FY2012PrioritiesMDForward

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STATE OF MARYLAND OFFICE OF THE GOVERNOR MARTIN O’MALLEY GOVERNOR STATE HOUSE 100 STATE CIRCLE ANNAPOLIS, MARYLAND 21401-1925 (410) 974-3901 (TOLL FREE) 1-800-811-8336 TTY USERS CALL VIA MD RELAY

THE STATE OF MARYLAND’S FY 2012 FEDERAL PRIORITIES MARYLAND’S TOP FEDERAL PRIORITIES: 1. Surface Transportation Reauthorization (SAFETEA-LU) 2. Elementary and Secondary Education Act (ESEA) 3. Workforce Investment Act (WIA) a. BRAC b. Innovation grants 4. Chesapeake Bay Restoration Bill a. Stormwater management at Federal Facilities b. Blue Plains

MARYLAND’S FRONTLINE FEDERAL PROGRAM PRIORITIES 1. 2. 3. 4.

Community Development Block Grants (CDBG) Low Income Heating and Energy Assistance Program (LIHEAP) Temporary Aid for Needy Families (TANF) Byrne Justice Assistance Grants (BJAG) a. Homeland Security Funding 5. Incentivizing Offshore Wind Development a. Extending the offshore wind investment tax credit b. Long term purchase agreements by the federal government (GSA) (See detailed white papers for priorities and programs enclosed.)

OTHER ENCLOSURES 1. Governor O’Malley’s letter to the Maryland Congressional Delegation re: HR 1 (dated March 4, 2011) 2. A chart of Maryland’s share of federal money as it pertains to key programs


STATE OF MARYLAND OFFICE OF THE GOVERNOR MARTIN O’MALLEY GOVERNOR STATE HOUSE 100 STATE CIRCLE ANNAPOLIS, MARYLAND 21401-1925 (410) 974-3901 (TOLL FREE) 1-800-811-8336

TOP FIVE FEDERAL PROGRAM PRIORITIES

TTY USERS CALL VIA MD RELAY

COMMUNITY DEVELOPMENT BLOCK GRANT MD FY 2012 Request: Nationwide funding at $4 billion, equates to $59,055,404 in program funds to Maryland. POTUS FY 2012 Request: $3.65 billion (MD=$54 million); HR 1: $1.5 billion (MD = $22 million); Senate CR: $3.99 billion (MD = $59 million-MD) Maryland Impact: The loss of CDBG funding would be felt across the entire State. The State of Maryland’s program currently funds government applicants in 113 non-entitlement rural towns and 17 rural counties in the state. Historically, the State of Maryland has managed the non-entitlement program since 1987 and awarded $207 million to 91 municipalities and counties for 780 projects. In the past fiscal year the approximately $11,500,000 of CDBG funds spent on direct operating support to carry out these activities created approximately 178 FTEs and helped leverage an additional $56,250,000 in operating funds supporting an additional 870 positions. The approximately $12,000,000 expended on capital activities helped leverage slightly more than ten times that amount in development, construction and financing activity. Impacts of not funding this program would include unsafe drinking water, pollution of Chesapeake Bay by rural towns without adequate sewer systems, not funding business expansion efforts, reduced employment, and reduced services to Maryland citizens. The impact to rural communities would be great as their ability to raise funds is limited. Additionally, the construction jobs provided by these projects would be lost potentially resulting in more people unemployed, higher risk of foreclosure and higher number of homeless families. The program also undertook job expansion for a training and service building in Cambridge (137 jobs) and an upgrade to Sherwin Williams in Crisfield (150 jobs) among many other projects (full list on DHCD’s website). LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP) FY 2012 Request: Support increased funding of LIHEAP to an authorized level of $7.6 billion recognizing the impact of the economy and high costs of all sources of energy on vulnerable households. Support a change to forward or advanced funding appropriations for LIHEAP to ensure adequate benefit distribution during the State fiscal program year. With funding approval occurring well into the heating season it is difficult to plan appropriate benefits when funding is not known. President’s FY 2012 Request: $2.5 billion (MD = $31 million); HR 1: $4.7 billion (MD = $85 million); Senate CR: $4.85 billion (MD = $85 million) Maryland Impact: LIHEAP supports Governor O’Malley’s Strategic plan by offering those Marylanders a safety net, for Marylanders who, for the first time, may have lost their jobs during the economic downturn and many low income citizens assistance with their utility bill. As jobs declined, it is crucial to support programs that offer assistance for Marylanders in transition and for Maryland’s most vulnerable. LIHEAP funding levels have provided benefits to approximately 90,000 to 100,000 low-income families throughout the entire state. Caseloads have continued to increase with 134,691 families receiving benefits in FY 2010. With continuing economic instability, more families are seeking assistance leading to the possibility that all those in need may not receive assistance. TEMPORARY ASSISTANCE TO NEEDY FAMILIES (TANF) PROGRAM CONTINGENCY FUNDING FY 2012 Request: Preserve nationwide FY 2012 funding for the Contingency Fund at $612 million. We support an increase in funding but understand this may not be feasible given the tight budgetary constraints. President’s FY 2012 Request: $612 million; HR 1: N/A; Senate CR: N/A Maryland Impact: TANF supports Governor O’Malley’s Strategic plan by increasing the number of Marylanders who receive job skills and training. During the economic down turn, local departments of social services experienced a disproportionate number of displaced workers seeking benefits. As jobs declined, it was crucial to support programs that FY 2012 State of Maryland Program Priorities

