX BUT WE ARE THE ONLY STATE THAT HAS HALF THE RATE WHAT OTHER STATES USE.

>> I REMEMBER THE DISCUSSION ON THE FLOOR OF THE SENATE SOME OF THE FOLKS WHO RAISED CONCERNS SAID THE STATES AROUND US, HAVE A DIFFERENT APPROACH.

AND THAT THE FEAR OF BUSINESSES MOVING OUT IN PART BECAUSE OF THIS TAX.

THEY THOUGHT WAS VERY REAL.

>> THIS IS SOMETHING WE REALLY ARE GOING TO MONITOR CLOSELY.

I THINK THERE ARE THE POTENTIAL OF DISTORTIONS FOR ANY TYPE OF REVENUE SO WE HAVE TO MONITOR IT.

I WOULD SAY THAT AT THE END OF THE DAY WE PROVIDE THE REASON WE HAVE A TAX STRUCTURE IS BECAUSE WE PROVIDE GREAT ASSETS.

MARYLAND IS A GREAT STATE WITH GREAT SCHOOLS WITH A GREAT ENVIRONMENT, THE CHESAPEAKE BAY AND WE INVEST IN OUR INFRASTRUCTURE, OUR ROADS, BUSINESSES AND TRANSIT SYSTEMS.

THE STATES HAVE ROADS WITH POTHOLES AND BRIDGES THAT ARE IN HORRIBLE CONDITIONS.

THEY DON'T HAVE GREAT PUBLIC SCHOOLS.

IN ORDER TO MAINTAIN THE ASSETS WE HAVE IN MARYLAND WE HAVE TO PAY FOR IT.

SO IT'S A BALANCE.

AND WE REALLY TRIED TO BE TAILORED AND FOCUSED.

THERE WERE MUCH BROADER PROPOSALS ON THE TABLE AND WE NARROWED THEM DOWN AND CUT MORE FROM STATE GOVERNMENT TO HONE IN ON A TAILORED APPROACH.

>> IS THAT THE FEE THAT IS GOING TO ATTACH TO THE SALE OF TIRES TRANSPORTATION?

>> EXACTLY.

THIS TIRE FEE IS SHORT OF A -- SORT OF A PROXY HOW DO WE FUND OUR TRANSPORTATION SYSTEM.

THE GAS TAX IS 20% HOW WE FUND ROADS, BRIDGES, TRANSPORT, AIRPORT, BUT THE GAS TAX IS DECLINING BECAUSE OF ELECTRIC CARS.

THE THING WITH TIRES IF YOU USE YOUR CAR MORE YOU NEED MORE TIRES.

IT IS A PROXY FOR SAYING IF YOU USE THAT ENTITY THAT ASSET, THE ROADS AND THE BRIDGES IT CAUSES MORE DAMAGE AND IT COSTS MORE.

SO THIS IS A PROXY FOR A USE-BASED FEE TO HELP MAINTAIN OUR INFRASTRUCTURE.

>> LET ME SPIN-OFF OF THAT.

YOU ALSO TALKED ABOUT HOW YOU'RE CONCERNED AND THE LEGISLATIVE LEADERS WERE CONCERNED WITH WHETHER CERTAIN THINGS AT THE STATE MIGHT DO THAT MIGHT DETER FEDERAL FUNDS FROM COMING IN.

CAN YOU TALK ABOUT THAT A LITTLE BIT?

>> THIS WAS OVERHANGING US THE ENTIRE TIME AND TWO WEEKS AGO WITH THE DEPARTMENT OF EDUCATION WHERE OUR STATE DEPARTMENT CAME OUT OVER A WEEKEND AND SAID THAT $400 MILLION WAS NO LONGER GOING TO BE REIMBURSED FROM THE FEDERAL GOVERNMENT WHICH 350 MILLION HAD BEEN SPENT AND THAT HAD TO BE FOUND ELSEWHERE.

NEVER BEFORE HAS THIS HAPPENED.

THIS IS THAT THE WAY THAT THE STATE AND THE FEDERAL GOVERNMENT TYPICALLY OPERATE AND WHEN YOU LOOK AT CONDITIONS BEING PUT ON DISCRETIONARY FUNDS TRANSPORTATION, EDUCATION, THE TRUMP ADMINISTRATION IS DOING THINGS WE HAVE NEVER, EVER SEEN.

