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Entering the post-recession phase

By Don Fry — It's difficult to rejoice over the current stock market rally when the jobless rate is almost 10 percent in our nation and 11 percent in Baltimore City. But the recovery from the recession has begun, financial experts told us at a recent Greater Baltimore Committee economic outlook event.

Emerging from charts and graphs of economic indicators is a picture of a reawakening economy, they say. But don't expect it to return anytime soon to Dow 14,000 territory – the economy we enjoyed in 2007 before it disintegrated.

Here are some key points delivered by financial forecasters Richard Cripps, of EquityCompass, and John Jacobs of NASDAQ OMX:

Optimism in the financial community is fueled, in part, by the re-emergence of initial public offerings – many backed by venture capital – and by rising consumer confidence. But concerns remain over high joblessness rates and a housing market that hasn't yet shaken off its sluggishness;
The recent rally has a kind of "up is down and down is up" quality to it. The most risky stocks are way up, while quality equities are the cheapest part of the market. Experts forecast a correction in early 2010;
Foreign investor participation in the U.S. stock market is at its lowest level since 1978 because of the weakening U.S. dollar.

Meanwhile, Bracken Hendricks, of the Center for American Progress, makes the case for increased business investment in the emerging "green" economy. Substantial business opportunities exist for U.S. companies willing to apply "old-economy" capital and resources to a growing global demand for "green" equipment, products and services, he says.

U.S. businesses should seize these opportunities or others elsewhere will, Hendricks warns. All speakers at the GBC event noted one fundamental issue – key regulatory policies must be decided upon so that the private sector can get to work on building "green" business plans.

All of this is food for thought as we chart our post-recession business future.

Don Fry, president and CEO of the Greater Baltimore Committee, for 88.1 WYPR's Regional Business Report.

— Posted December 9, 2009

Howard County citizen group honored for work to keep referendum process open and accessible

December 7, 2009 — Citizens in Charge Foundation, a trans-partisan national voter rights group focused on the ballot initiative and referendum process, presented Howard County Citizens for Open Government with the December 2009 John Lilburne Award. The group is being awarded this month for working to defend their right to petition their government over a land-use issue in Howard County, Maryland.

In late 2008, a group of citizens in Howard County, Maryland started a petition drive to bring a county land zoning decision to a referendum vote.

After validating and accepting the group's initial submission of roughly 2,500 signatures, the Howard County Board of Elections abruptly changed the interpretation of the law they used for the past 30 years to verify petition signatures. The new interpretation, known as the "triple match" is the strictest in the nation and the change led to the Board of Elections nullifying 87 percent of the previously accepted signatures, which immediately ended the group's possibility for a successful referendum.

"It's tough to win when the referee decides to change the rules in the middle of the game, especially if those rules make it impossible to win," said Paul Jacob, President of Citizens in Charge Foundation. "That's exactly what the Howard County Board of Elections did."

After their petition signatures were thrown out, Howard County Citizens for Open Government sought to reverse the Election Board's decision in court and challenge the constitutionality of the underlying law. On November 13, 2009, they argued their case before the Howard County Circuit Court, and are currently awaiting his decision.

"Not only does the Election Board's decision to change their 30 year old validation practices at the 11th hour place an unfair burden on these citizens, but the underlying requirement that signatures be a 'triple match' is so burdensome that it is an unconstitutional denial of first amendment rights," said Jacob. "If the court doesn't overrule this interpretation, Marylanders will have no right to referendum, even though their state constitution guarantees it."

To qualify as a 'triple match', the petition signature and printed name have to exactly match the name on the voter's registration card. Any slight variation such as a middle initial or an abbreviated name results in the signature being thrown out.
"Thank goodness these citizens decided to stand up and fight for their referendum rights, and for that they are being honored with the December Lilburne Award," added Jacob.

Each month, Citizens in Charge Foundation presents the John Lilburne Award to a citizen, or citizens, working to protect and defend the First Amendment petition rights of Americans. John Lilburne was a 17th Century English pamphleteer, political activist, and champion of individual rights who advocated constitutional government and pioneered the use of petitioning and referenda for redress against government power and abuse.

About Citizens In Charge Foundation:
Citizens in Charge Foundation is a national transpartisan voter rights group dedicated to protecting and expanding the ballot initiative and referendum process. We believe good government starts with the voter. For more information visit us www.CitizensInCharge.org.

Jobs or Unemployment Insurance: Which is Better?

By Marvin Mandel and Ellen Sauerbrey — With the economy still struggling and unemployment levels high, we ask which should concern Marylanders the most: (a) The balance in the Unemployment Insurance Trust Fund; or (b) Jobs? Prompting us to write this article is a state labor department letter imposing a steep tax hike. Much was said about the trust fund; little was said about jobs. Employers will receive increased tax bills that range from $136 to $382 per employee if the General Assembly does nothing.

The question of whether to choose the Unemployment Insurance Trust Fund or jobs is absolutely critical because every additional dollar paid to the trust fund will hamper the business community's ability to create jobs in Maryland. Conversely, every dollar saved in the unemployment insurance tax allows more economic activity and job creation. This economic principle is known as the "multiplier effect" or "spending multiplier." It explains why spending in a given locality allows more consumption and increases the overall economic activity beyond the initial investment. In addition, the multiplier from an investment can repeat many times in a year.

Maryland business people find great rewards doing what they love

By Sandy Wieber — Bob Frazee of Carroll County has always loved farming. He grew up on a farm in western Maryland, and he’s currently the CEO of MidAtlantic Farm Credit, an agricultural lender headquartered in Westminster.

So, when he was looking for a volunteer opportunity, he looked for an organization that fit with his personal passions. On October 9, he spent a day working at Gardens of Hope, an urban agriculture project in Upton.

“It was a phenomenal day,” says Frazee. “It was definitely hard work, but it didn’t matter. I loved working in the soil, and seeing a huge difference from when we started to when we finished. It felt really good to help.”

That’s what Nan Bambara, director of business relations for Business Volunteers Unlimited Maryland, calls a perfect “mission match.”

“If you’re going to volunteer,” Bambara says, “you should be passionate about the work that the organization is doing.”

In the past six years, BVU has helped more than 30,000 people find the right volunteer activity. Bambara’s organization works with over 400 non-profits in Maryland, helping to recruit and organize volunteers. One way they do this is to coordinate corporate service days. That task starts with finding a mission match for the company that’s volunteering.

“We survey the company to find out what their employees are interested in, and what issues pertain to them and their industry. Then we find a volunteer experience that dovetails with that,” says Bambara.

GBC's Fry: Turning to public-private partnerships for transportation funding

Don Fry Commentary on WYPR — Public-private partnerships have been used sporadically by cities and states since the 1980s for highway and transit projects. However governments, including Maryland’s, are showing increasing interest in such partnerships.

Since 2000, governments in the U.S. have entered into dozens of public-private partnerships for a wide variety of purposes, including transportation infrastructure, wastewater treatment, and economic development.

Such partnerships involve long-term agreements between governments and private businesses to build or manage a government-owned toll road, bridge or other facility. There are many variations, but a typical transportation-related partnership involves a company entering into a lease to operate a toll highway or bridge.

For the right to manage a road and to keep the tolls, a company pays government a fee – often a large lump sum of cash up front, which the government can use to fund other infrastructure needs. For instance, in 2005, Chicago leased its Skyway toll bridge for 99 years to a private company for $1.8 billion. In 2006, Richmond, Virginia leased its Pocahontas Parkway toll road for 99 years for $611 million.