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: WELCOME TO "STATE CIRCLE."

WE BEGIN THIS WEEK WITH THE FEDERAL SHOWDOWN.

GOVERNOR MOOR ADDRESSED MARYLANDERS IN A SPEECH CARRIED ON MPT.

>> SO ON BEHALF OF SIX AND A HALF MILLION MARYLANDERS, MY MESSAGE TO PRESIDENT TRUMP IS CRYSTAL CLEAR: STOP THIS SHUTDOWN.

YOU ARE THE ONE CAUSING IT.

BUT BEER THE ONES FEELING IT.

I KNOW THIS IS A DIFFICULT MOMENT.

BUT ALSO THIS IS NOT THE TIME FOR US TO FEEL POWERLESS.

IT'S A TIME FOR US TO UNDERSTAND OUR POWER.

WHILE CONGRESS RUNS UP THE NATIONAL DEBT, WE IN MARYLAND, HAVE TURNED AN INHERITED BUDGET DEFICIT INTO A SURPLUS.

WHILE THE FEDERAL GOVERNMENT CRAFTS POLICIES THAT MAKE OUR ECONOMY WEAKER, WE IN MARYLAND, HAVE ATTRACTED MORE THAN $4 BILLION IN PRIVATE INVESTMENT WHILE CONGRESS CUTS TAXES FOR BILLIONAIRES, WE WORKED WITH THE GENERAL ASSEMBLY TO CUT TAXES FOR THE MIDDLE-CLASS, AND ASKED THOSE WHO HAVE DONE VERY WELL FINANCIALLY, TO INVEST A LITTLE MORE SO WE CAN SUPPORT OUR FIREFIGHTERS AND OUR POLICE OFFICERS.

WHILE THE PRESIDENT CALLS IN OUR NATIONAL NATIONAL GUARD TO CITIES SO HE CAN DISTRACT FROM AN UNPOPULAR AGENDA, WE IN MARYLAND HAVE MOVED IN PARTNERSHIP TO BRING THE BACK OF VIOLENT CRIME AND HAVE SHOWN THAT YOU CAN ACHIEVE PERFORMANCE WITHOUT BEING PERFORMATIVE.

WHILE THE WHITE HOUSE TRIES TO FREEZE FUNDING THAT IS ALREADY BEEN APPROVED BY CONGRESS FOR TRANSPORTATION AND EDUCATION, IN MARYLAND, WE'VE PUSHED TO IMPROVE OUR TRANSPORTATION SYSTEMS AND ENSURE OUR K-12 SCHOOLS ARE THE BEST IN THE NATION.

>> Jeff: MARYLAND'S LONG REPUBLICAN IN CONGRESS ANDY HARRIS SAID THE SHUTDOWN HAPPENED BECAUSE HE SAID DEMOCRATS ARE DEMANDING 1.5 TRILLION IN UNRELATED SPENDING, INCLUDING HANDOUTS FOR ILLEGAL IMMIGRANTS, BAILOUTS FOR INSURANCE COMPANIES AND EXTENSIONS OF WASTE FOR COVID ERA PROGRAMS.

FROM WORK WITHOUT PAY TO FURLOUGHS, FEDERAL WORKERS AND EVEN TOURISTS ARE ADJUSTING TO THE NEW NORMAL.

NANCY YAMADA REPORTS.

>> SINCE I'M OUT OF STATE.

OF, TYPICALLY IF I HAVE A DAY OFF, I TRY TO FIND NATURE OUTDOOR SPOTS.

>> FOR LONG ISLAND JOE, HIS VISIT TO THE NATIONAL BOULEVARD IN FREDERICK IS DISAAPPOINTING.

THE TRAILS ARE OPEN, BUT THE VISITOR CENTER AND NATIONAL PARK FACILITIES ARE CLOSED UNTIL FURTHER NOTICE BECAUSE OF THE FEDERAL GOVERNMENT SHUTDOWN.

>> HOPEFULLY IT DOESN'T RUIN THE WHOLE EXPERIENCE.

MY FIRST TIME BEING HERE.

I'M GOING TO DO SOME EXPLORING TO SEE HOW IT AFFECTS MY EXPERIENCE HERE.

>> FOR SOME MARYLAND RESIDENTS, THE GOVERNMENT SHUTDOWN IS MORE THAN AN INCONVENIENCE.

>> CHAOTIC AS MUCH AS YOU WOULD LIKE TO BE ABLE TO PREPARE FOR SUSPECTING LIKE THIS, IT DOESN'T HAPPEN THAT OFTEN.

THERE IS ALWAYS THE THREAT OF IT, RIGHT, ARE THEY GOING TO GET IT TOGETHER?

