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: ED 2024 SESSION IS THE RETURN TO NORMALIZATION AND THAT IS MOST APPARENT WHEN IT COMES TO THE STATE BUDGET.

>> Jeff: BUDGET PROBLEMS ON THE HORIZON.

>> IT IS NO SECRET THAT THE PURPLE LINE IS $4 BILLION OVER BUDGET AND WE HAVE A $3 BILLION SHORTFALL IN THE TRUST FUND.

>> WE OWE IT TO THE PEOPLE OF THE STATE THAT WE CAN BE FISCALLY DISCIPLINED.

>> Jeff: AND THE TAKEOVER OF THE TROUBLED RACING INDUSTRY.

>> WE NEED TO DO SOMETHING TO MAINTAIN RACING IN MARYLAND.

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

>> Jeff: WELCOME TO MPT'S COMPLETE WEEKLY COVERAGE OF YOUR LEGISLATURE AT WORK.

I'M JEFF SALKIN.

AND THIS IS "STATE CIRCLE".

THIS WEEK THE MEMBERS OF THE ASSEMBLY RETURNED TO ANNAPOLIS FOR THE START OF THE 90-DAY SESSION.

ADRIAN JONES WAS REELECTED THE SPEAKER OF THE HOUSE AND BILL FERGUSON THE PRESIDENT OF THE SENATE.

GOVERNOR MOORE TALKS ABOUT THE CHALLENGES AHEAD.

>> LAST YEAR WE SHOWED WE CAN GET BIG THINGS DONE BECAUSE WE GOT IT DONE TOGETHER.

THAT IS THE COMMITMENT WE'RE MAKING TO THIS BODY TO EACH AND EVERYONE OF YOU.

WE'RE EXCITED TO BE YOUR PARTNERS IN THE WORK AND EXCITED TO GET THE WORK DONE TOGETHER WE BELIEVE WITH EVERYTHING IN US IF WE CAN KEEP THAT AS OUR NORTH STAR THERE IS NOTHING WE ARE NOT GOING TO BE ABLE TO GET DONE.

>> Jeff: GOVERNOR MOORE'S BUDGET IS DUE TO BE INTRODUCED NEXT WEEK.

THE YEARS OF GENEROUS FINANCIAL AID FROM WASHINGTON DURING THE PANDEMIC ARE BEHIND US.

THE STATE IS STARTING TO ERED INK.

CHARLES ROBINSON LOOKS AT BUMPS IN THE ROAD FOR THE TRANSPORTATION BUDGET.

>> I'M CONCERNED IT'S TAKEN THIS DAMN LONG THAT IT'S BEEN MISMANAGED SO HORRIBLY FROM THE BEGINNING.

AND THAT IT'S GOING TO BE MAYBE VERY LIKELY THE MOST EXPENSIVE LIGHT-RAIL PROJECT IN THE UNIVERSE.

>> IT'S NO SECRET THAT THE PURPLE LINE IS $4 BILLION OVER BUDGET AND WE HAVE A $3 BILLION SHORTFALL IN THE TRANSPORTATION TRUST FUND.

THOSE ARE INTERRELATED.

>> COST OVERRUNS ON THE PURPLE LINE ARE ONE OF THE FACTORS MOORE ADMINISTRATION FACTORED INTO THE DECISION TO SLASH THE MARYLAND DEPARTMENT OF TRANSPORTATION BUDGET.

ADDING TO THIS CONFLUENCE OF SETBACKS WAS THE RECENT SAFETY CLOSURES OF BALTIMORE'S LIGHT-RAIL.

MDOT'S BUDGET WAS CUT BY 3.3 BILLION AND PLANNED SPENDINGS OVER THE NEXT SIX YEARSISM WE KNOW THAT HAVING A WORLD CLASS TRANSPORTATION SYSTEM IN THE STATE OF MARYLAND IS GOING TO BE IMPORTANT.

IT'S IMPORTANT ECONOMICALLY.

IT'S IMPORTANT ENVIRONMENTALLY.

IT'S IMPORTANT IN TERMS OF OUR PSYCHOLOGICAL AND EMOTIONAL HEALTH THAT PEOPLE DO NOT HAVE TO SIT IN CRUSHING TRAFFIC.

SO WE UNDERSTAND THE IMPORTANCE OF BEING ABLE TO GET IT DONE.

>> ONE OF THE CASUALTIES OF THIS LACK OF FUNDING IS THE FACT THERE WON'T BE ENOUGH MONEY NOR MAINTENANCE OF ROADS.

>> BUT THE REASON THERE ARE SAFETY PROBLEMS ON THE LINE IS BECAUSE OF DECADES OF DISINVESTMENT.

WE ARE REALLY WORKING BEHIND THE TIMES IN TERMS OF KEEPING OUR INFRASTRUCTURE UP-TO-DATE.

WE HAVE AN OPPORTUNITY NOW, I BELIEVE WE ARE IN A SWEET SPOT TO FIX THE DISINVESTMENT WE'VE BEEN LABORING UNDER FOR DECADES.

