Published: October 12, 2008 10:32 pm         

Finance chief says slots can’t cure economy

State comptroller looks to emphasize ‘business community’s pragmatism’

CUMBERLAND — In front of a television camera or a reporter’s tape recorder, bankers these days remain confident, if not all smiles.

Privately, however, “there’s a lot of fear and uncertainty,” said Maryland Comptroller Peter Franchot, among those same professions behind closed doors. And it’s going to get worse before it gets better.

Everyday people are worried about the costs of food and fuel and the ability to find stable employment.

“Unfortunately, we’re going to see more of that,” Franchot said in a visit Thursday to the Times-News.

The state’s chief financial officer was in town to speak at a forum at Allegany College of Maryland. The topic of the forum was the pros and cons of the constitutional amendment on the Nov. 4 ballot. Voters will either approve or reject Question 2; either simple majority vote will have an impact on the state budget and, by reasonable extension, to Allegany County government’s budget.

Franchot called the recently approved $700 billion bailout — referred to as an investment in some circles — as “inadequate” and said, in order to get Maryland’s fiscal house in order, leaders must effectively manage their way to a better bottom line.

Better management, Franchot said, includes cuts — his Board of Public Works meets Wednesday to cut more than $250 million from this year’s budget — and controlled spending. An increase in taxes is possible, but not the preferred approach by any politician seeking re-election.

“We have doubled state spending in the last 10 years,” Franchot said.

Last week, Franchot advocated taking an approach already taken by states such as Virginia, Washington and Illinois, where business leaders have had a hand in shaping the state budget.

“We need to take advantage of the business community’s pragmatism,” he said.

Franchot also said a concerted effort needs to be made “to promote technology and life science.”

Businesses will jump on board, he said, when they realize they can “get a good return on their investment.”

As for controlled spending, Franchot said “any support for slot machines will enable Annapolis … to continue their free-spending habits.”

And slots aren’t the answer, he said. For every $1 earned from slots, the state will eventually pay up to $3 to help addicted gamblers and fight the anticipated increase in crime. Passage of the referendum is not the answer, he said.

“Whether we have slots or not, we’re going to see major spending reductions,” Franchot said. “It’s a day of reckoning.”

Contact Kevin Spradlin at kspradlin@times-news.com.