THE REASON WE HAVE THE LAWSUITS IS BECAUSE IT'S UNLAWFUL WHAT IS HAPPENING.

WE HAVE TO OPERATE WITHIN THAT REALITY.

IF YOU LOOK AT $27 BILLION OF THE BUDGET IS GENERAL FUNDS THAT COME FROM MARYLANDERS.

ANOTHER $20 BILLION IS LARGELY COMING FROM THE FEDERAL GOVERNMENT.

AND SO THINGS LIKE MEDICAID AND SUPPORT FOR OUR SCHOOLS AND PROTECTING OUR ENVIRONMENT, WE RELY ON THE FEDERAL GOVERNMENT ENORMOUSLY.

WE'VE HAD TO NAVIGATE AND MAKE HARD CHOICES HOW TO NOT PUT MARYLAND IN A MORE PRECARIOUS SCENARIO THAN WE ARE.

>> ARE THERE BILLS ON THE GOVERNOR'S DESK THAT MIGHT RAISE RED FLAGS WITH THAT?

>> I DON'T THINK SO.

WE WERE THOUGHTFUL IN OUR APPROACH.

THERE WERE FOLKS WHO DIDN'T A-- WANTED US TO GO FURTHER THAT IS THE CHALLENGE OF LEADERSHIP YOU HAVE TO MAKE TOUGH CALLS IN THE BEST INTEREST OF THE WHOLE.

AND WE WANT TO PROTECT THE MOST VULNERABLE AND WE HAVE TO MAKE SURE THAT WE CAN PROVIDE FOR ALL PEOPLE THE 6.5 MILLION MARYLANDERS THAT RELY ON US.

IT IS ABOUT COMPROMISE IN FINDING A BALANCED APPROACH AND THAT IS SOMETHING IN THE GENERAL ASSEMBLY WE HONED IN ON THIS YEAR.

WE'LL CONTINUE TO MONITOR IT.

WE LAUNCHED A JOINT COMMITTEE WITH THE HOUSE ON FEDERAL THE JOINT COMMITTEE ON FEDERAL ACTION OUR SIGHT.

BECAUSE WE KNOW MARYLAND HAS AN OUTSIZED PRESENCE WHEN IT COMES TO THE FEDERAL GOVERNMENT.

THE NUMBER OF FEDERAL WORKERS, THE IMPACT OF FEDERAL DOLLARS ON OUR RESEARCH INSTITUTIONS FROM THE UNIVERSITY OF MARYLAND TO HOPKINS.

WE'VE SEEN THE DISSEMINATION THAT HAPPENED AT NIH AND CENTER FOR MEDICAID AND MEDICARE.

WE HAVE TO MONITOR THIS AND WE CAN'T WAIT UNTIL NEXT JANUARY TO FIGURE OUT WHAT TO DO.

THIS JOINT COMMITTEE WILL BE OPERATING THROUGH THE INTERIM TO SEE WHAT HAPPENS IN REACTION TO THE LEGISLATION WE'VE PASSED AND WHAT THE SLASH AND BURN APPROACH TO GOVERNMENT HOW WILL THAT IMPACT MARYLAND ARE THERE THINGS WE CAN DO TO PROTECT MARYLANDERS.

>> AND WHAT IS THE LIKELIHOOD YOU WILL BE BACK HERE?

>> WE'LL SEE.

I DON'T WANT TO PREORDAIN ANYTHING.

WE HAVE TO WATCH WHAT HAPPENS TO THE TAX CUT BILL.

THIS IS AT LEAST AS DRAFTED, THE TAX CUTS FOR BILLIONAIRES AND THE WEALTHIEST OF SOCIETY PAID FOR ON THE BACKS OF MEDICAID AND SOME OF THE MOST VULNERABLE IF THAT MOVES FORWARD AND MARYLAND HAS A BILLION DOLLAR CUT TO OUR MEDICAID PROGRAM, I TOPTD'S SEE A WORLD WHERE WE DON'T COME BACK.

I'M HOPEFUL WE DON'T HAVE TO.

>> Jeff: THANKS TO SUE AND SENATOR FERGUSON.

NOW CHARLES ROBINSON SAT DOWN WITH THE HOUSE OF DELEGATES MAJORITY LEADER, DAVID MOON.