ARE THEY GOING TO PASS IT.

SO I DON'T THINK ANYBODY EXPECTED THIS TO HAPPEN, AND THEN IT DID.

>> Reporter: THIS FEDERAL WORKER WHO DOESN'T WANT TO BE IDENTIFIED WILL BE REPORTING TO WORK REGARDLESS OF THE SHUTDOWN.

>> WE CALL IT ACCEPTED.

SO ESSENTIALLY IT MEANS THE SERVICES YOU PROVIDE COULD BE AN IMMEDIATE THREAT TO LIFE OR SAFETY OR SECURITY IF YOU WERE TO NOT HAVE THE PEOPLE THERE.

>> Reporter: HER HUSBAND IS CONSIDERED AN ESSENTIAL FEDERAL WORKER SO THEY'RE BOTH CONTINUING TO GO TO WORK BUT WON'T BE GETTING PAID UNTIL THE GOVERNMENT SHUTDOWN IS OVER.

>> UNFORTUNATELY WE HAVE-- FORTUNATELY WE HAVE A FAIR AMOUNT OF SAVINGS FOR A RAINY DAY.

I WORRY MORE ABOUT OTHER PEOPLE WHO DON'T GET PAID VERY WELL, MAYBE MIGHT NOT MAKE A LIVABLE WAGE AND ALL OF A SUDDEN THE CHECKS STOP COMING IN AND THEY'RE STILL DOING THE WORK.

>> DESPITE THE UNCERTAINTY, THIS FEDERAL WORKER IS STILL COMMITTED TO HER JOB.

>> IT FELT LIKE ONE BLOW AFTER ANOTHER THIS YEAR, BUT HAVE NOT LOST THE SPARK FOR IT.

I'M VERY PROUD OF WHAT I DO.

I'M VERY PROUD OF BEING A CIVIL SERVANT.

PEOPLE WHO ARE CIVIL SERVANTS DO NOT MAKE THE SAME MONEY THEY WOULD MAKE IN THE PRIVATE SECTOR.

PEOPLE FORGET THAT.

WE ARE NOT HERE GETTING REQUIREMENT WE ARE HERE DOING THE WORK WE LOVE AND SERVING THE PUBLIC.

>> Reporter: FOR WHO IS RESPONSIBLE FOR THE IMPASSE, AT THE PARK WHERE THE PARKING LOT REMAINS EMPTY, HE HAS SOME THOUGHTS.

>> IT'S EASY TO THROW BLAME AT EACH POLITICAL PARTY.

THEY'RE DOING THAT IN WASHINGTON.

I WOULD LIKE TO SEE THEM COME TOGETHER TO NOT HAVE TO BORROW MONEY EVERY MONTH OR TWO TO KEEP THE GOVERNMENT OPEN AND MAYBE THEY COULD START PAYING OFF THE DEBT.

I WOULD LIKE TO SEE THAT BECAUSE WHERE DOES IT END UNTIL THE SPENDING GOES TO INFINITY.

WHO WINS IN THAT SCENARIO?

>> Reporter: I'M NANCY YAMADA FOR "STATE CIRCLE."

>> Jeff: OUR NEWSMAKER THIS WEEK IS DARIUS IRANI, THE CHIEF OF STAFF ECONOMIST AT THE REGIONAL ECONOMIC STUDIES INSTITUTE AT TOESON UNIVERSITY.

THANK YOU FOR JOINING US.

>> THANK YOU FOR HAVING ME.

>> Jeff: FEDERAL SHUTDOWNS WE HAVE SEEN THESE BEFORE.

WHAT DO THEY TEND TO MEAN FOR THE ECONOMY?

>> WELL, FOR MARYLAND, IN THE PAST, YOU KNOW, IT'S BEEN A BIT OF A BLIP, SO A DELAY FOR MANY OF THE FEDERAL WORKERS, YOU KNOW, THE LAST ONE WAS ABOUT 30 TO 35 DAYS.

THEY RECEIVED BACK PAY UPON GETTING BACK, UPON THE GOVERNMENT REOPENING.

THE CHALLENGE IS IN BETWEEN THE 35 DAYS IS RATHER CHALLENGING FOR THEM.

THEIR HOUSEHOLDS BECAUSE RENT IS DUE, THEY WON'T GO OUT.

SO WHILE THEY'LL GET THEIR BACK PAY, THE RESTAURANT YOUR WILL NOT SEE NEW BUSINESS AND WILL SEE A DEQLIEN BECAUSE THE FEDERAL WORKERS MAY NOT GO OUT BECAUSE THEY ARE NOT GETTING PAID DURING THAT TIME.