>> EVERY JURISDICTION WILL SUFFER BECAUSE OF THE TRANSPORTATION CUTS BECAUSE YOUR LOCAL HIGHWAY USER REVENUES ARE BEING DECREASED.

>> WE OWE IT TO THE PEOPLE OF THIS STATE TO SHOW THEM WE CAN BE FISCALLY DISCIPLINED AND VERY MUCH IN THE LARGEST SOCIETAL RETURN ON THE INVESTMENTS THAT WE HAVE TO MAKE.

SO WE ARE GOING TO CONTINUE MAKING INVESTMENTS THAT HAVE LONG-TERM SOCIETAL ROI.

AND AT THE SAME TIME, WE ARE GOING TO ENSURE WE WILL BE GOOD STEWARDS OF TAXPAYER DOLLARS AND GETTING THE ECONOMY GOING.

>> MARYLAND IS ONE OF THE FEW STATES IN THE NATION TO USE REVENUE FROM A GAS TAX TO FUND TRANSPORTATION PROJECTS.

IT HASN'T KEPT PACE WITH THE WANTSES AND NEEDS OF JURISDICTIONS.

EVEN WITH THIS CUT, THE STATE STILL FACES A $760 MILLION ANNUAL BUDGET SHORTFALL.

IN ANNAPOLIS I'M CHARLES ROBINSON FOR "STATE CIRCLE".

>> Jeff: THE GOVERNOR'S PROPOSING A TRIO OF BILLS ON PUBLIC SAFETY.

THEY INCLUDE THE VICTIMS COMPENSATION REFORM ACT.

A PROGRAM TO IMPROVE POLICE HIRING.

AND THE CREATION OF A CENTER FOR FIREARM VIOLENCE PREVENTION AND INTERVENTION.

THE GOVERNOR'S NOT DIRECTING OFFERING JUVENILE JUSTICE LEGISLATION BUT IS ENCOURAGING THE LEGISLATURE TO MAKE CHANGES.

>> WE ALSO THINK IT'S IMPORTANT TO GET ALSO A BETTER UNDERSTANDING FROM THE PEOPLE IN OUR COMMUNITIES.

BECAUSE DO THEY FEEL SAFER?

DO THEY FEEL MORE SEEN?

DO THEY FEEL LIKE THE YOUNG PEOPLE WHO ARE INVOLVED IN TROUBLE ARE GETTING THE SUPPORTS THAT THEY NEED AND DO THEY FEEL LIKE THE YOUNG PEOPLE WHO THEY ARE REPEATEDLY SEEING AS PARTICULARLY THE VIOLENT OFFENDERS DO THEY FEEL THERE'S APPROPRIATE MEASUREMENTS AND ACCOUNTABILITY.

>> WE WANT TO SEE THAT THE VIOLENT CRIMINALS ARE GETTING LOCKED UP.

BUT WE ALSO WANT TO SEE THERE ARE CONSEQUENCES SO THAT THESE ACTIVITIES DON'T TAKE PLACE IN THE FIRST PLACE.

AND THAT'S WHAT IS GOING ON MORE THAN ANYTHING IS THAT RIGHT NOW, YOUTH IN CERTAIN AREAS KNOW THERE ARE NO CONSEQUENCES FOR THEIR ACTIONS.

>> Jeff: COMING UP OUR NEWSMAKER SENATE PRESIDENT BILL FERGUSON TALKS ABOUT JUVENILE JUSTICE AND OTHER TOPICS.

>>> MARYLAND HORSERACE SOMETHING BACK BEFORE LAWMAKERS.

A REPORT IS RECOMMENDING MAJOR CHANGES THAT COULD SECURE THE FUTURE OF PEP CO-PIMLICO AND MEAN THE END OF RACING AT LAUREL.

SUE COP LYNN REPORTS.

>> IT IS ANOTHER AFTERNOON OF RACING AT LAUREL PARK ONE OF THE STATE'S TWO PRIMARY THOROUGHBRED RACETRACKS.

LAUREL PARK'S FUTURE MAY WELL BE ANYTHING BUT A SURE BET.

AND RACING FANS HAVE MIXED FEELINGS ABOUT CLOSING LAUREL AND GOING TO PIMLICO.

>> I WON'T GO BECAUSE IT'S NOT TO MY LIKING ANYMORE.

>> I WAS UNAWARE THAT WAS A POSSIBILITY.

BUT I AM AWARE WE NEED TO DO SOMETHING TO MAINTAIN RACING IN MARYLAND.

>> THE MARYLAND THOROUGHBRED RACETRACK OPERATING AUTHORITY CREATED LAST YEAR TO STUDY THE FUTURE OF RACING IN THE STATE HAS GIVEN LAWMAKERS A SERIES OF PROPOSALS TO CONSIDER THIS SESSION.

A PLAN IT CALLS PIMLICO PLUS AMONG THE RECOMMENDATIONS, A STATE TAKEOVER OF OPERATIONS AT PIMLICO.