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offer training. For some TANF customers’ continuing education, advanced training or retraining was required. Reinforcing its efforts to support job growth and to better position Maryland to compete and to increase the number of Marylanders who receive skills training, the Department implemented Maryland Reaching Independence and Stability through Employment (MD RISE) program. Those recipients who complete MD RISE occupational skills training receive an industry related certificate and are placed in that industry. The Maryland Department of Legislative Services estimates a $31 million shortfall in the Department’s TANF budget in SFY 2011 due to the elimination of the FY 2011 Contingency Fund allocation. The Department is closely monitoring the President’s FY 2011 budget, which proposes additional funding for the Contingency Fund, and is hopeful it will be passed. We consider the current FY 2012 Contingency Fund allocation barely adequate and are concerned that it may be insufficient to cover the requests of all states that apply. • Maryland FY 2012 Allowance, TANF Contingency Fund: $45.8 million • Maryland FY 2011 TANF Appropriation (anticipated TANF funding): $256.9 million BYRNE JUSTICE ASSISTANCE GRANT PROGRAM FY 2012 Request: Maintain FY10 funding at $504 million for the Byrne Justice Assistance Grant (BJAG) program, our most versatile funding source for law enforcement and public safety. President’s FY 2012 Request: $487 million; HR 1: Unclear, but there was a 29% cut to State and Local Law Enforcement Assistance; Senate CR: Unclear, but $328.6 million above HR1 for State and Local Law Enforcement Assistance Maryland Impact: Continued funding for the BJAG program is directly related to Governor O’Malley’s policy goals of reducing violent crime by 20% by 2012 and reducing violent crime against women and children by 25% by 2012. The BJAG program is our most important and versatile source of federal grant funds. On average, Maryland receives about $6M per year in BJAG funding that can be used for a variety of purposes. BJAG funding has contributed to sharp reductions in crime in Maryland, including a 21% reduction in murders from 2007 – 2009. Maryland has also gone from being the 4th most violent state in the country to the 9th most violent. BJAG funding has helped us create a fundamental transformation in the structure, culture and philosophy of Maryland’s criminal justice system. This was accomplished through a data-driven approach to grant funding, collaborative efforts involving law enforcement and public safety agencies throughout the state, a variety of intelligence-based strategies and relentless follow-up. Returning to 2008 funding levels would reduce Maryland’s allocation from approximately $6 Million to $2.4 million. The reductions would force Maryland to cut funding for a variety of programs and severely strain our ability to continue our fight against crime. INCENTIVIZING OFFSHORE WIND FY 2012 Request: (1) Extend the investment tax credit for offshore wind through at least 2016.Under current law, offshore wind projects can receive a 30 percent investment tax credit (ITC) if the projects enter service before January 1, 2013. This request would extend the deadline to January 1, 2017. This request would put offshore wind on parity with solar, which already qualifies for the January 1, 2017 date. (2) Grant GSA the ability to enter into offshore wind power purchase agreements (PPAs) for terms of up to 30 year. Currently, GSA can only enter into PPAs for terms of up to 10 years. Maryland Impact: One of Governor O'Malley's 15 Strategic Policy Goals is to achieve Maryland's 20% by 2022 Renewable Portfolio Standard. Offshore wind energy represents the single greatest potential to bring large scale renewable energy to Maryland, along with stable prices and significant economic impacts. To promote offshore wind, last week in the Maryland General Assembly, Governor O’Malley introduced the Maryland Offshore Wind Energy Act of 2011, requiring development of 400 to 600 MW of offshore wind capacity. Extending the investment tax credit through 2016, when Maryland’s offshore wind turbines will be up and running, will complement the Governor’s bill. Development of 500 MW of offshore would create 2,000 manufacturing jobs for 5 years and an addition 400 ongoing supply and O&M jobs thereafter. In addition, based on a regional employment model analysis by the Maryland Department of Business & Economic Development, the total economic impact of offshore wind over five years is more than $1.9 billion, 8,200 job-years and $14 million in state tax revenues.

