Onward & Upward

TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION 1

CHAPTER 1 SMALL BUSINESS CHAMPION 5

CHAPTER 2 AGENCY OPERATIONS 21

CHAPTER 3 MODERN TECHNOLOGY 29

CHAPTER 4 FIELD ENFORCEMENT 35

CHAPTER 5 BOARD OF PUBLIC WORKS 45

CHAPTER 6 K-12 SCHOOLS 55

CHAPTER 7 HONORING UNSUNG HEROES 65

CHAPTER 8 COVID MOBILIZATION 73

CHAPTER 1 CONCLUSION 87 HA

CHAPTER 1 ACKNOWLEDGEMENTS 90

An underdog polling in distant third place when he launched his bid for Comptroller in 2006, Peter Franchot defeated the legendary incumbent William Donald Schaefer and went on to serve as Maryland’s 33rd comptroller after serving 20 years as a member of the Maryland House of Delegates representing Montgomery County.

Franchot’s four terms as the state’s chief fiscal officer coincided with two of the worst fiscal and economic crises in modern American history – the 2008 Great Recession and the COVID Pandemic. Over the course of his 16-year service, Franchot was a fervent advocate for sound fiscal and economic policies, working with Republican and Democratic leaders alike to identify and advance reforms and policies that benefited Marylanders, small businesses, and our communities.

Delegate Peter Franchot poses for a photo with his wife, Anne Maher, his children, Nick and Abbe, and House Speaker R. Clayton Mitchell, Jr. after being sworn-in as a member of the House of Delegates, in the House Chamber, 1987.

Governor Martin O’Malley administers the Oath of Office to Comptroller Peter Franchot in the Governor’s Office in 2006. Alongside Comptroller Franchot are his wife, Anne Maher, and his children Abbe and Nick.

Comptroller Franchot and Deputy Comptroller Sharonne Bonardi (right) greet employees of the Taxpayer Services Division ahead of the 2019 Tax Processing Season.

During Franchot’s tenure at the helm of the Treasury Department, he presided over the transformation of the Comptroller’s Office from a sleepy, bureaucratic agency to a national model of efficiency and service with active public engagement and outreach and a focus on providing first-class customer service.

Guided by Franchot’s signature “Three R’s” – respect, responsiveness, and results – the Comptroller’s Office is widely recognized today as one of the best state agencies with a bipartisan reputation for delivering positive results and outcomes.

From reducing call center wait times from hours to minutes, to successfully protecting Marylanders from financial criminals, or having the fastest refund processing time of any tax agency in the nation, Franchot’s laser focus on efficiency and customer service has allowed the agency to fulfill its mission of Serving the People.

Franchot made it a priority to travel across Maryland to gain a first-hand understanding of the needs and concerns of communities across the state. The visits across Maryland - from Ocean City to Deep Creek Lake - served a purpose: to hear directly from real people and get an accurate pulse on the state’s economic and fiscal health. These tours not only helped connect members of the public with their government, they became fact-finding missions for Franchot as he established relationships and gleaned insight from residents, business owners and local leaders. These efforts informed his decisions on everything from contracts being approved at the Board of Public Works, to policies being debated and considered by the General Assembly.

Comptroller Franchot engages with community leaders during a National Night Out event in Baltimore in 2016.

Comptroller Franchot greets a vendor at the Towson Farmers Market in 2017.

SMALL BUSINESS CHAMPION

Ahallmark of Peter Franchot’s four terms as Comptroller was his unabashed, unwavering support for and advocacy of Maryland's small business community. He often called it the beating heart of the state's economy, citing statistics to back up that claim. Along Maryland’s Main Street corridors, on the family farms growing produce and raising poultry, and in the diverse manufacturers creating their innovations, Franchot has been their cheerleader and their champion.

He always plugged shopping locally, be it during tax-free week in August, Energy Star weekend in February, the lead-up to the winter holidays - and pretty much any other time of year.

(Top left): Comptroller Franchot visits Hysteria Brewing Company in Columbia; (Top right): Comptroller Franchot greets employees at Smith Island Baking Company in Crisfield; (Bottom left): Comptroller Franchot speaks with the Travers Family, owners of Simmons Centre Market in Cambridge;

(Bottom right): Comptroller Franchot tours businesses in Baltimore’s Hollins Market neighborhood with Baltimore City Councilman John Bullock (left).

Comptroller Franchot, alongside Baltimore County Councilwoman

Vicki Almond (right) and Baltimore County Register of Wills Grace Connolly (left), visit Towson Bootery in Towson.

Comptroller Franchot makes a pit stop at Rise Up Coffee in Salisbury as he makes his way down to Ocean City for the Maryland Association of Counties conference in 2018

It wasn't just talk. In the weeks preceding each of the annual shop local campaigns, Franchot criss-crossed the state, visiting boutiques, appliance stores and gift shops, purchasing everything from trousers to tchotchkes to show his support for shopping locally.

The recession of the late 2000s hit Maryland small businesses hard, cutting payrolls and leaving many struggling to survive. Some were able to pivot, finding new ways to operate and innovate with fewer resources. To honor these trendsetters, Franchot created the Better with Less Award in 2011, publicly acknowledging these entrepreneurs who inspired others and drove consumers to their doorstep.

To grasp the full nature of Maryland business owners’ struggles and successes, the Comptroller’s Business Advisory Council (BAC) was created in 2012. This quarterly forum consisted of business leaders from all industries and sectors, civic and nonprofit leaders from every corner of the state, and empowered members to voice concerns as stakeholders in the economy. Franchot always made sure that each attendee had the chance to share their insights and he used their wisdom to inform his decisions as Comptroller and as a member of the Board of Public Works. BAC participants appreciated the inclusion and the Comptroller’s leadership.

