The Truth About Bob's Myths:

October 8 - Ehrlich Attack ad built on false claims.

Ehrlich Makes Desperate Attacks on Jobs

Ehrlich Highlights his own failures in BGE attack ad

Bob Ehrlich's Budget & Tax Myths

Ehrlich Attack ad built on false claims.

October 8, 2010 - "Bob Ehrlich knows better than to trot out more false attacks that have been discredited by independent media organizations, but he's clearly getting desperate as his campaign loses momentum," said O'Malley-Brown Deputy Campaign Manager Rick Abbruzzese.

"Ehrlich is struggling to explain why we should go backwards to his failed policies of record spending, tuition hikes, and $3 billion in tax increases, so he's decided his only option is to try to hoodwink voters with these false and discredited attacks."

Claim #1: TRUE -- Governor O'Malley was sworn in on January 17, 2007.

Claim #2: FALSE -- Bob Ehrlich left office with a $1.7 billion budget deficit. Ehrlich's claim that he left a budget surplus is refuted by numerous analyses and even by his own budget director.

CLAIM #3: FALSE -- Bob Ehrlich raised taxes and fees on every Maryland business and family, by a total of $3 billion when he was governor. By contrast, 86% of Marylanders now pay less in state income taxes than they did before Governor O'Malley took office.

CLAIM #4: FALSE -- Governor O'Malley made the tough decisions to secure funding for the Chesapeake Bay Fund and to make sure Bay programs like Program Open Space were funded. He led the effort to create the Chesapeake Bay 2010 Trust Fund. By contrast, Bob Ehrlich raided Maryland's environmental coffers by taking millions from Maryland's real estate transfer tax, which by law is dedicated to program Open Space and other land conservation programs. Ehrlich was also caught trying to sell state preservation land to developers at below-market rates.

CLAIM #5: FALSE -- Bob Ehrlich gave big raises to his top aides. Merit pay increases awarded by the governor's office have been reduced under the O'Malley administration compared to the Ehrlich administration.

CLAIM #5: FALSE -- As much as Bob Ehrlich wants to talk down Maryland businesses, Maryland was ranked #2 in the country this year by the U.S. Chamber of Commerce for Entrepreneurship and Innovation under Governor O'Malley's leadership. Maryland ranks better in unemployment under O'Malley than it did under Ehrlich.

CLAIM #6: FALSE -- Maryland is weathering the economic storm better than most states, adding 33,000 private sector jobs since the beginning of this year--the best January to August job growth since 2000.

CLAIM #7: FALSE -- Multiple independent fact check organizations, including WBAL-TV and TBD.com, have called Ehrlich's attacks on the DLLR jobs report "false," "misleading," "dishonest," and "total malarkey."

CLAIM #8: FALSE -- Bob Ehrlich promised not to raise taxes in 2002, then raised taxes, tolls, and fees by $3 billion. Governor O'Malley has clearly said he has no plans to raise taxes, and Bob Ehrlich knows it.

The O'Malley-Brown Campaign today released a new web ad compiling quotes from independent fact check organizations calling Ehrlich's claims "dishonest," "false," "monstrous whoppers," and "total malarkey."(ad below)

Ehrlich's desperate attacks come on the heels of a Rasmussen Reports poll showing him down by 8 points and a Washington Post poll showing him slipping 11 points behind O'Malley.

Ehrlich makes desperate attacks on Jobs:

(September 27, 2010) -- In response to Bob Ehrlich's misleading TV attack ad and desperate attempt to score political points at a press conference this morning, O'Malley-Brown Deputy Campaign Manager Rick Abbruzzese issued the following statement:

"This is embarrassing for the failed former governor: Bob Ehrlich has spent this election season misleading voters about his failed record of increased taxes and spending, and now he's trying to blame Governor O'Malley for the failures of his own Public Service Commission."

"Everyone knows a fee is a tax, and everyone knows it was Ehrlich's cronies at the PSC that failed to do anything about the 72% BGE rate hike. When voters fired Ehrlich, Martin O'Malley stepped in to clean up Ehrlich's mess and won $2 billion in rebates from the electric companies, all while Ehrlich was enriching himself to the tune of $2.5 million working for a lobbying firm representing special interests."

"Now Ehrlich is trying to play the same desperate blame game with economic statistics and betting against Maryland's future success. Here are the facts: since January, over 33,000 jobs have been created in Maryland. It's the best job growth in a January to August period in Maryland since 2000."

To set the record straight about BGE rate increases, the O'Malley-Brown campaign today is launching a new TV ad, "Real Record," available for viewing here.

Ehrlich Highlights his own failures in BGE attack ad:

(September 24, 2010) -- In response to Bob Ehrlich's new attack ad, O'Malley-Brown Campaign Manager Tom Russell released the following statement:

"It's baffling that Bob Ehrlich would raise the subject of BGE electricity rate hikes in a risky negative attack ad. The BGE rate hikes were a major boondoggle of Bob Ehrlich's failed term as governor, and a big reason why Maryland voters fired him with cause in 2006. Ehrlich refused to stand up to big energy companies on behalf of consumers, plotted with energy lobbyists to give the public rate-setting commission a 'lobotomy,' and replaced competent professionals with his own political cronies, all leading to a 72% rate increase for Maryland families."

