Maryland comptroller slams state's economy (Annapolis, North Beach: 2014, foreclosures, mortgage)

[e30is]

Maryland comptroller slams state's economy - WTOP Mobile

Uh oh.

[cpterp]

Originally Posted by e30is

Maryland comptroller slams state's economy - WTOP Mobile

Uh oh.

I would take this with a grain of salt. Franchot has been preaching doom and gloom for years, and has been at odds with O'Malley and (State Treasurer) Kopp. I've stopped taking his rants seriously a while ago.

Still, it is definitely is a poor situation for the state to be in, but it's not the apocalypse Franchot is trumping it up to be. The shortfall is almost entirely federal sequestration related. Private sector job growth has actually been relatively strong recently and has been propping up the state.

By comparison, Virginia, which people love to tout as a "well-managed, fiscally responsible state" has a whopping $2.5 billion shortfall over the fiscal biennium (compared to MD's $405m) and is practically emptying out it's "rainy day" fund.

268a320a60ce_story.html"]http://www.washingtonpost.com/local/virginia-politics/mcauliffe-announces-24-billion-projected-virginia-budget-shortfall/2014/08/15/acb5ea88-247f-11e4-958c-268a320a60ce_story.html[/url]

[North Beach Person]

"Sequestration related" is exactly why it's worrisome. The area has become a one industry town over the last 20 years. That's never healthy. If that one industry takes a dump then the ripple effects hit hard and there's nothing to pick up the slack. See Detroit/Pittsburgh, etc. for reference. It doesn't matter if it's steel and autos or government and Beltway Bandits, the contracts dry up or go away and the contraction is long and painful with widespread carnage. I was at DNR HQ in Annapolis today. Row upon row of empty desks. Were people on leave? Nope. These were cubes where people once worked but have quit/retired/been laid off and the position not refilled.

How long did the sequestration last? Not long and it's having this large an impact.

More concerning is the foreclosure rate, it shouldn't be 2nd worst in the US in an area with the supposed underlying wealth here.

While assessments were up a bit statewide, many areas still saw a decrease. Calvert County, for one, was internally expecting a 3% to 4% increase. Instead the County saw an overall 10% decrease in assessments.

[DaveinMtAiry]

The Federal Government is not nearly as volatile as the steel or auto industry.

[North Beach Person]

Originally Posted by DaveinMtAiry

The Federal Government is not nearly as volatile as the steel or auto industry.

You're correct it isn't. But to blame the anemic MD numbers on an event, the sequestration, that was short lived (and I really doubt that it impacted as much as claimed but it's a convenient scapegoat) and supposedly caused such as major drop in revenue, then some deeper thought needs to be given to the state's overall economy.

[ay jayy]

Originally Posted by North Beach Person

You're correct it isn't. But to blame the anemic MD numbers on an event, the sequestration, that was short lived (and I really doubt that it impacted as much as claimed but it's a convenient scapegoat) and supposedly caused such as major drop in revenue, then some deeper thought needs to be given to the state's overall economy.

You are confusing sequestration with the gov't shutdown. Sequestration was not short lived. Much of it is still in effect and will be for years to come.

[AeroGuyDC]

Originally Posted by cpterp

I would take this with a grain of salt. Franchot has been preaching doom and gloom for years, and has been at odds with O'Malley and (State Treasurer) Kopp. I've stopped taking his rants seriously a while ago.

Still, it is definitely is a poor situation for the state to be in, but it's not the apocalypse Franchot is trumping it up to be. The shortfall is almost entirely federal sequestration related. Private sector job growth has actually been relatively strong recently and has been propping up the state.

By comparison, Virginia, which people love to tout as a "well-managed, fiscally responsible state" has a whopping $2.5 billion shortfall over the fiscal biennium (compared to MD's $405m) and is practically emptying out it's "rainy day" fund.

268a320a60ce_story.html"]http://www.washingtonpost.com/local/virginia-politics/mcauliffe-announces-24-billion-projected-virginia-budget-shortfall/2014/08/15/acb5ea88-247f-11e4-958c-268a320a60ce_story.html[/url]

Why do you compare to Virginia? There are 48 other states to draw this straw man from. ��

[North Beach Person]

Originally Posted by ay jayy

You are confusing sequestration with the gov't shutdown. Sequestration was not short lived. Much of it is still in effect and will be for years to come.

Perhaps I am, but doesn't that then illustrate the underlying weakness of the regional economy and the dangers of relying on one industry, in this case the government?

And yes, I know that MD touts the (low paying) tourist industry as a replacement.

[North Beach Person]

At least the federal people understand the issue:

Officials announce funding for economic diversification efforts | thebaynet.com | TheBayNet.com | Articles

[Richard Martin]

Originally Posted by North Beach Person

More concerning is the foreclosure rate, it shouldn't be 2nd worst in the US in an area with the supposed underlying wealth here.

The current foreclosure crisis is actually leftover from 2008. All they did back then was kick the can down the road. Remember back when Maryland put a moratorium on foreclosures and set up all kinds of hoops for mortgage holders to jump through before they could foreclose? Well, those roosters have come home to roost and it's ugly.