FY 2012 State of Maryland Program Priorities

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STATE OF MARYLAND OFFICE OF THE GOVERNOR MARTIN O’MALLEY GOVERNOR STATE HOUSE 100 STATE CIRCLE ANNAPOLIS, MARYLAND 21401-1925 (410) 974-3901 (TOLL FREE) 1-800-811-8336 TTY USERS CALL VIA MD RELAY

MULTI-YEAR SURFACE TRANSPORTATION AUTHORIZATION Specific Requested Action: Generate national reform beneficial to Maryland and seek inclusion of Maryland initiatives in a multi-year legislation authorizing federal surface transportation programs. Maryland Impact and Priorities: The 2009 expiration and current lack of a long-term bill has forced MDOT and all transportation agencies that utilize federal funding to focus on short-term, urgent needs. Constriction of the federal program and the lack of predictable, long-term funding is delaying action on transit, highway and rail projects that should be advancing to address significant capacity, economic growth, environmental, and reconstruction needs. In Maryland, we seek federal attention to our three New Starts projects; a new federal focus on transit-oriented development, programs that enable improvements for passenger, commuter and freight rail infrastructure; and to ensure programmatic flexibility to increase our ability to meet our system preservation needs throughout the state. MDOT continues its efforts to work with members of the Maryland Congressional delegation to refine specific recommendations for Congress to achieve our State and national goals. Federal funding is critical to Maryland’s ability to provide a seamless transportation system. The future allocation of and flexibility to move funding among modes and programs will impact the State’s ability to meet our needs, set policies impacting communities across the state, and fund our priority transit and commuter rail projects. MDOT urges passage of a long term bill that will advance Governor O’Malley’s goals to create, save or place residents into 250,000 growth sector jobs in Maryland by the end of 2012 as well as to double transit ridership and reduce statewide greenhouse gas emissions by 25 percent by 2020. Jobs Impact: It is estimated that for every $1 billion in infrastructure investment, more than 25,000 jobs are saved or created. Description of Project: Existing funding levels and revenue mechanisms for the Federal Highway Trust Fund are no longer sufficient to meet America’s transportation needs. The next surface transportation authorization bill will set the structure and funding levels for federal surface transportation programs, apportionment to states and discretionary programs. As such, it will have a great impact on the scope of Maryland's transportation program and opportunities for expansion. State of Maryland’s FY 2012 Federal Legislative Priorities – SAFETEA-LU

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Full authorization, short or long term extensions, and other legislative vehicles can offer opportunities to address issues including the need for a national vision to achieve a fully integrated transportation system; long-term solvency of the Highway Trust Fund; system preservation and maintenance; capacity issues including congestion relief; freight investment and mobility; international trade and the national economy; environmental and climate change concerns; project delivery improvements; and the needs of urbanized areas and mega-regions. The next authorization could change the number and scope of federal transportation policies and programs.