Franchot embraced his role as a strong voice for small businesses, advocating to advance policies that create wealth and jobs. After a Bureau of Revenue Estimates (BRE) report showed a $74 million economic impact of starting school after Labor Day, Franchot launched the “Let Summer Be Summer” campaign.

In 2013, the General Assembly convened a task force to study a statewide after Labor Day school start. By 2016, Governor Larry Hogan signed an executive order mandating schools to begin post Labor Day and conclude by June 15th.

“Comptroller Peter Franchot is a rare kind of elected official. I always felt heard by him. When the pandemic hit, he reached out to me personally several times to see how the Y was doing and whether there was anything he could do to help.  There’s undoubtedly a lot of reasons to feel cynical about politics and politicians these days, but Peter Franchot isn’t one of them. He clearly saw his role as being as accessible as possible to Marylanders across the state, the economy and across political lines.  I really admire him for that, and value his friendship and service.”

JOHN HOEY PRESIDENT & CEO, THE YMCA IN CENTRAL MARYLAND AND MEMBER OF THE COMPTROLLER’S BUSINESS ADVISORY COUNCIL

Comptroller Franchot speaks at a press conference announcing Governor Hogan’s Executive Order to mandate a post-Labor Day start for Maryland public schools

Comptroller Franchot and Ocean City Mayor Rick Meehan visit Dolle’s Candy on the Ocean City Boardwalk.

Comptroller Franchot tours MISCellaneous Distillery in Mount Airy.

Comptroller Franchot visits Emily’s Produce in Cambridge.

In the post-recession years, Maryland’s economy had stabilized and businesses were riding the financial tidal wave. Franchot wanted to draw attention to those businesses and nonprofits creating jobs, adapting to modern trends and investing in growth, so he created the Bright Lights Award for Innovation and Entrepreneurship.

Franchot chose one recipient in each of Maryland’s 24 jurisdictions that best showcased the state’s brightest assets.

The Cornerstone Award for Local Business Excellence recognized the companies and shops that were synonymous with the communities where they were located.

Recipients ranged from Baltimore County ’s Bengie’s Drive-In, the only drive-in theater still operating in Maryland, to the oldest bridal shop in the state, Lennox East, in Allegany County. Each was part of the fabric of their communities and the state of Maryland.

The topic that became Franchot ’s cause célèbre was the battle to reform Prohibition-era alcohol laws in Maryland that favored wholesalers over manufacturers and consumers. He began with the lowest hanging fruit - wine.

The direct shipping of wine was legal in 37 other states and Marylanders wanted the same option to have wine delivered directly to their doorsteps.

Franchot's team prepared an economic impact report showing the positive benefits it

would have, and direct shipping became law in 2011.

Franchot led the charge in breaking up an antiquated monopoly controlled by his own home county in 2015 – the Montgomery County Department of Liquor Control. For more than eight decades, this institution controlled all alcohol distribution and distilled spirit sales in the county. The DLC was the textbook definition of a monopoly, but the county was unwilling to forgo its $30 million annual cash cow.

Retail shops, manufacturers, wholesalers and consumers wanted an end to this Depression-Era department, and Franchot became the leading voice for their cause. The Bureau of Revenue Estimates compiled a staggering report on the impact of privatizing liquor distribution and sales in Montgomery County. The analysis showed that privatization would generate $193 million in direct and indirect economic benefits, spurring the General Assembly to pass a law in 2017 partially privatizing operations that weakened the DLC's authority over producers and consumers.

Next up was the craft beer reform debate that brought statewide awareness to the state's archaic and unfair alcohol manufacturing laws. Franchot stood in solidarity with the craft beer makers, who were restricted by hostile laws established

speaks at a press conference calling for the elimination of the

Comptroller Franchot

Montgomery County's antiquated alcohol monopoly, the Department of Liquor Control (DLC). Delegate Bill Frick (left) was among the many supporters of the initiative.

Comptroller Franchot speaks at a rally in support of modernizing Maryland’s craft beer laws at Key Brewing Company in Dundalk.

a century earlier, which heavily benefited distributors. Even as the industry was exploding in Maryland, they had to limit taproom sales and sign near-lifetime binding contracts with distributors that severely hurt their ability to turn a profit. Change was demanded, but backroom deals between key legislators and powerful beer distributors hindered these efforts. Franchot started the Reform on Tap movement to shine a harsh spotlight on the unseemly Annapolis alliance, and generate public support.

Craft breweries across the state and their legion of loyal customers, beer lovers, and advocates for common-sense business policies, stood by Franchot.

Several breweries, thrilled to have a powerful ally in their corner, went even further.

In June 2017, Barley and Hops in Frederick created a beer to honor their “rock star” and named it Franchot Comes Alive. They even superimposed the Comptroller's face on the cover for the legendary “Frampton Comes Alive” album that inspired the beer name and used it to promote the new brew. Monocacy Brewing also released a specially crafted gem, called Saison du Franchot, that was created with locally grown malt. The name translated to the “Season of Franchot,” and could not have been more apropos.

The enormous efforts of Franchot and his team brought much-deserved attention to the need for an overhaul of Maryland’s destructive beer laws. It was 2019 when true reform began. The legislature, overwhelmed by constituent support of the issue, adopted multiple changes that significantly leveled the playing field. They passed into law many of the proposals they denied during the previous session. In subsequent years, incremental progress was made on behalf of the craft alcohol manufacturers. Franchot had lit the fire of progress that paved the way for long overdue reforms.

Comptroller Franchot speaks to the media and supporters after testifying before a House Committee on the Reform on Tap Act of 2018.

AGENCY OPERATIONS

Franchot inherited a well-run agency, but one that needed to embrace new technologies that would boost efficiency and effectiveness. The Office was primed for modernization. Electronic tax returns were in their infancy and most processing of forms were done by hand. Today, roughly 90 percent of tax returns are filed electronically.

In those early days, employees worked hard to meet the needs of taxpayers even while running antiquated systems. The General Accounting Division (GAD), for example, has won an award 40 consecutive years for producing its Comprehensive Annual Financial Reports.

