Green, open space turns to Green (money) for another O'Malley croney.

The revolving door turns again. This time for former top aide.

Maryland Community News Online

Sunny outcome for governor’s pal’s project

Friday, August 12, 2011

From a distance, it looks like a simple land lease for undesirable state acreage outside a Hagerstown prison.

It’s also a “green” project that more than doubles Maryland’s solar energy on the grid.

The state doesn’t pay a cent. Rather, it will receive $32,050 a year for allowing Maryland Solar LLC to place its energy panels on 250 acres now leased to a local farmer.

Sounds great, right?

Upon closer examination, though, troubling questions arise. Is it a sweetheart deal for a longtime friend and former top aide of the governor? Is the state receiving far less than it deserves?

The details reveal a chain of suspicious events.... READ MORE....

And yet I hear rumors that Governor O'Malley will sweeten this even more by having Penn Gaming awarded a racino at the site.

Calling Penn National's bluff at Rosecroft

Our view: Gaming company has no real interest in racing at the Prince George's harness track but is making a long-shot bet on slots

12:33 p.m. EDT, July 7, 2011

link

...Absent any legal commitment to cover losses, Penn National's interest in racing at Rosecroft would likely last precisely as long as the hope of expanded gambling legislation was alive in next year's General Assembly session. And any such bill would face long odds; given the difficulty of getting the state's original slots legislation through the House of Delegates, it's hard to imagine much appetite for expanding a program that isn't even fully up and running.

Lawmakers might be particularly disinclined to help Penn National since the reason the state's largest casino, at Arundel Mills mall, isn't yet open is that the company bankrolled the petition drive and referendum effort that delayed the groundbreaking there by several months, costing the state, Anne Arundel County and the horseracing industry tens of millions of dollars in tax revenue. They would probably be even less well disposed to the idea if Penn National walks away from its promise to resume live racing just because the racing commission is trying to make sure the company actually sticks to it...

President O'Malley? (We told you so...)

Maryland Community News


We’re doomed. In Sunday’s Washington Post, national pundit Chris Cillizza put Maryland Gov. Martin O’Malley’s name on his short list for U.S. president...
O’Malley for president? That will be the term-limited governor’s sole focus between now and the end of his tenure, and we’re his candidacy’s guinea pigs. So get ready for a steady diet of offshore windmills, tuition freezes, “Jobs Across Maryland” tours and feel-good all-things-to-all-people initiatives flowing from Annapolis. Also, “O’Malley’s March” will be playing soon in your neighborhood...
link

Maryland needs a full-time Governor

baltimoresun.com

Maryland needs a governor like New Jersey's

7:30 AM EDT, June 29, 2011

I can't get past the fact that Maryland is the richest state in the country, but we are last in job creation. Why is that so?
Let's compare Maryland with nearby New Jersey. For one thing, New Jersey Gov. Chris Christie doesn't waver. He knows what the problems are and he addresses them head on regardless of the consequences. His agenda is so good that he has attracted national attention as a possible presidential candidate. Of course, we know that's not going to happen.
And what about our governor? He's not business friendly and not friendly to legal residents either. This is a fact. Businesses and residents are going to continue to flee for the states that offer a better standard of living, better tax rates, and are business friendly.
Why does our governor go on an expensive junket overseas when the problems are here, right under his nose? Let's see what the results of his recent trip to China bring, and hope that we don't lose money on this taxpayer-funded adventure. Not "sister city" results, but real economic benefits.
I, for one, don't think it will happen and that Gov. Martin O'Malley doesn't have a clue. It's time to get real, Governor O'Malley. Let's see you follow the lead of a governor who has intestinal fortitude, who is in touch with reality, and is effectively doing something about the problems that most of the states are dealing with.
Richard LaCourse, Forest Hill

Let's not be too hard on Governor O'Malley's actions.
While it is true that Maryland's revenues have faltered significantly under the Governor's leadership, he has done a great job for West Virginia!

Maryland ranks last in pace of job creation, Governor ranks first as indifferent

Maryland ranks last in pace of job creation

Estimates show a nearly 20,000-job loss in past 12 months, but more are finding work — perhaps out of state

By Jamie Smith Hopkins, The Baltimore Sun

9:36 p.m. EDT, June 17, 2011

"Hampered by a slowdown in federal spending, Maryland came in dead last in the nation for its pace of job creation over the past year, shedding almost 1 percent of its employment base — nearly 20,000 positions — the U.S. Department of Labor reported.
The figures released Friday show declines in Maryland in eight of the past 12 months. Twenty-two states added jobs during the past year."

Maryland is the richest state in the United States. For Governor O'Malley to have us last in job creation is reprehensible or incompetent.
There is no way to explain Maryland's ranking last in job creation other than the oft-cited charge against O'Malley that his first objective is helping his corporate friends (donors) such as Penn Gaming, who keep their
their jobs and profits fully intact in Charlestown, West Virginia.
Martin O'Malley should realize his continued indifference to the people of Maryland will cost him when he makes an attempt for national office.

