STATEMENT FROM GOVERNOR MARTIN O’MALLEY ON THE PASSAGE OF UNEMPLOYMENT INSURANCE REFORM
ANNAPOLIS, MD (March 2, 2010) – Governor Martin O’Malley released this statement today following the passage by the Senate Finance Committee of an unemployment insurance reform plan to help small businesses facing sharp rate increases due to the State’s unusually high unemployment level:
“I want to thank Chairman Mac Middleton for his tireless work negotiating this agreement on unemployment insurance reform. Today, the Senate Finance Committee approved a plan that will provide much needed stabilization to the UI Trust Fund and help qualify the State for an additional $127 million in federal assistance.
“Small businesses represent the engine that is driving our economic recovery, providing three out of every five jobs in Maryland. It has been our goal all along to provide them the opportunity to thrive, improving the conditions under which our small businesses can create or save jobs in these tough economic times. We engaged with the business community at every step of this process, and I’m proud of the result.”
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GOVERNOR MARTIN O’MALLEY LAUNCHES MAJOR WORKFORCE INITIATIVE TO MEET DEMAND FOR MIDDLE-SKILLS JOBS
Skills2Compete –Maryland aims to increase skills 20 percent by 2012, grow middle class
LARGO, MD (March 2, 2010) – Governor Martin O’Malley and Lieutenant Governor Anthony Brown today joined with education and community leaders, state and federal officials at Prince George’s Community College to launch Skills2Compete – Maryland, a major initiative aimed at increasing the skills and competitiveness of Maryland’s workforce. The Governor was joined today by representatives of the National Skills Coalition and the Governor’s Workforce Investment Board, Labor, Licensing and Regulation Secretary Alexander M. Sanchez, and other leaders to focus attention and resources on community college certificate and degree programs, apprenticeship opportunities, private career schools and community-based training programs.
“In this economy, we must do everything we can to build the middle-skill and high-skill workforce that is so critical to economic recovery and long-term economic success,” said Governor O’Malley. “Economic recovery takes more that just attracting business and creating jobs, it also means equipping those businesses and filling those jobs with a world-class Maryland workforce. Skills2Compete – Maryland will help build that middle and high-skill workforce.”
Governor O’Malley also announced Tuesday that Maryland has joined with Complete College America, a national nonprofit organization working to dramatically increase the number of young adults with a college degree or credential, to set degree goals and develop and implement aggressive state and campus-level action plans to meet those goals. Maryland, along with 15 other states, form the Complete College Alliance of states, a select group of leading states committed to significantly increasing the number of students who successfully complete college, closing attainment gaps for traditionally underserved populations.
Skills2Compete – Maryland is an initiative to align the O’Malley-Brown Administration’s workforce creation efforts and to focus state agencies, community colleges, local Workforce Investment Boards, apprenticeship programs and other stakeholders on preparing more Marylanders for middle-skill jobs – those that require some training past high school but not necessarily a four-year degree.
“When Governor O’Malley and I took office, we envisioned a Maryland in which all residents had access to greater opportunity. With this new workforce development initiative, we are closer than ever to making this goal a reality,” said Lt. Governor Brown. “The Skills2Compete initiative will increase post-secondary success in Maryland and allow us to capitalize on our diverse economy, brainpower and talent pool. We are strengthening our workforce and making the necessary investments to remain a top competitor nationwide. I am honored that Governor O’Malley has asked me to lead this effort and look forward to working with all the participating agencies, the private sector and our neighbors, friends and family members who will develop the necessary skills to compete in our increasingly technological economy.”
Governor O’Malley is calling on the workforce development community to increase the skills of Maryland’s workforce by 20 percent by 2012. Skills2Compete – Maryland will ensure that every working Marylander has access to the equivalent of at least two years of education or training past high school – leading to a career or technical credential, industry certification, or two years of college – to be pursued at whatever point and pace makes sense for individual workers and industries.
In a new report by the National Skills Coalition titled Maryland’s Forgotten Middle-Skill Jobs, four in ten job openings projected for the State by 2016 are in the middle-skill category, accounting for more than 434,000 openings. In Maryland, these include jobs not only in traditional middle-skill fields such as construction, but also high-paying positions in information technology, healthcare services, and jobs related to the Base Realignment and Closure (BRAC) effort and the green economy. Among the fastest-growing occupations highlighted in the report are police officers, carpenters and licensed practical nurses.
Many Marylanders lack the necessary basic education, skills and credentials to compete and succeed in these jobs. For example, more than 730,000 Maryland residents do not have a high school diploma or have limited English speaking ability. Despite the State’s strong record of providing post-secondary training, many of the State’s employers continue to report trouble filling middle-skill positions from the local talent pool.
Skills2Compete – Maryland is founded on the principle that a high school education is no longer adequate for most jobs in today’s economy, or to provide the skills needed by businesses to innovate and grow. This is particularly true for thousands of recently laid-off workers who need new skills to compete for the opportunities that exist now and will exist in the future.
Skills2Compete – Maryland supports the Governor’s job creation efforts by assuring there are skilled workers at all levels of the labor market to meet job growth expectations, and also supports President Obama’s call for all Americans to obtain some form of postsecondary education or job training to prepare for a 21st-century global economy.
