Continued from page 1

John McClain, a senior fellow at the Center for Regional Analysis at George Mason University, said Maryland’s poor jobs report may come from its reliance on federal government affiliated jobs. With the possibility of $1 trillion in cuts to government spending looming on the horizon, companies are being cautious by not hiring or even laying off employees, he said.

Maryland’s tax and regulation policies are not a factor in job loss, Mr. McClain said, but could keep companies from locating in the state.

“Maryland is a high-tax state and there may be companies who would not consider Maryland as a location because their taxes are very high,” he said. “So in the long term, Maryland does need to do something about their taxes.”

This is the second Change Maryland report Mr. O'Malley’s office has been critical of this month. The earlier report, which looked at the number of people moving from Maryland to Virginia and was compiled with IRS data, was attacked in a post on the governor’s blog. The blog post used information from the Phoenix Institute, Ernst & Young, Council on State Taxation and the Tax Foundation to discredit Change Maryland, and called Mr. Hogan “a failed congressional candidate and failed would-be candidate for governor.” The Tax Institute took issue with the governor’s blog post, saying it misrepresented the institute’s facts.