Comptroller Franchot, joined by local elected officials, cut the ribbon at the grand opening of the agency’s Towson branch office location.

“During my years working with Comptroller Franchot, we focused on customer service, enhanced collection and compliance programs and leadership training for our employees. The Comptroller insisted on a high level of customer service, which included reducing wait times and making certain that our employees were trained to handle the taxpayer’s problems efficiently and effectively. The Comptroller worked to institute new collection and compliance programs, and innovative training programs for motivated employees to provide them with the skill sets to move forward in their careers and remain dedicated to the Comptroller’s mission of servicing the taxpayers.”

LINDA L. TANTON

DEPUTY COMPTROLLER, 2006 - 2012

Deputy Comptroller Linda Tanton 2006-2012, opens tax season mail with Comptroller Franchot.

Other examples of these efforts of improvement occurred throughout the agency.

The Compliance Division works with taxpayers who have been defrauded and roots out those responsible for tax crimes. The Unclaimed Property unit constantly reunites Marylanders with long forgotten, or unknown funds, jewelry and other items turned into the agency by banks, credit unions and other fiduciary entities.

Former Director of Administration and Finance, Ken Smith, and Comptroller Franchot bring holiday cheer to employees

Staff attended many state and county fairs and published the annual unclaimed property insert in newspapers statewide, while Franchot himself started an annual tradition of portraying a well-known character as a spoof to draw attention to the the insert. During his tenure, Franchot reunited Marylanders with more than $948 million in unclaimed property.

Some of the Unclaimed Property campaigns in which the Comptroller portrayed a well-known character.

Gary White, Director, Taxpayer Services Division.

“I have worked in customer service since I was 14 years old. Comptroller Franchot took the meaning of customer service to the next level. He has done everything in his power to better serve the public. This is why I am still here… I enjoy what I do, and Peter Franchot has given us the ability to engage at a very high level.”

GARY WHITE DIRECTOR, TAXPAYER SERVICES

As another example of Franchot’s commitment to customer service, he would often call the agency’s toll-free number to see how long it would take for someone to answer the phone. It was one way of holding his team accountable. More than just answering the phones quickly, the true measurement came down to obtaining results for taxpayers.

Franchot created a dedicated Taxpayer Services Division, separate from the Revenue Administration Division, to keep their focus on customer service and tax processing, respectively.

He consolidated the agency's branch offices, introduced an online appointment scheduling system that eliminated long waits, and put significantly more resources into encouraging electronic filing. Franchot ushered in a new technological era, one that did not neglect the most fundamental tenet of always placing the taxpayer first.

Comptroller Franchot greets former Maryland Attorney General Doug Gansler and U.S. Attorney for Maryland Rod Rosenstein at a 2017 Taxpayer Security Summit his agency hosted in Baltimore.

“One of Comptroller Franchot’s most impactful legacies is his commitment to diversity and inclusion. Under Franchot’s leadership, we boldly celebrated our diversity with community events and activities that increased employee morale and productivity. This culture of inclusion became a priority for the agency, demonstrated by the creation of a full-service, bilingual taxpayer contact center, bi-lingual taxpayer branch services, and extensive community outreach throughout Maryland, especially within the Hispanic and African-American communities.

Thanks to Comptroller Franchot’s appointment of me as his deputy comptroller, I have been able to serve as a role model and break numerous glass ceilings as the first person of color in this position and as the first person of color to serve as the executive director of the Federation of Tax Administrators, which advances the needs of the country’s tax and revenue agencies.”

SHARONNE BONARDI DEPUTY COMPTROLLER, 2015 - 2021

Sharonne Bonardi, Deputy Comptroller, 2015 - 2021.

3 MODERN TECHNOLOGY

Under Franchot’s stewardship, the agency implemented long-overdue 21st century technological upgrades that would grow and adapt with the needs of the taxpaying public.

The first thing to tackle was the outdated SMART tax processing system. New infrastructure was required before a modern system could be developed. The creation of the Data Warehouse, a state-of-the-art system to track delinquent taxes and provide financial information to other governmental bodies, was part of this undertaking. It also proved uniquely capable of helping uncover fraudulent tax returns before funds were disbursed, helping to make the Comptroller of Maryland office one of the country's top state tax fraud detection agencies.

Comptroller Franchot held a news conference in 2016 with Attorney General Brian Frosh to announce criminal charges against the former owner of six tax preparation franchises and their staff who paid homeless people and vulnerable residents to use their services for fraudulent purposes. The owner of the Liberty Tax franchises and their eight employees were accused

of preparing 1,100 false tax returns in 2015 and claiming refunds worth nearly $700,000 from the state and federal government that they pocketed. The charges came amid a wave of tax fraud cases and helped fuel passage of the Taxpayer Protection Act, which expanded the State’s ability to investigate and prosecute fraudulent income tax preparers.

With upgraded technology, the agency was able to open call centers across the state. All offices were linked together allowing, for example, a call to be answered in Greenbelt if all other call center telephones were busy. Above, clockwise: Salisbury, Hagerstown and Greenbelt call center openings, 2017.

When the agency received the Analytics 50 Award presented by Drexel University and CIO.com, judges stated that the Comptroller of Maryland won due to its innovative use of analytics to create and deliver business value. In tax year 2015 alone, the agency prevented 35,000 fraudulent refunds from being processed, totaling $38.6 million in preserved funds. Since 2015, the agency has blocked more than 92,200 fraudulent returns worth nearly $377 million.

Compass, the new tax processing system, with intuitive design and greater user responsiveness, was phased in piece by piece beginning with alcohol and corporate taxes in 2020 and 2021, respectively. Compass will be fully implemented by 2025.