>> IT WAS A TERRIBLE SESSION.

I'VE NOT HAD ONE IN THE 11 YEARS I'VE BEEN IN ANNAPOLIS THAT IS QUITE AS DIFFICULT AS THIS ONE.

WE STARTED SESSION WITH $3 BILLION IN DEFICIT THAT WE HAD TO DEAL WITH.

AND WITHIN WEEKS WE WERE WONDERING WHAT THE FEDERAL GOVERNMENT WAS DOING TO OUR ECONOMY AND BY ALL ESTIMATES IT WAS HUNDREDS OF MILLIONS OF ADDITIONAL DOLLARS IN DEFICIT ADDED TO OUR EXISTING PROBLEM THROUGH NO FAULT OF OUR OWN AT VOLUNTARY ACTIONS BY THE FEDERAL GOVERNMENT.

THEY APPEAR TO TRIGGER A VOLUNTARY RECESSION AND IT'S HITTING MARYLAND VERY HARD.

SO WHAT STARTED AS $3 BILLION GREW TO $3.5 BILLION.

AND THANKFULLY WITH THE DUST SETTLED ON THE BUDGET WE'VE CLOSED THE GAP AND LEFT A LITTLE BIT OF A CASH CUSHION TO DEAL WITH THE ONGOING FEDERAL ASSAULTS AND REALLY DID BALANCED IT IN SUCH A WAY TO MAINTAIN HEALTHCARE INVESTMENTS AND THE LIKE.

>> AS A MAJORITY LEADER YOU OFTEN HEAR FROM THE VARIOUS PARTICIPANTS IN THIS PROCESS.

I KNOW THE GOVERNOR TOOK SOME THINGS OFF THE TABLE.

TALK A LITTLE BIT ABOUT WHAT HE TOOK OFF AND WHAT YOU HAD TO PUT BACK IN.

>> SO THE GOVERNOR STARTED THE SESSION DETERMINED TO HANDLE THE BUDGET DEFICIT.

AND BY AND LARGE HE WAS SUCCESSFUL.

SO I GIVE HIM CREDIT FOR REALLY DIVING INTO THE DISCUSSION.

IT WAS $2 BILLION OF CUTS UP FRONT.

THAT WAS DIFFICULT.

BUT HE REALLY WENT TO GROWN-UP GOVERNANCE HERE AND MADE THE DIFFICULT DECISIONS AND EXACTED $2 BILLION IN CUTS FROM THE STATE BUDGET.

AND, AGAIN, THERE WILL BE PAIN FELT FROM SOME OF THOSE CUTS.

BUT WE FELT IT WAS NECESSARY TO GET OUR BUDGET UNDER CONTROL.

AND ON THE OTHER END OF THAT WE'VE GOT REVENUES THAT CAME OUT OF IT.

THE GOVERNOR HAD A SPECIFIC PHILOSOPHY HE OUTLINED AT THE START OF THESE CONVERSATIONS ABOUT NOT WANTING TO INCREASE A SALES TAX OR BROAD CONSUMER FACING TAXES.

BY AND LARGE WE TRIED TO STAY WITHIN THOSE OUTLINES EVEN THOUGH THE FINAL DEAL IS DIFFERENT THAN WHEN IT CAME IN.

>> A LOT OF PEOPLE KNOW ABOUT THE BLUEPRINT BECAUSE IT'S BEEN IN PLACE FOR A NUMBER OF YEARS.

HOW DID IT WASH ITSELF OUT AND THAT IS THE ONLY WAY TO DESCRIBE IT, BY THE TIME YOU GOT TO SINE DIE.

>> THE BLUEPRINT WHEN WE TALK ABOUT IT, IT IS THE CURRENT PUBLIC SCHOOL FUNDING FORMULA IN MARYLAND.

AND IT ENCOMPASSES ALL SORTS OF ASPIRATIONS LIKE WRAP AROUND SERVICES, PROFESSIONALIZATION OF TEACHING, ADEQUATE PAY TO BE ABLE TO ATTRACT TEACHERS AND WE ARE STILL VERY, VERY SHORT ON MANY OF THOSE STAFFING GOALS.

SO THAT'S THE BLUEPRINT.

BUT IT WAS PASSED SEVERAL YEARS AGO.

