Franchot Blog

This week I was in Ocean City for the annual Maryland Municipal League (MML) conference. Like our state government, many of our municipalities are facing fiscal crises. As Comptroller, I'm working in Annapolis to eliminate wasteful spending and operate government more efficiently, as so many of our cities and towns are doing in these tough times.

Now more than ever, we need fiscal watchdogs in Annapolis. I hope you'll support my call for fiscally responsible economic stimulus by attending or marching with me at Independence Day parades in Dundalk, Towson, Arbutus, Catonsville, Annapolis, Havre De Grace or Joppatowne.

RSVP FOR THE INDEPENDENCE DAY PARADES!

PLEDGE TO MARCH WITH ME!

At this week's MML convention, I delivered a keynote speech that included a call for fiscal responsibility in light of our shared budget difficulties. During my time in Ocean City, I also walked the Boardwalk to meet with some Maryland small businesses. I'm pleased to report that while our national economic downturn has affected every sector of the Maryland economy, Marylanders are still taking to the beach and spending money at our small businesses. It is always informative to get out in the community and talking to the people who are on the front lines of the economic recovery.

After leaving Ocean City, I spoke to a packed room of business leaders at a lunch meeting of the Dorchester County Chamber of Commerce, and then joined Talbot County officials for a tour of Oak Creek Landing, a successful land preservation initiative that I was proud to support as a member of the Board of Public Works. For me, these events reinforced the importance of the intersection between environmental sustainability and economic vitality.

On the 4th (and 5th!) of July, I'll be taking my call for fiscal responsibility and independent leadership to communities across the state at parades across the state. If you plan on attending the parade please RSVP. I'd love to connect with you. I am also writing to extend a personal invitation to march with me in the parades. We'll be in Dundalk, Towson, Arbutus, Catonsville, Annapolis, Havre De Grace and Joppatowne. For all of you that join us, you'll receive one of our brand new t-shirts free of charge! I do hope you'll march and show your support.

I hope to have more of those conversations over the Independence Day holiday. Please join me at an Independence Day parade near you.

RSVP FOR THE INDEPENDENCE DAY PARADES!

PLEDGE TO MARCH WITH ME!

Thanks so much for your time. Happy 4th of July, and, remember, American and Maryland flags are exempt from the state sales tax! Join me in flying the flag high and proud this Independence Day.

On Tuesday, Comptroller Peter Franchot spoke to the Dorchester Chamber of Commerce about the state of the economy. Comptroller Franchot:

The economy is a mess. Twenty-five to 30 percent of all of the wealth that we have in the state of Maryland has vanished. Home values have gone down, retirement accounts have been savaged by the stock market and many people lost work...

We had to do this enormous stimulus package to get the economy moving again and I support that. Frankly, there is no other alternative other than to really get into some serious economic decline.

In Maryland, the Board of Public Works is an important institution to ensure that the stimulus money is spent wisely. Comptroller Franchot is working to ensure that the Board spends the money on projects that will create jobs and help Maryland businesses. Franchot:

I want to make sure only good projects are given stimulus money.

Franchot pointed out his questioning of using stimulus money to help those who don't need it, like when a developer in Trappe requested $18 million to build a sewage treatment plant. Franchot:

That is why I put my hand up when I noticed $18 million of your money was slated to go to a developer in Trappe for a sewage treatment plan...The project has since been taken off the list for receiving stimulus money.

Comptroller Peter Franchot will continue to be your fiscal watchdog in Annapolis.

An editorial in today's Carroll County Times praises Comptroller Peter Franchot for his call for fiscal responsibility. The Carroll County Times:

State Comptroller Peter Franchot, in a visit to the Carroll County Times on Tuesday, said the state was in a “fiscal emergency.” This year the state patched budget holes with federal stimulus money, he said, but that money won’t be available next year and our budget problems will be.

“There’s a cliff coming in 2010 and we’re going to drop off it with a thud,” he said.

Franchot said that the state needs to go through its budget department by department in a series of performance audits to make sure that we are spending our tax dollars wisely.

“What are the citizens getting and is it a worthwhile investment,” he said.

Other states have seen cost savings by doing similar audits, and Maryland could see similar results.

“We need a top to bottom scrubbing of state spending,” he said.

The Comptroller is right.

Franchot is doing his part. He's promoting cost saving measures in the Comptroller's office. And, he isn't afraid to assert his independence and speak up against wasteful spending on the Board of Public Works.

Read the full editorial and pass it on to your friends.

One of the obligations of the Comptroller's office is to make sure Maryland's gas is safe. Yesterday, Peter Franchot outlined what his office was doing to protect Maryland's motorists.

Watch the WJZ-13 report!

Watch the Fox 45 report!

If you suspect that a gas station is selling bad gas, contact the Comptroller's office immediately.

The Comptroller's office is in charge of Motor Fuel Inspection. Today, Comptroller Peter Franchot visited the Motor Fuel Testing Laboratory in Jessup and participated in a live analysis of gasoline samples to highlight the agency’s efforts to protect consumers at the pump. Comptroller Franchot:

As the July 4th weekend approaches and Marylanders get ready to hit the road, I believe it is important to educate consumers about what they can do to protect themselves at the pump at a time when the family budget is tight.

The work done daily at this facility is vital in our agency’s efforts to prevent the sale of poor quality fuel and ensure that people get their monies worth each time they visit the gas station.

Franchot also unveiled tips for motorists on his website. These tips are designed to save you money at the pump. Check it out and pass it on.