Governor O’Malley has designated Lieutenant Governor Anthony Brown to serve as lead for the initiative, and to work with the Governor’s Workforce Investment Board (GWIB) as the state Skills2Compete advisory board to ensure system alignment, promote interagency coordination and collaboration and conduct outreach. Among other things, state agencies and other partners involved in the campaign will assist customers in navigating the appropriate resources and services that provide pathways to skills attainment, such as One-Stop Career Centers, community colleges, apprenticeships and private career schools.
“We look forward to developing and implementing this education and training strategy that would allow state residents to be better prepared to meet the demands of Maryland’s employers and seek better, more plentiful middle- and high-skill jobs and careers,” said William G. “Bill” Robertson, President and CEO of Adventist Healthcare, Inc., and GWIB Chairman.
Skills2Compete is a non-partisan campaign to ensure the U.S. workforce has the skills needed to meet business demand, foster innovation, and grow broadly shared prosperity. The campaign’s diverse and growing list of endorsers include national and local leaders from business, labor, education and training, community and civil rights groups, and the public sector. Skills2Compete campaigns have been launched or are being developed in California, Connecticut, Illinois, Iowa, Michigan, Mississippi, New Mexico, North Carolina, Ohio, Oregon, Rhode Island, Vermont, Washington and Wisconsin.
For more information about Skills2Compete – Maryland, please visit www.skills.maryland.gov
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FOR IMMEDIATE RELEASE
GOVERNOR O’MALLEY, COMPTROLLER FRANCHOT, SPEAKER BUSCH PROMOTE TAX CREDIT FOR WORKING FAMILIES
ANNAPOLIS, MD (February 18, 2010) – As Maryland’s working families file their state taxes this year, they are eligible for increased exemptions and may qualify for an expanded tax credit thanks to measures passed during the 2007 Special Legislative Session to expand the safety net for low- to moderate-income earners. Today, Governor Martin O’Malley, House Speaker Michael E. Busch, and Comptroller Peter Franchot joined Robin McKinney, Director of the Maryland CASH Campaign, to remind eligible taxpayers of the new tax policies for their 2008 tax filings. Under the new policies, tax filers may be eligible for an expanded state Earned Income Tax Credit (EIC) as well as an increased personal income tax exemption.
“The tax relief initiatives passed during the Special Session create a larger safety net for the working families of Maryland, particularly during these tough economic times,” said Governor O’Malley. “Even though our workers are producing more, wages have stagnated and costs have gone up. The Earned Income Tax Credit provides immediate tax relief to families who need it. Low- to moderate-income families filing taxes today are eligible for refundable money from the state Earned Income Tax Credit. That means $33 million back into the pockets of Maryland’s middle class at a time when they need it most.”
“The EITC is the most effective tax credit available to help lift people out of poverty,” said Comptroller Franchot. “Behind the numbers, there are parents and children receiving a better life in Maryland because of the Earned Income Tax Credit. But working families must apply for the credit in order to receive the benefit. I am grateful to work with Governor O’Mallye, Speaker Busch and partners such as the Maryland CASH Campaign to spread the word about the EITC and the free tax preparation services available for those in need.”
During the 2007 Special Legislative Session, the General Assembly adopted measures that increased the regular personal income tax exemption from $2,400 to $3,200 for individuals with gross income of up to $100,000 or $150,000 for joint filers in a move that created a more progressive tax structure for Maryland families and helped close a $1.7 billion inherited structural deficit. During the same session, the Governor fought to increase Maryland’s Earned Income Tax Credit to 25 percent of the federal credit and expanded to include workers without children, to help our hardworking families weather a tough economy.
“At a time when many Marylanders are struggling to make ends meet, the Earned Income Tax Credit is an important tool to help offset some of the burden for low-income families,” said Speaker Michael E. Busch. “This credit provides millions of dollars in federal and State tax relief for working families when they need it most.”
The EITC is a federal tax benefit for low- and moderate-income individuals who work full-time, part-time, or part of the year. Designed primarily to benefit families, workers who qualify for the EITC and file a federal tax return can receive some or all of their federal income tax refunded. Maryland’s state EITC can be used to reduce or eliminate state income tax liability. If the amount of the Maryland credit exceeds the worker’s state tax liability, then the taxpayer may be eligible to receive a portion of the Maryland EITC as a refund payment, known as the refundable earned income credit (REIC). Taxpayers may qualify for this benefit even if they do not otherwise have to file a state tax return.
For the 2008 tax year, 225,858 Maryland taxpayers had taxable income that qualified for the Maryland EITC in the amount of $65,058,138. Of these, 117,738 also qualified for the Maryland refundable EITC in the additional amount of $59,370,460. Traditionally, about 20 percent of people eligible for the EITC do not claim it.
The REIC was expanded during the Special Session in November 2007, increasing the REIC from 20 percent to 25 percent of the federal EITC, putting up to $33 million back in the pockets of Maryland’s middle class. Taxpayers will benefit from these changes when they file taxes on income earned in 2009.
EITC Eligibility:
Earned Income and adjusted gross income (AGI) must each be less than:
$43,279 ($48,279 married filing jointly) with three or more qualifying children
$40,295 ($45,295 married filing jointly) with two qualifying children
$35,463 ($40,463 married filing jointly) with one qualifying child
$13,440 ($18,440 married filing jointly) with no qualifying children
Tax Year 2009 maximum credit:
$5,657 with three or more qualifying children
$5,028 with two qualifying children
$3,043 with one qualifying child
$457 with no qualifying children
The American Recovery and Reinvestment Act provides a temporary increase in EITC and expands the credit for workers with three or more qualifying children. These changes are temporary and apply to 2009 and 2010 tax years.
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