Program Authorization:

SAFETEA-LU

Responsible State Agency: Contact Name, Number, and E-Mail:

MDOT Caitlin Hughes Rayman 410-865-1092 crayman@mdot.state.md.us

State of Maryland’s FY 2012 Federal Legislative Priorities – SAFETEA-LU

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STATE OF MARYLAND OFFICE OF THE GOVERNOR MARTIN O’MALLEY GOVERNOR STATE HOUSE 100 STATE CIRCLE ANNAPOLIS, MARYLAND 21401-1925 (410) 974-3901 (TOLL FREE) 1-800-811-8336 TTY USERS CALL VIA MD RELAY

REAUTHORIZATION OF THE ELEMENTARY AND SECONDARY EDUCATION ACT Specific Requested Action: Reauthorize the Elementary and Secondary Education Act to invest in Maryland’s efforts to: • Adopt state-developed college and career ready (Common Core) standards; • Develop robust, internationally benchmarked assessments aligned with the Common Core standards in a consortia with like-minded states; • Develop a Maryland Longitudinal Data System • Improve educator evaluation systems in order to target professional development and ensure students are provided with effective teachers; • Provide intensive assistance to the lowest-performing schools. Further, the Act should encourage State innovation and continuous improvement so that Maryland can continue to develop and implement policies to help districts and schools dramatically improve student achievement, close achievement gaps and adequately prepare our students for the competitive global economy of the 21st century. Description of Program and Maryland Priorities: The Maryland State Department of Education considers the following to be its top priorities for the Reauthorization of the Elementary and Secondary Education Act (ESEA): 1. Provide States Flexibility in Developing Accountability Systems: No Child Left Behind (NCLB) requires 100% of students to be proficient in reading and math by 2014. As we approach 2014, and as the annual measurable objectives (AMOs) required to achieve Adequate Yearly Progress (AYP) edge closer to 100% proficiency, increasing numbers of schools are falling into school improvement status under this “one-size-fits-all” approach. Many of these are not schools we consider to be “failing” but due to the arbitrary targets set under NCLB, almost all schools will be in improvement by 2014. Based on many discussions we have had with Congressional staff, other states and education advocacy groups, this is a provision that we believe will be and should be adjusted during reauthorization. There is much discussion around the use of growth models to determine school success rather than an arbitrary goal that is the same for every school in the nation. We support the growth model proposals that have been discussed as possibilities for the reauthorization of ESEA and urge Congress to allow states the flexibility to design accountability systems that meet certain core principles (e.g., aligned to college and career readiness, focus on student achievement, annual assessments, disaggregated results), yet recognize the unique circumstances of the school systems within their states. This is a crucial time for education reform in Maryland and many other states. As we are transitioning to new standards, curriculum and assessments, we are concerned about the misalignment that will occur during the transition period. Some teachers are currently scheduled to transition to teaching certain aspects of the State of Maryland’s FY 2012 Federal Legislative Priorities – ESEA

