Dear Friends:

The 2008 legislative session of the Maryland General Assembly ended Monday April 7^th at midnight. This session dealt with many serious issues that continued from the Special Session last fall. After our efforts to address the structural deficit, it became clear that hard choices would continue this year. As with each of you, when there is less money, each program or expense has to be analyzed to determine if it needs to be kept, ended, or scaled back.

Based on the number of you who contacted us and came to Annapolis last fall and this session, the consensus was that basic services need to be maintained and not cut or eliminated. All of the testimony called for continued funding at the present levels for education, social services, and transportation. However, this meant there was little money to go toward expansion of programs or new programs that would enhance our state. This year in the Ways and Means Committee alone, we heard bills requesting tax credits for programs with a price tag of over $597 million dollars. Due to the present economic conditions most of these bills received an unfavorable consideration, including my bill HB1094 – Sales and Use Tax – Nonprofit Organizations which would have benefited non-profits throughout Charles County and the State.

Accomplishments for 2007/2008

Over $1.1 billion in cuts from the state’s general fund and nearly $1.5 billion in cuts from the budget overall.

A more progressive income tax structure that results in no increase in the rate paid by 95% of Marylanders, and a tax cut for 72% of filers in the form of an increased standard exemption.

An increase in the Sales Tax from 5% to 6% which is still regionally competitive – the cost of which is offset for most residents by the increased standard exemption in the income tax.

A corporate income tax that is among the lowest in the region. Maryland’s corporate income tax is 8.25%. By comparison, businesses in Pennsylvania pay 9.99%, D.C. 9.975%, New Jersey 9%, West Virginia 8.75%, Virginia 6%, and Delaware 8.7%.

Placed $240 million in the “Rainy Day Fund” to protect our future needs.

Retained Maryland’s AAA Bond Rating – one of only 6 states in this class.

A fully funded K-12 public education system, including an accelerated phase-in of the Geographic Cost of Education Index to help our local schools.

Nearly three-quarters of a billion dollars invested in public school construction and renovation.

A third consecutive year without a tuition increase at the University System of Maryland and Morgan State University. As a result of not raising tuition, more of our students can take advantage of our excellent higher educational system.

An innovative public-private partnership to close the Medicare Part D “donut hole” and help 30,000 Maryland seniors struggling with rising drug prices.

Enhanced protections for home buyers and Marylanders facing foreclosure – legislation widely expected to become a national model in solving the mortgage crisis.

Significant investment in Chesapeake Bay restoration, including a stronger Critical Areas law designed to protect against development along the Bay’s shoreline.

This of course does not cover all of the important issues facing us or the actions taken by the General Assembly. As you can see, these commitments insure that we will not only maintain but improve the quality of life for all of us.

Thank you again for giving me the opportunity to represent Charles County, District 28 as your delegate. This has been a rewarding and fulfilling experience for me. If you or any interested group would like to discuss this session or particular legislation with me, please call (301) 858-3247 or write to my office at peter.murphy@house.state.md.us.

With warmest regards,

Sincerely,

Peter F. Murphy

Charles County, District 28