SO WHILE THE FEDERAL WORKERS GET PAID, SOME OF THE SUPPORT, THE GROCERIES, DRY CLEANERS, THEY MAY NOT SEE ANY NEW BUSINESS AND IN FACT A DECLINE IN BUSINESS.

>> Jeff: IT IS REALLY IMPORTANT HOW LONG A BLIP IT IS, I GUESS.

IF IT IS A FEW DAYS OR A WEEK VERSUS A MONTH OR MORE.

>> YES, AGAIN IF IT IS LESS THAN A WEEK, IT'S MORE OF A BUMP.

IF IT IS MORE THAN A MONTH, IT COULD HAVE REAL IMPACT ON PEOPLE'S HOUSEHOLD INCOMES ESPECIALLY HERE IN MARYLAND.

>> Jeff: I WAS GOING TO ASK AT ONE POINT IT FACTORS INTO ECONOMIC DATA THAT UNEMPLOYMENT REPORT AND ALL OF THAT, BUT AS WE ARE FINDING OUT TODAY, THERE IS NO ECONOMIC DATA.

>> RIGHT, SO I GUESS SOME WOULD SAY NO NEWS IS GOOD NEWS, BUT ONE COULD ARGUE THAT THIS IS MEANS THAT WE ARE GOING INTO THE MONTH NOT REALLY KNOWING WHERE WE STAND, ESPECIALLY FOR THE FEDS IN TERMS OF MAKING POLICY, YOU KNOW, THEY WANT TO HAVE THE MOST UP-TO-DATE TEAT KNOWING HOW STRONG OR WEAK THE LABOR MARKET IS WILL HELP DETERMINE THEIR NEXT DECISIONS WITH REGARDS TO INTEREST RATES.

>> Jeff: WE HAVE A CONSUMER DRIVEN ECONOMY.

CONSUMER CONFIDENCE BECOMES REALLY IMPORTANT.

AND I GUESS AS IT DRAGS ON, A SHUTDOWN, I MEAN IT COULD UNSETTLE OVERALL CONFIDENCE IN JUST THE COMPETENCE OF THE GOVERNMENT.

>> YEAH, AND WE HAVE SEEP THAT NUMBER TREND DOWN THE LAST COUPLE OF MONTHS.

IT'S SLIPPED A LITTLE BIT.

SO CONSUMERS ARE WORRIED ABOUT THEIR FUTURE PROSPECTS, AND EVEN THEIR CURRENT PROSPECTS.

SO THEY'RE CUTTING BACK A LITTLE BIT ON THEIR SPENDING.

YOU KNOW, OVERALL.

AGAIN, THERE IS ALSO MANY THINGS, TARIFFS, WHAT IS GOING TO HAPPEN WITH TARIFFS, WHAT IS GOING TO HAPPEN IN THE LABOR MARKET.

SO WHAT IS GOING TO HAPPEN WITH INFLATION?

THERE ARE A LOT OF THINGS GOING ON IN THEIR MINDS AS THEY FORM DECISIONS, ESPECIALLY AS WE ENTER INTO THE HOLIDAY SEASON.

>> Jeff: I'VE HEARD YOU TALK ABOUT THE MARYLAND ECONOMY BEFORE IN TERMS OF BEDS, MEDS, EDS AND FEDS.

SO LET'S RUN THROUGH THAT FOR A SECOND.

THE CENTRAL ISSUE IN THIS THING SEEMS TO INVOLVE FEDERAL SUBSIDIES FOR OBAMACARE PREMIUMS HOW IMPORTANT IS THE MEDICAL SIDE OF OUR ECONOMY?

>> SO THE MEDICAL SIDE OF OUR ECONOMY IS EXTREMELY IMPORTANT.

WE HAVE A WORLD CLASS HOSPITAL SYSTEMS, PLURAL, AND WE ACTUALLY EXPORT MANY MEDICAL SERVICES.

IT'S SORT OF A NICHE INDUSTRY WE HAVE IN MAJORITY LEADER.

MANY PEOPLE COME FROM ABROAD TO RECEIVE MEDICAL TREATMENT BECAUSE WE DO A GREAT DEAL OF RESEARCH IN THOSE AREAS.

WE HAVE NIH HERE.

UMB, JOHNS HOPKINS, AND AGAIN, WHEN WE TALK ABOUT THE MEDS PART, WHEN THE FEDERAL GOVERNMENT CUTS BACK GRANTS FOR MEDICAL RESEARCH, THAT IMPACTS OUR ABILITY TO BE ON THE CUTTING EDGE OF MEDICAL RESEARCH AND THEREFORE MEDICAL PROVISION.