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curriculum aligned with the new Common Core Standards on a limited basis beginning in school year 20112012. Full implementation is expected to be phased in over a period of three years, with full implementation by all teachers in all school systems by 2013-2014. However, states, including Maryland, will continue to use their current assessments for accountability purposes until the new assessments based on the Common Core Standards are fully implemented, which is currently anticipated for 2014-2015. The new assessments are expected to be field-tested in school year 2013-2014. It is an imperative that we transition to the new standards and assessments in a manner that is fair and that will not negatively impact or inaccurately identify schools as low-performing. 2. Properly Align ESEA and IDEA: While schools recognize and support the need for high standards and accountability for all students, there are some fundamental issues that need to be addressed in the reauthorization of the ESEA as it relates to students with disabilities. First, there is a major federal law that dictates all aspects of a student with disabilities educational program - from qualifications for identification to the implementation of a student’s Individualized Education Program (IEP). The Individuals with Disabilities Education Act (IDEA 2004) requires that for a student to be identified and eligible for services, the student must have a disabling condition that has educational impact and requires the need for special education instruction. Thus, one can expect that most students with IEP’s are demonstrating below grade level academic performance in the core content areas being tested. This is not congruent with the expectations of ESEA, which expects ALL students, including those with disabilities to achieve on grade level each year. The expectations of IDEA and ESEA must be aligned and congruent. Decisions about educational programs for students with disabilities should be based on their Individualized Education Programs that are designed to ensure their achievement. Instruction and assessment must be consistent with the IEP goals of the student with disabilities. Additionally, it is paramount that the student’s achievement of the IEP goals is a component in measuring student success along with other accountability measures. 3. Reconsider identification of persistently dangerous schools: The Maryland State Department of Education adopted state regulations intended to implement an unsafe school choice policy with rigor. Maryland’s policy stipulates that a school will be designated “persistently dangerous” if for three consecutive school years the total number of student suspensions for more than ten days or expulsions for certain offenses (arson or fire; drugs; explosives, firearms; other guns; other weapons; physical attack on a student; physical attack on a student; physical attack on a school system employee or other adult; and sexual assault) equals or exceeds 2.5 percent of the students enrolled in that school. In the years since NCLB was enacted, the Maryland State Board of Education has been facing the annual task of identifying persistently dangerous schools with increasing apprehension and serious reservation. Schools are an extension of the communities in which they are located. The persistently dangerous label is demoralizing to communities, school staff, students and parents. We hear anecdotal stories that principals are reluctant to suspend students in order to avoid the persistently dangerous label and, as a result, the very students who exhibit unsafe behaviors and actions remain in the school. Additionally, while the intent of the law is good, that is, to allow children attending unsafe schools to transfer to safer schools, very few families actually take advantage of the transfer option. Program Authorization:

ESEA

Responsible State Agency: MSDE Contact Name, Number, and E-Mail:

Debbie Lichter; 410-767-4694 dlichter@msde.state.md.us

State of Maryland’s FY 2012 Federal Legislative Priorities – ESEA

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STATE OF MARYLAND OFFICE OF THE GOVERNOR MARTIN O’MALLEY GOVERNOR STATE HOUSE 100 STATE CIRCLE ANNAPOLIS, MARYLAND 21401-1925 (410) 974-3901 (TOLL FREE) 1-800-811-8336 TTY USERS CALL VIA MD RELAY

WORKFORCE INVESTMENT ACT AUTHORIZATION Specific Requested Action: Craft and secure successful passage of new federal legislation to protect and advance the education and job training interests of Maryland. In particular, Maryland would like to see competitive grants for an innovation economy – preparing workers for high-growth, high-demand industries in the state: cyber (information assurance, etc) and biotech. Maryland Impact and Priorities: Last Friday, February 11, 2011, the House Appropriations Committee introduced a Continuing Resolution (H.R. 1) to fund the federal government for the last seven months of the fiscal year. The Labor, Health and Human Services (L-HHS) section of H.R. 1 is nearly 11% less than last year’s level and more than $36 billion, or 22%, less than the President’s fiscal year 2011 request. Specifically, H.R. 1 cuts job training programs by nearly $2 Billion (FY 2010 job training was funded at $2.97 Billion – effectively zeroing out job training programs), Pell Grants approximately $5.7 billion, investments in special education by over $800 million, and education programs for economically disadvantaged youth by nearly $700 million. Additionally, the effect of H.R. 1 for Maryland’s Base Realignment and Closure (BRAC) initiatives is particularly important due to the number of civilian Federal employees who recently received their official transfer of function notifications from the DoD regarding new assignments. And while there continues to be a level of confusion related to the aggregated numbers used to depict BRAC’s job impact upon Maryland, (45,000 - 60,000) our estimates are derived from a 2006 DOL funded study in sponsored by the Maryland Department of Business and Economic Development (DBED) and conducted by RESI of Towson University. This includes non-BRAC direct job growth at Fort Detrick, Andrews Air Force Base, and Fort Meade, plus a conservative application of indirect and induced ratios. Maryland must have the resources to continue its commitment to developing a highly-skilled and highly-trained workforce pipeline for the estimated 45,000 - 60,000 BRAC related jobs to be relocated throughout the State. As of now, separating employees may be eligible for WIA funded career counseling, testing, retraining, placement assistance, financial counseling, and other services. At BRAC installations, WIA assistance can begin up to 24 months prior to closure. Maryland proposes five main objectives for WIA reauthorization and/or federal job training reform legislation: 1. Promote Innovation and Replicate Best Practices: Too often, successful programs are not replicated and unsuccessful programs are not discontinued. Funding streams should be

