Franchot Blog

Earlier this month, we told you that Comptroller Peter Franchot's office helped the Frederick County Farm Bureau find $26,540 in unclaimed property. Today, the Frederick News Post reports that the find helped turn the Farm Bureau's red into black! The News-Post reports:

Frederick County Farm Bureau's surprise $26,540 it received recently from the state comes none too soon for the organization that's operating in the red for 2009.
Farm bureau officials had contemplated raising membership dues to keep the organization in the black before they received the money from Maryland Comptroller Peter Franchot.

"With this money, we've elected to hold raising dues," said Larry Howard, the bureau's treasurer. "This will certainly help us. We're just grateful to have it."
The money was found in the state's unclaimed property program. It came from stocks the bureau's directors had purchased 20 or 25 years ago.

Farm bureau president Tom Browning described the money as a windfall that came at a time when it was most needed.

"We will use it to supplement our current budget which focuses heavily on educational programs," Browning said. "We would like to have a comprehensive K to 12 agriculture education program so students are better prepared for careers in agriculture and to help keep them in the county."

This year, Comptroller Peter Franchot has aggressively promoted unclaimed property setting up booths at county fairs and events across the state, through newspaper advertisements and viral web videos.

You can find out if you have unclaimed property waiting for you at MarylandTaxes.com

Today, Comptroller Peter Franchot joined U.S. Senator Barbara Mikulski, Governor Martin O'Malley and United Way of Central Maryland President Larry Walton in pushing for a federal bill to provide Maryland with $800,000 for a 211 program.

211 will help connect Marylanders to health and human services programs.

Peter Franchot's birthday is on Wednesday, November 25th.

We can't think of a better birthday present than a contribution to his re-election campaign. Peter loves his job and he loves serving the people of Maryland. Every day, we see his honest and independent leadership help make Maryland more fiscally responsible.

We hope you'll join us in celebrating Peter's birthday by making a contribution to his campaign to support independent leadership in Annapolis!

CELEBRATE PETER'S BIRTHDAY BY CONTRIBUTING TO HIS CAMPAIGN!

On Thursday, it's also Thanksgiving. Even in these tough economic times, Thanksgiving is a time to reflect upon all that we have to be thankful for, especially the support of our friends and family. We hope you can take a moment and be generous enough to support Peter in a critical stretch as we head into the holidays.

Peter is doing his part to get Maryland on the right track. He's championing initiatives like Shop Maryland to encourage Marylanders to support local stores during the holiday season which serve as the engine of our State's economy. He's also focused on making financial literacy a requirement for high school graduation to ensure that the next generation is educated about financial decisions.

Peter works tirelessly for Marylanders day in and day out. We hope you'll support his campaign and join us in celebrating his birthday by making a contribution today!

CELEBRATE PETER'S BIRTHDAY! CONTRIBUTE TO HIS CAMPAIGN!

Comptroller Peter Franchot was in Easton yesterday morning touring downtown encouraging Marylanders to shop local.

Peter's dad even got in on the Shop Maryland action. The Star Democrat has the story:

Franchot's tour started this week in Frederick and will continue to other towns, including Cambridge, where he promotes shopping locally for the holidays.

"Lose the mouse," Franchot said. "Get off the Internet and patronize local business..."

"I'm normally down here collecting taxes, now I'm down here promoting," the comptroller said as his tour began.

At his first stop, Franchot's dad bought him an early birthday present of crab coasters and napkins from Lanham Hall. The comptroller has a birthday Nov. 25, and his father, Doug Franchot, wanted to buy him a present.

"My budget is $20," the elder Franchot said as store owner Nina Ayres Lanham helped the comptroller shop. At the cash register, Franchot spotted a faux fur vest he thought his wife might like.

"Those are pretty, are they expensive?" he said.

After shopping locally, Franchot reiterated his message that all Marylanders should support our local businesses:

Later that day, Franchot addressed the Talbot Chamber of Commerce. He touted his independence and commitment to fiscal responsibility:

"Just because I love the values and ideals of my party doesn't mean I have to follow every decision in lock step," he said, citing his opposition to the (thus far fruitless) legalization of slot-machine gambling in Maryland and a recent $3.1 million BPW purchase of swampland in Dorchester County as other examples where he disagreed with O'Malley and fellow Democrats. "I judiciously pick battles at Board of Public Works. I believe people appreciate that kind of independence."

Of his Democratic Party, Franchot said, "We need to adjust the traditional view that we've had of funding government programs." No tax increases are acceptable with the economy, he said. Instead, the state needs to conduct a "top-to-bottom scrubbing of spending" and find innovative ways to produce revenue, he said. For example, he recently spoke to a businessman who was able to cut health care costs by providing incentives for employees to live healthy lifestyles, he said...