>> Jeff: THE SHARE OF MEDICINE OVERALL THAT'S PAID FOR BY THE FEDERAL GOVERNMENT CONTINUES TO GROW.

IT'S AROUND 50%.

IT'S REALLY DISORGANIZED.

IT'S GROWING IN A HAP HAZARD MANNER, JUST BIG PICTURE.

WHEN AN ECONOMIST LOOKS AT THE AMERICAN HEALTHCARE INDUSTRY, WHAT DO YOU SEE?

>> WELL, IT'S SORT OF DISJOINTED.

IT'S, YOU KNOW, IT'S NOT BUILT TO SCALE.

THERE ARE JUST MANY, YOU KNOW, YOU CAN ALMOST THINK OF NATIONAL-- MANY DIFFERENT RULES AND REGULATIONS ACROSS DIFFERENT STATES AND JURISDICTIONS, WHICH MEANS THAT EACH HEALTHCARE PROVIDER, INSURANCE PROVIDER HAS TO ABIDE BY DIFFERENT RULES.

SO IT RATHER, TO YOUR POINT DISORGANIZED AND BECOMES VERY DIFFICULT TO MANAGE AND THERE ARE GREAT INEFFICIENCIES ASSOCATED WITH THAT.

I KNOW IN THE FIRST TERM OF PRESIDENT TRUMP, HE DID INDICATE HE WANTED TO SORT OF WORK THROUGH THAT AND MAKE PERHAPS MORE OF A, YOU KNOW, A NATIONAL MARKET FOR INSURANCE.

AT ONE POINT THERE WAS A TALK OF COSTCO OFFERING INSURANCE BUT I THINK THEY STEPPED OUT REALIZING IT WAS TOO COMPLEX FOR EVEN THEM TO TACKLE.

>> Jeff: THE OTHER BIG WASHINGTON FIGHT AT THE BEGINNING OF THE TRUMP ADMINISTRATION HAS BEEN OVER IMMIGRATION.

AND THEY HAVE BEEN JUST SUPER AGGRESSIVE TO PUT IT MILDLY.

HOW DO YOU SEE THE ROLE OF IMMIGRANTS IN THE MARYLAND ECONOMY AND OVERALL AND IF THAT COMES UNDER PRESSURE?

>> WELL, SO IMMIGRANTS MAKE UP ABOUT 20% OF MARYLAND'S OVERALL LABOR FORCE.

AND THEY'RE MAINLY CONCENTRATED, I LIKE TO SAY THE DEADLY DULL AND DANGEROUS TYPES OF JOBS.

SO THEY TEND TO DO THE JOBS THAT NO ONE ELSE WANTS TO DO.

SO WORKING, YOU KNOW, TRAGICALLY THE SIX INDIVIDUALS KILLED ON THE KEY HIGHWAY WHERE IMMIGRANTS AT 1 A.M.

IN THE MORNING, REDOING THE HIGHWAY, SO THAT HAS BEEN A HUGE CHALLENGE.

AND ACTUALLY, FOR THE NATION, WE ARE ABOUT 18% WITH IMMIGRANTS IN TERMS OF THE EMPLOYMENT AND OUR ENTIRE POPULATION GROWTH LAST YEAR WAS DRIVEN BY IMMIGRATION.

SO WE ARE NOT, AS AN ECONOMY LOOKING TO INCREASE ITS LABOR FORCE, WE ARE ACTUALLY TAKING AWAY LABOR FORCE THAT WOULD ACTUALLY SERVICE BETTER.

>> Jeff: THERE IS SO MUCH CONCERN ABOUT HOUSING.

THE BEDS PART OF BEDS, EDS, MEDS AND FEDS AND A LOT OF PEOPLE THAT DO THE CONSTRUCTION WORK, OF COURSE, ARE IMMIGRANTS AND A LOT OF THAT ACTIVITY IS UNDER PRESSURE OR HAS GONE UNDERGROUND A BIT.

YOU CAN TALK ABOUT HOUSING A LITTLE IF YOU WANT, WHICH BRINGS US TO THE IDEA THAT THE FED HAS JUST STARTED TIP TOEING INTO RATE CUTS.

>> YEAH, HOUSING IS A COMBINATION OF MANY THINGS, BUT ONE OF THE BIGGER CHALLENGES IS THE LAND AVAILABILITY, SOME OF THE LAWS AROUND THOSE THAT LAND, AND SO WHILE THERE IS, IN SOME CASES ENOUGH LAND, MANY OF THE LAWS AND ZONING REQUIREMENTS, YOU KNOW, DON'T ALLOW HOUSING TO BE BUILT IN THOSE AREAS, WHICH FURTHER EXACERBATES THE CHALLENGES.