"No means No"

In 2007, Penn National was buying Rosecroft. Prince Georges officials and voters made it clear there was not to be additional gaming at the site and Penn Gaming backed out. 
Now Penn National Gaming is back in, trying again to get slots at the raceway.
The problem for the trio of "Horse Lovers" mentioned above, is the residents, elected officials, and voters of Prince Georges County have adamantly said "NO" means "NO". 


Below is a letter from over thirty civic, business, and clergy leaders sent to Governor O'Malley; reminding him that "No" means "No"

It's déjà vu all over again

As Yogi Berra famously said: "It's déjà vu all over again"



Penn National Gaming, with the backing of Governor O'Malley (and Mike Miller), could give a hoot or care less about the Horse Racing Industry or Rosecroft.
In 2007, Penn National was buying Rosecroft. Prince Georges officials and voters made it clear there was not to be additional gaming at the site and Penn Gaming backed out. 
Now Penn National Gaming is back in, trying again to get slots at the raceway.
The problem for the trio of "Horse Lovers" mentioned above, is the residents, elected officials, and voters of Prince Georges County have adamantly said "NO" means "NO". 

Penn's Empty Promises Part III

PNGI Won't Purchase Maryland Track

By Tom LaMarra

Wednesday, November 28, 2007

Penn National Gaming Inc. said Nov. 28 it will not purchase Rosecroft Raceway, a Maryland harness track, in light of the fact the facility will not be eligible for slot machines under legislation passed by the Maryland General Assembly.
PNGI, in a statement, said “pursuant to its rights under the purchase agreement” it will not to move forward with the acquisition of Rosecroft, which is located just south of Washington, D.C., and just east of Northern Virginia....
Read more: http://www.bloodhorse.com/horse-racing/articles/42231/pngi-wont-purchase-maryland-track#ixzz1O2WGL0b2

Penn National close to selling Maryland Jockey Club stake

Rachel Bernstein
Daily Record Business Writer

May 17, 2011 

Penn National Gaming Inc. is close to divesting its 49-percent share of the Maryland Jockey Club, including its ownership of Pimlico Race Course and Laurel Park....


Penn National bought its share of the jockey club a year ago with the intent of getting slots approved at Laurel Park. Those plans were quashed when Anne Arundel County voters approved a zoning referendum that effectively gave The Cordish Cos. the right to build a casino at Arundel Mills...


Read more: http://thedailyrecord.com/2011/05/17/penn-national-close-to-selling-maryland-jockey-club-stake/

Penn National applies for license to resume live racing at Rosecroft

Racing would start in July if approved by racing commission

By Andrea K. Walker, The Baltimore Sun

May 6, 2011

... Penn National bought bankrupt Rosecroft in January in an $11 million cash deal outbidding two others, including attorney and Orioles owner Peter Angelos. When purchasing the track, Penn National said it intended to restart racing there...

Schippers said Penn National still thinks slots will eventually need to be allowed at Rosecroft to make it financially viable.
Penn National opened the first slots casino last year in Cecil County and also bought stakes at Laurel Park and Pimlico Race Course, with hopes of bringing slots to Laurel. It eventually wants to do the same at Rosecroft, but Prince George's County is not one of the five designated locations for slots in the state...
Read more: http://www.baltimoresun.com/business/bs-bz-penn-rosecroft-application-20110506,0,3985214.story 

O'Malley's flawed budget defense

Revisiting O'Malley's shock that Anne Arundel does not have an operating casino may lead a person to believe the Governor is completely out of touch with Maryland. Martin O'Malley does spend a lot of time courting out of State Corporations as well as prepping for a possible Federal position in the next election cycle.
What I believe the Governor is attempting is some drama queen diversions. The Governor pulled the same antics with Constellation Energy.
Governor O'Malley is saying part of his budget is over because he thought the Anne Arundel casino was going to be open soon. According to O'Malley's spokesperson "They held a groundbreaking, and because of that, the state made certain we planned" on the money going towards the budget. Notice the "we" and the "state" never does O'Malley say "I" . It just isn't his fault.
As one political correspondent remarked "You would have to live in a cave or the rugged Afghan mountains of Tora Bora not to know." the casino construction schedule was stalled due to petty lawsuits. The correspondent also questions why the Governor does not call out the developers on the revenue from Baltimore or Ocean Downs casinos.
What did the Governor plan to use the expected money on? Admirable categories, Education, local county, and the racing industry.
O'Malley comes out of his cave and realizes the revenue is not yet there, where does he cut? Education and to make that worse, runs emergency legislation so the racing budget is diverted to the straight to the track owners and not to the racing industry.

Governor O'Malley a Penn Gaming Patsy?

The recipients of some emergency corporate welfare spent millions on a referendum to stop a casino in Anne Arundel and protect their Charlestown casino.
A reverse procedure is happening in the South as described in the following analyst transcript excerpt from Penn Gaming. If Governor O'Malley would just substitute the word "Texas" with "Maryland" , the Governor may understand the kind of patsy he has been played.


