FOR IMMEDIATE RELEASE

Franchot Celebrates Successes, Expresses Regret as Session Closes

Structural Deficit, Health Care Defeat of Concern to Chief Fiscal Officer

Annapolis, MD (April 9, 2007) - Comptroller Peter Franchot today praised the Governor and the General Assembly for their work during the 2007 legislative session; however, the State's chief fiscal officer expressed disappointment that more was not done to address the state's structural deficit, citing last week's news that sales tax revenue was on the decline and other signs that there is a general softening of the economy. He also expressed frustration that strong bills to expand access to health care and protect the environment were not enacted.

"I am very proud of the work we have done at the Comptroller's Office, both on our own and in partnership with the Governor and the General Assembly," said the Comptroller. "From closing corporate real estate tax loopholes, to stepping up tax compliance and enforcement, to supporting important legislation on health care and fire safety, to ensuring the State's MBE program is adhered to, I believe we made progress on a number of fronts."

"I do regret, however, that more was not done to address the State's $1.5 billion structural deficit, and that major initiatives on health care and the environment were defeated," Franchot continued. "I intend to keep highlighting these important issues and look forward to working with the Governor and the legislative leaders to address the fiscal crisis we face, so we can make progress on education, health care, the environment and other issues of importance to working families."

The Comptroller's Office was extremely engaged in the 2007 Session and was asked to support and rally for legislation by legislators from both sides of the aisle. Since taking office during the second week of Session, the Comptroller has been very focused on settling into his new office while at the same time promoting a fiscally prudent, socially responsible agenda.

Here are some of the highlights of the Comptroller's first three months in office:

• Provided stepped up enforcement and auditing of video gaming machines;
• Took aggressive action against corporate real estate tax loopholes, known as captive REITS, which was followed up by legislative action in the General Assembly;
• Strongly supported the state's Minority Business Enterprise program, which earned the Comptroller an award and recognition in the minority business contracting community;
• Worked as a fiscal watchdog on the Board of Public Works: actions have saved the state over $40 million already and protected state employees in the prescription drug contract;
• Advocated in support of the Darfur Divestment legislation, which gained the Comptroller national attention;
• Led the fight for public safety legislation that banned Alcohol Without Liquid Machines and required new "fire-safe" cigarettes technology;
• Advocated for public health legislation such as the successful statewide smoking ban, and comprehensive health care reform; and
• Led the fight for energy efficient "green" building projects in state agencies and school systems across Maryland.

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CONTACT: Joe Shapiro, 410-260-7305