LAYER ON TOP OF THE THAT, A SHORTAGE OF CONSTRUCION WORKERS WHICH WE ALREADY HAD PRE-PANDEMIC, THERE WAS THE ISSUE OF NOT ENOUGH CONSTRUCTION WORKERS.

THEY WERE RETIRING AT A FASTER RATE THAN THEY COMING IN.

THAT LED TO BASICALLY HUGE SHORTAGES AND THEN ALL OF A SUDDEN LAY ON TOP OF THAT, ENHANCED DEPORTATION PROJECTS.

THAT MEANS THAT THE CONSTRUCTION INDUSTRY IS FACING SOME SEVERE LABOR SHORTAGES, WHICH BASICALLY MEANS THE COST OF HOUSING, THEN LAYER INTO THAT, THE TARIFFS, SO WE ESTIMATE SOMEWHERE THE COST OF BUILDING A HOUSE HAS GONE UP SOMEWHERE BETWEEN 18 TO 22% JUST BEFORE YOU EVEN BUILD A HOUSE, IT'S GOING TO COST YOU THAT MUCH MORE.

>> Jeff: WHEN AN ECONOMIST LOOKS AT TARIFFS, WHAT DO YOU SEE?

>> IT'S A TAX ON CONSUMERS AND AGAIN, DEPENDING ON-- AND NOT TO GET TOO, YOU KNOW, DEEP INTO THE WEEDS, BUT YOU KNOW, THE IDEA BEING THAT IF THE IMPORTED GOOD IS THE ONLY GOOD THAT IS AVAILABLE, THE HOUSEHOLD WILL LIKELY PAY ALL OF THE TARIFFS.

BUT IF THERE ARE OTHER SUBSTITUTES FOR THE GOOD, THE HOUSEHOLD MAY PAY A PORTION OF THE TARIFF.

DEPENDING ON THE AVAILABILITY OF GOODS SUBSTITUTES, THE TARIFF COST MAY BE MITIGATED BY THAT.

BUT IT IS A TAX ON THE HOUSEHOLD S. THE COSTS DO GET PASSED ON AT SOME POINT TO THE HOUSEHOLD IN TERMS OF HIGHER PRICES.

>> Jeff: BACK TO THE FEDS.

AND OF COURSE MARYLAND HAS A LARGE NUMBER OF FEDERAL WORKERS, THE D.C.

SUBURBS, SOUTHERN MARYLAND, A COMPANY TOWN FOR THE FEDERAL GOVERNMENT.

WE HAVE TWO THINGS HAPPENING.

WE HAVE THIS SHUTDOWN WITH A LOT OF PEOPLE TEMPORARILY OUT OF WORK.

BUT WE HAVE A LOT OF PEOPLE PERMANENTLY LEAVING THE FEDERAL WORKFORCE, EITHER JOBS ELIMINATED OR THEY TOOK THE BUYOUT.

THE NUMBER WE SAW FROM THE COMPTROLLER'S OFFICE WAS 15,000 MARYLANDERS OFF THE FEDERAL PAYROLL SO FAR.

MAYBE ANOTHER 10,000 TO COME.

WHAT IS THE IMPACT OF THAT?

>> SO THAT'S A SIGNIFICANT IMPACT.

SO MARYLAND HAS ABOUT ROUGHLY ABOUT 00,000 INDIVIDUALS-- 300,000 EMPLOYED DIRECTLY OR INDIRECTLY BY THE FEDERAL GOVERNMENT, SO WITH EVERY JOB LOSS IN THE FEDERAL GOVERNMENT, YOU ARE LOSING ANOTHER TWO JOBS IN TERMS OF, YOU KNOW, INDIRECT AND INDUCED JOBS.

SO-- >> Jeff: EXPLAIN THAT IF YOU WOULD.

HOW DOES THAT WORK?

>> FOR EXAMPLE, WHEN A FEDERAL, YOU KNOW, A FEDERAL WORKER, YOU KNOW, GOES TO WORK EVERY MORNING, THEY MAY STOP AND GET SOME COFFEE.

THEY MAY, YOU KNOW, ARE PAYING A MORTGAGE, DOING DRY CLEANING IN SOME CASES, GROCERIES, ALL THOSE THINGS.

ALL THAT INCOME, IF IT IS GONE, MEANS THAT, YOU KNOW, THEY'RE NOT PAYING FOR GROCERIES OR THEY MAY BE MOVING OUT OR THEY MAY HAVE A DIMINISHED AMOUNT OF MONEY BEING SPENT.

THEN THERE IS ALSO THE B TO B. FEDERAL GOVERNMENT NEEDS TO BUY COMPUTER, PAPER, THE OFFICES CLEANED.