PIMLICO WOULD GET A NEW TRACK, STABLES AND CLUBHOUSE.

THERE WOULD BE YEAR-ROUND RACING.

AND PRIVATE INVESTMENTS IN A HOTEL, EVENT SPACE AND DEVELOPMENTS ASH THE AREA OF THE TRACK.

PIMLICO WOULD REMAIN HOME TO THE PREAKNESS BUT OWNERSHIP OF THE EVENT AND LICENSING RIGHTS TO THE PREAKNESS WOULD BE HANDLED BY A NONPROFIT.

THE PLAN ALSO CALLS FOR TEMPORARILY RELOCATING THE PREAKNESS TO LAUREL RACETRACK UNTIL THE RENOVATIONS ARE COMPLETE AT PIMLICO.

>> WE'RE NEARING THE FINISH LINE.

>> BALTIMORE CITY DELEGATE ROSENBERG GREW UP IN THE AREA.

HE SAYS NO ADDITIONAL FUNDING WILL BE NEEDED FOR THE RENOVATIONS AND IMPROVEMENTS AT THE TRACK BECAUSE OF A PREVIOUS ALLOCATION.

>> THERE IS LITTLE SPENT BECAUSE THE $400 MILLION WAS TO BUILD -- TO DO A REBUILD AT PIMLICO AND LAUREL.

SO NOW THE STUDY THE WORK THAT CAME ABOUT SUBSEQUENT TO THE PASSAGE OF THE BILL FOUR YEARS AGO, MADE IT CLEAR THAT IT WAS FAR TOO EXPENSIVE TO DO BOTH.

TO RENOVATE BOTH FACILITIES.

THAT'S WHY WE'RE NOW DOING JUST PIMLICO.

>> COREY McRAE SAYS HE LOOKS FORWARD WHAT IT WILL MEAN FOR THE COMMUNITY AROUND PIMLICO.

>> THE CORE PIECE AND CORE VALUE OF MINE IS MAKING SURE THAT THE COMMUNITY CANNOT BE SOME PLACE WHERE FOLKS ARE COMING TO DO THE HORSERACING PIECE.

THERE HAS TO BE THE LARGE COMMUNITY COMPONENT AND I FEEL IT'S GOING AT THE RIGHT DIRECTION.

>> HE SAYS TAKING CARE OF THE COMMUNITIES AROUND PIMLICO DOESN'T MEAN ADDING TO THE COST.

>> WE WANT TO MAKE SURE THERE IS A PLAN AND A COMMITMENT, BUT WE CAN DO OTHER THINGS THAT BENEFIT THE COMMUNITY THE SURROUNDING COMMUNITY WITH EXISTING STATE PROGRAMS.

>> WE'RE BETTING ON PIMLICO.

SO WE ARE BETTING ON PIMLICO AND WE DID THAT SEVERAL YEARS AGO AND THIS KEEPING THE TRAIN ON THE TRACK IS SAYING THAT THE GENERAL ASSEMBLY, THE BALTIMORE CITY THAT ALL OF THE PARTNERS ARE STILL MOVING IN THE SAME DIRECTION AND MAKING SURE THIS IS A PART OF THE FUTURE.

>> THE PLAN AWAITS THE LEGISLATURE'S REVIEW AND APPROVAL BEFORE LAWMAKERS REACH THE FINISH LINE ON APRIL 8TH.

I'M SUE COPPIN FOR "STATE CIRCLE".

>> Jeff: MARYLAND'S MINIMUM WAGE IS $15 AN HOUR EXCEPT FOR WORKERS WHO PRIMARILY EARN TIPS.

NANCY AMATTA REPORTS ON AN EFFORT TO END THAT EXEMPTION.

>> THEY ARE USED TO SERVING CONSTITUENTS INSTEAD.

>> ON THIS DAY, A HANDFUL OF LAWMAKERS INCLUDING DELEGATE ADRIAN AND SENATOR McRAE DONNED APRONS AND SERVED UP LUNCH IN DOWNTOWN ANNAPOLIS GETTING A TASTE HOW HARD BEING IN THE SERVICE INDUSTRY IS.

THEY ARE THE SPONSORS OF THE ONE FAIR WAGE ACT AN EFFORT TO RAISE WAGES OF TIPPED EMPLOYEES.

RIGHT NOW, RESTAURANT WORKERS EARN $3.63 AN HOUR PLUS TIPS.

PROPONENTS OF THE BILL SAY THEY DESERVE TO EARN AT LEAST MINIMUM WAGE THAT JUST WENT UP TO $15 AN HOUR.

>> WE KNOW WE MESSED UP.

BUT WE'RE TRYING TO RIGHT THAT WRONG AND MAKE SURE THAT EVERYBODY MOVES FORWARD NOT JUST SOME WITH THE $15 AN HOUR.

>> THE GROUP ONE FAIR WAGE RALLIED OUTSIDE THE STATE HOUSE HOPING TO CONVINCE LAWMAKERS TO MAKE MARYLAND THE 8TH STATE TO END THE SUBMINIMUM WAGE FOR TIPPED WORKERS LIKE BARTENDERS, SERVERS AND HOSTESSES.

