Maryland S Business

After the inauguration parties end on Jan. 18, the next governor will discover how hard it will be to give Maryland the coordination and reputation needed to revive an economy that has been battered in the last six years and badly lags behind the nation in economic recovery.That formidable reality emerges from 47 interviews over three months with executives both in and outside Maryland, economists, state officials, economic development authorities and others.Maryland has many elements working in its favor -- an excellent location, an educated work force and a superb transport system.

Three out of every four companies in Maryland expect to add jobs this year, buoyed by revenue growth and their perception of a favorable business climate, according to a University of Baltimore survey released yesterday. The study, primarily funded by state agencies, polled 250 businesses in the final three months of last year. It is conducted quarterly, though the university said it is unclear if it will continue because coordinators have yet to find enough sponsors to cover this year's $63,000 tab. Businesses' expectations for 2006 are high: 73 percent predicted employment growth and 77 percent anticipated revenue growth, the survey found.

ACCORDING to the gospel of Gov. Parris Glendening, politics and economics make perfect bedfellows.His very first state of the state message reads like the boilerplate fizz from a Chamber of Commerce recruitment brochure which, in fact, much of it was. Mr. Glendening's playing the percentages and, like the Mr. Chipps that he is, he struck the right mix of boardroom bravura and classroom cosmetics in the last of his trilogy of speeches.Aware that Maryland frequently gets a bum-rap as a high tax state, Mr. Glendening, for the moment at least, is offering other forms of relief to the state's business community before talking of reducing taxes.

Raising taxes on businesses blocks recovery The business tax bill passed by the Maryland General Assembly would have a negative impact on Maryland's business climate and competitive posture. The Maryland Chamber of Commerce has urged Gov. Robert L. Ehrlich Jr. to veto the bill and make the cuts necessary to bring state spending in line with the state's capacity to support its expenditures. If the state is going to rise out of the current economic slump, we must encourage business development and job creation.

"We have kept our promises," Gov. Parris N. Glendening told a gathering of Maryland's business leaders yesterday.By and large, his audience agreed. And where they didn't, they at least gave him credit for trying.The governor received a warm but not wild reception at a breakfast forum marking the symbolic end of his first 100 days in office on the actual 93rd day. And if there was any yearning for a different result in last year's election squeaker, the leaders gathered at the Convention Center kept it politely suppressed as they heard a resolutely pro-business message from a governor many of them did not vote for.When Mr. Glendening boasted that he had just completed the "most pro-business legislative session in two decades," there were no groans, catcalls or arguments.

Business executives sometimes argue about when Maryland hit bottom as business-hostile territory.Was it in the early 1980s, when interest-rate regulation forced credit card issuers into Delaware and caused Maryland to miss tens of thousands of new jobs and hundreds of millions in investment? Was it 1992, when Maryland landed a Frito-Lay factory in Harford County and then proceeded to levy a snack tax on the company's products?Was it all those times that Maryland overachieved in Money magazine's annual list of "tax hells"?

Three years ago, Maryland's economy was listless. Gung-ho businessman James T. Brady was the new economic development secretary. And Gov. Parris N. Glendening was saying, "We need to send a message that says: You need to do business here."Now the economy is humming but not booming. Brady resigned last week, partly over differences with the governor. And Glendening is saying that "business interests must be balanced with education, health, public safety and other priorities."The iron no longer seems hot for business-driven policy changes in Maryland.

Reacting to a survey that found decreased optimism about Maryland's business climate, the state's acting economic development secretary said yesterday that the climate "is better but not as good as it could be."James D. Fielder Jr., who took over as head of the Department of Business and Economic Development after James T. Brady resigned April 28, pointed to an income tax cut, smoother permit procedures and the appointment of a state trouble-shooter as examples of the state's increased friendliness toward business.

MARYLAND's business climate has been a hotly contested issue for decades. Is the environment so hostile to companies that it chases away jobs?Judging from what's happening in the State House this year, critics have a good case. Corporate leaders are finding it increasingly difficult to argue that Maryland is trying to help -- rather than hurt -- the business community.Sure, there are isolated instances where the state goes all-out. Take Marriott International. When the Bethesda-based hotelier started scouting Virginia for possible headquarters sites, a lucrative aid package was assembled -- with legislative support -- to keep Marriott in Maryland.

Raising taxes on businesses blocks recovery The business tax bill passed by the Maryland General Assembly would have a negative impact on Maryland's business climate and competitive posture. The Maryland Chamber of Commerce has urged Gov. Robert L. Ehrlich Jr. to veto the bill and make the cuts necessary to bring state spending in line with the state's capacity to support its expenditures. If the state is going to rise out of the current economic slump, we must encourage business development and job creation.