The agency opened two call centers in 2017 - in Hagerstown and Salisbury - to help answers taxpayer inquiries. When the COVID-19 pandemic shut down in-person operations, Comptroller Franchot's Information Technology Division worked to enable agency personnel to field calls from the safety of their homes using laptops.

Another technological upgrade years in the making was the redesign of the Comptroller of Maryland website. The old page technically was three separate sites in one. It was duplicative and hard to navigate for both employees and visitors. After three years, and rotating teams of employees from each division drafting and reviewing content, the new Marylandtaxes.gov website went live in December 2019. Its eye-catching design and user-friendly layout was a huge improvement.

Finally, the archaic Comptroller of Maryland Intranet, called COIN, was overhauled in 2022 with a modern look and feel, additional employee resources to streamline workflows, and information about the latest agency happenings.

The Comptroller's intranet, COIN, revamped in 2022, informs employees on events, policies and resources.

Comptroller of Maryland website, www.Marylandtaxes.gov, implemented in 2019.

FIELD ENFORCEMENT

The role of the Comptroller differs significantly from state to state. In Maryland, the agency’s Field Enforcement Division (FED) was responsible for the enforcement and regulation of alcohol, tobacco, and motor fuel. This was a unique, albeit effective, setup thanks to Franchot's leadership team of Jeff Kelly and Chuck Ulm, as well as their experienced staff. They spent decades earning the respect and trust of the industries they regulated.

Shortly after taking office, Franchot spearheaded efforts to establish a regulatory framework for specific tobacco products. In 2010, he sponsored HB 88 to prevent unsafe tobacco products from reaching the marketplace by establishing a license for businesses selling “Other Tobacco Products” (OTP). It also provided a mechanism to hold tax scofflaws accountable for underreporting, as well as ensuring the

Comptroller Peter Franchot holds a press conference to announce the largest tobacco bust in the history of the state in 2019.

Comptroller Franchot holds a press conference to discuss his agency’s Taxpayer Protection Act. Joining him are Field Enforcement Division Director Jeff Kelly (left); Deputy Comptroller Sharonne Bonardi (right); and Revenue Administration Division Deputy Director Wally Edelman (far

right).

integrity and safety of OTPs. Franchot’s unwavering determination has kept unsafe tobacco products off the shelves and out of the hands of young people.

FED was tasked with new duties by the legislature in 2011, overseeing the charitable slots program on the Eastern Shore, which was plagued by inconsistences. FED quickly instituted uniform regulations, an explanation of procedures and licensing and audit control that works well to this day.

One of the most significant accomplishments of Franchot’s tenure was his relentless advocacy of the Taxpayer Protection Act (TPA) of 2017. This legislation was in direct response to the avalanche of sophisticated tax fraud and identity theft schemes that were on the rise due to evolving technologies and unscrupulous criminals. The TPA not only protected taxpayers' money and privacy, it granted FED agents additional powers to enforce tax law, including issuing subpoenas and signing charging documents. The FED Investigative Unit expanded and is actively investigating multiple instances of tax fraud being committed against the State. The Office of the Attorney General (OAG) has designated an Assistant AG to work closely with the Comptroller’s Office to identify instances of income tax fraud that meet a threshold for prosecution. Of the multiple income

Comptroller Franchot speaks at a press conference announcing new regulations banning the sale of certain electronic cigarette and vape products.

tax cases investigated by FED agents and prosecuted by the OAG, the conviction rate stands at 100%.

Franchot continued his pursuit of dangerous tobacco-related products when he established the “e-facts” Task Force in October 2019 to examine the health and safety implications of electronic smoking devices following after national reports of serious illnesses, lung disease, and deaths attributable to vaping. After several meetings with advocates, parents and public health officials like Dr. Hoover Adger, professor of Pediatrics and Director of Adolescent Medicine, at the Johns Hopkins University School of Medicine, it became clear that the Task Force needed to address the surging popularity of these devices with young people and the public health threat posed by a new generation hooked on nicotine.

“Without Franchot’s leadership, many millions of tax dollars would have found their way into the pockets of unscrupulous tax schemers continually testing the limits of the state’s taxing systems.”

BILL GEORGE DIRECTOR OF FIELD ENFORCEMENT, ALCOHOL TOBACCO COMMISSION

Caption: Comptroller Peter Franchot presides over a meeting of his "e-facts" Task Force, which was formed to study the effects of vaping among young adults and to propose new laws and regulations.

In February 2020, the task force submitted a 30-page report of its findings, which contained legislative recommendations potential state agency action, and proposed regulatory language and enforcement priorities for the now-renamed Field Enforcement Bureau of the Comptroller’s Office. The changes did come, eventually, at the federal level. The Food and Drug Administration prohibited the manufacture and sale of fruit-flavored and mint-infused e-cigarettes in 2020, and then banned the sale of e-cigarettes to minors in all 50 states.

Motor Fuel Awards during Comptroller Franchot’s tenure

Motor fuel regulation may sound mundane, but for Franchot, it was a matter of tax fairness, fuel quality and safety. Unfortunately, fraud runs rampant, and agents have seen everything from fake IFTA (International Fuel Tax Administration) decals to bogus unlicensed vendors selling diesel fuel and counterfeit renewable fuels.

Motor Fuel Tax Section Chair’s Award Federation of Tax Administrators

IFTA licensing (and decals) are required in the lower 48 states for any motor carrier. It simplifies quarterly returns and informs the state that operators are in compliance.

A rash of forged IFTA decals were spotted in Maryland shortly after Franchot took office, and the agency drafted legislation to establish criminal penalties. The bill passed into law and became model legislation.

BOARD OF PUBLIC WORKS

It is not an exaggeration to say the Maryland Board of Public Works (BPW) is unlike any governmental body in the country. Comprised of the Governor, Comptroller and Treasurer, the BPW approves all contracts above $200,000, protects the State's fiscal integrity and its coveted AAA bond rating, and ensures taxpayer funds are spent wisely and fairly, among many other oversight responsibilities.

