WYPR Segment on End of Session:
Maryland’s business community worked long and hard this legislative session but left Annapolis with few gains. In the long run, the anti-business bias of legislation passed this session will have two outcomes. First, the perception that the state is anti-business will continue. Businesses evaluating growth strategies that include locating to Maryland will think that the state is not aggressive about wanting them here. Second, in the long run, the anti-business perception means fewer companies and fewer jobs.
Some of the bills were weakened versions of good legislation. Some were just plain bad policy. The most egregious was certainly the Fair Share Health Care Fund Act that requires for-profit companies with 10,000 employees or more to pay a fee to the state if they spend less than eight percent of their payroll costs on health care benefits. On the surface, one might think this is a reasonable measure that ensures big companies provide adequate health care to its employees. But what it really does is open the door for legislation in the next session that will reach down to smaller companies, forcing them to make decisions not to expand their business in Maryland to avoid the threshold in this bill. In addition, it is just plain bad policy to make one company, the only one affected by this bill, pay for a state program. The Greater Baltimore Committee fought hard to keep this bill from becoming law because it does nothing to build a strong business community.
On the other hand, the GBC and other business groups worked diligently to pass two measures designed to help businesses grow and create more jobs. The first was renewal of the Research and Development Tax Credit program. We had hoped to get $12 million in credits made available, but the final version of the bill reduced that amount to $6 million – the amount of the original credit. We would have liked to have seen a legislature with the foresight to send a clear signal to companies eyeing Maryland that they are welcome to come here and that we understand the need to help them conduct research and development. If Maryland can’t see that, others states can and that gives them the advantage.
The same is true of the Biotechnology Tax Credit bill that lets investors claim credits for biotech investment of up to $50,000 for individuals and $250,000 for corporations. Although it is important that a biotechnology tax credit bill was approved, the version that passed was a pale sister of the original – again sending mixed messages to biotech companies and investors about Maryland desire to have biotechnology become a major industry in the state and region.
Tax credits aren’t about making companies rich. They are about building a business infrastructure that is strong, vibrant and sound. They are about jobs for individuals. Maryland needs to be sending a better message and the legislature needs to take a look at how best to do that.
With the Regional Business Report, this is Don Fry, President of the Greater Baltimore Committee for WYPR.
WYPR Segment: GBC celebrates 50 years of Baltimore’s modern “renaissance”
Many say that Baltimore’s acclaimed modern “renaissance” began 50 years ago, on January 5, 1955.
That’s when 83 business executives, including a young developer named Jim Rouse, founded the Greater Baltimore Committee -- or the GBC, as it’s known.
The idea behind creating the GBC was straightforward: form an action-committee of business leaders who would develop strategies to address Baltimore’s challenges. Then work with – and sometimes vigorously push and prod -- government leaders and civic partners to plan and accomplish key strategic projects to dramatically impact the business climate and quality of life in the city and region.
You might have heard of some of these projects:
Charles Center … The Jones Falls Expressway … The Civic Center now 1st Mariner Arena …Baltimore’s Inner Harbor … The Convention Center … The metro subway … Oriole Park at Camden Yards…M&T Bank Stadium … The Hippodrome Theatre … to name just a few.
The GBC has also tackled stubborn challenges such as education reform and homicide reduction. It’s worked to resolve political impasses on other issues ranging from city school funding to keeping major league sports in Baltimore. It has championed drug treatment as a crime reduction strategy and the development of mass transit – issues that must be addressed for Baltimore’s “renaissance” to continue.
The GBC didn’t build all of those projects by itself nor does it pretend to be able to, alone, address Baltimore’s many economic and social challenges.
That’s precisely the point of the Greater Baltimore Committee – leadership; to work as a catalyst for action-oriented teamwork that includes businesses, foundations, elected leaders, government, educators, civic groups, and the region’s talented workforce.
Although originally focused on Baltimore’s downtown development, today the GBC is much more. Recognizing that regions, and not individual jurisdictions, are the primary economic competitors in the global economy, its focus is regional in scope - covering Baltimore City, and Anne Arundel, Baltimore, Carroll, Harford, and Howard Counties.
But its work remains the same.
The GBC raises awareness, lays groundwork, educates and develops consensus, advocates and marshals the private and public resources to get things done.
Its priorities in 2005 include building the region’s bioscience industry, developing a true regional transit system, strengthening minority business, and improving higher education resources.
Happy 50th anniversary to the 500 business and civic leaders in today’s GBC who understand completely that in a free enterprise system … business must step forward and lead.
With the Regional Business Report, this is Don Fry, President of the Greater Baltimore Committee for WYPR.