Aris Melissaratos' corner office on the 23rd floor of Redwood Towers downtown was bare and lonely. No artwork or diplomas on the walls. No pictures of grandchildren on the desk. Not even stacks of paper in the "to do" box. "This is my 36th hour on the job," said Melissaratos, Gov. Robert L. Ehrlich Jr.'s newly appointed head of the Department of Business and Economic Development. Melissaratos is not worried about trappings, there are bigger issues commanding his time: helping form a vision that will guide the state's economy for the next four years.

MARYLAND's business climate has been a hotly contested issue for decades. Is the environment so hostile to companies that it chases away jobs?Judging from what's happening in the State House this year, critics have a good case. Corporate leaders are finding it increasingly difficult to argue that Maryland is trying to help -- rather than hurt -- the business community.Sure, there are isolated instances where the state goes all-out. Take Marriott International. When the Bethesda-based hotelier started scouting Virginia for possible headquarters sites, a lucrative aid package was assembled -- with legislative support -- to keep Marriott in Maryland.

Maryland's next governor will face issues that include improving education and the state's business climate and finding ways to bolster horse racing. The Sun sent questionnaires to the gubernatorial candidates concerning these and other issues. In preparation for the Sept. 15 primary election, here are edited excerpts from their responsesCharles I. EckerRepublicanEDUCATION: A back-to-basics approach is needed. For example, use phonics to teach reading. Expect students to learn and to behave.

Reacting to a survey that found decreased optimism about Maryland's business climate, the state's acting economic development secretary said yesterday that the climate "is better but not as good as it could be."James D. Fielder Jr., who took over as head of the Department of Business and Economic Development after James T. Brady resigned April 28, pointed to an income tax cut, smoother permit procedures and the appointment of a state trouble-shooter as examples of the state's increased friendliness toward business.

Reading by 9The Sun is seeking letters from elementary schoolchildren about their favorite books and reading experiences. Selected letters will be edited and published in the editorial pages.Letters should be no longer than 200 words and should include the name and address of the writer, along with day and evening telephone numbers.Send letters to Letters to the Editor, The Sun, P.O. Box 1377, Baltimore 21278-0001. Our fax number for letters is 410-332-6977. The e-mail address is letteraltsun.

Three years ago, Maryland's economy was listless. Gung-ho businessman James T. Brady was the new economic development secretary. And Gov. Parris N. Glendening was saying, "We need to send a message that says: You need to do business here."Now the economy is humming but not booming. Brady resigned last week, partly over differences with the governor. And Glendening is saying that "business interests must be balanced with education, health, public safety and other priorities."The iron no longer seems hot for business-driven policy changes in Maryland.

It has been a long and frustrating journey for backers of a golf course and conference center at Rocky Gap State Park designed to boost the economy of Western Maryland. After seven years of controversy in Annapolis and years of searching for developers, backers are within $2 million of their goal. But that last piece of the puzzle is proving elusive. Unless financial angels step forth by Sept. 1, the $48 million project will unravel.Members of the state's business community should not let that happen.

The words were Gov. Parris N. Glendening's, but much of the content closely matched proposals Maryland's business community put forth as it reorganized itself in the last few months of last year.No one can remember a State of the State address so dominated by plans to reshape Maryland's business climate."I've been present for most of the State of the State addresses since 1967, and I've read the others, and I can't remember one where economic development made up three-quarters or more of the talk the way it did this time," said Donald P. Hutchinson, president of the Greater Baltimore Committee.

Business executives sometimes argue about when Maryland hit bottom as business-hostile territory.Was it in the early 1980s, when interest-rate regulation forced credit card issuers into Delaware and caused Maryland to miss tens of thousands of new jobs and hundreds of millions in investment? Was it 1992, when Maryland landed a Frito-Lay factory in Harford County and then proceeded to levy a snack tax on the company's products?Was it all those times that Maryland overachieved in Money magazine's annual list of "tax hells"?

William E. Mayer, who overhauled the University of Maryland's business school and enhanced its reputation, is carrying through with his promise to cap his tenure as the school's dean at five years.In a letter to the school's faculty, Mayer, the former investment bank executive who became dean in 1992, will resign either when his successor is appointed, or by June 30, 1997 -- whichever comes first."I write this letter with pride," he told colleagues, praising the faculty, staff, students and alumni for revamping the academic program.