>> THAT IS NOT FUN YOU ARE DOING THE WORK AS SOMEONE DOING MINIMUM WAGE AND GETTING LESS MONEY.

HOW WOULD THAT MAKE SENSE?

>> WITH TIPS CATHERINE WHO WORKS AT DAVE AND BUSTERS SPORTS BAR AND RESTAURANT CONTENDS.

>> THERE'S FOLKS WHO HAVE FAMILIES AND CANNOT PROVIDE FOR THE FAMILY.

SO THEY HAVE TO GET A SECOND OR THIRD JOB WHEN ALL THEY CAN DO IS JUST AND WE JUST BUMPED IT UP TO MINIMUM WAGE PLUS TIPS THEY WOULD NOT HAVE TO WORRY ABOUT THAT.

>> PROPONENTS SAY THE SUBMINIMUM WAGE IS A LEGACY OF SLAVERY WHEN THE RESTAURANT INDUSTRY WAS HIRING NEWLY FREED SLAVES WITHOUT PAYING THEM FORCING THEM TO LIVE ON TIPS.

>> WE HAVE DETERMINED IT TAKES A CERTAIN AMOUNT OF MONEY FOR A MINIMUM WAGE TO SUSTAIN A FAMILY AND TO SUSTAIN WORKERS.

WHY DO WE NOT THINK THAT THAT APPLIES TO TIPPED WORKERS?

IT'S TIME TO GET RID OF THIS ARCHAIC, RACIST BASED SYSTEM THAT WE HAVE AND MOVE TO A SYSTEM THAT IS MUCH MORE FAIR FOR WORKERS THAT WE INTERACT WITH EVERYDAY.

>> THE MARYLAND RESTAURANT ASSOCIATION OPPOSES THE BILL CLAIMING UNDER THE CURRENT TIPPING SYSTEM, THE AVERAGE SERVER EARNS $27 AN HOUR.

>> IT IS INSEN ADVISING PEOPLE WHO WANT TO WORK HARD TO MAKE MORE MONEY IF YOU DO ALL MINIMUM WAGE AT THE $MINIMUM WAGE YOU WILL HAVE PEOPLE TIP LESS AND MAKE LESS MONEY.

>> SHOULD THE BILL PASS OPPONENTS BELIEVE CUSTOMERS MAYBE FACED WITH HIGHER MENU ITEMS OR HIGHER SERVICE CHARGE.

NANCY AMATTA FOR "STATE CIRCLE".

>> Jeff: OUR NEWSMAKER IS SENATE PRESIDENT BILL FERGUSON.

Mr. PRESIDENT THANK YOU FOR JOINING US.

>> THANK YOU SO MUCH FOR HAVING ME, JEFF.

>> Jeff: LOOKING AHEAD TO THE 90-DAY SESSION, WHAT WOULD YOU SAY ARE THE TOP TWO OR THREE PRIORITIES FOR THE STATE SENATE?

>> AN INTERESTING YEAR.

THIS IS YEAR TWO OF FOUR.

SO WE ARE IN GOVERNANCE MODE.

THIS IS A RETURN TO NORMALCY WITH THE 100 YEAR PANDEMIC, WITH THE CHANGE-OVER IN GOVERNMENT, WITH ELECTIONS, 2024 SESSION IS REALLY THIS RETURN TO NOR MALLIZATION AND THAT IS MOST APPARENT WHEN IT COMES TO THE BUDGET WHICH IS OUR NUMBER ONE PRIORITY.

BALANCING THE STATE BUDGET IN A WAY THAT CREATES SAFER AND STRONGER COMMUNITIES.

AND IT KEEPS MARYLAND AS COMPETITIVE AS POSSIBLE TO OUR SURROUNDING JURISDICTIONS.

BUT ALSO NATIONALLY AND GLOBALLY.

AND SO WE HAVE TO TAKE THIS YEAR TWO MOMENT WHERE WE HAVE LESS FLEXIBLE REVENUES WHERE WE HAVE LESS MONEY FROM THE FEDERAL GOVERNMENT AND WE HAVE TO GET BACK INTO THE HABIT OF PRIORITIZING THAT WHICH MATTERS MOST.

THE THINGS WE KNOW HELP TO BUILD MARYLAND'S ECONOMY AND THAT HELP MARYLANDERS HAVE MORE OPPORTUNITY.

WE'LL DO THE INVESTING IN EDUCATION AND HEALTHCARE AND PROTECTING THE ENVIRONMENT AND PUBLIC SAFETY.

BUT THE BUDGET IS GOING TO BE A STORY BECAUSE IT IS A RETURN TO THE PROCESS OF GOVERNANCE THAT WAS A LITTLE BIT EASIER WITH MORE FLEXIBLE DOLLARS NOW WE HAVE TO GET BACK INTO THE FOCUSING AND PRIORITIZING.