THESE REAL ASPIRATIONS TO MAKE SURE MARYLAND MAINTAINS A STRONG PUBLIC SCHOOL SYSTEM.

BUT THE FUNDING HAS BEEN SOMETHING WE'VE BEEN PUTTING TOGETHER IN FITS AND STARTS.

AND SO IT IS NOW FUNDED THROUGH THE END OF OUR FOUR-YEAR TERM.

BUT WE DID MAKE SOME ADJUSTMENTS, AGAIN, THE GOVERNOR CAME INTO SESSION WANTING TO REIN IN THE BUDGET DEFICIT AND ON HIS LIST WERE BLUEPRINT ALTERATIONS.

SO WE HAVE PAUSED SOME OF THE ASPIRATIONS FOR A COUPLE YEARS.

BUT WE ULTIMATELY SPARED THE STUDENTS FROM FACING ANY DIRECT FUNDING CUTS.

>> ONE OF THE THINGS THAT HAPPENED THIS YEAR, AND I THINK THIS IS A RESULT OF POLICIES PRIOR AND DURING THIS ADMINISTRATION WAS THE NEED TO CHALLENGE THE STATE TO CREATE MORE ENERGY GENERATION.

THIS IS NOT SOMETHING THAT COMES LIGHTLY.

I KNOW THAT THE GOVERNOR ACTUALLY WANTED NUCLEAR ENERGY TO BE A PART OF THE SOLUTION BUT IT'S NOT.

TALK A LITTLE BIT ABOUT WHERE MARYLAND IS IN ENERGY CREATION IF YOU WILL.

>> REINING IN HIGH ENERGY COSTS WAS AT THE TOP OF EVERY LAWMAKER'S LIST WHEN WE STARTED THE SESSION AND AS WE ENDED THE SESSION WE HAVE TAKEN A NUMBER OF STEPS TO ADDRESS THAT IN THE SHORT-TERM, THE MEDIUM TERM AND THE LONG-TERM.

IN THE SHORT-TERM THE STATE HAS ISSUED $200 MILLION IN REBATES FOR RATEPAYERS.

SO PEOPLE ON THEIR UTILITY BILLS OVER THE NEXT CYCLES WILL START TO SO A DISCOUNT THAT IS A RESULT OF THAT PROGRAM.

IN THE LONGER TERM WE WERE LOOKING AT ENERGY GENERATION.

BUT THE TRUTH IS NO MATTER WHERE YOU ARE IN THE STATE, PEOPLE THOSE COMMUNITIES OBJECT TO ENERGY GENERATION OF ANY KIND BEING NEAR THEM WEATHER -- WHETHER IT BE SOLAR, WIND, GAS, INCINERATION, PEOPLE BY AND LARGE TRY TO OPPOSE IT COMING NEAR THEM.

INCLUDING THE TRANSMISSION LINES.

SO WE HAD MULTIPLE BILLS THIS SESSION ON ALL ASPECTS OF TRYING TO SPEED UP OR DELAY OR INCLUDE MORE COMMUNITY INPUT BUT ULTIMATELY WE TRIED TO FASHION A COMPROMISE THAT MAINTAINS COMMUNITY INPUT BUT DOES CREATE A MORE CLEAR, CONSISTENT AND EFFICIENT PROCESS TO GET INSTATE ENERGY GENERATION MOVING.

SO WE DID WORK ON THE BROAD CONTOURS LIKE THAT.

BUT ONCE YOU GET INTO SPECIFIC TYPES, GAS, NUCLEAR, AND THINGS OF THAT NATURE, VARIOUS PEOPLE HAD VERY STRONG FEELINGS ABOUT IT.

SO WE GOT A LITTLE BIT MORE AGNOSTIC ABOUT THE EXACT TYPE OF ENERGY THAT WE'RE GOING TO GO FORWARD WITH IN THE STATE.

EXCEPT TO SAY WHATEVER WE GO FORWARD WITH WE ARE ALSO GOING TO BE MULTIPLE CLEAN ENERGY PROJECTS ISSUED TO GO ALONG WITH IT.

THE FUTURE OF THE STATE IS ONE WHERE I SEE A LOT MORE INSTATE ENERGY GENERATION.

