Montgomery County Council clueless in meeting with Maryland transportation official

Another clueless performance by the Montgomery County Council in a transportation meeting yesterday has many in the business community questioning their fitness for office. In a failed attempt to dress down Maryland Gov. Larry Hogan's transportation secretary Pete Rahn, their politically-motivated meeting ended up instead exposing how poorly-informed the Council is on the basics of modern infrastructure, its operation, and financing.

Councilmembers repeatedly demanded "transit" be part of Hogan's massive Express Lanes plan for the Capital Beltway, I-270 and the Baltimore-Washington Parkway. They were unaware that it is standard practice for regular and rapid buses to use Express Lanes on highways.

Council President Roger Berliner asked Rahn if he could "fold in" the stalled Corridor Cities Transitway BRT project into the $9 billion dollar Express Lanes project. This was patently absurd for two reasons: The CCT runs on a completely different route than I-270, for starters. And the CCT, like all bus and rail service, will be a money-loser; transit does not generate profits like Express Lanes. What sane private corporation would try to combine the potentially-narrow profit margin of these particular Express Lanes with a surefire money drain like the CCT?

Finally, Councilmember George Leventhal showed how out of touch he is with his constituents when he advised Rahn that the more transit is part of the Express Lanes plan, "the more it will be easier (sic) to assuage our constituents." Huh? His constituents, tired of being stuck in traffic, want the popular Express Lanes plan proposed by Hogan. Leventhal should listen to voices beyond the yes-men in his office before daring to speak on behalf of his constituents.

Rahn, in contrast, demonstrated he has his finger on the pulse of frustrated Maryland drivers. His only misstep was waffling on how much the project might end up costing taxpayers, off-message with Hogan's promise that private companies would take on the financial burden.

Business leaders watching the hearing - and Montgomery's moribund private-sector economy and plunging wealth numbers - were reminded of a similar amateur-hour performance by the Council earlier this fall. In a worksession on autonomous vehicles, councilmembers showed a laughable lack-of-knowledge of the basic nuts-and-bolts of this now-arriving technology.  Many referred to autonomous vehicles as a futuristic fantasy, apparently unaware that Tesla vehicles on the road right now have fully-autonomous capability. The Council also didn't know how the cars might be insured. As more evidence that the Council hadn't even done the most basic research ahead of the session, they didn't know Volvo had just announced it would take on drivers' insurance liability itself.

Clueless.

Jobocalypse ahead after Montgomery County Council approves $15 minimum wage

"That's a lot of extra

Slurpees to sell"

The potentially-devastating impact of a $15 minimum wage was evident moments after it was unanimously passed by the Montgomery County Council yesterday. A Bethesda restaurant owner observing the proceedings, who had been planning two additional ventures in the county, declared he would never open another restaurant in the jurisdiction. He said his existing downtown Bethesda restaurant might even have to close in the coming years, as a result of the new financial burden in a razor-thin-profit-margin industry.

Just consider the impact of two full restaurant operations, with all of the employees those would entail, now never existing. All of those jobs just vanished, and the economic impact of that unemployment far outweighs the slight cash boost to workers in existing restaurants - assuming they don't lose their jobs, or get replaced by touchscreen kiosks. Now multiply that among other entrepreneurs deciding to take their dreams - and jobs - elsewhere. Montgomery County's outlay of services, required by those unemployed folks, will increase, not decrease. Taxpayers will pick up that bill, along with the increased prices of food and merchandise. Heckuva job, Brownie!

Of course, this is exactly what the Council wants. The more unemployed people, the more people who have to crawl on their knees to the Council for "services." Dependency on government is the aim, and that involves keeping those at the bottom of the ladder from climbing the rungs.

Councilmember Hans Riemer and his colleagues effectively terminated the middle-class business opportunity of Airbnb a few weeks ago. Up until that point, a modest real estate investor could have bought a few small homes and condo units, and generated a good cash flow from Airbnb rentals.