State of Maryland’s FY 2012 Federal Legislative Priorities – WIA

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restructured to identify successful practices across programs, continuous innovation, promote flexibility and adoption of the most effective approaches. 2. Engage Employers In New Economy Industry Sectors: Labor markets are typically regional, yet the workforce system is designed around rigid state and local geographic boundaries. Federal programs should be structured to promote continual engagement by the workforce system with employers of all sizes in high-demand sectors (such as cyber security, health information technology, or energy efficiency / effectiveness) of the regional or local economy, as well as other stakeholders, to ensure that training programs lead to good jobs. 3. Streamline Service Delivery: Additional flexibility for states and localities is needed, including an option to apply for carefully-designed cross-program waivers; where appropriate, realigning programs should also be considered. This strategy will allow states to optimize resources to increase the focus and capacity to serve individuals who are low-income, have limited skills and have other barriers to economic success. 4. Deliver High-Quality Services: Clarify that the focus of the program should be on the provision of high quality, education, training and related services which provide individuals with the necessary skills and experience to access jobs that pay family-supporting wages and have advancement potential. All Americans should have access to high-quality One-Stop Career Centers that connect them with a full range of services available in their communities. Every American should be provided, at a minimum, the opportunity to locate and secure a job, build basic and occupational skills, pursue training leading to a post-secondary degree or credential, or receive guidance on how to chart a career path. 5. Improve And Apply Accountability: Performance measures must be overhauled and made consistent among programs throughout the workforce system to promote better outcomes for individuals of all skill and need levels, particularly those who are not yet ready and able to move quickly into a good job. 6. Protecting WIA impacted BRAC Initiatives: Beginning in 2005, Maryland embarked on a series of workforce initiatives designed to support BRAC mission growth. As we move closer to the September 2011 completion of BRAC transfer activities mandated by law, it is critical for Maryland to continue executing the training component of its BRAC strategy. As of this writing, Maryland has applied for a Department of Labor funded National Emergency Grant to target 6,481 individuals. The table below depicts the kind of BRAC job growth expected in Maryland by Service area. The increase of projected totals to 60,000 was made when factoring in the additional nonBRAC direct job growth at Fort Detrick, Andrews Air Force Base, and Fort Meade. This equals just fewer than 10,000, plus a very conservative increase in the indirect and induced ratios of 5,000. The impact of Maryland’s targeted service areas is illustrated in the following table by total BRAC and non-BRAC related jobs.

State of Maryland’s FY 2012 Federal Legislative Priorities – WIA

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Jobs Impact: Table 1: Total BRAC and Non BRAC Jobs by Service Area Area Fort Meade

Command, Directorate, or Facility • DISA • Defense Media Activity • Adjudication • Intelligence/NSA (non-BRAC) • Other Department of Defense (non-BRAC) • Cyber Command

National • Naval Medical Center Andrews Air • Force Base • Aberdeen Proving Ground

Fort Detrick

Number of Jobs • 4,300 • 700 • 800 • 4,000 • 2,000 • TBD Total >11,800

Walter Reed

Air National Guard Air Force District Washington

• 605 • 2,395 Total 3,000 • 7,700 • 600 • 400 • 100 Total 8,800 1,400

• •

C4ISR Army Test & Evaluation Command • Chemical/Bio R&D Center • Other Department of Defense Multiple Commands