SO WHEN THOSE GET DIMINISHED, THOSE SERVICES ARE NO LONGER NEEDED.

SO WE HAVE AN INDIRECT EFFECT OF BUSINESS TO BUSINESS PURCHASES AND THE INDUCED EFFECT WHICH IS THE HOUSEHOLD PURCHASES.

BOTH THOSE ARE LIKELY TO GO DOWN BECAUSE OF THE DIMINISHED FEDERAL WORKFORCE HERE IN MARYLAND.

>> Jeff: NEXT MONTH, I BELIEVE, THE ANNUAL RESI THOMSON EVENT IS COMING UP.

THAT'S A BIGGIE VENT FOR THE HIGHLY ANTICIPATED EVENT.

>> YES, THE BIG 3-0.

IT'S BEEN SINCE 1995 WE HAVE BEEN PUSHING OR PUTTING ON THESE EVENTS FOR THE PUBLIC.

THIS YEAR IT'S GOING TO BE VERY EXCITING IN TERMS OF THE WHAT WE HAVE, WE HAVE OBVIOUSLY MY PRESENTATION ON THE FORECAST WHICH MAY NOT BE AS EXCITING AS PEOPLE WANT IT TO BE.

BUT THEN WE HAVE A WONDERFUL PANEL MODERATED BY OUR OWN JEFF SALKIN AND FOUR WONDERFUL INDIVIDUALS WHO WILL REALLY DIVE DEEP AND PROVIDE SOME INSIGHT INTO MARYLAND'S ECONOMY.

>> Jeff: FOR PEOPLE WHO WANT MORE INFORMATION, I DON'T BELIEVE THERE IS A CHARGE FOR IT, IS THERE?

>> IT IS FREE AND INCLUDES A BREAKFAST AND, AGAIN, LOOK FOR OUR ECONOMIC FORUM OUTLOOK 2025.

>> Jeff: WE APPRECIATE YOUR TIME.

THANK YOU VERY MUCH.

>> Jeff: THE MOORE ADMINISTRATION LAUNCHED LONGEST MAJORITY LEADER.

WE TALKED ABOUT IT WITH CARMEL ROQUES, SECRETARY OF MARYLAND DEPARTMENT OF AGING.

>> THIS IS OUR SIGNATURE INITIATE RIGHT NOW IN THE DEPARTMENT ON AGING.

AND WHEN I FIRST CAME INTO PUBLIC SERVICE, AND TALKED TO THE GOVERNOR ABOUT THIS, ONE OF THE THINGS THAT WE HAD AS SORT OF A SHARED VALUE AND APPROACH WAS TAKING AN ALL OF LIFE COURSE, ALL OF GOVERNMENT MULTI-SECTOR APPROACH TO TACKLING VERY COMPLEX AND IMPORTANT ISSUES AND.

AND FOR MARYLAND, AS A STATE THAT IS AGING RAPIDLY, THIS IS NOT A CATASTROPHE.

IT'S FREQUENTLY, I THINK, PRESENTED THAT WAY.

FOR MARYLAND, THAT HAS A QUARTER OF ITS POPULATION IN A VERY SHORT YEARS WILL BE OVER THE AGE OF 60, AND WILL BE LOOKING AT THAT DYNAMIC IN THE POPULATION WHERE WE HAVE OVER 60 AND UNDER 18 SAME LEVEL IN TERMS OF POPULATION, THE GOVERNOR RECOGNIZED THAT THIS WAS REALLY A TIME FOR US TO BE VERY STRATEGIC ABOUT HOW WE APPROACH PREPARING FOR THIS DEMOGRAPHICS PHENOMENON AND ALSO BEING VERY INTENTIONAL ABOUT WHAT IS HAPPENING FOR OLDER PEOPLE LIVING IN MARYLAND NOW AND WHAT ARE THE THINGS THAT THEY'RE CONCERNED ABOUT AND HOW CAN WE BEST GO ABOUT MEETING THEM.

>> Jeff: TELL US MORE ABOUT THE DEMOGRAPHIC TRENDS.

OBVIOUSLY INDIVIDUALLY WE ARE ALL GETTING OLDER, BUT SOMEHOW, AS A SOCIETY, WE ARE GETTING OLDER, TOO.

>> SO ACTUALLY IT'S A WORLDWIDE POPULATION DISRUPTION IS THE WAY THEY TALK ABOUT IT.

AND THE OVERALL PEOPLE ARE LIVING LONGER.

THAT'S BASICALLY WHAT IS HAPPENING, BUT THERE ARE A COUPLE OF OTHER PARTS TO IT AS WELL.