>> ONE OF THE THINGS THAT MARYLAND HAS THAT IS UNIQUE TO OUR COUNTRY WE HAVE A NUMBER OF FEDERAL FACILITIES, SPECIFICALLY FEDERAL EMPLOYEES.

I KNOW YOU'VE BEEN WATCHING THE LAYOFFS AND THE FURLOUGHS AND I KNOW THAT CAUSES YOU CONCERN.

IN FACT, AS I UNDERSTAND, THE SENATE AND THE HOUSE HAS CREATED A SEPARATE COMMITTEE JUST TO DEAL WITH WHAT'S HAPPENING AT THE FEDERAL LEVEL.

GIVE ME YOUR SENSE OF WHERE WE ARE RIGHT NOW AND WHERE WE COULD BE IF THINGS GO SOUTH?

>> THINGS HAVE GONE SOUTH.

I HATE TO SAY IT.

THE TARIFFS WE'RE SEEING RIGHT NOW ARE CREATING THE LARGEST CONSUMER TAX HIKE.

I THINK IN GENERATIONS.

UNPRECEDENTED.

I THINK THE PRICE INCREASES THAT PEOPLE ARE GOING TO EXPECT ON EVERYTHING FROM PHONES TO CARS AND THE LIKE, SO OUR CONSUMERS ARE GOING TO HAVE TO DEAL WITH% THAT.

BUT MARYLAND IS UNIQUELY HARMED BY WHAT THE TRUMP ADMINISTRATION AND ELON MUSK ARE DOING TO DOWNSIZE WHAT THEY CALL IS THE FEDERAL WORKFORCE BUT IN FACT IT'S EVERYTHING.

IT'S THE PRIVATE SECTOR.

IT'S NONPROFITS AND RESEARCH INSTITUTIONS, UNIVERSITIES.

EVERYONE IS BEING CUT.

AND WE'RE JUST SEEING HUGE RIPPLES IN THE FIRST THREE MONTHS OF THIS YEAR, MARYLAND FACED A YEAR'S WORTH OF JOB LOSSES AND THEY ARE ALL DIRECTLY AT THE HANDS OF THE TRUMP ADMINISTRATION.

JUST TO GIVE YOU A COUPLE EXAMPLES WHAT U.S.-CANADA-MEXICO AID THE ONE ABILITY WHEN THEY WENT AFTER THAT, YES THERE WERE A FEW HUNDRED DIRECT FEDERAL WORKERS LAID OFF AND 1200 PRIVATE CONTRACTORS WERE LAID OFF IN MARYLAND WHO WERE SERVICING VARIOUS CONTRACTS FOR U.S. AID.

JOHNS HOPKINS UNIVERSITY ANNOUNCED $800 MILLION IN LOST FUNDS FOR RESEARCH THAT CAUSED THEM TO LAYOFF A THOUSAND OR TWO THOUSAND PRIVATE SECTOR EMPLOYEES.

WHY?

THEY WERE SERVICING U.S. AID CONTRACTS.

THAT IS ONE AGENCY.

AND SO ON THE FEDERAL WORKFORCE, WE PUT IN A LOAN PROGRAM THIS YEAR FOR FEDERAL WORKERS.

THE GOVERNOR PUT IN $9 MILLION FOR OUR UNEMPLOYMENT INSURANCE FUNDS TO DEAL WITH THE INFLUX WE SEE THERE.

AND WE HAVE EXTENDED MEDICAID SUBSIDIES BECAUSE WE EXPECT MORE AND MORE RESIDENTS ARE GOING TO NEED A MEANS OF STAYING ON HEALTHCARE.

THESE THINGS ARE EXPENSIVE.

SO WE'RE GOING TO FACE SOME VERY TOUGH DECISIONS IN THE COMING MONTHS.

>> I'VE BEEN HERE LONG ENOUGH TO KNOW WHEN I SEE SIGNS THAT SOMEONE TELLS ME WE MAY HAVE A SPECIAL SESSION.

IS IT YOUR SENSE THAT IF THINGS TRULY GO OFF THE DEEP END THAT WE'RE GOING TO HAVE TO HAVE A RETHINKING, IF YOU WILL.

AND I DON'T KNOW IF RETHINK SOMETHING THE PROPER TERM, BUT AT LEAST REEVALUATING?

>> I MEAN, IT SEEMED CLEAR THAT IS WHERE WE NEEDED TO BE AT THE START OF THE SESSION ANYWAY.

