O'Malley Makes "State of the State" Speech ANNAPOLIS, MD (wypr) - The governor laid out the problems that plague Maryland, as well as other states--record unemployment, continuing home foreclosures, yawning budget deficits but he said Maryland has weathered the worst of the economic storm.

"As a result of the choices that we've made, the choices that we've made together in the face of adversity, the state of state is stronger than most. And in areas like public education it is stronger than every state in the union." (Applause)

But the storm hasn't passed yet, he added, as he outlined plans for tax credits for businesses that hire from the rolls of the unemployed and a new loan guaranty program.

"So that we can create and improve the conditions necessary to allow small businesses to actually borrow the dollars they need for expansion and to save jobs."

While the work of the General Assembly and non-profit housing counselors has helped many Marylanders stay in their homes, others have lost theirs to what O'Malley called the "home destroying machinery of national mortgage companies."

"If they can pick up the phone to put up a family into a home, shouldn't they be able to pick up a phone before throwing a family out of a home?" (Applause)

And he asked lawmakers for help.

"I need you to pass legislation this year that forces mortgage companies to come to the settlement table before they can throw another family out on the street."

Republicans uniformly panned the speech. In fact, they issued a press release the night before arguing that O'Malley is "out of touch, out of ideas and out of money."

"It was fairly predictable that what he was going to say and he didn't let us down."

Delegate Tony O'Donnell is the House minority leader.


"He said exactly what we anticipated he would say, which is I'm great, we did good, we took money from the feds and we created a lot of jobs and we cleaned up the environment and we're a shiny new version of the dish soap that you've been using for the last four years."

Senator E.J. Pipkin, an Eastern Shore Republican, complained that the governor spoke of job creation "in the context of government help."

"If anything, when we listen to the people back home, they're telling us they want less government involvement; that they see the economy moving forward without the government playing the kind of role that obviously the governor sees."

He said that's the message from Democratic losses in Virginia, New Jersey and Massachusetts.

"What we heard here today is government, government government and that is decidedly out of step with what's going on back home."

Democrats praised the speech as optimistic and forward looking. Here's Delegate Kumar Barve, the House majority leader.

"The governor did a good job of showing us what we've done. I mean we've had some great accomplishments with respect to K through 12 education, freezing tuition spending for four years and maintaining a Triple-A bond rating."

He said Republicans have been quick to criticize and slow to come up with specific alternatives.

"For example, the Republicans have said that we ought to cut spending 2.5 billion dollars, as though that were an easy thing to do, but I have yet to see a specific list of cuts that they are proposing."

The speech is the last of the ceremonial events that mark the first few weeks of the General Assembly session. Now, lawmakers must get down to work.

I'm Joel McCord, reporting in Annapolis, for 88.1, WYPR.

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