Here are the facts:

Bob Ehrlich Refused to Stand Up to BGE on Behalf of Consumers

• Just as the process of setting electricity rates was getting underway, Bob Ehrlich's handpicked PSC chair, Kenneth Schisler, ordered the firing of some of the agency's most respected staff members. The staffers, fired to make room for Ehrlich's political cronies, included experts in engineering and utility accounting and cost the state decades of experience at a critical moment. [The Baltimore Sun, "Firings at PSC viewed as risky," 4/21/04]
• Bob Ehrlich's PSC Chair Kenneth Schisler's e-mails show he collaborated with utility industry lobbyists in plotting strategy for undermining the PSC. He told energy lobbyist Carville Collins about appointments to the commission's staff before they were announced, gave him advice, and commented about the "lobotomy" his changes had given the commission.[The Washington Post, "Utility Agency E-mails Show Industry Ties," 3/18/06]
• When Bob Ehrlich was questioned about the allegations of collusion between his PSC chair and the utility industry that he should have been regulating, he dismissed it as unimportant: "I have not read the story yet, but Greg Massoni, my press secretary, is relating some of the substance of the e-mails, and I would ask you: Where's the story?" [The Washington Post, "Ehrlich Dismisses E-Mail Flap," 3/19/06]

Ehrlich Vetoed Rate Relief

• Bob Ehrlich vetoed two bills that would have given the state greater leverage to force a pro-consumer deal from BGE. The first would have reformed the Public Service Commission, and the second would have given the legislature the power to put the Constellation-FPL merger (and its huge payouts to top executives) on hold pending the resolution of the electricity rate issue. The Maryland Gazette described Ehrlich's vetoes as "inexplicable."[The Washington Post, "Ehrlich Strikes Down 8 Bills," 4/8/06; Maryland Gazette, "Ehrlich can commit political suicide or stand up to BGE," 4/19/06]

Governor O'Malley Fought for Consumers

• Gov. O'Malley is the only candidate for governor to put money back into the pockets of ratepayers. By reforming the Public Service Commission and through tough negotiations, Gov. O'Malley secured the largest recovery in history for consumers - over $2 billion in benefits for BGE ratepayers, including nearly $300 in direct rebates for families.
• Gov. O'Malley eliminated $1.5 billion in ratepayer liability. Under the terms of the Settlement, the O'Malley/Brown Administration insisted that Constellation Energy take over financial responsibility for the decommissioning of the two Calvert Cliffs nuclear plants, thereby saving Maryland ratepayers a projected $1.5 billion between 2016 and 2036.
• Gov. O'Malley saved BGE customers $20 million annually. As a part of the Settlement, BGE ceased collecting a certain administrative charge on ratepayers' monthly bills, for an annual savings to customers of $20 million, or $130 million over the relevant 6 1/2 year period. The Settlement also required BGE to delay filing its electric distribution rate case for at least six additional months, estimating to have saved BGE customers at least $10 million in avoided costs.

Bob Ehrlich's Budget & Tax Myths

Bob Ehrlich Says One Thing and Does Another:

Claim #1: “Total state spending today is nearly $2 billion higher than it was when the O’Malley Administration took office.”

THE FACTS:

• Gov. O’Malley has reduced State spending by 3% while Ehrlich increased it by 30% (over $3 billion).  Ehrlich’s claim relies on counting federal stimulus dollars as state spending.  These funds provided $1.6 billion for Medicaid, $1.1 billion in K-12 education funding, $780 million to update our aging infrastructure, and $150 million for public safety.  Bob Ehrlich took millions in federal funds when he was governor.  [Department of Legislative Services]
• Gov. O’Malley has cut $5.6 billion in spending [Dept. of Budget and Management]
• Gov. O’Malley has had “the leanest budgets in the last 50 years.” [Marylandreporter.com, May 19, 2010]
• “O'Malley has made repeated rounds of cuts to keep Maryland's budget in balance over the last four years - in fact, cutting projected spending far more than Mr. Ehrlich did”  [Baltimore Sun, April 8, 2010]

Claim #2: “The O’Malley Administration enacted a record $1.4 billion tax increase, including a 20% increase in the sales tax.”