For years, Comptroller Franchot fought against single-bid contracts to ensure the State was getting the best value for its money. He also consistently advocated for the awarding of more minority and woman-owned contracts. The use of singlebid contracts has fallen by 86% due to Franchot's advocacy. CHAPTER

Treasurer Nancy Kopp, Governor Larry Hogan, and Comptroller Peter Franchot at a Board of Public Works meeting in 2021.

Franchot also spoke out against the repeated use of “emergency contracts” that could have been avoided with better planning. Many times, he was the lone BPW member chiding state officials for this tactic.

He vigorously fought against the closure of state-run hospitals and recalls one of the the darkest days of his tenure when the Board voted, against his objections, to close the Upper Shore Community Mental Health Center in Chestertown. At the time of the closure, the facility had 60 beds and residents could not be placed in other facilities in Central Maryland. Additionally, 100 employees lost their jobs in the midst of a recession.

“For too often, we’re presented with contracts that practically put a gun to our head, where we don’t have adequate time to fix procedural issues. Instead, we are faced with an unacceptable choice between agreeing to a bad deal for taxpayers or discontinuing a service that they desperately need. These late emergency contracts must stop. The Board of Public Works is not a rubber stamp, and I, for one, will not stand by quietly while laws are violated. Enough is enough.”

PETER FRANCHOT

Throughout his four terms, Comptroller Franchot visited Maryland’s public universities and colleges and worked closely with higher education leaders to advance critical priorities subject to BPW authorization. His partnership with Maryland's higher ed institutions and trade schools helped fulfill their mission of training future leaders and preparing the workforce of tomorrow to keep Maryland's economy strong.

Franchot’s time on the BPW saw significant capital construction on the campuses of Maryland’s public universities and colleges. In all, he authorized more than $8 billion in infrastructure projects for University System of Maryland institutions, including hundreds of millions of dollars for the system’s three Historically Black Colleges and Universities. These projects created thousands of good-paying, family-sustaining jobs and supported growing enrollment.

Comptroller Franchot tours the Morgan State University campus with President David Wilson.

Comptroller Franchot tours the Maryland Transit Administration Headquarters in Baltimore.

Prior to becoming Comptroller, Franchot served 20 years in the House of Delegates, spending eight years as chair of the House Transportation & the Environment Subcommittee. There, he directed record state investments to projects across the state, and was among the earliest and staunchest supports of the Purple Line light rail project that will link Bethesda, Silver Spring, College Park and New Carrollton.

In 2016, the BPW unanimously approved a team of private companies to build, operate, and maintain the Purple Line. The $5.6 billion contract was 876 pages long and, according to The Washington Post, is believed to be the most expensive government contract ever in Maryland” and one of the largest public-private partnerships on any U.S. transportation project.

In January 2022, the BPW approved a $3.4 billion contract to have U.S. subsidiaries of two Spanish construction firms take over the construction portion of the project. The overall cost has ballooned to $9.3 billion. The Purple Line is slated to open in fall 2026.

Franchot also backed the Maryland Department of Transportation's plan to ease crushing congestion on the Capital Beltway (I-495) and I-270, and he successfully secured comittments that a Project Labor Agreement would be used to provide union wages for workers on the project.

“As elected officials and policymakers, we have to make decisions using pragmatism and logic, and at this very early stage of this P3 project, I believe this revised plan is a win-win for the region.”

To address community concerns, he also orchestrated changing the order in which work takes place, ensuring a portion of revenues would be shared with local governments, steering funds to local transit upgrades, allowing public buses to use toll lanes free of charge, suspending the taking of private homes or businesses by eminent domain and requiring a monorail feasibility study between Montgomery and Frederick counties. That project remains in limbo as Franchot left office.

PETER FRANCHOT

Comptroller Franchot tours a public athletic field with Howard County Executive Calvin Ball and Register of Wills Byron Macfarlane. In addition to procurement contracts, Comptroller Franchot and his BPW colleagues have approved grants for local parks and recreational spaces.

K - 12 SCHOOLS

Othe surface, the Office of the Comptroller has little to do with schools.

Being on the Board of Public Works provided a platform to approve capital funding for K-12 and higher education institutions, but Franchot was determined to take a more impactful role. One of the first initiatives he spearheaded was requiring a statewide financial literacy course as a high school graduation requirement.

Franchot recognized that students must be financially literate to be prepared for college, their careers, and stable futures. He worked with a variety of stakeholders, including Junior Achievement, to advocate for financial education. He initiated a grassroots petition campaign gathering over 10,000 signatures to persuade the Maryland General Assembly to implement a statewide high school graduation requirement in personal finance. The effort came up short, but it was the first sign that Franchot would be vocal about schools. CHAPTER

Comptroller Franchot and Delegate Jay Jacobs visiting Eastern Shore schools, 2016.

Comptroller Franchot visits Beaver Run Elementary School in Wicomico County, 2018.

Comptroller Franchot promoting Stocks in the Future financial literacy program, Mount Royal Elementary/Middle School, 2012.

Belle Grove Elementary School, 2009

Comptroller Franchot brought his Cool Classrooms initiative to the Baltimore County Public schools throughout 2015 and 2016.

In 2011, Comptroller Franchot urged Baltimore County government and school officials to address the unsafe and unhealthy working and learning environments in 65 public school buildings that lacked air conditioning, despite more state funding for school construction over the years. Often, the buildings that lacked climate control were located in the most poverty-stricken zip codes. It was a social and economic injustice, and Franchot became the leading advocate for thousands of students, teachers and staff who were forced to work and learn in these harmful conditions. He proposed installing portable units as a temporary, immediate measure until Baltimore County renovated or replaced the aging school buildings. In neighboring Baltimore City, 75 schools were without sufficient air conditioning and heating in their classrooms, so Franchot expanded the fight to help those students and staff, whose schools were also often in economically deprived communities.