THE BUDGET WILL LEAD THE WAY.

I WOULD SAY THE NEXT BIGGEST ISSUE IS WE KNOW WE CAN'T HAVE A COMPETITIVE STATE IF PEOPLE DON'T FEEL SAFE.

WE'VE HAD SOME REAL STRUGGLES AROUND YOUNG PEOPLE IN THE COMMISSION OF PARTICULAR CRIMES.

AND THOSE ARE CRIMES INVOLVING FIREARMS AND CRIMES THAT ARE INVOLVING THE USE OF THOSE FIREARMS TO STEAL A CAR OR TO ENGAGE IN CARJACKING.

SO WE HAVE ENGAGED IN A NUMBER OF DIFFERENT REFORMS IN THE PAST.

OBVIOUSLY IN THIS PARTICULAR CASE, THE REFORMS THAT WE HAD SEEN ARE NOT QUITE MEETING THE HOPE THAT WE WOULD LIKE, WHICH IS THAT WE DIVERT YOUNG PEOPLE FROM COMMITTING VIOLENT CRIMES.

SO WE HAVE A WAYS TO GO.

AND THIS SESSION WE WILL TAKE UP A NUMBER OF INITIATIVES TO HOLD THE AGENCIES ACCOUNTABLE FOR IMPLEMENTING THE LAW AND MAKING SURE WE CHANGE YOUNG PEOPLE'S BEHAVIORS WHEN THEY ARE IN POSSESSION OF A GUN AND TRYING TO STEAL A CAR.

THE THIRD ONE IS WE HAVE TO DEAL WITH THE POCKETBOOK ISSUES LIKE INFLATION.

SO THE NUMBER ONE DRIVER OF INFLATION NOT JUST IN MARYLAND BUT ACROSS THE GLOBE IS HOUSING.

WE HAVE GOT TO INCREASE THE SUPPLY OF HOUSING TO LOWER COSTS SO THAT MARYLAND FAMILY DOSE NOT FEEL THE BURDEN OF ON THEIR POCKETBOOKS THAT WE ARE EXPERIENCING BECAUSE OF THE HIGH HOUSING PRICES ACROSS THE STATE.

>> Jeff: SO LET'S TAKE THOSE IN REVERSE ORDER.

THE INFLATION REPORT FOR THE MONTH OF DECEMBER THAT CAME OUT THIS WEEK, SHOWED ONE OF THE BIG DRIVERS OF INFLATION CONTINUES TO BE HOUSING COSTS.

RENTS HAVE GONE UP.

IF YOU WANT TO BUY A HOUSE THE PRICES ARE UP.

MORTGAGE RATES ARE HIGHER THAN THEY USED TO BE.

WHAT CAN THE STATE OF MARYLAND DO ABOUT THAT?

THE ZONING DECISIONS ARE MADE LOCALLY AND ECONOMIC POLICY COMES OUT OF DC?

>> I WOULD SAY I THINK WHAT IS MOST IMPORTANT ABOUT THAT REPORT IS THAT EVEN WITH HIGH INTEREST RATES WE ARE SEEING PRICES GO UP NOT WHAT YOU WOULD EXPECT.

YOU WOULD THINK WITH HIGHER INTEREST RATES THAT THERE WOULD BE A LESS OF A HOUSING DEMAND AND THAT THE IS NOT THE CASE.

THAT TELLS ME THE REAL ISSUE IS ABOUT SUPPLY.

WE SIMPLY DO NOT HAVE ENOUGH UNITS FOR RENT OR PURCHASE.

WE HAVE TO FIND A WAY TO MAKE IT EASIER TO BUILD MORE UNITS IN STATE OF MARYLAND.

AND WE HAVE -- THOSE ARE AFFORDABLE UNITS AND MARKET RATE UNITS.

AND WE HAVE TO MAKE IT LESS COSTLY TO BUILD WE HAVE TO DO WHATEVER WE CAN ON THE PERMITTING BASIS, IF THERE ARE PLACES WHERE WE HAVE TO PUSH LOCALS TO BE A LITTLE BIT MORE PERMISSIVE IN THEIR ZONING TO ALLOW FOR MORE UNITS TO BE CONSTRUCTED THIS IS A SUPPLY PROBLEM.

AND WE NEED TO LOWER THE COST TO GET INCREASED SUPPLY OF QUALITY HOUSING UNITS WHICH WILL BE BETTER FOR EVERYONE.

NOT JUST THOSE WHO GET THE UNITS BUT BECAUSE IT IS HAS AN IMPACT ON PRICING OVERALL EVERYONE BENEFITS.

>> Jeff: MORE BROADLY ON THE ECONOMY, SORT OF CONFLICTING DATA THAT MARYLAND'S GDP THE SIZE OF THE STATE ECONOMY HAS BEEN GROWING MORE SLOWLY THAN OUR NEIGHBORING STATES AND THE NATION AS A WHOLE.

YET, AT THE SAME TIME, WE HAVE THE LOWEST UNEMPLOYMENT RATE IN THE NATION.

