Ehrlich seeks jackpot from slots

Gov. Robert L. Ehrlich wants slots. House Speaker Michael E. Busch wants a statewide tax increase. That stalemate is how the last session of the Maryland General Assembly ended and it’s how the new one begins tomorrow.

That standoff and how it plays out — Will the two men compromise on new revenue? Or will Maryland end up cutting away at state spending like Virginia did last year? — will impact almost every issue facing lawmakers, including the deficit, education reform, the Chesapeake Bay, crime and a proposed new state agency.

One big priority for the governor, who enters into his second session with a more ambitious legislative agenda than he did last year, is a proposed new state agency: a Department of Disabilities.

“It will help streamline services,” said Mr. Ehrlich, who campaigned on reducing the size of government in Maryland. He promises to discuss the new agency further in his State of the State address on Jan. 21.

Kenneth H. Masters, chief legislative officer for Mr. Ehrlich’s administration, said the new disabilities department would operate with a small staff but deliver services “in a more effective and efficient way.”

The Virginia General Assembly also convenes tomorrow, and the state budget is expected to take center stage during the 60-day session, too.

Details on Maryland’s new disabilities department come as Mr. Ehrlich last week announced he would add a $2.50 monthly surcharge on each residential and commercial water bill to upgrade municipal sewage-treatment plants around the state to reduce the amount of nutrient runoff, or nitrogen, into the Bay.

Mr. Ehrlich said the goal is to “restore the Chesapeake Bay to its rightful status as a great national treasure, one which generations of Marylanders can both enjoy and protect.”

Upgrading the 66 plants would cost as much as $1 billion, but the surcharge alone will not be enough, Mr. Masters said.

The plan is consistent with Mr. Ehrlich’s efforts to satisfy his conservative following and fulfill a campaign promise not to increase taxes.

He has instead tried to increase state revenue by raising fees, including the one on sewerage, which Democratic opponents now refer to as the “flush tax.”

Whether it’s the surcharge or the hotly contested slots issue, Mr. Ehrlich still must find a way to get legislation passed in a General Assembly controlled by Democrats.

Democrats, led by Mr. Busch, of Anne Arundel County, defeated Mr. Ehrlich’s slot-machine legislation in the last session. And the political wrangling could get worse because Mr. Ehrlich has circumvented Democratic leadership and used executive orders to fill several high-level positions.

State Sen. Ulysses Currie, Prince George’s County Democrat and chairman of the Budget and Taxation Committee, thinks Mr. Ehrlich will raise corporate or business taxes to balance the budget.

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