After the lack of heating in Baltimore City schools made national news with images of shivering children in winter coats sitting in freezing classrooms, Comptroller Franchot and Gerald Stansbury, the state chair of the Maryland chapter of the NAACP, wrote a letter to the U.S. Department of Justice requesting a civil rights investigation. “These students deserve to have the same educational experience as Maryland students who are privileged to live in more affluent communities” they wrote.

While the Cool Classrooms

battle wore on, Franchot wanted to recognize exceptional school maintenance. The Silver Hammer Award honored the underappreciated work done by public school custodians and maintenance crews throughout the state. Head custodian, Joe Stafford, of Cumberland's Fort Hill High School, built in 1936, received the award in Allegany County for his exemplary maintenance belying the school’s age. Faced with limited budgets and spiraling costs, the custodial and maintenance teams were dedicated to keeping the children and staff safe and healthy. The Silver Hammer provided much-needed recognition for those in the K-12 system who actually kept the lights on and the classrooms cool (or heated in the winter months). CHAPTER

Overlook Elementary School students recognizing Silver Hammer Award recipients.

Overlook Elementary School maintenance staff receiving the Silver Hammer Award.

Westminster Middle School volunteer Jill Burnett receiving the Golden Apple Award in 2013.

By

2022, Franchot’s advocacy for the state’s most vulnerable children resulted in air conditioning units in all Baltimore County schools and all but 14 Baltimore City schools. For over a decade, Comptroller Franchot stood firmly with students, parents, teachers, staff and advocates to bring a resolution to this decades-long public health crisis.

High-performing schools rely not just on superior teachers, administrators and staff, but also devoted volunteers Franchot paid tribute to them with the Golden Apple Award.

Jill Burnett, who volunteered at three different schools in Carroll County each week while organizing boosters, sporting events, teacher appreciation weeks, and setting up and breaking down dances and performances, was among the deserving honorees.

Visiting Potomac Heights Elementary School in 2010.

Lastly, Franchot celebrated the artistic talents of students across the state with the Maryland Masters Awards. Artwork created by K-12 students was submitted statewide. The winning selections, in a variety of mediums, adorned the walls of the Louis L. Goldstein Treasury Building. CHAPTER

Kaitlynn Motley, Self Portrait, 2013 Howard County Maryland Masters award recipient.

Maryland Masters Award presentation in Charles County, 2015.

Comptroller Franchot, joined by Governor Larry Hogan and First Lady Yumi Hogan, an artist, present a Maryland Masters Award in 2015

HONORING UNSUNG HEROES

An important part of Peter Franchot's tenure was paying tribute to individuals and organizations devoted to serving others - Maryland's unsung heroes. In 2012, Franchot created the William Donald Schaefer Helping People Award to honor Marylanders who went above and beyond to assist the most vulnerable in their communities. The award was an homage to the former Comptroller, Governor, and Baltimore Mayor whose "Do It Now" mentality was greatly admired by Franchot. Recipients of the award were selected from all 24 jurisdictions. Winners demonstrated Schaefer’s commitment to helping the little guy and assisting those most in need. They came from all walks of life and poured every ounce of their time and energy into the cause they championed. Every year, the number of nominations increased in number and many worthy suggestions could not be recognized, demonstrating how many outstanding humanitarians live among us.

2021 WDS recipient for Baltimore County, Joseph Benn and family.

Comptroller Franchot with the Reno family, 2021 Queen Anne's County WDS recipient, and founders of Not My Child 2.0.

2021 Prince George's County WDS recipient, and founder of PG Changemakers, Krystal Oriadha.

Comptroller Franchot launched his Baseball & Brew initiative in 2017 to help grow the tourism industry in Maryland. It featured a beer and baseball trail to guide lovers of both from Maryland's mountains to its seashore.

The starting point of the trail celebrates baseball Hall of Fame pitcher, "Lefty" Grove, whose statue was unveiled in his hometown of Lonaconing

The Lefty Grove plaque was presented by Comptroller Franchot to community members in Lonaconing, 2019.

For 10 years, the Schaefer Award grew in stature and meaning. In 2014, Warrior Canine Connection received the nod in Montgomery County for their mission-based trauma recovery efforts reconnecting wounded warriors to postmilitary life using canine companions. In 2020, Friends of Blackwater National Wildlife Refuge received the Schaefer Award for their education and conservation of one of Maryland’s greatest scenic and ecological treasures. Joseph Benn took home the 2021 Baltimore County award for mentoring at-risk foster children in his community, teaching the value of hard work and becoming self-sufficient, all from his barber shop in Windsor Mill.

Deserving Marylanders, living or deceased, were honored equally by Franchot. Lefty Grove, a native of Lonaconing who rose from poverty to become one of the all-time greatest pitchers, won two World Series titles and was inducted into the Baseball Hall of Fame in 1947. Franchot, the unofficial chairman of the Lefty Grove Memorial Committee, helped secure funds through his role on the Board of Public Works to have a statue erected in Lefty’s hometown. Sculptor Susan Luery, creator of the Babe Ruth statue outside of Oriole Park at Camden Yards, was commissioned in 2017 to complete the statue. It was unveiled in October 2019, just in time for the 90th anniversary of the 1929 World Series in which Lefty amassed two saves in 6 1/3 scoreless innings.

HONORING UNSUNG HEROES

After the 2019 death of former House Speaker R. Clayton Mitchell, Jr. with whom Franchot served in the General Assembly, the Comptroller created the Mitchell Award for Distinguished Public Service to honor public servants who put the interest of citizens above party politics and self-promotion. The Speaker's, son, Clay Mitchell, Sr., son had the honor of delivering these awards personally as a tribute to his father.

