Gov. Parris N. Glendening, in some of the strongest terms he has used so far, yesterday condemned Maryland's efforts to attract and keep businesses, saying it may take him five years to turn the state's reputation around.
"Maryland is not competitive in mid-Atlantic states, not competitive on the East Coast and, in fact, not competitive internationally," Mr. Glendening said as he introduced the man he hopes will correct such perceived shortcomings, Baltimore business executive James T. Brady, the governor's new economic development secretary.
Mr. Glendening said Maryland is incapable of competing with the economic development efforts in Virginia, North Carolina or South Carolina.
He ticked off the thousands of jobs lost statewide and in Baltimore during the past three years, and noted population losses in places such as rural Allegany County where unemployment is high and jobs are hard to find.
"Young families are leaving the state. Young families are leaving our urban centers. Businesses are leaving," he said. "And there's rarely a day you don't pick up the paper and see strong evidence of this."
Mr. Brady, the managing partner of the Baltimore office of the international accounting firm Arthur Andersen & Co. agreed, adding, "In the 1990s, to be viewed as a state that is not pro-business is suicidal."
Despite such statements and vows by both men to improve the situation, neither offered any specifics about how they intend to do so.
On a topic that most state business groups put near the top of their priority lists -- lowering the state income tax rate -- both said it would be imprudent to cut taxes this year.
Mr. Glendening said that he would concentrate on eliminating duplicative or conflicting regulations and pushing through some modest tax relief for businesses.
"Over time," said Mr. Brady, "you have to change the tax structure. The issue is one of timing. This is not the year to do it."
Mr. Glendening added that he had just met with representatives of several New York bond rating houses, and he said they agreed that waiting until next year or the year after to cut taxes makes more sense, given the uncertainties of what the new Congress will do and how the nation's economy will perform.
In addition to appointing Mr. Brady, who co-chaired Mr. Glendening's transition committee, the governor announced these appointments:
* James D. Fielder Jr. will be Mr. Brady's deputy. A resident of Bel Air and former director of Harford County's office of economic development, Mr. Fielder has been serving as the Maryland department's acting secretary.
* Lalit H. Gadhia, a lawyer and chairman of the Baltimore zoning board, will be special deputy for international affairs. Mr. Gadhia was treasurer of Mr. Glendening's campaign for governor. He left immediately after yesterday's announcement for a trip to his native India.
* John D. Porcari of Cheverly will be the governor's personal liaison with businesses. Mr. Porcari, a former environmental planner, served under Mr. Glendening in Prince George's County as the coordinator for development.
Statewide business groups have praised the selection of Mr. Brady, the only business executive named to Mr. Glendening's Cabinet. State Chamber of Commerce President Champe C. McCulloch, for example, was in the State House audience yesterday applauding as Mr. Brady and the governor spoke.
But Robert O. C. Worcester, president of the more conservative Maryland Business for Responsive Government, said he is worried that the governor has already taken off the table the possibility of a tax cut this year, and that he seems to be too cozy with organized labor to make the state's business climate truly competitive.
"I'm glad to see it has become acceptable to admit that the patient is sick," Mr. Worcester said. But he said Mr. Glendening's promises to give public employee unions collective bargaining and binding arbitration rights could jeopardize his pledge to trim the size and cost of government -- issues that Mr. Worcester said are important to businesses.