YOU KNOW, BEFORE TRUMP EVEN GOT INAUGURATED THE KEY BRIDGE FUNDING WE WERE PROMISED BY THE BIDEN ADMINISTRATION FULL FUNDING A BILLION DOLLARS WAS CALLED INTO A QUESTION.

THAT SENT OFF ALARM BELLS AND AT THE IMMEDIATE INSTANCE, MY THOUGHT AND MANY PEOPLE'S THOUGHT WAS THAT MARYLAND WAS GOING TO HAVE TO MOVE IMMEDIATELY INTO A MODE OF SELF RELIANCE.

>> Jeff: OUR THANKS TO CHARLOTTE AND DELEGATE MOON.

FOR THE VIEW FROM THE REPUBLICAN SIDE OF THE AISLE, HERE IS MPT'S NANCY AMATA.

>> THE BIG STORY THIS SESSION ABSOLUTELY 1,000% IS THE BIGGEST TAX AND FEE INCREASE MASSACHUSETTS HISTORY.

>> HOUSE MINORITY LEADER JASON BUCKEL DID NOT MINCE WORDS ABOUT HIS VIEW OF THE 67 BILLION DOLLAR BUDGET PASSED BY LAWMAKERS THIS SESSION.

>> NO MATTER WHAT ELSE THE STATE OF MARYLAND EVER FACED, RECESSIONS, DEPRESSIONS ALL TYPES OF THINGS THAT OCCURRED, NO ONE WALKED INTO THE ROOMS WE WALKED INTO YESTERDAY AND THE LAST WEEK OR TWO AND VOTED TO TAX THE LIVING DAYLIGHTS OUT OF THEIR CITIZENS AND OUT OF THEIR BUSINESSES ALMOST ACROSS THE BOARD.

IT'S NOT JUST GOING TO BE THE SUPER RICH.

EVERYBODY IS GOING TO PAY MORE TAXES.

>> THE TAX HIKES AND BUDGET CUTS PROMPTED DEBATE AS LAWMAKERS GRAPPLED HOW TO BRIDGE AN UNPRECEDENTED $3 BILLION BUDGET DEFICIT.

>> I THINK ONCE YOU FACTOR IN THE INCREASE IN THE PIGGY BACK TAX AND VEHICLE REGISTRATION, TIRE TAX, HIGHER TAXES ON MOTOR VEHICLE PURCHASES, TECH TAX ALL OF THOSE TAXES ONCE YOU PUT THOSE IN PLACE, MARYLANDERS ARE GOING TO PAY MORE MONEY.

>> SENATE MINORITY LEADER STEVE HERSHEY TOLD LAWMAKERS THIS WAS THE YEAR TO DIFFERENTIATE BETWEEN WANTS VERSUS NEEDS.

REPUBLICANS PUSHED FOR MORE BUDGET CUTS.

>> IN THE BUDGET WE PRESENTED THAT WOULD HAVE NOT REQUIRED ANY TAX INCREASES.

ONE OF THEM WAS DOWNSIZING THE SIZE OF GOVERNMENT.

RIGHT SIZING IT, THE SIZE OF GOVERNMENT.

AND THAT WAS A BIG ISSUE THAT WE THOUGHT THERE WAS A NUMBER OF VACANCIES THE GOVERNOR WANTS TO FILL 10,000 NEW JOBS.

IF YOU ARE TRYING TO CUT THE BUDGET AND REDUCE SPENDING THAT IS A START.

>> ANY FEE THEY CAN FIND THEY WERE WILLING TO THROW IT UP THERE SO WE DIDN'T HAVE TO MAKE DIFFICULT DECISIONS ABOUT WE'RE SPENDING MORE MONEY THAN WE CAN AFFORD AND WE ARE NOT GETTING OUR BANG FOR THE BUCK IN A LOT OF THESE AREAS.

>> CASE IN POINT EDUCATION AND THE STATE'S PLAN TO OVERALL PUBLIC SCHOOLS WITH THE BLUEPRINT FOR MARYLAND'S FUTURE.

>> EVERYONE WANTS KIDS TO GET A GREAT EDUCATION.

THERE IS LITTLE EVIDENCE THAT ALL OF THE EXTRA OF BILLIONS OF DOLLARS HAS CHANGED OUR TRAJECTORY.

