"A Big Mystery": What to Expect From New Maryland Gov. Hogan | NBC4 Washington
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"A Big Mystery": What to Expect From New Maryland Gov. Hogan

Larry Hogan faces budget deficit after campaigning on spending cuts

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    Larry Hogan was sworn in as Maryland governor Wednesday, becoming just the second Republican to hold the post in more than 45 years. He'll face a $750 million budget deficit, a legislature controlled by Democrats and an electorate awaiting the tax cuts he promised on the campaign trail.

    But what he will try to do in office remains something of a mystery, political observers say.

    "He was not at all specific about policies during the campaign," said Donald F. Norris, director of the School of Public Policy, University of Maryland, Baltimore County. "He basically ran against the outgoing governor for being a tax-and-spend liberal and claimed that we were not only overtaxed but over-regulated."

    Hogan, 58, defeated Lt. Gov. Anthony G. Brown last fall, in what was described as an astonishing upset and a rebuke to two-term Democratic Gov. Martin O'Malley and the tax increases he implemented. Hogan, a commercial real estate broker, is the son of a former congressman and county executive for Prince George's County in Maryland. He is the state's second Republican governor since former Vice President Spiro Agnew held the role.

    Hogan has promised better fiscal management, but now must contend with spending formulas that control some of the budget's largest expenses.

    "I can't see him imposing new taxes so really he's left with cuts and that's where he begins to engage real battle with the legislature," said Jennifer Duffy, a senior editor for The Cook Political Report.

    Mandated appropriations account for 81 percent of the state's portion of spending proposed for the 2015 fiscal year beginning in July, according to a November report from the Department of Legislative Services' Office of Policy Analysis. The two-year budget shortfall has grown to nearly $1.2 billion.

    "Beyond what's in his initial budget, I think you'll see him trying to change some of those mandatory spending patterns to give the state a little bit more flexibility and an ability to avoid ongoing structural deficits," said Todd Eberly, associate professor of political science and chairman of Political Science Department at St. Mary's College of Maryland.

    Hogan vowed during the campaign that he would work with the state legislature, and observers will be watching carefully to see how long bipartisanship will last in a state with a 2-to-1 Democratic registration.

    "I would say the two presiding officers in the state legislature are moderate to conservative Democrats but their rank and file, particularly in the House, are very liberal so that's going to be a pressure point for all of these four years," said Josh Kurtz, a political blogger for Center Maryland.

    Kurtz and others noted that the previous Republican governor, Bob Ehrlich, similarly pledged compromise but instead fought with the legislature through much of his single four-year term.

    "So if Hogan chooses to fight with the Democrats, it's going to be an ugly four years," Norris said. "He won't get anything accomplished. If he can find ground for compromise and cooperation, then I think things will work out pretty well for both sides. We just have to wait and see."

    Hogan, who won 54 percent of the vote to 45 percent for Brown, has said he wants to appeal two environmental measures: a storm water remediation fee, otherwise known as the rain tax, and regulations governing how much nitrogen can be released into the Chesapeake Bay, particularly from chicken farmers on the Eastern Shore, Norris said.

    Hogan also has questioned the expense of two large public transit projects on the boards: the Baltimore Red Line, a 14-mile light rail transit line linking the city's east and west sides to the downtown that would cost $2.9 billion, and the Greater Washington Purple Line, a 16-mile east-west transit line connecting Bethesda to New Carrollton that would cost $2.45 billion. Both would gotten $100 million in federal funding, and could get up to $900 million each if Maryland signs funding agreements.

    In recent days, Hogan refused to discuss the projects until after he took office, but during the campaign, he said he would spend money on roads rather than on expanding public transportation.
    Observers noted that he was elected by predominantly suburban and rural voters.

    Others programs that could prompt objections from voters if Hogan tries to cut them: school construction and prekindergarten.

    "Nobody really knows what Hogan is going to be like when things don't go his way because he's never held elective office before," Kurtz said. "So in that respect, he's a big mystery."