Today's Dundalk Eagle highlighted Comptroller Peter Franchot's commitment to independent leadership and fiscal responsibility. The Dundalk Eagle:

Maryland comptroller Peter Franchot sounds like he could fit in well as a member of the 6th District legislative delegation.

He believes the state should cut spending before raising taxes. He thinks using one-time federal stimulus money to fund programs was shortsighted. And he doesn’t always toe the Democratic Party line.

“I love the Democratic Party, but I’m not a robot,” Franchot said during an interview Thursday at the Eagle office. “People like that I’m independent, willing to put my hand up once in a while.”

Franchot also talked about the need to hold the line on taxes and cut irresponsible spending. Franchot:

The immediate concern is not to burden people with more taxes, Franchot said.

“Individuals in Dundalk are tightening their belts, businesses are counting their pennies, but state government is not cutting back,” Franchot said.

“That’s foolish. We need to reform state spending before we talk about any tax increases. The public is under such financial stress, they can’t afford any more tax increases.”

Tax revenues collected from Baltimore County have fallen by almost 20 percent, Franchot said.

“The national economy is a mess, and having a dramatic impact on the economy in Maryland,” he said. “I see that reflected in the tax revenue we collect each month.

“The falloff is stunning. Not just that the state is getting less in taxes, but that families are losing so much wealth. It’s something that is very troubling. Working families are seeing their home values decline and their savings decline. That’s a lot scarier things for us than seeing a few millionaires lose money.”

The state needs to emulate those families, Franchot said: tighten belts, reduce spending and ride out the recession.

On the Board of Public Works, Franchot has repeatedly questioned unnecessary spending and stood up for the taxpayer. The Dundalk Eagle continues:

“You don’t want to start a program you can’t fund in the following years,” Stone said.

Doing that, Franchot said, will leave Maryland weaker when the economy eventually improves.

“When we come out of the recession, we’ll be a stronger state with good bones,” he said. “But we don’t want to come out of it with unsustainable spending plans. We need to get ahead of the curve, make sure our fiscal house is in order by reforming spending and making sure of our revenues.”

Franchot certainly has big ideas, but, he's also committed to being the best Comptroller he can be. Franchot:

For his part, Franchot is trying to increase state revenues in his job as Maryland’s tax collector by closing loopholes and cracking down on corporate tax cheats.

“We need to make sure every dollar owed the state under existing tax laws is collected before we think about new taxes,” he said.

To this end, according to Franchot, the comptroller’s office is:

* Aggressively pursuing nearing $500 million in taxes owed to Maryland by companies sheltering their income through Delaware Holding Company tax schemes;
* Successfully cracking down on a corporate tax loophole known as “captive” Real Estate Investment Trusts (REITS) deductions, which allowed companies to shelter significant amounts of taxable income;
* Intercepting taxes owed to Maryland by federal contractors, using the first-in-the-nation Federal Vendor Offset program (under which the U.S. government withholds money from contractors who owe taxes to Maryland). This is expected to bring in at least $20 million its first year;
* Supporting legislation to crack down on companies that misclassify their employees as independent contractors in an attempt to avoid paying their fair share of taxes and deny their workers the pay, benefits and protections they deserve. This will recoup an estimated $140 million if the bill is passed.
* Modernizing the state’s tax collection system, doubling the number of corporate auditors, and attracting and retaining the most qualified tax collectors.

“Ninety-five percent of people pay their taxes on time,” Franchot said. “Five percent cheat deliberately. We’ll leave the 95 percent alone, focus all of our auditing efforts on the 5 percent who thumb their noses at the state.”

Franchot is aggressively pursuing tax cheats and tax savings programs like efile. He's giving away millions in unclaimed property. He's taken to the job of Comptroller with vigor and will continue working on behalf of the people of Maryland.

Citizen's groups, County Commissioners, and State Delegates are praising Comptroller Peter Franchot for fighting to keep the Chesapeake College pool open. Franchot proposed that Project Open Space funds be used to keep the pool open. County Commission President Gene Ransom:

This is great. I'm glad he's getting involved. This is a potential solution. This money has been used for this purpose in other jurisdictions.

Republican Delegate Dick Sossi agreed:

It sounds pretty encouraging. We couldn't ask for more encouraging remarks.

And, so did Fred Koch of the Citizen's group Chesapeake Pool Revitilization:

That's great. This is fantastic.

Read more at The Star Dem.

Watch video of the press conference where Comptroller Peter Franchot announced the seizure of $9,000 worth of bootleg alcohol.

The Comptroller's agents along with Prince George's County police seized approximately 400 cases of illegal beer worth nearly $10,000. Comptroller Franchot:

As Comptroller, I have always vowed to protect law-abiding businesses and consumers. Therefore, I refuse to tolerate activities and practices that blatantly disregard Maryland tax laws. My agents will continue to partner with fellow law enforcement officials throughout the state to rid our streets of contraband and maintain a level playing field for all Maryland businesses and consumers.

Cracking down on contraband is part of the Comptroller's duties and Peter Franchot is doing his job.

So far in fiscal year 2009 ending June 30, Comptroller agents have had 90 alcohol violations confiscating 1,150 gallons of distilled liquor, 119 gallons of wine and 43,402 containers of illegal beer with a retail value of approximately $140,000.

Comptroller Franchot attended Tuesday's Maryland Democratic Party Gala. Here are some photos from the event:

With State Treasurer Nancy Kopp

With State Treasurer Nancy Kopp

With State Treasurer Nancy Kopp

With Party Chair Susan Turnbull