Monday, September 3, 2012

Martin O'Malley Fact Check: Top 10 False Assertions








Martin O'Malley Fact Check: Top 10 False AssertionsMaryland Governor's Self-Described Economic Record Riddled with Errors, Falsehoods, Omissions For Immediate Release

Contact: Jim Pettit

301.704.1363

Annapolis - The O'Malley Administration's top ten assertions this year about state finances, jobs and taxes contained 19 false or misleading statements according to Change Maryland. The grassroots citizen organization utilized federal government sources and other non-partisan information in making this determination.

"As Governor Martin O'Malley prepares to lecture the nation on the economy this week in Charlotte, and to criticize a Presidential nominee, the U.S. House of Representatives and other Governors, Change Maryland would like to call attention to some actual facts about O'Malley's record here at home," said Chairman Larry Hogan. "We are seeing a pattern of deception from the governor here that must be taken into account on the national stage."

This is the first among many Administration assertions Change Maryland will analyze in a periodic and much-needed fact-checking process.

Listed below are Martin O'Malley's Top 10 false and misleading assertions followed by Change Maryland's clarifications and corrections.

State Finances

1. Martin O'Malley: "In fact, to achieve balance over the last three years, we have relied almost entirely on cuts."Governor O'Malley State of the State Address, 2012

http://www.governor.maryland.gov/documents/stateofthestate2012.pdf



Change Maryland: From 2007 to 2012, O'Malley raised taxes and fees 24 times, removing an additional $2.4 billion annually from the Maryland economy.

Fact Sheet: Maryland Tax and Fee Increases, 2007-2011 http://www.changemaryland.org/category/facts/


2. Martin O'Malley: "Governor O'Malley has cut more state spending than any governor in Maryland's history - $8 billion."

Office of the Governor, 8.28.12 http://bit.ly/TIk2Jt

Change Maryland: State spending increased nearly $7 billion from $28.8 billion in 2007 to $35.5 billion today.Maryland House GOP Caucus, 8.2.12 http://on.fb.me/OBZ26F

3. Martin O'Malley: "Under Governor O'Malley's leadership, the Administration has been successful in making the tough choices that have protected the State's long history of sound fiscal stewardship..."Office of the Governor, 1.18.12 http://www.governor.maryland.gov/blog/?p=3494

Change Maryland: Maryland has the second highest debt burden in the region and 13th-highest nationally. As a percentage of state GDP, Maryland's unfunded pension liability combined with other debt is 9.6%. This compares to Virginia, 3.7%; Delaware 4.7% and Pennsylvania 6%.Barron's "State of the States," 8.27.12 http://on.barrons.com/PxLQyQ


4. Martin O'Malley: "According to a recent report by the National Association of State Budget Officers, general fund spending in Maryland decreased between FY2009 and FY2011."

Office of the Governor, 8.28.12 http://bit.ly/TIk2Jt

Change Maryland: The Administration is citing an old report from 2010, attempting to cherry pick data.

Change Maryland: The most recent 2012 NASBO/NGA report shows Maryland's general fund spending has increased 15.5%, three times the national average, and the highest in the region, between fiscal years 2011 and 2013.Fiscal Survey of the States, Spring 2012

http://www.nasbo.org/publications-data/fiscal-survey-states/fiscal-survey-states-spring-2012

Jobs

5. Martin O'Malley: "Maryland actually gained 1,700 jobs over the first 6 months of the year while many neighboring states continued to see a decline."Office of the Governor, 8.28.12 http://bit.ly/TIk2Jt

Change Maryland: Most neighboring states are not seeing a decline. During the first six months of this year, Maryland's job loss compares to a gain of 40,800, Virginia; Pennsylvania, 8,300; the District of Columbia 7,800. Since January of 2007 to present, Maryland has lost three times as many jobs as Virginia and has the second-worst job performance in the region.

Change Maryland: Maryland has lost 6,600 jobs during the first six months of this year. The Administration back-dated BLS data one month to December of 2011, while omitting July, attempting to cherry pick data.

U.S. Dept. of Labor Bureau of Labor Statistics:

http://data.bls.gov/cgi-bin/surveymost?sm

6. Martin O'Malley: "Maryland is creating jobs at 2 ½ times the rate that Virginia.

Change Maryland: Politifact Virginia found O'Malley's claim to "only approach validity when he gets to cherry-pick the data" and rated his statement false.

Politifact 2.05.12

http://www.politifact.com/virginia/statements/2012/feb/13/martin-omalley/gov-omalley-says-maryland-creating-jobs-2-12-times/

Taxes

7. Martin O'Malley: "According to the conservative group Change Maryland, 30,000 taxpayers fled the state for Virginia after Governor O'Malley raised taxes on millionaires in 2007."

Change Maryland: We actually reported that 11,455 Marylanders fled to Virginia during the period in question, the 30,000 included taxpayers who fled Maryland for other states.Change Maryland: Nowhere in CM's tax report is the word "millionaire" mentioned. The Administration is attempting to deflect Maryland's tax flight problem into a class warfare issue where none exists.

Change Maryland Tax Migration Report:

http://www.changemaryland.org/wp-content/uploads/2012/07/StateCountyTax.pdf

8. Martin O'Malley: "Change Maryland used data that the IRS openly recognizes as incomplete to draw their erroneous conclusions." Office of the Governor, 8.28.12 http://bit.ly/TIk2Jt

Change Maryland: The IRS does not say the data is "incomplete," openly or otherwise. It includes tax returns filed by late September of the filing (calendar) year which covers 95% to 98% of all returns during the period IRS monitors.

9. Martin O'Malley: "Maryland saw the smallest tax filer change in the region from 2007 to 2010, losing 25% fewer tax filers than Virginia." Office of the Governor, 8.28.12 http://bit.ly/TIk2Jt

Change Maryland: -The Administration is not citing a source

-According to the IRS, Maryland saw the largest taxpayer exodus of any state in the region, and seventh-highest nationally.

-Delaware, which is also in the region, but omitted from the Governor's statement, saw a net inflow of nearly 7500 residents, according to the IRS.

-The District of Columbia, which is also in the region, but omitted from the Governor's statement, saw a net outflow of just over 1100 residents, according to the IRS.

10. Martin O'Malley: " In Maryland, tax filers decreased only 5.3% from 2007 to 2010 compared to a 7.1% decrease in Virginia, an 8.5% decrease in Pennsylvania, and a 15.5% decrease in West Virginia." Office of the Governor, 8.28.12 http://bit.ly/TIk2Jt

Change Maryland:

-The Administration is not citing a source

-According to the IRS, Virginia's net inflow of residents was nearly 30,300.

-According to the IRS, Pennsylvania's net outflow of residents was just over 8200 residents.

-According to the IRS, West Virginia's net inflow of residents was just over 14,600 residents.

Tax Foundation:

http://interactive.taxfoundation.org/migration/

IRS Statistics of Income Division:

http://www.irs.gov/uac/SOI-Tax-Stats---Migration-Data

Change Maryland Tax Study:

http://www.changemaryland.org/wp-content/uploads/2012/07/StateCountyTax.pdf

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