Franchot said he hears little in terms of political ideology from the business community, just pragmatic approaches to solving problems and moving ahead, which will be needed to come through the recession.

"We have a very tough year ahead of us. Frankly, several years ahead of us," he said. "There's still a lot of fear and anxiety, albeit some faint glimmers of recovery."

As we move slowly toward a recovery, Comptroller Franchot will continue to focus on promoting fiscal responsible policies to help see Maryland through this economic storm.

Comptroller Peter Franchot took to the Baltimore airways pressing the case for a financial literacy requirement for graduation. Watch the report!

Comptroller Franchot said, "We're trying to give the kids a chance to get serious about their financial future."

The Comptroller hopes to enact this policy when the legislature meets next year.

It's hard to believe, but the holiday shopping season is upon us. Even during these hard economic times, you have plenty of choices for your shopping and I'm writing to encourage you to shop Maryland.

The national recession has taken an extraordinary toll on every sector of our state's economy - especially Maryland's small and independent business owners. These are folks who took enormous risks to start their own businesses in a world dominated by mega-malls, big box stores and Internet retailers. Businesses like these are the very backbone of vibrant downtown business districts and revitalized Main Street communities, and, unfortunately, too many of them are struggling to survive in this current economy.

Based on my own experiences with small businesses around the state, I'm confident that you will find unique merchandise, friendly and knowledgable customer service, and an enjoyable experience for the entire family. Furthermore, you will be supporting the very folks who sponsor our Little League teams, support our local charities and volunteer in our communities. This holiday season, I'm urging you to support Maryland's small and independent businesses.

Times are certainly tough, and many families will be saving more and spending less this year. This means tough times for Maryland's small businesses. It means that now, more than ever, we need to support our local businesses when we have the chance.

This holiday season, I'm going to be shopping Maryland and I encourage you to do so as well.

FIND SMALL AND INDEPENDENT BUSINESSES NEAR YOU!

Thanks so much for your time.

With the holiday season coming up, Comptroller Peter Franchot is urging Marylanders to do their shopping at Maryland retailers. This week, Comptroller Franchot was in Frederick where he shopped local. Among the Comptroller's stops was the Dancing Bear Toy Store with Del. Galen Clagett.

Revenues are now 6.6% lower than last year and revenues are off 2.3% from last October. Comptroller Peter Rranchot outlined the latest numbers in an open letter to Governor Martin O'Malley, House Speaker Michael Busch and Senate President Mike Miller:

Dear Governor, President and Speaker:

General fund revenues for the month of October totaled $892.8 million, a drop of 2.3% from October 2008 collections. For the fiscal year to date, general fund collections are $3.2 billion, 6.6% lower than at this time last year (see attached table). October is generally not a significant month for revenue collections. Performance is generally in line with expectations, which remain very low.

Individual Income Tax

Individual income tax withholding was down 3.9% for the month of October, marking a second straight month of decline in excess of 3%, although there was one less deposit day which, all else equal, reduced growth by about five percentage points. For the year to date, withholding has declined 1.4%. Estimated income tax payments increased 3.0% over last year, the first growth since February, though October is not a meaningful month for estimated income tax payments. Year to date, estimated payments have declined 25.4%. October does represent the last month in tax year 2008 returns can be timely filed. With those returns, $63.1 million of final payments were received, a decline of 2.3% from last year. Refunds remained at elevated levels, up 13.2% on the month and 21.8% for the year. All in all, general fund revenue fell 6.0% and remains down 7.8% for the year, but is on par with expectations.

Corporate Income Tax

While not a large month for corporate income tax collections, extension returns for calendar year taxpayers are due in October. Final payments increased 57.6% for the month, though a significant portion of that increase is actually due to assessments. Estimated payments were up substantially as well, 46.3%. Altogether, corporate receipts grew 52.7% over last year, although year to date collections remain depressed, down 6.1%. Refunds were down 50.1%, although that decline may be due in part to administrative issues. After distributions, the general fund contribution is down 13.3% year to date, but is consistent with expectations.

General fund sales tax receipts (September sales) fell 5.4% for the month and remain down 7.5% on the year. While perhaps not indicative that we have passed the bottom, October’s relatively mild monthly decrease in gross receipts, -6.2%, represents the smallest decline since March.