SO I DON'T KNOW HOW YOU RECONCILE THAT.

BUT IF WE WANT TO GROW FASTER WHAT NEEDS TO CHANGE?

>> YOU KNOW LOOK THIS IS A REALLY INTERESTING FACET OF MARYLAND'S ECONOMY BUT TO ME IT'S CLEAR.

THE REASON WE HAVE THE LOWEST UNEMPLOYMENT RATE WE HAVE GREAT BUSINESSES THAT HAVE LEGACY BUSINESSES NEW BUSINESSES WE DON'T HAVE ENOUGH WORKERS.

OUR LABOR PARTICIPATION RATE HAS DROPPED SIGNIFICANTLY.

AND THAT IS BECAUSE OF RETIREMENTS, BECAUSE OF RELOCATIONS.

IN ORDER FOR US TO BE COMPETITIVE WE HAVE TO ATTRACT WORKERS AND MAKE THIS AN ATTRACTIVE PLACE FOR BUSINESSES TO GROW.

SO WHEN WE THINK ABOUT OUR STATE BUDGET WHEN WE THINK ABOUT ADDITIONAL COSTS THROUGH TAXES AND FEES, FOR MY PERSPECTIVE, THAT'S NOT A PATH WE CAN PURSUE.

WE HAVE TO REMAIN COMPETITIVE AND LIVING WITHIN OUR MEANS SO THE PRIVATE SECTOR CAN GROW AND ATTRACT NEW WORKERS TO COME TO MARYLAND TO HELP BUILD OUR ECONOMY FASTER.

AND SO THAT IS GOING TO BE A REALLY IMPORTANT MESSAGE COMING OUT OF THE SENATE THIS YEAR IS THAT WE REALLY HAVE TO FOCUS ON SUSTAINABLE, LONG-TERM GROWTH AND WE DO THAT BY KEEPING COSTS LOW AND REMAINING COMPETITIVE IN COMPARISON TO OUR REGIONAL AND NATIONAL PARTNERS.

>> Jeff: IF YOU WANT TO KEEP A LID ON TAXES WE HAVE THE KERWIN BLUEPRINT FOR EDUCATION WHICH IS GOING TO MEAN SPENDING BILLIONS MORE ON AN ANNUAL BASIS THAN WE HAVE IN THE PAST.

STATE LEVEL AND THE COUNTY LEVEL.

WITHOUT A CLEAR IDEA OF HOW WE'RE GOING TO PAY FOR IT.

SO HOW ARE WE GOING TO PAY FOR THAT?

>> LOOK AT THE END OF THE DAY, EASTERN SEVERAL YEARS OUT WHEN WE LOOK AT THE BUDGET PROJECTIONS WE HAVE A 62 BILLION DOLLAR BUDGET MANY WHEN YOU TALK ABOUT A $2 BILLION SHORTFALL IN REVENUE IN COMPARISON TO A 62 BILLION BUDGET THESE ARE DOLLARS THAT WE CAN FIND A WAY THROUGH IT.

WE JUST HAVE TO PRIORITIZE.

AND THAT MEANS IF THERE ARE PROGRAMS THAT ARE LEGACY PROGRAMS THAT ARE NOT HAVING THE SAME IMPACT, IF THERE ARE THINGS GROWING FASTER THAN THEY NEED TO TO SERVICE THE OBJECTIVE, THEN WE HAVE TO CUT.

AND THAT'S OKAY.

BECAUSE PART OF GOVERNING IS PRIORITIZATION.

AND SO WE WILL ALWAYS BE INVESTING IN EDUCATION IT IS THE NUMBER ONE INVESTMENT WE CAN MAKE AS A STATE WELL-EDUCATED POPULOUS IS FUNDAMENTAL TO STRONG LONG-TERM GROWTH.

WE HAVE TO BE SAFE WE HAVE TO MAKE SURE WE'RE INVESTING IN OUR PUBLIC SAFETY ENFORCEMENT.

WE HAVE TO MAKE SURE WE'RE PROTECTING OUR ENVIRONMENT CLEAN AIR, WATER, ADDRESSING CLIMATE CHANGE ISSUES AND PEOPLE ARE HEALTHY.

WE HAVE TO INVEST IN OUR HEALTHCARE SYSTEM.

IF WE CAN DO ALL OF THESE THINGS, WE JUST HAVE TO PRIORITIZE THE PROGRAMS HAVING THE BIGGEST IMPACT.

>> Jeff: YOU MENTIONED PUBLIC SAFETY, JUVENILE CRIME IN PARTICULAR.

THE FOP COUNTY PROSECUTORS HAVE GENERALLY BEEN CRITICAL OF RECENT LEGISLATION ON JUVENILE CRIME.

THEY SAY WE HAVE A REVOLVING DOOR.

THAT YOUNG PEOPLE WHO ARE LOCKED UP OR ARRESTED FOR EVEN VIOLENT CRIMES ARE RAPIDLY BACK OUT ON THE STREET.