Without the same level of tenant damage concerns, or having to seek evictions of problem tenants, a middle-class County resident could have more-easily generated money for larger investments and ventures than with traditional renting. Now, you can only rent out your own current place of residence - just one unit - and you have to be on the property during the rental. Nothing makes an Airbnb more appealing than a hotel room than a landlord sitting on your couch, right? Thanks, Hans!

Imagine, initiative and some work allowing County residents to attain upper class status - status the County Council enjoys now, as they work a few hours a week for $137,000 a year. Notice they don't consider you deserving that amount, too. $15 isn't even close to a living wage in Montgomery County, and they know it.

Increasingly moribund Montgomery County has suffered a net loss of over 2000 retail jobs since 2000, according to the Maryland Retailers Association. We've had a net loss in jobs since 2005, U.S. Bureau of Labor Statistics data shows. Montgomery County's restaurant sector has "slowed since 2012, and remains flat," according to Melvin Thompson of the Restaurant Association of Maryland. 

Surprisingly, Councilmember Craig Rice also voted for the bill, despite his previous and correct concerns about the impact on African-American job-seekers, young workers in particular. According to a 2015 survey by The Community Foundation for the National Capital Region, BETAH Associates, Inc. and Montgomery College,  only 8.7% of black high school students surveyed in the County are employed, and only 30.7% of black high school dropouts have been able to obtain employment. Among Montgomery County's young black high school graduates, only 39.7% of those surveyed are currently employed. 

The hits just keep on coming from the most anti-business elected officials in the region. A Council that has done literally nothing to improve traffic congestion, or to provide direct access to in-demand Dulles International Airport for international businesspeople, is spending most of its time criticizing Gov. Larry Hogan - - who is actually doing something in proposing Express Lanes for I-495 and I-270, and funding Metro. And that's when they're not telling us which snacks to buy from vending machines, or banning circuses.

Reaction to the $15 wage vote by local Chambers and business organizations was muted yesterday. In the next few days, we'll find out if those leaders are ready to "get dangerous" and challenge the MoCo cartel, as former Gov. Bob Ehrlich exhorted them to do in 2004. Or go quietly into the good night, in the most moribund private sector economy in the D.C. region.

MD A.G. opposing $4 billion deal...for company in his own state

A virtually unprecedented situation is unfolding in Maryland. The state's attorney general, Brian Frosh, is opposing a $4 billion dollar merger expected to be a financial boon for a company...in his own state. In a move that has left many in the business community again scratching their heads over the anti-business mania of the Montgomery County political cartel, Frosh last Friday joined his peers in Illinois, Massachusetts, and Rhode Island in opposing the merger of Sinclair Broadcasting and Tribune Media Company.

Hunt Valley, Maryland-based Sinclair forecasts the merger would be a boon in boosting revenues, cutting costs and generating cash flow to pay down debts. Should such benefits come to pass, the cash flow would also go to the state of Maryland via taxes. But now Maryland's own attorney general is stepping in to try and stop the deal, which is currently before the Federal Communications Commission.

Despite that potential revenue boost for the state, Frosh is calling the merger "a bad deal for Marylanders." The attorney general claims the deal would raise the cost of cable, and reduce programming choices for viewers. Apparently, Frosh is unaware of Netflix, HBO Now, Sling TV, Hulu, YouTube TV, Playstation Vue, Amazon Prime Video, CBS All Access, Crackle, Tubi TV, Acorn TV, and Pluto TV, just to name a few.

Frosh and his fellow travelers also say the merger would improperly use the UHF Discount rule to avoid the FCC cap on total station reach, and advise the FCC to wait until the District of Columbia Circuit Court issues its final ruling on the UHF rule. But clear heads can rule today that the Montgomery County political cartel has once again lost its wits.

While the deal should certainly be scrutinized by regulators, it is astonishing to witness a state's attorney general trying to sabotage a deal - and lower profits for - a company in his own state. It does not help Montgomery County and Maryland shed their horrible international reputation as anti-business jurisdictions. And will therefore give just one more reason for corporations to avoid us and relocate to Virginia instead.

Bad deal.