PEOPLE ARE LIVING LONGER, BUT WE ARE SEEING LOWER BIRTH RATES.

SO FEWER CHILDREN ARE BEING BORN.

AND IN MARYLAND, AS IS TYPICAL OF A LOT OF OTHER STATES ACTUALLY IN THE COUNTRY, OUR POPULATION IN MARYLAND WOULD BE SHRINKING EXCEPT FOR THE PEOPLE WHO ARE IN MIGRATING AND MANY OF THOSE PEOPLE ARE IMMIGRANTS, AND SO PART OF WHAT IS KEEPING OUR POPULATION SORT OF MORE ROBUST, AS WE HAVE OLDER PEOPLE AND YOUNGER PEOPLE AND THIS DYNAMIC OCCURRING, IS THE WAY WE HANDLE IMMIGRATION.

IT'S A COMPLEX ISSUE.

IT'S WORLDWIDE.

IT'S NOT JUST MARYLAND OR JUST THE UNITED STATES.

SO WE HAVE 1.4 MILLION PEOPLE IN MARYLAND OVER THE AGE OF 60.

AND THE FASTEST GROWING PART OF THAT POPULATION ARE FOLKS OVER THE AGE OF 85.

AND WE REALLY-- WE ARE NOT SET UP FOR THAT, I THINK IS THE EASIEST WAY TO SAY IT.

>> Jeff: I READ THAT YOU WANT TO REFRAME WHAT IT MEANS TO BE A SENIOR CITIZEN.

WHAT DO YOU HAVE IN MIND?

>> WELL, I THINK FIRST AND FOREMOST, WHAT WE NEED TO BE BETTER AT DOING IS LOOKING AT THE WHOLE PICTURE.

AND WE HAVE A NARRATIVE IN THIS COUNTRY THAT SAYS THAT GROWING OLD IS NOT A GREAT OUTCOME, AND THAT OLDER PEOPLE ARE FRAIL, VULNERABLE, SUCK UP A LOT OF RESOURCES AND GENERALLY DON'T CONTRIBUTE.

AND THAT IS NOT THE STORY ACTUALLY.

SO WHAT WE NEED TO DO IS SORT OF SHIFT THAT NARRATIVE TO RECOGNIZE THAT OLDER PEOPLE CONTRIBUTE MASSIVELY TO THE ECONOMY.

A THIRD OF THE WORKFORCE IS OVER 50.

THE 65 PLUS GROUP IS THE PASTEST GROWING-- FASTEST GROWING OF NUMBER OF PEOPLE IN THE WORKFORCE.

CONTRIBUTE IN THE WAY THAT THEY START BUSINESSES AND THE WAY THAT THEY CONSUME PRODUCTS, THE WAY THEY SUPPORT FAMILIES AND COMMUNITIES, THE WAY THEY CONTRIBUTE TO THE VOLUNTEER POPULATION AND SO WHAT WE REALLY WANT TO HAVE HAPPEN IS PEOPLE TO UNDERSTAND THAT BEING OLDER IS NOT THE SAME THING AS BEING SICK OR BEING IMPOVERISHED OR BEING ISOLATED OR HAVING A PURPOSELESS LIFE.

AND THAT GROWING OLDER DOES NOT HAVE TO MEAN ALL OF THOSE THINGS.

AND WE CAN DESIGN FOR OUR SOCIETY IN A WAY THAT OLDER PEOPLE HAVE HEALTH SPANS THAT MATCH THEIR LIFESPANS, WHICH IS NOT TRUE NOW; THAT HAVE WEALTH SPANS THAT MATCH THEIR LIFESPANS AND REALLY IMPORTANTLY, ARE FULLY INTEGRATED INTO SOCIETY.

WE LIVE IN A VERY AGE SEGREGATED SOCIETY.

AND SO THAT'S WHAT WE ARE LOOKING FOR WITH THIS 10-YEAR PLAN.

>> Jeff: WELL, WITHIN THE 10-YEAR PLAN, GIVE ME SOME OF THE SPECIFICS.

WHAT ARE SOME OF THE INITIAL IDEAS THAT YOU WILL BE ROLLING OUT?

>> SO WE ARE CONCERNED ABOUT PROTECTING MARYLANDERS AGAINST THE FEDERAL ACTIONS THAT ARE CUTTING SAFETY NET BENEFITS.

SNAP BENEFITS, WHICH IS NUTRITION, AND MEDICAID, WHICH IS HEALTHCARE AND SOME OTHER RESOURCES.

AND WE KNOW THAT OLDER MARYLANDERS PARTICIPATE ACTIVELY IN THOSE PROGRAMS.