WHAT CHANGES MIGHT BE ON THE TABLE IN THIS SESSION?

>> WELL, WHAT IS CLEAR TO ME IS THAT THE BIGGEST CHALLENGE THAT WE HAVE IS VERY TARGETED.

IT IS YOUNG PEOPLE ACCESSING ILLEGAL LOST AND STOLEN GUNS.

AND THEN TOO MANY CASES ARE USING THE GUNS TO THEN STEAL A CAR, OR TO ENGAGE IN SORT OF A STREET ROBBERY.

IT IS THE COMBINATION OF A NUMBER OF DIFFERENT FACTORS.

I THINK WE'VE ENGAGED IN REFORMS THAT FOR THESE SPECIFIC CASES ARE NOT HAVING THE IMPACT THAT ANY OF US WANT.

ALL OF US HAVE TO WORK TOGETHER WITH OUR LAW ENFORCEMENT PARTNERS WITH DEFENSE COUNSEL, WITH THE JUDICIARY TO FOCUS IN.

BECAUSE AT THE END OF THE DAY THESE ARE KIDS.

AND IF THERE IS A 16-YEAR-OLD OUT THERE THAT IS USING A GUN TO ROB SOMEBODY, WE NEED TO INTERVENE IMMEDIATELY.

THERE CANNOT BE A DELAY NOT A REVOLVING DOOR.

THERE HAS TO BE AN IMMEDIATE PROCESS TO ENGAGE WITH THAT YOUNG PERSON AND THE FAMILY OR GUARDIANS.

BECAUSE THEY DESERVE THAT AND SO DO COMMUNITIES.

COMMUNITIES CANNOT CONTINUE TO FEEL UNSAFE.

AND I AM CONFIDENT THAT THERE ARE THINGS WE CAN DO THIS SESSION TO HOLD ALL OF THE AGENCIES INVOLVED ACCOUNTABLE AND BUILD A BETTER SYSTEM THAT MAKES SAFER COMMUNITIES OVERALL.

YOU KNOW, I THINK IT'S IMPORTANT THAT WE IT'S NOT ABOUT BLAMING ONE THING OR ANOTHER IT'S BE FIGURING IT OUT.

AT THE END OF THE THE DAY EVERYDAY EXECUTION TARGETING WHERE THE HIGHEST NEEDS AND MAKING SURE WE'RE TRACKING THE OUTCOMES TO FIGURE OUT DID WE CHANGE THE TRAJECTORY OF THIS CHILD'S LIFE WHEN THEY ARE ENGAGED IN VIOLENT CRIME.

AND IF NOT WHY?

AND IF SO HOW DO WE DO IT BETTER FOR MORE YOUNG PEOPLE.

I FEEL CONFIDENT THIS YEAR WE'RE GOING TO GET INTO A BETTER DIRECTION.

>> Jeff: TAKE US BACK, IF YOU WOULD, TO THE STADIUM LEASE NEGOTIATIONS AT THE END OF LAST YEAR.

THE ORIOLES LEASE WAS COMING UP.

THEY WANTED DEVELOPMENT RIGHTS AROUND THE BALL PARK DOWNTOWN BALTIMORE.

THE MOORE ADMINISTRATION APPARENTLY HAD A DEAL THAT INCLUDED EXTENDING THE LEASE, RENOVATIONS TO THE BALL PARK AND THE ORIOLES GETTING CONTROL OF THE WAREHOUSE CAMDEN STATION AND OTHER PROPERTIES.

THE NEWS REPORTING INDICATED THAT YOU BALKED WHICH HAD IT BEEN BASEBALL SEASON WOULD HAVE ALLOWED THE RUNNERS TO ADVANCE.

IN THIS CASE, WENT BACK TO THE DRAWING BOARD ON THE LEASE AND THE LEASE WAS AGREED TO WITHOUT THE DEVELOPMENT STUFF.

GIVE US YOUR PERSPECTIVE ON THAT AND IF THE DEVELOPMENT AROUND THE BALL PARK IS SOMETHING THAT YOU WANT TO SEE HAPPEN?

>> LOOK AT THE END OF THE DAY WE ENDED IN A PLACE WHERE EVERYONE WINS.

THE OBJECTIVE HERE WAS TO KEEP THE ORIOLES HERE FOR THE LONG-TERM AND MAKE SURE THAT WE GOT THE BEST POSSIBLE VALUE FOR MARYLAND TAXPAYERS AND THE RESIDENTS OF BALTIMORE CITY AND THE REGION.

AND I THINK THERE ARE FITS AND STARTS IN THE PROCESS.

BUT TO ME, THIS IS THE EXACT RECIPE FOR HOW IN GOVERNING WE CAN BE MOST SUCCESSFUL.

IF WE ALL AGREE ON THE END OBJECTIVE, WE MAY DISAGREE AT TIMES ON THE MEANS OF GETTING THERE.

