Fact-checking claims in Hogan's State of the State
Gov. Larry Hogan's State of the State address portrayed Maryland as being back on the right track as he has completed his first year in office. ( Gail Burton/Associated Press )
In his State of the State address Wednesday, Gov. Larry Hogan made several claims, including about how he has improved Maryland's financial picture. Here's how claims stack up against facts.
TAXES AND FEES
Claim: “Marylanders are demanding relief from years of crippling tax and fee hikes. We are already delivering $600 million back into the pockets of Maryland's taxpayers.”
Analysis: The governor's office got to the $600 million figure by counting $270 million from toll reductions, $51 million in reductions of various fees, $3 million in tax relief for veterans that passed last year, $42 million annually in reductions to the unemployment insurance tax and up to $240 million in refunds to some taxpayers as a result of a court decision.
Not all of these reductions are of Hogan's doing. For example, the court case was brought by a Howard County couple who alleged they were unfairly double-taxed on income earned outside the state. After the couple was successful, county governments must now pay refunds to thousands of taxpayers.
And the unemployment tax rate is reset by law each year based on how much money is in the state trust fund to pay unemployment claims.
As for the savings on tolls, the $270 million estimate actually represents five years of lowered tolls. Drivers will pay $54 million less per year under the toll reductions that were approved last year.
INCREASED REVENUE
Claim: “We have seen a jump in tax revenues, not because we raised taxes, but because we are growing our economy. Revenues are now $150 million higher, and we have already eliminated nearly 90 percent of the $5.1 billion structural deficit that we were faced with at this time last year.”
Analysis: Hogan's boast about eliminating most of the structural deficit exaggerates an undeniable improvement in the state's fiscal picture. Warren Deschenaux, the General Assembly's chief analyst, said the $5.1 billion figure comes from a dismal 2014 estimate that showed what the deficits would total over five years if nothing was done.
Also, while the long-term shortfalls have been helped by the spending cuts enacted since Hogan took office, the deficit has also been helped by budget trims that Gov. Martin O'Malley proposed before leaving office. But the biggest contributions toward reducing the long-term deficit are the additional revenue coming into the state and a decrease in costs, primarily in Medicaid
MONEY FOR ENVIRONMENT
Claim: “This year, we are investing $53 million for the Chesapeake and Atlantic Coastal Bays Trust Fund — the highest level of funding ever, since it was established. This marks the first time in state history that funding dedicated specifically for restoration of the Chesapeake Bay is not being diverted to the General Fund.”
Analysis: Hogan is indeed putting $53 million into the fund and pays for environmental restoration projects — a part of his budget that was cheered by the Chesapeake Bay Foundation. The foundation's Alison Prost noted that “shifting some of these funds to other purposes has become an Annapolis tradition,” though she said environmentalists will watch closely to make sure next year's money is spent on projects they deem worthy.
GERRYMANDERING
Claim: “In Maryland, we have the unfortunate distinction of being the most gerrymandered state in the entire nation.”
Analysis: Maryland's congressional districts make little sense to most Marylanders. An analysis from Azavea, a geographic data firm, rated Maryland as the worst state when it comes to having districts that are not compact. Hogan is promoting a plan for an independent commission of three Democrats, three Republicans and three members who are not from either of those parties to redraw district lines.
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