109,000 OLDER MARYLANDERS DEPEND ON MEDICAID.

OVER 30% OF OLDER MARYLANDERS REVENUE TRIGSAL BENEFITS THROUGH THE SNAP PROGRAM.

SO WE ARE LOOKING AT-- WHAT CAN WE DO TO HAVE AN IMPACT AROUND THAT BUT WHAT ARE SOME OF THE OTHER OPPORTUNITIES?

WE HAVE STARTED WORKING WITH OTHER AGENCIES.

THAT'S OUR APPROACH.

THE DEPARTMENT ON ITS OWN CAN'T SOLVE THIS OR CHANGE THE COURSE OF SOME OF THIS.

WE HAVE TO WORK WITH OUR DEPARTMENT OF HUMAN SERVICES AND OUR DEPARTMENT OF HOUSING, OF LABOR, OF HEALTH, SO WE ARE WORKING ON THE MARYLAND ACCESS POINT, CALLED MAP, WHICH IS THE NO WRONG DOOR SYSTEM, WHICH IS WHERE PEOPLE GO TO FIND OUT ABOUT WHAT IS AVAILABLE.

AND WE ARE WORKING ON THAT TO STREAMLINE THAT AND MAKE THAT MORE ACCESSIBLE FOR PEOPLE.

AND WE ARE WORKING WITH OUR TECHNOLOGY AGENCY.

BUT ALSO WITH THE DEPARTMENT OF HUMAN SERVICES BECAUSE THEY HAVE A WHOLE CONTINUUM OF BENEFITS THAT PEOPLE ARE ELIGIBLE FOR.

AND WHAT WE WANT IS WHEN SOMEONE COMES TO THE MARYLAND ACCESS POINT, FOR THEM TO KNOW VERY QUICKLY, I'M ELIGIBLE FOR THE FOLLOWING THINGS.

AND THEN THERE IS A UNIVERSAL APPLICATION THEY CAN DO.

THAT'S AN EXAMPLE OF USING SOMETHING THAT IS ALREADY IN PLACE, IMPROVING ON IT AND WORKING WITH A SISTER AGENCY ON IT.

AND WE ARE DOING THE SAME THING BECAUSE YOU KNOW, HOUSING IS SUCH A HUGE ISSUE RYE NOW THE.

AFFORDABLE HOUSING-- IS IMPACTING ALL FAMILIES AND ALL GENERATIONS.

SO WORKING WITH THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT, WE ARE LOOKING AT PEOPLE WHO ARE BECOMING UNHOUSED BY VIRTUE OF THE FACT THAT THEY'RE ON FIXED INCOMES AND HOUSING COSTS ARE GOING UP AND HOW CAN WE CREATE THAT CONTINUUM OF CARE AND SAFETY NET FOR THOSE FOLKS SO THAT THEY DON'T BECOME PERMANENTLY UNHOUSED?

AND THAT WE CAN ACTUALLY LOCATE HOUSING FOR THEM AND GET THEM REESTABLISHED.

SO IT'S THOSE KINDS OF THINGS THAT WE ARE WORKING ON.

>> Jeff: ARE THERE SPECIFIC PROGRAMS THAT YOU WISH WERE BETTER UTILIZED BY THE PUBLIC?

ARE THERE PROGRAMS THAT ARE REALLY WELL UTILIZED THAT YOU WISH YOU HAD MORE RESOURCES FOR?

>> I THINK JUST, YOU KNOW, IN ALL HONESTY, OUR SOCIAL CARE NETWORK, YOU KNOW, THAT FOCUSES ON THE COREY SENGSES:-- CORE ESSENTIALS, HOUSING, FOOD, MEDICINE, ALL OF THEM COULD USE ADDITIONAL RESOURCES.

AND I THINK IN THESE TIMES OF COST CONSTRAINTS, IT IS REALLY IMPORTANT THAT WE ARE TAKING ADVANTAGE OF WHAT IS AVAILABLE AND HOW MORE IMPORTANTLY, HOW CAN WE BE SURE PEOPLE KNOW WHAT IS AVAILABLE AND CAN READILY ACCESS IT?

AND THAT'S WHERE I THINK THE FACT THAT THE OLDER AMERICANS ACT AND SOME OF OUR STATE FUNDING HELPS TO SUPPORT THE LOCAL AREA AGENCIES ON AGING BECAUSE THAT'S WHERE, RIGHT AT THE COUNTY LEVEL, A PERSON CAN WALK IN THE DOOR OF A SENIOR CENTER OR A COUNTY AGENCY ON AGING AND TALK TO A HUMAN BEING.

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

THANK YOU FOR WATCHING.

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