2,400

Description of Project: WIA was enacted into law in 1998 and its authorization expired in 2003. Despite its lapsed authorization, Congress has continued to appropriate annual funding at reduced levels, effectively keeping WIA on life support. This current fiscal year, Maryland received approximately $38.5 million in WIA funding to serve unemployed and under-employed adults, and low-skilled youth. This coupled with Department of Defense BRAC activities makes WIA Reauthorization critical. WIA Reauthorization should refocus the workforce investment system on raising the skills of the American workforce and better connect WIA with other education, training and work support programs to create multiple pathways to post-secondary and career success for low-income adults, dislocated workers and disadvantaged youth. This will promote long-term, inclusive economic growth by helping workers gain the skills and connections they need to access family-sustaining employment and by ensuring that employers have access to the skilled workers they need to retain and create good jobs. Program Authorization:

Workforce Investment Act (WIA)

Responsible State Agency: Contact Name, Number, and E-Mail:

DLLR Paulette Francois, 410-767-3011 pfrancois@dllr.state.md.us

State of Maryland’s FY 2012 Federal Legislative Priorities – WIA

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STATE OF MARYLAND OFFICE OF THE GOVERNOR MARTIN O’MALLEY GOVERNOR STATE HOUSE 100 STATE CIRCLE ANNAPOLIS, MARYLAND 21401-1925 (410) 974-3901 (TOLL FREE) 1-800-811-8336 TTY USERS CALL VIA MD RELAY

CHESAPEAKE BAY RESTORATION BILL Specific Requested Action: Passage of the Chesapeake Clean Water and Ecosystem Restoration Act, introduced as S. 1816 by Senator Cardin and H.R. 3852 by Congressman Cummings in the 111th Congress, to ensure that the Bay restoration efforts remain a high priority for the EPA and that the watershed states are held accountable for successful implementation of their plans to achieve the pollution reduction targets. Maryland Impact and Priorities: The Chesapeake Bay is an important economic engine for Maryland. The health of the Bay is closely tied to the State’s economy and quality of life. In addition to restoring vital aquatic and wildlife habitat, a healthy Bay will rejuvenate the commercial and recreational fishing industries, stimulate tourism and enhance recreational opportunities for Maryland citizens. An important feature of the legislation was the significant new source of federal funding—more than $2 billion—that it would have provided for assistance to local governments and agricultural producers to implement pollution reduction measures, for monitoring, and for development of new technologies and practices to secure additional pollution reductions. The Bay States identified $365 million as the annual estimated need from federal sources for implementing the most important recommendations in the reports produced under the Executive Order. Jobs Impact: No specific numbers. However for every $1 of water and sewer infrastructure investment, private output increases (GDP) in the long-term by $6.35. Furthermore, adding a job in water and sewer creates 3.68 jobs to support that one. Description of Project: Senator Cardin and Congressman Cummings introduced this landmark legislation modeled after the successful Clean Air Act. The bill would amend the federal Clean Water Act to require the Chesapeake Bay watershed states and the District of Columbia to develop and implement detailed plans to reduce phosphorus, nitrogen and sediment pollution to achieve the 2025 Baywide reduction targets. Under the proposed legislation, the state plans are subject to review and approval by EPA. Further, President Obama’s Executive Order, “Chesapeake Bay Protection and Restoration” and the EPA mandated Bay Total Maximum Daily Loads (TMDL) are significantly increasing the level of Bay restoration activities and commitments required by the Bay states and Washington DC. Currently most of this commitment falls on the Bay States and the District, with Maryland State of Maryland’s FY 2012 Federal Legislative Priorities – Chesapeake Bay Restoration Bill

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currently spending an estimated $465 million of state dollars annually on Bay restoration and management. Maryland currently receives an estimated $52 million annually in federal funds for Bay restoration and management. Relevant Legal Authority: President Obama’s Executive Order, “Chesapeake Bay Protection and Restoration” and the EPA mandated Bay TMDL. Responsible State Agency: Contact Name, Number, and E-Mail:

DNR, MDE Rich Norling, 410-260-8124 rnorling@dnr.state.md.us Kathy Kinsey, 410-537-3897 kkinsey@mde.state.md.us

State of Maryland’s FY 2012 Federal Legislative Priorities – Chesapeake Bay Restoration Bill

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