"Steven Wieczynski - Stifel, Nicolaus & Co., Inc.
So going back to Texas, a follow-up there. I guess, it's pretty interesting that you guys said that polling is pretty favorable, but your competitors who are building assets in Louisiana say it's still negative. So I guess, the question is, if this does go to a referendum at some point, now what -- how do you guys feel about the potential of the passage, especially going into a year whether it's '11 or '13 where it's going to be a non-presidential year?
Peter Carlino
Well, first kind of a fun one. I got to stick my nose on that one. You would expect nothing less from what you described as our competitors in Louisiana. The pollings are pretty clear and Eric will speak to that, that the voters in Texas would strongly support this. The trick of course is get the legislature to step up and give them that opportunity. Eric, why don't you take a whack at that please?


Eric Schippers
Yes, I was going to say when you look at our polling, which we've done a extensive amount of polling, the strongest question that moves the needle is, "How do you feel about the neighboring states continuing to benefit from the revenues of Texas gamers as opposed to saving the money here for the benefit of our state?" And so, we have pointed out to every legislature we can in Texas that Dan Lees [ph] $400 million project was approved right on the border and they're continuing to sort of thumb their nose at you in Texas thinking that you can't pass this. And frankly, that has gotten a lot of attention from legislators who otherwise may not be looking at this as a potential piece of an overall budget solution. There is a lot of pride in Texas as you may be aware. So we're hopeful that as they look at and understand the benefit other states are receiving from Texas dollars flooding across the border, they'll kind of get the joke as we say and pass this thing. Once we get to the balance, there is an overwhelming amount of people, and both Republican, Democrat, tea party, cuts across all different political stripes who want: A, the chance to vote on this; and B are okay with slots at the racetracks, because it's not an expansion of the current footprint of gaming in Texas. And we think that's an important part of the solution this time around as opposed to more expansive efforts that others are espousing."

From the same transcript, the makeup of the West Virginia Charlestown Casino customer is described:
" I think there's roughly 33% of our customers are from Maryland, "

Martin O'Malley's history revision

In response to the news the Arundel Mills casino will not be finished this year, Governor Martin O'Malley rebuked the developer by saying they 'broke their commitment". Is this code for the developer will now get a subsidy? Probably not. I think that only works for O'Malley's largest contributor, Penn Gaming, aka Maryland Jockey Club.
The Governor is mad because he  irresponsibly planned on the revenue from the Maryland Live Casino for his derailed State budget.
The Casino  construction has been delayed for almost two years because in part Governor O'Malley's refusal to support the legitimate license holder and instead backed Penn Gaming's initiative to defy the State Constitution and illegally award a second license without due process for the Laurel Park Racetrack.
Instead O'Malley was rebuked when the Anne Arundel citizens soundly voted to back due process and the State Constitution.
Governor O'Malley's rebukes should be directed towards all of his former staff members that have gone off to lobby for these special interests as well as holding himself accountable.
For a refresher of the history:
Maryland Jockey Club submitted an RFP for a casino without paying the necessary license fees (28 million dollars)
License awarded to the developer that submitted the RFP and license fees (Maryland Live)
MJC files suit to block awarding license (wants a rebid)
Anne Arundel County Council approves zoning (10 months of delays sponsored by MJC)
MJC sponsors a referendum petition drive (1 million dollars) to overturn zoning (6 month delay)
MJC bankrolls campaign for derailing approved zoning (8 million dollars)
Zoning referendum soundly approved by AA voters.
MJC sponsors suit against permits (3 month delay)
MJC/Penn Gaming pleads poverty- Governor O'Malley approves emergency legislation to give approximately 4 million a year as corporate welfare.
Maryland Live has a groundbreaking that Governor O'Malley does not attend.
O'Malley acts surprised that the Maryland Casino is not open (4 months after groundbreaking).
Who really should be rebuked for breaking commitments?

O'Malley the Savior of Preakness

O'Malley reports that he saved Horse Racing. By subsidizing Kegasus?
One of the few plans that O'Malley actually spent some effort to pass was "corporate welfare" to his multi-million dollar friends at Penn Gaming and MJC.
Penn Gaming/MJC's first bite of our taxpayer's money comes in the form of KEGASUS? An ugly, mythical, beer swilling beast that ostensibly encourages underage drinking and the objectification of women.
A post from ABC news puts it more succinctly:

Who's paying for 'Kegasus'

But Delegate Pat McDonough (R, Baltimore County) says Kegasus tarnishes the second jewel of horse racing's Triple Crown. ‘It promotes alcohol consumption. It promotes rowdyism,’ he said. ‘It's a disgrace to the iconic image of the Preakness and the great industry of racing in Maryland.’

And he's not alone -- on Thursday the commissioner of the Baltimore City Health Department, Dr. Oxiris Barbot, made a post on her blog that reads in part, ‘The star of the show isn't the beautiful horses, or the determined jockeys who ride them to glory. Instead, we're given Kegasus, a centaur who loves to party.’

Delegate McDonough also criticized a bill that would shift slot machine revenues from track improvements to operating expenses -- like television ads.

‘I don't think taxpayers' money should be subsidizing stupidity,’ he said.

