Rickard C. Mike Lewin letter to Robert L. Ehrlich, Jr., October 6, 1999

Parris N. Glendening Governor Department of Business & Economic Development Kathleen Kennedy Townsend Lt. Governor Richard C. Mike Lewin Secretary David S. Iannucci October 6, 1 999 Sonar, The Honorable Robert L. Ehrlich, Jr. 315 Cannon House Office Building W ashington, DC 20515 Dear Bob: In an era of increasing competition between states for economic development and job creation, I am writing to inform you of my concern about the expenditure of taxpayer funds in pursuit of corporate relocations. Fundamentally, I support assisting Maryland’s businesses with a wide variety of tools, many of which are financial. At the same time, I support federal legislation that would curb state vs. state competition for the attraction and retention of businesses. As Maryland’s Secretary of Business and Economic Development (DBED), I have first hand knowledge of the competition that states must endure when corporations seek the best possible deal for their shareholders. Although businesses, from small companies to large multi-national corporations, must provide their shareholders with the highest return, state taxpayers should not be pitted against each other for such gains. Maryland, however, cannot unilaterally disarm itself in the war to attract and retain businesses and does not expect surrounding states to do so on their own either. Although states should be able to retain or attract business on the merits and advantages of their state alone, DBED would support federal legislation limiting or ending intrastate rivalries for businesses at taxpayer expense. The Department, with the support of Governor Parris Glendening and Lieutenant Governor Kathleen Kennedy Townsend, has been judicious in its business dealings. However, my position has been since the first day on the job that we must work to curb taxpayer funded direct grants. That is why I am requesting you and other members of Maryland’s Congressional Delegation to support federal legislation to this end. The Department was directed during the 1999 session of the Maryland General Assembly to study the issue of “corporate raiding” between states and find a way to limit or end such practices. Enclosed is a copy of the language mandating the Department to undertake this initiative under 1 999 SB 779 (Chapter 510). I call your attention to page 217 East Redwood Street Baltimore, Maryland 21202 e: 410-767-6300 Fax: 410-333-8628 Toll Free: 1-800-541-8549