Recipients of the Mitchell award were chosen from both sides of the aisle, and they were touched by the recognition of their lifetime of service. Pioneers like Gloria Lawlah and Eileen Rehrmann were recognized for their advocacy of women and minorities and fighting for the elderly. Heavy hitters Casper Taylor and Wayne Gilchrest received the nod for their stewardship conserving Western Maryland heritage sites and Eastern Shore wetlands, respectively.

Franchot was not one to shy away from charitable acts and encouraged his employees to do the same. Agency personnel annually participated in the Maryland Charity Campaign, donating portions of their salary to worthy organizations. Employees raised funds for nonprofit groups throughout the year. The signature philanthropic event was the Salvation Army Holiday Family Program, wherein each agency division adopted anonymous, underserved families and purchased holiday

HONORING UNSUNG HEROES

Peter Franchot and former House Speaker R. Clayton Mitchell, Jr.

Salvation Army Holiday program, 2016.

The Comptroller’s Choir, at the 2019 Salvation Army Holiday Program.

presents from an extensive wish list. Each December, Salvation Army personnel would arrive to collect the gifts, amidst much fanfare and celebration. It truly embodied Franchot’s desire to make sure everyone did their part to assist those who needed a helping hand.

HONORING UNSUNG HEROES

The signature charitable event at the Comptroller of Maryland is the annual Salvation Army Holiday Family Program.

COVID MOBILIZATION

When COVID-19 suddenly ravaged the world, Franchot expected every agency employee to step up and continue serving taxpayers. Staff seamlessly transitioned to remote work and still delivered firstclass customer service. In fact, when most state agencies stopped answering their phones altogether, the Comptroller’s agency ended up taking non-tax related calls from desperate Marylanders in search of unemployment assistance, motor vehicle services or other state agency assistance.

As the pandemic worsened, and economic activity came to a screeching halt, state and local governments were forced to make significant cuts to their operating budgets as lockdowns were put in place to safeguard public health. In response to the expected revenues reduction, Governor Hogan proposed sweeping cuts - impacting public safety, education, the environment, healthcare and more.

Curbside delivery, in Annapolis during the COVID-19 pandemic. COVID

Known for its artisanal suds and skin care products, Mount Royal Soap Company in Baltimore formed an unlikely partnership with alcohol maker Charm City Meadworks and Waverly Color Company, a producer of high-end tattoo ink, to produce hand sanitizer to combat COVID-19.

As one of three votes on the Board of Public Works empowered to make midyear budget reductions, Franchot successfully blocked over $280 million of cuts that may have helped prevent eviction or the closure of a business.

Franchot led his team decisively through the crisis with the focus, as always, on taxpayers. He began by offering a 90-day filing and payment extension until July 15, 2020, for both individual and business income taxes. This decision proved critical to helping businesses keep the lights on and assisting individuals who had lost their jobs. Franchot repeated the 90-day extension in 2021, and did so again in 2022 for individual tax filers only.

The Bureau of Revenue Estimates indicated that the 2020 and 2021 forbearances benefitted roughly 600,000 taxpayers each year, enabling them to collectively hold a $1.8 billion interest-free loan that may have prevented eviction or simply given extra financial breathing room. Forbearance, however, was not the only assistance coming from the agency.

The pandemic shuttered bars, restaurants, breweries and other businesses due to social distancing requirements and staffing shortages. Franchot understood the devastating impact this would have on the food and beverage service sector.

Restaurants lost their more lucrative sales since they were forbidden from selling

“Right now, Maryland taxpayers and businesses must stay focused on their health and keeping the lights on, both in their homes and businesses. Extending the due date for Maryland individual and business income tax payments helps us keep cash flowing in our economy and into employee’s bank accounts.”

alcohol to go, while breweries were restricted in how much beer they could allow customers to take home and they couldn't deliver straight to their doorsteps.

To support these small businesses, Franchot moved to suspend enforcement of alcohol carryout limits, allowed restaurants to make to-go cocktails and paved the way for home delivery of beer. Governor Hogan signed an executive order temporarily permitting such moves, providing restaurants and breweries a lifeline to survive the pandemic. The experiment served as the basis for permanent reform of these regulations that passed in the 2021 legislative session.

DONALD C. FRY PRESIDENT & CEO GREATER BALTIMORE COMMITTEE

To help businesses keep the lights on and avoid more layoffs, Franchot’s team compiled and maintained an updated list of more than 80 pages of restaurants and related businesses statewide that remained open during the first 18 months of the pandemic. Outdoor seating, carry-out, curbside and delivery options were

noted, so customers could patronize their local establishments in the manner they felt most comfortable. The agency's most pivotal role during the pandemic was the implementation of the RELIEF Act of 2021, which provided direct stimulus payments and unemployment insurance grants to qualifying Marylanders, as well as grants and loans to eligible small businesses. The Comptroller's Office was responsible for processing and issuing these stimulus checks to hundreds of thousands of qualifying Marylanders, doing so in a matter of days for 98 percent of recipients.

“Local businesses are the beating heart of our state’s economy and the backbone of our communities. They are being decimated through no fault of their own, leaving their survival and the fate of the tens of thousands of Marylanders they employ, as well as their families, in jeopardy. We have to pull together and help them keep the lights on during this period of deep uncertainty and loss.”

PETER FRANCHOT

As part of the RELIEF Act, the General Assembly made a bevy of changes to the tax code in the middle of tax season, requiring the creation of new forms and adjustments to the interactive tax processing system. Filing and payment deadlines

“During Peter’s tenure as our comptroller, his stewardship for our state and all Marylanders transcended just the typical comptroller’s roles. As the aptly-nicknamed “watchdog,” he maintained a fiercely independent stance on all issues related to taxpayer money, supported small businesses and local industries, had an open door with leaders across the state from all walks of life and both political parties, and he listened to everyone. His decision-making was as thoughtful as it was passionate, and he will be missed in Annapolis and around the state.”