O'Malley's fiscal irresponsibility

While Governor O'Malley jammed through corporate welfare to his friends at the racetracks, the General Assembly approved a 1 Billion increase in State spending to $34.1 Billion! As a result of O'Malley's failures, the State will face $1 Billion plus shortfalls next year and even more beyond. Some of the Education money that O'Malley cut should go to teaching math and Accounting in Annapolis.

O'Malley won't back liquor tax hike

During the election process; O'Malley was quoted as saying he "is not inclined to support any (liquor) tax increase".
Governor O'Malley's spokesperson said "O'Malley supports the purpose and objective", and "Improving and expanding health care services is a noble goal, but given the recession, the governor has no plans to support the (liquor) tax increase."


That was only 6 months ago. Governor O'Malley has signed a tax bill that increased the liquor tax by 50%! Even though many delegates argued that increasing taxes would eliminate jobs and that many businesses are already struggling in this same recession; as Del. Michael Hough's impassioned debate during the session pointed out.
Either the recession is over, or the Washington DC bound governor flip-flopped once again. My empty pockets say flip-flop. Cheers!

More broken promises

The Columbus Dispatch
March 27, 2011
Misplaced Blame
Penn National, not city, at fault for casino construction delay

"Before the May 2010 election, Penn National repeatedly supplied the public with tax-revenue projections for Columbus should Issue 2 be approved. In each instance, these projections were based on the casino being within the city limits, so that Columbus would realize "host-city" tax revenues.
Those revenue promises were published in Penn-approved campaign literature, Penn-approved TV ads and even in PowerPoint presentations made by Penn executives themselves.
Columbus and central Ohio officials, voters, taxpayers-and one would think, labor leaders, as well- should expect and demand that Penn National honor its promises."

Governor O'Malley as does the legislature owes, no is mandated, to investigate any potential problems with corporate entities that seek out taxpayer's subsidies.

Ohio cancels check to Casino Operator

The Ohio Governor believes Casino's have enough money and do not need help from the State's taxpayers. Governor John Kasich blocked 2.5 million in additional development incentives for Penn Gaming.
Should Maryland be allowing it's Governor to continue handing out subsidies for Casino operators?

Kasich cancels check to casino

Yet another busy aide through O'Malley's revolving door

Michael Enright, Governor O'Malley's former Chief of Staff and long-time friend, left the Governors office to become the managing director of an energy firm that will be competing for the Billion dollar, offshore  wind Farm proposed by the O'Malley Administration. While the company still has to compete for approval, having Governor O'Malley's ear is quite an advantage. Sean Malone, a lobbyist for Penn Gaming, had similar access to the Governor. Penn Gaming has become almost a pet project for the Governor, receiving potentially favored Corporate welfare.
Hopefully the wind farm project will not become a rabbit hole for consumer and taxpayer money.
 Read this article for more information:

For O'Malley and friend, interests align in offshore wind bill

Stop O'Malley's offshore wind folly now, not later

Corporate constitutional rights and a city's health

In a follow-up to a previous posting, The City of Colombus found good news in a State EPA memo that may require Penn Gaming to use the City's sewage system. The EPA memo was in response to a memo by Penn Gaming that  said it was within Penn Gaming's constructional rights to dig a well to inject the raw sewage from their casino. Penn Gaming also wanted to dig a well on the same site to provide drinking water for the same patrons.
Should Governor O'Malley be so cozy with a company that uses tactics that jeopardizes the health and welfare of people for their own corporate greed? Penn Gaming is following similar tactics in Maryland by holding the Horse Racing Industry hostage by manipulating the Governor.

Read the article on EPA's response to the Penn Gaming memo ... City finds good news in EPA memo to casino builder

UNITE HERE!

UNITE HERE!  distributed the following facts to our elected representatives in Annapolis that lists O'Malley's friend, Penn National Gaming's national trail of broken promises and hardball tactics. Do Maryland taxpayers really want to trust a Company with this kind of track record?

Broken Promises and Hardball Tactics

Legislative Research Report                                    Roxie Herbekian

March 14, 2011                                                          (301)651-8526

                                                                                    rherbekian@unitehere.org

Penn National Gaming has a history of breaking promises and using hardball tactics against states and local governments.  On February 3^rd of this year, Penn National Chairman and CEO Peter Carlino said, “We planted a large flag in Maryland, and we’re there for the long haul.”  But Penn National’s commitment to Maryland has been “on” one minute and “off” the next.  According to the Washington Post, the pattern of broken promises started in 2007 when Penn National initially committed to buy Rosecroft Raceway, promising that the purchase was “not contingent on the approval of video lottery terminals at the track.”  Then, Penn National withdrew its offer when the track did not get slots.

In 2010 Penn National joined in the Maryland Jockey Club’s attempt to wrest away a slot license from the Arundel Mills Casino.  According to the Baltimore Sun, when the Maryland Lottery Commission discussed taking action in response, Penn National took the unusual step of asking the commission to delay issuing its Perryville license.  By threatening to delay the opening of its Perryville casino, Penn risked depriving the Maryland Education Trust Fund of $6.5 million in revenue from the casino’s opening through November 1^st, 2010. 

