Our elected officials are poised to make important decisions during the special session that will impact Maryland's environment for many years to come. We need your help NOW. It is imperative that you contact the Governor and your legislators and remind them that:

• Since 2002 over $480 million has been diverted from Program Open Space; park operations have been cut by 46%; and staffing at the Maryland Departments of Environment and Natural Resources are at an all-time low;
• Land development is currently outpacing land preservation, resulting in a loss of environmentally important lands and much needed park and recreation areas;
• Current reports identify a shortfall of $500 million to address existing needs for our hugely popular local parks and recreation facilities;

Voters are clear in poll after poll that they support land preservation and want these programs fully funded and not diverted to the General Fund.

Tell your elected officials:

1. Do NOT divert Program Open Space funds from its intended purpose of land conservation;
2. Close the loophole that allows business entities to avoid paying the real estate transfer tax and direct a portion of those new funds to supplement the state park operating budget;
3. Do NOT eliminate General Fund support for state park operations or use county Program Open Space funds for state park operations; 
4. Support the creation of a dedicated fund to clean up the Bay, and our rivers and streams.

Read below for more details and a sample letter to send to your elected officials.
 

THE ISSUES –

Please tell the Governor and your legislators that while they address the state's structural deficit, they must also close the environmental deficit. Here are four sensible ways they can address the environmental deficit.

Land Preservation Funding
From FY2002 to FY2006, $480 million of dedicated land conservation funds were diverted to the General Fund and used for unrelated purposes. Last year, the Governor and many legislators unequivocally pledged to fully fund Program Open Space for the next four years, yet the Governor's "cost of delay" or "doomsday" budget takes the entire $141 million of the projected real estate transfer tax for FY 09 and diverts it to the General Fund. We need to hold our elected officials accountable for their campaign promises.

Transfer Tax Loophole
The Governor's revenue package that resolves the structural deficit includes legislation to close the tax loophole that allows business entities to avoid paying the real estate transfer tax. During the special session, the General Assembly needs to pass the transfer tax loophole or Controlling Interest Bill and ensure these additional revenues go to Program Open Space.

State Park Operations
Since 2002, state parks have suffered a 46% reduction in funding. Instead of increasing the meager $16 million that state parks receive from the General Fund, the Governor's proposed revenue package eliminates General Fund support for State parks and uses Program Open Space money, dedicated to county park development, to fund State park operations. Partners for Open Space agrees that State parks are in dire need of increased funding for operations and believes that a portion of the revenue generated from closing the transfer tax loophole should be used to increase State park operations funding not replace existing General Fund support.

Green Fund
The Governor's proposed revenue plan merely resolves the current structural deficit and has no new dollars for the environment. If Maryland is to reach its goal of a clean Chesapeake Bay, we need to establish a dedicated fund to reduce pollution, restore our rivers, streams, and the Bay. The Green Fund, which will be considered during the special session, would provide those dedicated funds and deserves support.

HERE IS A SAMPLE LETTER YOU CAN SEND TO YOUR ELECTED OFFICIALS THAT COVERS ALL OF THE ABOVE ISSUES:

Dear ______________________________:

As you enter into this special session, we urge you to resolve the state's budget problems in a way that protects the state's environment and the quality of life that is so important to the citizens of Maryland.

The longer we procrastinate in resolving the State's fiscal crisis, the more difficult and costly the job will be.

In these budget deliberations, we ask that you please address Maryland's environmental deficit and ensure that the following items are included in the revenue package:

1. Do NOT divert Program Open Space funds from it's intended purpose of land conservation;
2. Close the loophole that allows business entities to avoid paying the real estate transfer tax and direct a portion of those new funds to supplement the State park operating budget;
3. Do NOT eliminate General Fund support for State park operations or use county Program Open Space funds for State park operations;
4. Support the creation of a dedicated fund to clean up the Bay and our rivers and streams.

With your support, we can begin to address Maryland's environmental deficit.

Sincerely,

XXXXX 

2007 Legislative Session Update

Another busy legislative session has come and gone. Land conservation was a big winner, with full funding provided in the budget by the Governor and the Legislature totaling more than $258 million!

However, even with full funding allocated for land conservation, we still needed to work hard to defeat legislation that proposed using land conservation funds for unrelated projects.

The session ended with the Senate, once again, failing to vote on closing the transfer tax loophole that allows wealthy corporate interests to evade paying their fair share of real estate recordation and transfer taxes. We will continue to work hard during the interim to ensure that closing the loophole is a part of the large revenue package the legislature is expected to unveil in the near future.

FY08 Real Estate Transfer Tax Allocation for Land Conservation

Transfer Tax Revenue Estimate - $188,582,000
Administrative Expenses (3%) - minus 5,657,460
FY06 Over Attainment Adjustment - 75,502,557
Total Available for Land Conservation in FY08 - $258,427,097

The allocation breakdown by program is as follows:

• Program Open Space (75.15%) - $194,207,963
• Maryland Agricultural Land Preservation (17.5%) - $44,061,820
• Rural Legacy (5%) - $12,921,355
• Heritage Conservation Fund (1.8%) - $4,651,688
• Additional State Land Allocation (1%) - $2,584,271

History of the Transfer Tax Loophole

Since 1969, the real estate transfer tax has funded one of the nation’s most respected land conservation efforts saving thousands of Maryland acres from development. However, this program is denied some of its funding because of the loophole that allows wealthy corporate interests to evade paying their fair share of real estate recordation and transfer taxes that support land conservation programs. We need to pass legislation to close this loophole so that the transfer tax is fairly applied to all real estate transactions and provide more funding for parks and recreational areas, farmland preservation, and help restore the Chesapeake Bay through the protection of our rivers and streams.

The House passed legislation to close this loophole EIGHT TIMES since 1992. The Senate consistently kills the bill or simply doesn't vote on it year after year.

We are hopeful that closing the loophole will be a part of the total revenue package for the 2008 Legislative Session. Closing this loophole is important because:

• We need every dollar dedicated by law for land conservation in order to meet the goal of protecting one acre of land for every acre developed.
• With the looming budget crisis, the state needs every source of funding, and this loophole costs the state millions of dollars each year in lost revenue.
• Closing the loophole ensures fairness between wealthy corporate interests and everyday homeowners. The loophole allows powerful interests to evade the real estate transfer tax.
• Closing the loophole allows for fairer and more accurate appraisals on the cost of land as all parcels would be appraised. Currently, land that is transferred to another entity does not require an appraisal.