THE FACTS:

• 85.8 percent of Marylanders now pay less in state income taxes. Gov. O’Malley restructured Maryland’s income tax to provide relief for middle and low income Marylanders.  Individuals making less than $88,750 and married couples making less than $172,500 now pay the same or less in income and sales taxes than they paid during the Ehrlich administration.  [Department of Budget and Management]
• Maryland’s sales tax remains low compared to other states.  Thirty-two states have a combined state and local sales tax higher than Maryland’s.  [The Tax Foundation, August 19, 2010]
• Bob Ehrlich raised taxes and fees on every Maryland business and family, by a total of $3.3 billion.  Ehrlich’s tax increases included a property tax increase that cost Marylanders $690 million, a tripling of corporate filing fees, and the 58% car tax increase that moved registration fees from $81 to $128 for sedans and $107 to $179 for SUVs and Pickups. [Department of Legislative Services]
• Bob Ehrlich wants to blame the global recession on Gov. O’Malley, but Maryland’s families and businesses are weathering the recession better than their peers in other states.  Maryland’s unemployment has consistently been about 25% lower than the national average, and the U.S. Chamber of Commerce recently ranked Maryland among the top states in growing jobs.  [Bureau of Labor Statistics; U.S. Chamber of Commerce, May 2010]

Claim # 3: “When he served as governor from 2003 to 2007, Ehrlich turned $4 billion in inherited budget deficits into a budget surplus.”

THE FACTS:

• Ehrlich left a $1.7 billion deficit.  His claim that he left a budget surplus is refuted by numerous analyses and even his own budget director.  Ehrlich’s budget secretary, Cecilia Januszkiewicz, admitted to the Senate Budget and Taxation Committee that the entire amount would be consumed just to “come close to balancing” the FY 2008 budget. [Testimony of DBM Secretary Cecilia Januszkiewicz, February 2, 2006]

Claim #4: “O’Malley has increased the State’s future reliance on debt by 60%.”

THE FACTS:

• Under Gov. O'Malley, Maryland is one of only 8 states to maintain a triple A bond rating saving tax payers millions in savings.  [Department of Legislative Services, Analysis of the FY 2011 Maryland Executive Budget, 2010]
• Ehrlich issued debt to pay for expensive projects like the ICC and the I-95 widening.  Under Ehrlich, the state authorized over $2.7 billion in debt.  [Department of Budget and Management]
• In congress, Ehrlich cast the deciding vote to raise the national debt limit  In 2002, Ehrlich voted for legislation to raise the national debt limit by $450 billion to $6.4 trillion.  2002 was the first year in four years in which the government ran at a deficit.  The bill passed 215-214 and was signed by President Bush.  [House Roll Call 279, 2002]

Claim #5: “Gov. O’Malley has offered no plan whatsoever to fix Maryland’s budget deficit and has drained the State’s Rainy Day Fund.”

THE FACTS:

• Gov. O’Malley has made the tough choices to balance Maryland’s budget for the past four years, overcoming the $1.7 billion deficit he inherited from Bob Ehrlich.  O’Malley cut $5.6 billion from the budget and eliminated over 4,200 positions.  Today, the state’s General Fund budget is smaller than Ehrlich’s final budget.  [Department of Budget and Management]
• Gov. O’Malley has resisted political pressure to take money from the Rainy Day Fund, and has instead fully funded it as required by law.  Bob Ehrlich’s own budget director has acknowledged that the Rainy Day Fund was artificially inflated at the end of the Ehrlich administration by funds that were already allocated for the operating budget.  [Testimony of DBM Secretary Cecilia Januszkiewicz, February 2, 2006]

Claim #6: “O’Malley will enact a monumental tax increase after November’s election.”

THE FACTS:

• Governor O'Malley has reduced state spending by $5.6 billion to help get our state through this national recession and will continue to make the tough decisions to balance the state's budget. 
• Both Gov. O’Malley and Bob Ehrlich have said they do not intend to raise taxes next year, but Ehrlich has little credibility on this issue.  After pledging not to raise taxes, Ehrlich raised taxes and fees by $3 billion, including a property tax increase that cost Marylanders $690 million and a 200% corporate filing fee increase.
• On the campaign trail, Bob Ehrlich has already made more than $850,000,000 ($850 million) in promises to increase state's deficit. Ehrlich has also declined to sign a pledge not to raise taxes if he is elected this year.

Claim #7: “Bob Ehrlich proposed a lasting solution to Maryland’s budget deficit."

THE FACTS:

• Bob Ehrlich increased state spending more than any other Governor in Maryland history raising taxes and fees by a total of $3.3 billion.
• Bob Ehrlich failed to pass slots legislation for four years in a row.  Bob Ehrlich failed to build sufficient support on either side of the aisle for slots. 
• Gov. O’Malley, on the other hand, worked with the legislature to win passage of a slots bill, and the first slots casinos will be opening in Maryland this year, bringing a significant new revenue stream to the state. 

Claim #8: “Ehrlich defeated or vetoed $7.5 billion in tax increases proposed by the Maryland General Assembly.”

THE FACTS:

• Ehrlich approved every tax and fee increase that crossed his desk, except for one.  The only revenue enhancement that passed over Ehrlich’s objection was the repeal of the HMO tax loophole.  Ehrlich enacted his biggest tax increase – the $690 million property tax hike – without legislative approval and actually voted in favor of the increase at the Board of Public Works, which he chaired. [Department of Legislative Services]