IF WE SIT ON A TABLE AND HASH IT OUT AND FIGURE OUT WHAT CAN ONE PERSON LIVE WITH AND WHAT CAN THE OTHER PERSON LIVE WITH AND COMPROMISE THAT IS WHAT GOVERNANCE IS ABOUT.

THAT'S WHAT THIS WAS AN EXAMPLE OF.

WHERE THERE WERE DIFFERENCES WE WORKED THROUGH IT AND IT IS THE BEST CASE SCENARIO FOR THE PEOPLE OF MARYLAND, MARYLAND'S TAXPAYERS, FOR THE CITY OF BALTIMORE AND FOR THE ORIOLES.

THIS WAS A GOOD DEAL ALL AROUND.

AND YOU KNOW, TO ME IT IS A MEASURE OF HOW WE SHOULD OPERATE WHEN WE HAVE DIFFERENCES.

WE ARE NOT QUESTIONING MOTIVES.

WE FIND A WAY TO WORK THROUGH IT AND GET THE BEST VALUE FOR EVERYONE THAT'S AT THE TABLE.

AT THE END OF THE DAY, THIS GIVES A PATH FOR THE ORIOLES TO STAY AND GIVES THEM THE CHANCE TO DEVELOP THE PROPERTY ONCE THEY GIVE A PLAN ABOUT WHAT THEY WANT TO DO.

AND TO ME WAS IMPORTANT.

LET'S WAIT TO HAND OVER THE LAND UNTIL WE KNOW WHAT WOULD HAPPEN THERE.

AND WE LANDED IN A GOOD PLACE.

>> Jeff: THAT LOOKED AT THE TIME LIKE IT MIGHT BE THE FIRST SPEED BUMP IN THE HONEYMOON BETWEEN THE FIRST DEMOCRATIC GOVERNOR OF MARYLAND IN THE LAST NINE YEARS, AND THE STATE LEGISLATURE.

I ASK WHEN WE TALK TO SPEAKER JONES, I ASKED HER TO GIVE A GRADE TO THE FIRST YEAR OF THE MOORE ADMINISTRATION.

AND SHE GAVE A B PLUS SAYING THAT NOBODY'S PERFECT.

HOW DO YOU SEE THE LAST YEAR IN THE YEAR TO COME?

>> LOOK, I THINK IT'S TOO HARD TO SAY A SPECIFIC GRADE.

WE ARE DOING A GOOD JOB NAVIGATING A NEW ADMINISTRATION AND WORKING WELL TO ACHIEVE FOR MARYLANDERS.

AND AT THE END OF THE DAY, IT'S NOT ME OR ANOTHER ELECTED OFFICIAL THAT GIVES THE GRADE IT'S THE PEOPLE OF MARYLAND.

THE 6.5 MILLION MARYLANDERS ARE THE ONES THAT GET TO CHOOSE WHETHER OR NOT WE ARE DOING A GOOD JOB.

WE HAVE AN OBLIGATION TO WORK TOGETHER TO SET THEM UP FOR SUCCESS.

I THINK WE'RE WELL ON OUR WAY TO DOING THAT.

WE'VE LEARNED LESSONS HOW TO WORK THROUGH CHALLENGING ISSUES.

AS WE COME TO YEAR TWO OF THE TERM I FEEL MORE CONFIDENT THAN EVER THAT MARYLANDERS ARE GOING TO BE PROUD OF THE WORK WE ARE ABLE TO DO ON THEIR BEHALF.

>> Jeff: BEFORE WE GO IS THERE ANYTHING THAT WE IN THE MEDIA ARE NOT PAYING ENOUGH ATTENTION TO?

FORT D WE'VE TALKED ABOUT IS BEING COVERED BY VARIOUS MEDIA OUTLETS.

IS THERE A SLEEPER ISSUE, IS THERE ANYTHING YOU THINK SHOULD BE MORE IN FOCUS?

>> ONE OF THE THINGS I HAVE BEEN THINKING A LOT ABOUT EVERYONE STARTS TAKING ABOUT AVMENT AND WE WILL BE DEALING WITH THAT, IT IS A BIG DEAL THAT THE BALTIMORE REGION WAS NAMED A TECH HUB LOOKING AT HOW WE CAN USE AI IN BIOHEALTH AND IN HEALTH METRICS AND PERSONAL LIDZED HEALTHCARE.

AND THIS IS NOT JUST ABOUT THE CITY OF BALTIMORE.

IT'S ABOUT WE'RE GOING TO TAP INTO HARTFORD COUNTY AND COLUMBIA AND BALTIMORE COUNTY.

THIS IS A REGIONAL PLAN THAT WE HAVE NOT HAD FOR A LONGTIME AND ONE OF 31 REGIONS ACROSS THE COUNTRY NAMED AS A FEDERAL TECH HUB.

>> Jeff: OUR THANKS TO PRESIDENT FERGUSON AND THAT IS "STATE CIRCLE" FOR THIS WEEK.

THANK YOU FOR WATCHING.

WE'LL SEE YOU BACK HERE MONDAY EVENING AT 7:00 P.M. FOR "DIRECT CONNECTION".

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