Lottery

General fund lottery collections were up 8.5% on a 4.7% increase in sales. Mega Millions led the sales charge, growing by 74.7% on a jackpot run-up which hit $200 million in the middle of the month. Monitor games, Keno and Racetrax, also excelled, with sales growing 7.3%. However, the sales increase only generated a 1.0% increase in revenues. While sales of Pick 3 and Pick 4 are down year to date, revenues are up 18.1% and 46.7% respectively on more advantageous prize payouts (from the State’s perspective). Instant ticket revenues gained 6.2% on a modest 1.5% growth in sales. Also of note, the annual disbursement to the Maryland Stadium Authority reached fulfillment in October, two months ahead of last year.

Other Revenues

While October is an insignificant month for the insurance premiums tax, the $6.4 million swing in revenues from last year to this is attributable to $3.6 million in refunds which were paid out last year. The 5.7% increase in inheritance taxes was more than offset by the 54.3% decline in estate tax collections. Interest from investments, down 69.1%, is still deeply affected by reduced treasury rates. A three month treasury note this past October offered 0.08% as opposed to 0.84% last year.

I hope this information is helpful. If you have any questions or concerns, please do not hesitate to contact me or David F. Roose, Director of the Bureau of Revenue Estimates.

Comptroller Peter Franchot was in Allegany County observing personal finance classes, a requirement for graduation in the county. Franchot is pushing to make that a statewide requirement. The Cumberland Times-News reports:

Allegany County public schools are “blazing a path” for the rest of the state in teaching young people how to handle their money, Maryland Comptroller Peter Franchot said Monday.

“We’re going to, frankly, stand on your shoulders,”said Franchot, who is pushing to make a semester-long financial literacy course a graduation requirement statewide.

Franchot, who has made trips to several other counties that mandate personal finance courses, visited a financial literacy class at Fort Hill High School Monday afternoon, chatting with students, the teacher and Allegany County Board of Education staff about how the program got started here.

The Allegany County Board of Education approved a financial literacy course last year, making it a graduation requirement starting with the Class of 2012. It’s currently offered as an elective for juniors and seniors.

“I’m not sure why Allegany and some other counties, which are not our most affluent areas, are moving forward with this and other areas are not,” Franchot said. “We want to export it to the larger counties. We think it’s going to have a positive impact on kids.”

One student told the Comptroller about the benefits of the class:

Fort Hill senior Sam Walker, who is taking financial literacy as an elective this fall, told Franchot the class is worth the time and effort.

“It teaches you some of the basic things like how to keep a checkbook and stay organized for when you go out in the real world and have to do those things,” Walker said.

Another senior, Katie Hoffman, told Franchot the class has allowed her to pass financial tips along to her parents.

“The reason we’re pushing this is because we’ve had this enormous economic recession,” Franchot said, “and it came about in part because a lot of consumers in this country were clueless as far as buying homes they couldn’t afford, treating their ATM machines like piggy banks. ... It got people in a lot of trouble.”

Comptroller Franchot will be pushing to make financial literacy a graduation requirement when the legislature reconvenes.

On Monday, Comptroller Peter Franchot was in Frederick presenting the Frederick County Farm Bureau with a $26,540 check. The Frederick News Post has the story:

The local farm bureau scored an unexpected early Christmas gift — $26,540.
The money was found in the state's unclaimed property program, which reunites people and organizations with funds they did not know they had.

During a visit to The Great Frederick Fair in September, Comptroller Peter Franchot's staff discovered the state had some money that belonged to the Frederick County Farm Bureau.

"Turns out years ago some of the directors made some investments in stocks but forgot to let other folks know about them," Franchot said Monday.

Franchot began a two-hour visit to Frederick at Volt restaurant on North Market Street, where he presented the $26,540 check to the agricultural organization.
Franchot said he's always happy to present people with money, but he was especially pleased because this time the recipient was the farm bureau, known for its efforts to advocate on behalf of farmers and help maintain Maryland's great agricultural tradition.

"Consider yourself reunited with your unclaimed property," Franchot said, presenting the check to Frederick County Farm Bureau President Tom Browning.

As he's been doing all year, Franchot went on to encourage all Marylanders to check to see if the Comptroller's office has unclaimed property for them. You can find out if you have unclaimed property waiting for you at MarylandTaxes.com

Franchot also took the opportunity to encourage Marylanders to shop local during this holiday season.

"As the holidays approach, I am encouraging all Marylanders to support their local businesses by shopping local," Franchot said. "You can find all the gifts and supplies you need right here in Maryland while at the same time supporting your community with economic activity that will help save jobs, keep stores open and bring in much-needed revenue to the state, the counties and the towns."

When it's time to make your holiday shopping trips, we encourage you to shop Maryland!