Despite agreeing to the terms before it “planted its flag” in Maryland, Penn National sought to have a competing casino eliminated.  Maryland is not a unique case:  Penn National has a history of conflict with governments in other jurisdictions, including Ohio, Kansas, and Illinois:

•  Penn National is considering moving Raceway Park away from Toledo after promising the

   city it would keep the track open, according to the Toledo Blade

•  Penn National is demanding $8 million in annual tax breaks for its casino in Columbus after

   spending $24 million to win the right to operate slots in the state, according to the

   Columbus Dispatch

•  Penn National benefitted from a legislative push to overturn an Illinois Gaming Board ruling

   requiring it to divest itself of some of its casinos, according to the St. Louis Post Dispatch

•  Penn National allegedly broke a commitment to build a $250 million casino in Cherokee

   County, Kansas

“I Was Basically Lied to”

Rosecroft is not the only race track Penn National suddenly changed its plans for.  Penn National owns Raceway Park in Toledo, Ohio, and recently announced that it is investigating the possibility of relocating the racing license.  According to the Toledo Blade, fifteen months ago Penn National “unequivocally” stated they “have no plans to close Raceway Park.”  Toledo District 6 Councilman Lindsay Webb says that “I was basically lied to on the record,” by Penn National.

Penn National is apparently trying to squeeze Columbus taxpayers to add to their casino profits

First, Penn National spent over $24 million to back an Ohio State Constitutional Amendment legalizing casinos.  Then, the company asked Columbus for tax breaks for its casino, including $8 million annually to fund road work and other infrastructure for the project.  The request caught the city by surprise.  Prior to the referendum legalizing slots in Ohio, Penn National “repeatedly said it would pay for any necessary public improvements,” according to the Columbus Dispatch.  The city has so far refused to give Penn National the tax breaks.  Now, Penn National says it may oppose Columbus annexing its casino site, costing the city millions of dollars in lost revenues annually.  Penn National’s site is not covered by Columbus’ water and sewer services, according to the Columbus Dispatch.  Instead, Penn National filed permit applications with the Ohio DEP to drill wells to provide water for the casino.  According to the Columbus Dispatch a nearby city was approached by an ‘anonymous client’ – represented by Penn National’s project manager – who wants to truck in 120,000 gallons of raw sewage daily.  The Columbus Mayor’s spokesman Dan Williamson responded, “if they’re looking for leverage, maybe something less ridiculous.  It doesn’t pass the smell test.”

Penn National promises compliance with regulatory agreements – until they can get them overturned

As a condition of Penn National’s buyout of Argosy Gaming, the Illinois Gaming Board required that Penn National had to sell two riverboats in Illinois.  Penn National could ask the board to re-consider.  But according to the St. Louis Dispatch, in 2007 a bill filed with the legislature was amended to “overrule state gambling regulators who’d ordered the company to sell.”  The legislative effort failed, but ultimately the company got the regulatory decision it wanted and kept the casinos it had promised to divest.

Penn National “Bailed Out” on Cherokee County

Penn National planned to build a casino in Cherokee County, Kansas.  On April 9, 2008 the Kansas City Star reported that “Penn National Gaming is pressuring Kansas to back off a requirement in state law that companies invest at least $250 million in state gambling casinos.”  The Associated Press reported that Penn National sought the changes because of competition from a nearby casino owned by the Quapaw Tribe.  Penn National COO Timothy Wilmott said “we applied before the Quapaw were on anybody’s radar screen.”  But the record shows that the Quapaw Tribe broke ground for their casino on July 31^st, 2007, thirty days before Penn National filed its proposal on August 31^st of the same year.

The legislature rejected efforts to change the law, and Penn National cancelled the project.  According to the Kansas City Star, Penn National argued the casino “required too large an investment.”  Kansas State Representative Doug Gatewood disagreed, saying “I think they’re just making excuses right now.”  Cherokee County sued Penn National on September 11, 2008, seeking $53 million in damages alleging breach of contract.  According to the Associated Press two mediation sessions between the parties failed to reach a settlement, and the case will likely go to trial.

The Baltimore Sun: “Be skeptical about whether Penn National is the right partner”

After cancelling its deal in 2007, Penn National announced it acquired Rosecroft Raceway on March 1^st, 2011.  The Baltimore Sun reports that Penn National wants slots at Rosecroft, and is looking at selling its share of the Maryland Jockey Club.  An editorial in the Baltimore Sun written after Penn National announced its investment in the Jockey Club strikes true – “Horsemen should be skeptical about whether Penn National is the right partner, or if it’s just another entity looking to cash in on Maryland slots.”

_______________________________________________________________________________

UNITE HERE! is the hospitality workers union that represents workers in the gaming industry across the country.  The Research Department provides research on the gaming industry from the perspective of those who work in the industry.

O'Malley for President?