OUR TEST SCORES ARE NOT VERY GOOD.

IN MANY CASES FEWER THAN HALF OF THE KIDS THAT GO TO PUBLIC SCHOOL MASSACHUSETTS MARYLAND ARE PERFORMING AT GRADE LEVEL.

BUT WE SPEND MORE AND MORE AND MORE MONEY FOR IT EVERY YEAR.

NONE OF THAT GOT CUT.

>> INSTEAD HE SAYS THE GOVERNOR AND LAWMAKERS CHOSE TO MAKE MARYLAND LESS BUSINESS FRIENDLY.

>> THE GOVERNOR BEEN TRYING TO TALK ABOUT PROMOTING TECHNOLOGY INDUSTRY AND THEY PROMOTE A TECH TAX THAT IS GOING TO HURT THE INDUSTRIES THEY ARE TRYING TO GROW IN THE STATE.

AND WE THOUGHT THE BILL WAS THE WRONG THING TO DO.

>> AND DESPITE LEGISLATION THAT PASSED TO LOWER UTILITY COSTS.

>> I DON'T THINK ANY WILL HELP RATEPAYERS.

CERTAINLY NOTHING IN THE SHORT-TERM TO SAY WE'RE GOING TO PROMOTE NATURAL GAS GENERATION, I THINK THERE IS NOT INSENSITIVES TO DO THAT.

>> REPUBLICAN LEADERS SAY THERE WERE BRIGHT SPOTS.

>> IN THE CRIMINAL AREA I WAS HAPPY TO SEE STIFFER PENALTIES FOR ORGANIZED RETAIL CRIME.

>> AND THE GOVERNOR'S CONCESSION THAT SOME OF THE EFFORTS AIMED AT REDUCING CLIMATE CHANGE MAYBE UNREALISTIC.

>> IN RESPONSE TO THE REALITY THAT THE ELECTRIC VEHICLE MANDATES DO NOT WORK, I THINK MARYLAND HAS SOMEWHERE AROUND 12% OF CARS ON THE ROAD FIT THE MANDATE ELECTRIC VEHICLES OR HYBRID TYPE OF CAR.

THE GOAL FOR NEXT YEAR WAS 43%.

IT DOES NOT TAKE A GENIUS TO FIGURE OUT YOU ARE NOT GOING TO MEET THE GOALS THE MARKETPLACE DOES NOT SUPPORT IT AND IT'S NOT AFFORDABLE AND HE WITHDRAW US FROM THIS ADVANCED CLEAN CAR STANDARD WHERE WE TRY TO FOLLOW CALIFORNIA OFF THE CLIFF.

>> ADDING TO THE PRESSURE COOKER OF THE LEGISLATIVE SESSION A NEW PRESIDENT THE REELECTION OF PRESIDENT TRUMP.

BUT REPUBLICANS SAY HE IS NOT THE REASON MARYLAND'S ECONOMY IS IN SUCH DIRE STRAITS.

>> I THINK THE DEMOCRATS WERE LOOKING FOR SOMEBODY TO BLAME.

AND, AGAIN, THE BEGINNING OF SESSION WE KNEW THERE WAS A $3 BILLION DEFICIT.

PRESIDENT TRUMP HAD NOT BEEN INAUGURATED YET.

THEY WERE LOOKING FOR SOMEONE TO BLAME, POINT THE FINGER AT AND MAKE IT MORE REASONABLE THAT THEY MAKE THE CUTS THAT HAD TO BE MADE AND ALSO TAX INCREASES.

>> DEMOCRATS HAVING THE MAJORITY, REPUBLICANS RARELY GET WINS.

>> IT'S IMPORTANT THAT MARYLANDERS HEAR DIFFERENT THOUGH IT IS A DEMOCRATIC STATE POLITICALLY ON ELECTION DAY AND IT HAS BEEN FOR MANY YEARS THINGS CAN CHANGE AND THINGS CAN IMPROVE.

>> I'M NANCY AMATA FOR "STATE CIRCLE".

>> Jeff: AND THAT IS "STATE CIRCLE" FOR THIS WEEK FOR ALL OF US AT MPT THANK YOU FOR WATCHING.

AND HAVE A GOOD NIGHT.

[♪♪]