Economic Roundtable: Marylanders discuss expectations for 2005

In your opinion, how will Maryland's economy perform in 2005 compared with 2004? Why?

Hopkins: Maryland's economy will perform stronger in 2005 relative to 2004 for several reasons. Continued federal spending, both defense and nondefense related, will benefit the many companies and consultants that have taken advantage of the federal government's outsourcing. This federal spending also attracts a high-quality labor, as well as businesses to the state. Furthermore, the state's investment in biotechnology research will pay off as incubator firms are developed and established firms are attracted to the state to take advantage of biotech clusters. The high per-capita personal income of Maryland residents means that price increases from high oil prices or the weak dollar will be easily absorbed by the state's consumers. Finally, the housing market is expected to slow from its furious pace over the last couple of years, but it will still remain strong as a constricted supply will remain short of demand.

Shea: Maryland's economy will perform a lot stronger in 2005. In 2004, there was a good bit of lingering uncertainty - both economically and politically - that caused a good amount of activity in the nature of transactions and business expansions to stall. Now that much of that apprehension has lifted, the pent up activity from '04 can move forward, making the overall performance outlook for Maryland's 2005 economy promising.

Tiburzi: We're poised to continue to be ahead of the national averages. We have a powerful advantage in our highly educated work force, our high-tech and biotech industries, and our prime location between Washington and New York.

Wolf: Maryland's economy will be stronger in '05 because of our proximity to Washington and because we have a Republican in the governor's office and a Republican in the White House. Maryland has a great opportunity to develop our already strong services-oriented economy and to capitalize on our intellectual property capabilities, especially within the biotech industry.

In your opinion, how does

Maryland compare to other states in terms of being a place to do business and earn a living?

Hopkins: Because of the current factors present in Maryland's economy, the state has many advantages over other states for business activity. Businesses will find a very attractive labor force, a consumer base with high disposable incomes and a region marked with many favorable quality- of-life factors within the Old Line State. The many quality higher education institutions within the state help to turn out bright and skilled workers, while the many research institutions, the defense industry and the growing biotechnology sector attract skilled workers into the state to create a labor force with the third- highest educational attainment in the nation. Earning a living is just as favorable as the composition of companies, and the many high-quality jobs they offer contribute to the state's high per-capita personal income.

Shea: Maryland's overall economy is strong and reasonably durable in off cycles, making it an excellent place to do business and earn a living. With such a high percentage of governmental, nonprofit and higher education institutions in Maryland, pure transactional business is somewhat less strong than you would otherwise assume from the overall strength of the state's economy. But, because of the aforementioned institutions, Maryland has strong human capital - and relative wealth - which makes a good environment for most businesses.

Tiburzi: This is a great state to live in. The location is terrific, with easy airport access to the rest of the country and Europe. The climate is benign - as Florida has reminded us this year with its hurricanes. The road system is outstanding.

Wolf: Maryland has been among the leading states in job creation in recent times. Maryland has aggressively and successfully pursued out-of-state and international business. We are closing the gap between Maryland and neighboring states and will do very well in the years ahead.

What is your top business priority heading into 2005?

Hopkins: The highest business priority for Maryland should be leveraging more of the research and development activity, both public and private, into business and commercial application. Maryland is making a large investment toward developing a world-class biotechnology cluster, but the payoff won't reach potential unless companies and agencies are able to convert their research into marketable products. Business efforts to improve conversion of research efforts into commercial products will also serve to attract more venture capital funding, increasing the favorable business climate within the state.

Shea: Venable's top business priority for 2005 is business expansion, both in terms of the size of the firm and revenue growth.

Tiburzi: To lead the Baltimore office of Piper Rudnick in offering superb legal services to our great clients and also to support and assist the 175 lawyers and 300 other employees in our Baltimore office.

Wolf: We are focused on continued growth by expanding our services in Maryland and our practices nationally and internationally, particularly in the areas of health care, financial services and construction.

In your opinion, should Maryland allow for the installation of slot machines? Why?

Hopkins: In my opinion, Maryland should install slot facilities. The current lack of slots in the state is causing Maryland gamers to take their money elsewhere. Slot facilities would keep that gaming money within the borders as well as attract out-of-state gaming money. Slot facilities should be located in areas in need of revitalization (such as Pimlico) or to act as an attraction (such as Western Maryland). Maryland's horse racing industry could also use the revenues to turn around its decline.