Is being the Chairman of the Democratic Governor's Association the next step for a Federal run? Governor Martin O'Malley has run out of room at the State level when he finishes his term as Governor. It certainly looks like he is aiming for the national spotlight by just watching his actions and listening to his non-talk.
Governor O'Malley is against the death penalty yet refuses to commute any sentences. O'Malley is against big business yet he wants to hand over business to non-Maryland Companies.
Governor O'Malley wants to save the Preakness and the Horse Racing Industry yet he allows it to be pillaged by unscrupulous casino operators and foreign billionaires.
Governor O'Malley will NOT promise NOT to raise taxes AGAIN, but will sign any "user fee" put in front of him.
Governor O'Malley has supported sanctuary city policies, including drivers licenses for illegal immigrants and funding Casa Maryland in his budget.
The Governor appears to have mastered the art of political double-speak necessary for his national political ambitions. O'Malley for President? It has a frightening similarities to the current political situation in DC.

Vicious cycle of Corporate Welfare

A deal being brokered by Governor O'Malley to subsidize the owners of the racetracks was succinctly described by Jay Hancock of the Baltimore Sun.

Horse tracks seek even bigger trophy from taxpayers

Penn Gaming spends millions upon millions of dollars through the Maryland Jockey Club that delays slot proceeds to the Horse Racing Industry and then wants subsidies? How can they justify spending over 11 million dollars on Rosecroft racetrack if the rest of the tracks are losing money? Penn Gaming only offered unaudited financial statements. Financial statements that include payments to lobbyists such as Sean Malone, payments to attorneys to block casino development, payments to put a referendum on the ballot to stop and then steer casino license to their location. 

The subsidy as crafted by O'Malley's staff gives the owner of the tracks the money that was supposed to be used to fix the tracks. The owners are all out of Maryland so basically, the subsidy is just Maryland money that is thrown across the border to Pennsylvania and Canada. There is no incentive to fix the business plan, in fact this subsidy is a dis-incentive. Fix the business and the subsidy goes away. In three years, if casinos are not built at the tracks, Penn Gaming will abandon the properties and move on to their next victim. 

The president of Penn Gaming has stated unequivocally that Penn Gaming is not in the business of running racetracks or even supporting racetracks. Have we not learned anything from the TARP business of the past few years? Add milestones, conditions, clauses on these subsidies. Don't just require the Maryland Jockey Club and Penn Gaming to show pretend financials. If Penn Gaming is serious, make them put up Pimlico and the Preakness as collateral.

Penn Gaming and the "Free Press"

Penn National has problems with the media/"Free Press" at most of their locations. Penn National takes offense whenever the media points out where Penn's broken promises. Perhaps if they want to control the media's First Amendment rights they should stick to building casinos in Macau, China. Case in point; Penn National in Columbus, Ohio where Penn National took offense to the Columbus Dispatch's questioning the pumping of raw sewage so close to drinking water and the Baltimore Sun's questioning of Penn National's trying to take the license from a successful, Baltimore based casino developer.

Columbus Dispatch- Suit asks Court to force casino-site annexation 3/10/2010 (by Doug Caruso) 

Dispatch Printing, which publishes this paper, also asked Franklin County Common Pleas Judge David W. Fais  to declare trucking sewage from the casino or burying it onsite a nuisance and to halt construction until Penn National agrees to annex and hook up to city sewer and water lines.

A spokesman for Penn National called the court filing bizarre.

"It should be obvious at this point to any thinking person that The Dispatch has gone far beyond any definition of journalistic integrity and has simply decided that, instead of reporting the news, it intends to create its own news to reflect its owners' personal opinions," said Bob Tenenbaum, a spokesman for Penn National.

"it now appears that the jobs and the tax revenue notwithstanding, the newspaper itself is going to do everything in its power to prevent the casino from ever being built."

Excerpt from Penn National's Earnings call transcript 10/21/2010:

Peter Carlino- "Yes, one of the problems for us has been the Baltimore Sun, which is completely in the back that they reported. Their behavior through this process has been virtually scandalous. I don't think ever in our experience around the United States in any of these efforts have we ever seen the most outrageous behavior by a newspaper. To say it flatly, it's been amazing, and it sort of shocked us everyday. So that's been sort of a difficult process, the free press can't stop the fight.

In bed with the devil?

One of the Governors best corporate friends is showing their true colors in Ohio. Penn Gaming made a lot of promises to Franklin County, Ohio constituents if a casino was allowed. Now that a casino has been approved, Penn Gaming is saying not only do they not want to pay taxes, they want subsidies. In order to get around paying taxes, Penn Gaming is going to inject the sewage from the casino into a well. On the same property, Penn Gaming is going to drill a well for patron consumption.

Casino ponders sewage 'well'

Laurel Racetrack and Pimlico are crying poor, search their couch cushions and find enough change to buy Rosecroft racetrack. Tell their friend, the Governor to give them money. The Governor relies on unaudited financial reports to give himself political cover and proposes a taxpayer bailout. The Maryland legislature should not fall for this ruse and rely on "Unaudited Financial" reports provided by Penn Gaming. Maryland taxpayers deserve and should demand better! Penn Gaming has a history of breaking promises and using hardball tactics against states and local governments as outlined in Unite Here's (hospitality workers union that represents workers in the gaming industry across the country) March 14th legislative report, Penn National Broken Promises and Hardball Tactics.   

