Fifty years ago, the Maryland Environmental Service was created by the state legislature to help operate government-mandated environmental services such as water and sewage treatment, recycling, dredge disposal and even renewable energy. About a quarter-century ago, it was given independence from the Department of Natural Resources and is now categorized as a “public instrumentality” of the state. That quasi-private status may have proven useful over the years, but fully independent of government it is not. A majority of its nine-member board continues to be appointed by the governor with state Senate approval.
It’s safe to assume that a lot of folks outside Annapolis (or perhaps Millersville, where the MES is headquartered) had never heard about the organization until it was revealed last week that Roy McGrath, its former executive director, received quite a nice payday when he switched jobs earlier this year, leaving to become the chief of staff to Gov. Larry Hogan. He left with a cool quarter-million — including a year’s $233,647 salary, defined rather inexactly as “severance pay” and some other perks — in the midst of a pandemic driving down wages and with the state’s June unemployment rate more than double last year’s.
As one might expect, Mr. Hogan’s right-hand man was none too pleased to see his big payout reported on the front page of The Baltimore Sun. Last week, Mr. McGrath attacked the coverage as a rush to judgment and, on social media, thanked his friends who “didn’t jump on the fact-less bandwagon.”
“I remain focused on my public service job,” he posted on Facebook, “and will not be drawn into the distraction of other’s toxic, partisan politics.”
Then, on Monday, he quit, blaming “the sad politics of personal destruction.” His boss and the administration, he said in a statement, “cannot afford unnecessary distractions from [their] critical work.” That may be true, but it’s got little to do with this situation, and certainly doesn’t put it to bed.
Maryland General Assembly leaders have pledged to investigate the state agency’s decision and House Speaker Adrienne A. Jones has called on Mr. McGrath to return his six-figure severance. Both are excellent ideas. They might begin with why anyone running the MES deserves a full year of pay for simply taking a different job in state service.
MES has noted that while the severance payout was not contractually required, it has been a routine custom, granted to, among others, the previous executive director, former Harford County Executive Jim Harkins who retired in 2016. The agency further observed that it “appropriated no direct tax funds,” which is undoubtedly true but more than a bit misleading. Its fee-for-service model requires substantial financial input from counties and municipalities, and where do they get their money? Taxes and fees, of course. MES could more rightly be called a secondhand tax-and-fee collector. It provides government-mandated services and receives government-mandated money.
Did past recipients deserve their golden handshakes, too? Frankly, it defies common sense to hear any of these payoffs described as “severance” given that’s a term normally applied to people who are discharged from employment; retirements and promotions are not the same as firings.
What this really smacks of is insider dealing. MES board members are all politically connected folks. The executive director even gets his own four votes on the nine-member governing board — his own and that of the deputy director, secretary and treasurer, all his appointees (it should be noted that he recused himself from both the discussion and vote about his severance package). So, of course, these folks saw absolutely nothing wrong with cutting a quarter-million-dollar check to their departing leader. They may be next in line for that kind of sweetheart deal. Why would they make waves? It’s just one happy, cozy family.
Meanwhile, imagine if this same scenario were playing out in Baltimore. Would Governor Hogan have as little to say about what’s happening? He issued a four-sentence statement only after accepting Mr. McGrath’s resignation, calling him a “a deeply valued member of [his] administration” and someone “of the highest character.” Of course not, nor would the governor’s usual allies in the legislature. They’d be describing this as corruption and an example of how the city is unmanageable and would likely be calling for a criminal investigation.
Mr. McGrath was correct about one thing: This should not be treated as a partisan exercise. Democrats should not be immune to criticism. Where were the leaders of the House and Senate in years past when the MES was handing out money including the payout to Mr. Harkins, a Republican? Alas, nobody in the legislature had much to say about self-dealing within the University of Maryland Medical System’s governing board until the “Healthy Holly” scandal blew it up. Former Mayor Catherine Pugh, a Democrat, was far from the only beneficiary of UMMS insider dealing, as detailed in an independent report last year.
That raises a question: How much more mutual back-scratching is going on under the auspices of state government? UMMS, MES — how many others? Just because these organizations are not state agencies in the traditional sense should not make them immune from scrutiny. Marylanders deserve a full and honest accounting.
The Baltimore Sun editorial board — made up of Opinion Editor Tricia Bishop, Deputy Editor Andrea K. McDaniels, writer Peter Jensen and summer intern Anjali DasSarma — offers opinions and analysis on news and issues relevant to readers. It is separate from the newsroom.