Shea: I think Maryland should allow for the installation of slot machines, but I don't think we should count on slots to rescue us from the need for disciplined fiscal management. Slot machines will support an important, longstanding and vested industry, and they are a satisfactory, if not completely sufficient means for raising revenue.

Tiburzi: Yes. Both personally and professionally, since I act as counsel to Magna Entertainment Corp., which owns Laurel and Pimlico race tracks, I am strongly in favor of slots. It makes no sense to let this source of revenue flow out of the state to neighboring jurisdictions. Many Marylanders now play slots by getting in their cars and driving to Delaware, West Virginia, Atlantic City and soon many locations in Pennsylvania. Why not let them do it in Maryland and keep the tax dollars here to help Maryland's schools and other Maryland needs? Horse racing, as epitomized by the Preakness, is an essential part of Maryland and its history, and allowing slots at racetracks (as well as other appropriate venues) would allow Maryland horse racing to keep up with our competitors in surrounding states which have slots.

Wolf: Yes, because it is estimated that Maryland loses between $700 million to $1 billion annually to neighboring states that have slot machines. Gambling opposition is premised on the notion that the state shouldn't allow or encourage gambling, yet we already have major gambling in the form of the state lottery. Allowing slot machines will bring painless revenue enhancements.

If you were named governor of Maryland, what would be the first thing you would do?

Hopkins: As governor, my first priority would be to elevate funding for the University System. Maryland's public colleges and universities need to be viewed as value-added centers that require continued investment for continued payoff as opposed to being viewed as cost centers subject to budget cuts in times of fiscal tightness. Our high-quality labor force, high educational attainment, high per- capita personal income, and receipt of many federal grants and contracts can be attributed to the presence of quality educational institutions. It is imperative that those institutions receive the resources necessary to be able to compete regionally, nationally and internationally. Finally, making higher education affordable to Maryland's residents ensures that potential does not go unmet.

Shea: The first thing I would do if I were elected governor of Maryland would be to address the need for investment in improved statewide infrastructure, especially in transportation - with a high priority for the mass transit system - to help relieve the pressures of the highway systems and get people moving in, out and around the state more efficiently. It has been too long that we've gone without significant investment in statewide transportation infrastructure.

Tiburzi: Convene a summit meeting of the state's public and private leaders to solve Maryland's medical health care access crisis. Maryland's doctors are finding it impossible to continue to practice in certain key specialties. Hospitals and Maryland businesses are facing spiraling costs, and all Marylanders are in jeopardy because of this crisis. Nothing is more urgent. I would bring all interested parties to the table and work until we found a solution. I note that Gov. Ehrlich, Senate President Miller and Speaker Busch are all working to address this issue, albeit from different perspectives and points of view.

Wolf: I would continue to control government expenditures and aggressively pursue out-of-state businesses to locate in Maryland. I would stress higher education, especially in ways that enhance quality and access. I also would seek to leverage the enormous potential found within our state's intellectual capital.

PERSONAL

Name: John Ward Hopkins

Age: 30

Profession: Economist

Name of organization for which you work: RESI, Towson University

Residence: Freeland

Family: My wife Jennifer and two boxers

Hobbies: Fixing things around the house and football

Favorite book: Newspapers and magazines; I rarely read books.

Favorite movie: Animal House

Favorite thing about Maryland: Blue crabs.

PERSONAL

Name: James L. Shea

Age: 52

Profession: Lawyer

Name of company for which you work: Venable LLP

Residence: Baltimore County

Family: Four children

Hobbies: Tennis, golf, jogging

Favorite book: Master of the Senate: The Years of Lyndon Johnson

Favorite movie: None seen that I can remember

Favorite thing about Maryland: Its diversity-from its geography to its people.

PERSONAL

Name: Paul A. Tiburzi

Age: 49

Company: Piper Rudnick LLP

Title: Managing Partner

Residence: Baltimore

Hobbies: Watching the Ravens and Orioles

Favorite recent book: Master of the Senate by Robert Caro

Favorite movie: The Godfather and Godfather Part II

Favorite thing about Maryland: The best state in the country in which to live and work: America in miniature with great weather and wonderful people. Nothing could make me leave Maryland.

PERSONAL

Name: John A. Wolf

Age: 56

Company: Ober|Kaler

Title: Chief Executive

Residence: Ruxton

Family: Married, four children, one grandchild

Hobbies: Sports, especially enjoys coaching kids

Favorite book: Fallen Angels

Favorite movie: The Graduate

Favorite thing about Maryland: It's the land of pleasant living.

Copyright 2004 Dolan Media Newswires
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