WBAL-TV Transcript 

Recorded: 10/07/2002

2.    How do we get Maryland out of a budget deficit? Simply pay it off. The deficit is 10 % of programmed funds. Stretching it out will add to the State’s debt service. Look it’s like a political campaign. If you don’t win nobody comes to pay the debt. In business – you don’t pay the bills you go out of business. There is no balance sheet offered by the State that fully depicts the state of financial affairs. It is a necessity exercised in the private sector. It needs to be exercised in the Public sector as well. The government has to be accountable to the taxpayer and report it in English in an annual report. There should be no surplus and no debt. We need to keep Maryland at least credible if not legitimate with a positive balance. Let’s thank Governor Schaefer for opening the door to change and let him retire with the honor and Dignity he’s earned at age 80.

3.    Should we raise taxes to meet expenses? Absolutely not! Even though we are the least taxed citizens of the world, our tax monies are being wasted through pork barreling, and political paybacks by Maryland’s top leadership. We need to curtail that and rid the legislature of career lawmakers who cannot fight the temptation to spend frivolously. There is too much familiarity between the government and special interests to honestly say anything but "NO" to more taxes. New blood, new ideas, and new fresh outlooks will solve today’s problems without reliving those of the past. Let’s not have our kids pay our bills later. Let’s thank Governor Schaefer for opening the door to change and let him retire with the honor and Dignity he’s earned at age 80.

4.    Should Maryland tap into its "rainy day" fund to meet expenses? If it’s raining, then – YES! Unfortunately, we are in uncertain times and it is raining. Rainy day funds should not be used to set up permanently funded programs. When the rain ceases, those funds should be replaced through applicable Federal grants, bonds or savings in other areas. After all that money comes from the same pockets of those who pay taxes in Maryland. The Governor’s office will receive realistic fiscal guidelines from my office based upon solid projections of income from all available sources. It will be the legislatures responsibility to stay within those fiscal limits to fund the Governor’s budget and not their pockets. This will be a new experience to most of them. Let’s thank Governor Schaefer for opening the door to change and let him retire with the honor and Dignity he’s earned at age 80.

5.    How do you plan to make it easier for Maryland residents to file
their taxes? It’s fairly easy now with electronic tax filing. The only way we could make it easier would be to send each taxpayer a bill for the same amount of money regardless of their income and expenses. There is approximately 2.5 Million taxpayers paying the bill. Each share would be approximately $8,000. This however, would be unfair in 2% of the cases and another 2% would benefit greatly. Withholding makes it simple and a year-end statement could be generated for each offering several options (1) accept the filing statement as generated for them, (2) modify that statement with personal information to adjust the bottom line, or (3) provide even more localities with offices where taxpayers could go to file in person. The last option is to let them voluntarily pay their fair share in accordance with State guidelines. Let’s let Governor Schaefer retire with the honor and Dignity he’s earned at age 80.

6.    How do you plan on working with the next Governor? My role would be as the financial advisor to the Governor. To present the projections on revenue, estimates on costs, and report the results of Departmental audits to identify fraud and abuse. It is also within the realm of the office to recommend ways to cut expenses, lower operating costs, and increase the tax base. Concessions to attract new industries would be a consensus of the executive branch leadership and presented to the legislature. Incentives would have to be realistic and binding without escalating financial burdens to new businesses as they grow. I would be objective and not misleading – forthcoming with the bad news as well as the good. Almost 30 years ago I worked on a project with Mayor Schaefer. Now is the time to thank him for all those years of service and let him retire with the honor and Dignity he’s earned at age 80.

7.    What are the most pressing enforcement issues? Identifying fraud and abuse within the government to set the standard for what is expected from the private sector. It used to be enforcing corporate compliance, but they all left. There is much emphasis on regulating and enforcing compliance in the "sin" industries, but there is very little being done about the special arrangements in government to accommodate compliance. This will have to be addressed to prevent abuse of sovereign immunity. We need to scrutinize the benefits and lifestyles of those we trust and question out of the ordinary behavior, just like it is expected in the corporate world. And we need to find ways to encourage people to pay their fair share and not deny their responsibility. Honest government would be a good place to start. Let’s thank Governor Schaefer for bringing that issue to the forefront and let him retire with the honor and Dignity he’s earned at age 80.

8.    Do you support slots in Maryland? It is not the role of the Comptroller to support any industry, but merely to collect applicable taxes from additional revenue streams. The Governor and the Legislature have the responsibility to protect our citizens from financial ruin and must make that decision to allow risk factors to effect the state’s economy. Moral issues and financial issues have to be assessed by the Legislature. The only issue for the Comptroller would be the accuracy of the tax payments in compliance with our statutes. The Comptroller will report on the fiscal performance of any or all such ventures. I don’t think you or I would balance our budgets with gambling. It’s too risky for that. For some it’s enjoyment, others not. Whose idea was it anyway? Let’s thank Governor Schaefer for opening the door to change and let him retire with the honor and Dignity he’s earned at age 80.

9.    How does Maryland continue to keep its AAA bond rating? As long as the State makes good on its bonds, the "Triple A" will sustain itself. However, if the deficit is deeper than reported, it may be a more serious factor in Maryland’s fiscal well being. If the hidden financials show fraud or abuse without early recovery, Maryland will lose that rating. Look at Enron, and others - Government is no different and government established the rules for that to happen in the first place. I’ve had 37 years in concurrent careers to not let that happen on my watch. I’ve observed financial programs in more than 25 countries on co-defense and co-production projects to build alliances. I’ve advised on corporate negotiations and government audits of privatized operations in State and National programs and saved millions of dollars of government money while still letting industry make a profit. Let’s thank Governor Schaefer for the opportunity to change Maryland and let him retire with the honor and Dignity he’s earned over many years.

10.   What are the biggest challenges facing Maryland's Comptroller? Auditing the various agencies within the departments to validate their reporting. It will also determine responsibility and accountability of those trusted with taxpayer monies. Encouraging all agencies to reduce their expenditures is almost impossible with the current mindset. The Comptroller must be the conscience of Government in fiscal matters to assure taxpayer dollars are well disposed of. I use that term because Government generates no return. It is not necessary to throw money at a problem to resolve it. I withheld $2 million from a Massachusetts agency in the ‘70’s and gave them $175 instead. Results were overwhelming because the money was used effectively. My team of nine and I visited every Governor’s office in the country to audit programs and restructure 106 agencies in all 50 States for the Federal Government some years back. The biggest challenge will be balancing the budget to achieve a zero surplus and zero deficits. Maryland was one of them, too! Vote Zarwell for Comptroller on Nov 5^th.