User Fees and Taxes

The State's Transportation Trust Fund has been raided this year by $100 million. Martin O'Malley transferred 60 million to cover ongoing expenses and squirreled away $40 million in the Rainy Day Fund. The depleted fund is supposed to go to transportation projects and maintenance of our bridge and highways. The money in the Trust Fund is gathered from a 23.5 cent per gallon tax. Lawmakers are looking to increase the tax to replenish the fund. In the past 3 years over $2 Billion dollars have been transferred out of this fund. If the Transportation Fund is just being used for everything else, than raising the gas tax will not replenish the Fund. It is is just sleight of hand raising of our taxes.  Especially since Maryland's aging and ill maintained transit, roads, dams, bridges, and storm water systems earned a C- according to the 2011 Report Card for Maryland's Infrastructure prepared by the Maryland Section of the American Society of Civil Engineers. Didn't O'Malley attack Ehrlich on coining the term "fees" instead of taxes during the election? Isn't this the same thing?
Source from Gazette.net

O'Malley, the patron Saint of Penn Gaming

Rosecroft has a new owner, Martin O'Malley's newest corporate welfare recipient, Penn Gaming. Penn Gaming has won the right to purchase the Rosecroft racetrack after a spirited bidding war.
This auction is barely after Penn Gaming and Magna attempted to kill racing at Pimlico and Laurel. Why continue the charade that Penn Gaming and Magna are interested in saving Horse Racing? The Governor is pushing for free, no-strings-attached subsidies specifically for Penn Gaming. If  Governor Martin O'Malley was serious about Maryland or Horse Racing, why doesn't he have the recipients of this money sign over ownership of the Preakness? They can have a signed agreement the owner of Pimlico can run, manage, and keep all proceeds. At one point Martin O'Malley was talking of Eminent Domain, now Martin O'Malley just takes Penn Gaming's word the Preakness will not leave Maryland!
Here is, per Peter Carlino (Penn Gaming executive), Penn Gaming's official stance on Horse Racing from Penn National Gaming's 2010 Analyst call transcripts.
"We will ratchet down costs in Texas, we will ratchet down costs in Maryland and do whatever it takes. I mean, we need to be tough about that and we will be very tough and brutal about that. Because we have to. We're not running a public charity. We've made those statements publicly and we're going to right size those businesses over the next year or so, because we must. All that having been said, I still think that we can make the case that slots at racetracks make a tremendous amount of sense. And it isn't because it's going to boost the handle. I'm long since past trying to defend the idea that they believe in Maryland for example, that you approve the purses that somehow, miraculously, the quality of racing is going to improve and wonderful horses. The truth is they run the same old stuff, which is 2x or 3x as much. It has little impact on handle, because there aren't sufficient numbers of racing customers in the world anymore because they've died. And nothing's going to change that demographic. Now that having been said, I mean look, there's a place for racing, there's just too many racing dates. But you could argue, clearly, that slots are a very green activity at these tracks."
read more from the Analyst transcript...
So Peter Carlino/Penn Gaming believes Horse Racing is not a public charity yet persuades Martin O'Malley that Horse Racing is a public charity that deserves public subsidies free of any stipulations. The Maryland Jockey Club has failed to provide audited financial statements, as required under law, since 2007. (Industry insiders believe Maryland Jockey Club made millions in profits in 2007, 2008, and 2009 when you deduct payments to the prinipals and/or partners of MJC). An audit by the Legislative Audit Office in 2008 confirms the failure of MJC to provide audited statements, as does testimony by MJC before the Racing Commission in December 2010. Why has the Governor,  his regulators, and the legislature allowed this to happen? Perhaps an outside Agency needs to examine.

Horse racing friend (not)

O'Malley gave a sweetheart loan as well as diverted slots proceeds from the racetracks to the race track owners in an "emergency" deal. Penn Gaming ( you cannot talk about O'Malley without Penn Gaming coming up sooner than later) has been crying poor in their annual hold the tracks hostage or "give me the money or the horses get it" speech. In response Martin has given Penn (not the tracks) millions of sweetheart loans. Martin also is diverting proceeds from the slots program that is supposed to go to track improvements. The proceeds instead go straight to the owner of the track without any catch to invest back into track, employees, or the horse racing industry. Read more about this....
Where has this "poor" owner of the tracks been spending their money?
$40 million reported in this last election cycle so far. That is money just for politics. Does not include anything remotely operational for horse racing or slots. Read more details on Penn Gamings political spending...
The Governor has benefited greatly from this infusion of money. Either directly or indirectly. Below is a detail garnered from the Maryland Board of Elections on campaign spending. There were so many pages, I only listed the organizations that has close ties to O'Malley. The data are donations from the last few years:
Source...