ERIC D. BROTMAN

CEO, BFG FINANCIAL ADVISORS,LUTHERVILLE AND MEMBER, COMPTROLLER’S BUSINESS ADVISORY COUNCIL

were extended to accommodate these changes and interest charges and penalties were waived.

Franchot also lobbied to expand the Earned Income Tax Credit (EITC) to benefit more low-income Marylanders, particularly people who file taxes using an Individual Taxpayer Identification Number, or ITIN. The agency developed an online EITC assistant in English and Spanish to help Marylanders determine if they qualified for the credit. This was a Herculean team effort, with nearly every agency division playing a role.

COVID ravaged many sectors, but few suffered quite like the state's child care providers. Hundreds of facilities permanently CHAPTER

Hand sanitizer production at McClintock Distillery in Frederick and Old Line Spirits in Baltimore.

closed as mandatory shutdowns and social distancing requirements meant lower enrollments and laying off staff.

Some relief arrived in the summer of 2020. The push to get essential workers back on the job meant the state had to foot the bill for daycare expenses. Unfortunately, the Maryland State Department of Education (MSDE), which oversaw the state's child care facilities, failed to promptly identify which providers would receive payments and did not sign off on disbursement authorizations required for the Comptroller to issue funds. As a result, child care providers went unpaid for five weeks, unable to pay employees or cover operational expenses.

The agency's General Accounting Division stepped up to resolve the situation, expediting payments within hours of authorization. As a result, the Maryland State Child Care Association presented the Comptroller's Office with an award for their heroic efforts.

Several other problems with grant funding followed in the months ahead, but Comptroller Franchot and his team repeatedly came to the rescue to prevent more damaging outcomes.

As life slowly started to return to normal and demand for fuel rose with more

people back on the roads - in addition to Russia's invasion of Ukraine - gas prices sharply spiked. The pain at the pump impacted nearly everyone, so Franchot led the rallying cry for a 90-day gas tax holiday and, later, a one-year suspension of a nearly 7-cent state gas tax increase that was tied to inflation.

Rather than heed Franchot's 90-day suggestion, the General Assembly agreed to pass a 30-day suspension of the state gas tax, saving motorists 36 cents per gallon from March 18 to April 16. Implementation of the gas tax holiday fell on the Comptroller's Office, requiring rapid action from all divisions and coordination with the state's service station owners to ensure compliance. Once again, the agency earned an award, this time from the Federation of Tax Administrators, for its superior work.

Franchot and his team overcame the challenges of COVID and managed to improve the lives of Marylanders, leading the nation in tax administration and continuing to provide the kind of customer service that taxpayers deserved and expected under his stewardship.

Jaime Windon, owner of Lyon Distilling, sold her products at outdoor markets to make ends meet during COVID-19.

. COVID MOBILIZATION

Onward & Upward was intentionally chosen as the title for this publication. A favorite expression of Maryland’s 33rd comptroller, it is a rallying cry that exudes hope and optimism and served as a compass that guided Peter Franchot’s work during his 36 years of service to the people of Maryland.

During his tenures as a member of the Maryland House of Delegates (19872007) and as Comptroller of Maryland (2007-2023), he served alongside five governors, five lieutenant governors, three comptrollers, three attorneys general, four state treasurers, two Senate presidents, and four House speakers. On a number of occasions, Franchot played a central role in some of the most consequential policy decisions impacting the future of generations of Marylanders, from investments in public education, to transportation and infrastructure, environmental protection, public safety, and so many others.

Throughout his years of service both in the executive and legislative branches, Franchot embraced the role of a champion for communities and constituents who

feel unheard and unseen in the corridors of power in Annapolis. Unafraid of –and unapologetic for – taking on powerful special interests and political figures when he believed it was justified, Franchot elevated important issues of concern to the highest levels of government. Doing so earned the respect and admiration of Marylanders across the state – even those who disagreed with him.

What’s more, Comptroller Franchot was an effective fiscal watchdog for Marylanders – demanding accountability, transparency, and results from government agencies, including his own. He led the transformation of the Comptroller’s Office to become the national model of efficiency and service that it is today, garnering awards and recognitions for its operational successes – from customer service to fraud detection. Our fiscal and economic health, despite two economic crises during Comptroller Franchot’s tenure, remain strong; and our state is well-positioned to weather future uncertainties that may harm the financial stability of Maryland’s working families and small businesses because of, in no small part, his leadership.

What these years of advocacy and leadership have produced are fiscal and economic policies that support working families and small businesses; a government that is more responsive to the people it serves; and a strong affirmation that public

service – despite the political fault lines that often divide us – remains a noble calling that allows ordinary citizens to accomplish extraordinary things for their neighbors and communities.

Our state is better, and her future brighter, because of the nearly four decades of dedicated public service Franchot devoted to Maryland. Thank you, Mr. Comptroller – Onward and Upward!

Acknowledgements

This publication was written and designed by Comptroller Peter Franchot’s staff, who are grateful to Comptroller Franchot for the opportunity he has afforded all of us to serve the people of Maryland.

We wish to especially acknowledge and thank the following members of the Comptroller’s Office for their roles in this publication:

Principal Author: Maureen O’Prey

Editor: Alan Brody

Designer: Deirdre Tanton

Contributors: Emmanuel Welsh, Anne Klase, Emily Gontrum, Barbara Sauers, Bill George, Jeff Kelly, Susan O’Brien, Chuck Ulm, Gary White, Gary Ellison, Brandy Wiggins Richmond, Carol Lavix, Van Howeth, Andrew Waters, Lisa Henneman, Alex Walinskas, Kynara Fogan, Nadia Williams, Benjamin Penserga, Justin Hayes, and Chris Riley.

We also wish to attribute certain photographs in this book to Joe Andrucyk from the Governor’s Office; Maximilian Franz; Christopher Myers Photography; David Hartcorn; Matthew Presky; McClintock Distillery; Old Line Distillery; Alyssa Maloof; and Lyon Distilling.