Penn National Gaming, Inc $4000 O'Malley, Martin Friends Of
Penn National Gaming, Inc $4000 O'Malley Brown Committee Slate
Penn National Gaming, Inc. $1000 Miller, Mike Marylanders For
Penn National Gaming, Inc. $10710 No Slots At The Mall
Penn National Gaming, Inc. $10235 No Slots At The Mall
Penn National Gaming, Inc. $4338 No Slots At The Mall
Penn National Gaming, Inc. $12895 No Slots At The Mall
Penn National Gaming, Inc. $2100 No Slots At The Mall
Penn National Gaming, Inc. $65000 No Slots At The Mall
Penn National Gaming, Inc. $13000 No Slots At The Mall
Penn National Gaming, Inc. $15000 No Slots At The Mall
Penn National Gaming, Inc. $3161.62 No Slots At The Mall
enn National Gaming $1000000 For Maryland For Our Future
Penn National Gaming $1000000 For Maryland For Our Future
Penn National Gaming PAC $4000 O'Malley, Martin Friends Of
Penn National Gaming PAC $4000 O'Malley Brown Committee Slate
Penn National Gaming, Inc $4000 O'Malley, Martin Friends Of
Penn National Gaming, Inc $4000 O'Malley Brown Committee Slate
Penn National Gaming, Inc. $13000 No Slots At The Mall
Penn National Gaming, Inc. $12895 No Slots At The Mall
Penn National Gaming, Inc. $65000 No Slots At The Mall
Penn National Gaming, Inc. $4338 No Slots At The Mall
Penn National Gaming, Inc. $10235 No Slots At The Mall
Penn National Gaming, Inc. $2100 No Slots At The Mall
Penn National Gaming, Inc. $15000 No Slots At The Mall
Penn National Gaming, Inc. $3161.62 No Slots At The Mall
Penn National Gaming, Inc. $10710 No Slots At The Mall
MARYLAND JOCKEY CLUB OF BALTIMORE CITY, INC. $1000 Dixon, Sheila Friends For
MARYLAND JOCKEY CLUB OF BALTIMORE CITY, INC. $1000 Dixon, Sheila Friends For
Maryland Jockey Club $4000 O'Malley, Martin Friends Of
aryland Jockey Club (Admin) $25000 Democratic State Central Committee Of Maryland
Maryland Jockey Club (Admin) $50000 Democratic State Central Committee Of Maryland
Maryland Jockey Club (Admin) $50000 Democratic State Central Committee Of Maryland
Maryland Jockey Club Baltimore City, Inc. $500 Marriott, Salima Siler Campaign Committee
Maryland Jockey Club of Baltimore City, Inc. $4000 O'Malley, Martin Friends Of
Maryland Jockey Club of Baltimore City, Inc. $4000 O'Malley Brown Committee Slate
The Maryland Jockey Club of Baltimore City (See remarks) $258000 No Slots At The Mall
The Maryland Jockey Club of Baltimore City (See remarks) $1675000 No Slots At The Mall
he Maryland Jockey Club of Baltimore City (See remarks) $350000 No Slots At The Mall
The Maryland Jockey Club of Baltimore City (See remarks) $500000 No Slots At The Mall
The Maryland Jockey Club of Baltimore City (See remarks) $131478.25 No Slots At The Mall
The Maryland Jockey Club of Baltimore City (See remarks) $96323 No Slots At The Mall
The Maryland Jockey Club of Baltimore City (See remarks) $10725 No Slots At The Mall
The Maryland Jockey Club of Baltimore City (See remarks) $275000 No Slots At The Mall
The Maryland Jockey Club of Baltimore City (See remarks) $500000 No Slots At The Mall
The Maryland Jockey Club of Baltimore City (See remarks) $350000 No Slots At The Mall
The Maryland Jockey Club of Baltimore City (See remarks) $1675000 No Slots At The
The Maryland Jockey Club of Baltimore City (See remarks) $2250000 No Slots At The Mall
The Maryland Jockey Club of Baltimore City (See remarks) $500000 No Slots At The Mall
The Maryland Jockey Club of Baltimore City (See remarks) $800000 No Slots At The Mall
The Maryland Jockey Club of Baltimore City, Inc $31095.64 For Maryland For Our Future

Whew... Makes your head spin. Imagine how many hours one of those poor track workers had to put in to even make one of those donations. Good thing O'Malley and Penn Gaming are looking out for them.

Another busy aide leaves O'Malley

Colm O’Comartun has been appointed by Governor O'Malley as the head of the Democratic Governors Association (DGA).
Is Governor O'Malley positioning himself for a National campaign?

O'Malley's busy aides

It is a lucrative businees being a friend or aide to O'Malley.
Case in point- Sean Malone.
Sean started off being a bartender at Mick O'Sheas. An Irish bar where O'malley's March was a regular act.
O'Malley brought Sean in as an aide and confidant, Question 2 (Slots in Maryland passed), and Mr Malone left the administration to become a lobbyist for among other clients- Penn Gaming. Sean was quoted as saying he could not raise a family on the 6 figure salary he was making as an aide.
Sean was also instrumental in bill HB 1590 an anti Union bill.

O'Malley's jackpot

O'Malley has said numerous times that he doesn't like slots. Perhaps it is just gaming companies that don't contribute heavily into his campaign. The only casinos that have opened are ones that have contributed.

Magna contributed $3 million to Gov. Martin O'Malley's drive to win approval of the slots referendum, which was conducted by the Governor's former communications director, Steve Kearney, who now has his own public relations and lobbying firm, and was chaired by Fred Puddester, the state's former budget director and now O'Malley's appointed head of the Maryland Stadium Authority.
read more...