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Senate Gives Initial OK To Doubling Md. Flush Tax

ANNAPOLIS, Md. (AP) -- Maryland is on its way to becoming the first state to ban an arsenic additive in chicken feed, and a doubling of the state's "flush tax" advanced in the state Senate as lawmakers spent a busy Saturday working on a wide variety of measures.

However, lawmakers worked as the scheduled adjournment approached and much remained to be done.

A panel of lawmakers is still tied up over negotiating differences in a package of budget legislation, and lawmakers were still working on measures relating to expanding gambling in the state.

The House of Delegates accepted Senate amendments to a bill banning roxarsone, a chemical used to help chickens grow and fight parasites. Supporters of the legislation say the arsenic additive contaminates chicken meat and waste, polluting soil and the Chesapeake Bay. But opponents say the measure isn't needed because Pfizer Inc., the company that makes roxarsone, voluntarily suspended the sale of the chemical.

Meanwhile, the Senate gave preliminary approval to doubling the state's fee on sewer bills from $30 a year to $60, a proposal backed by Gov. Martin O'Malley.

The Senate rejected two amendments offered by Sen. E.J. Pipkin, R-Cecil. One of the amendments would have put a firewall around the money raised from the tax to prevent the revenue from being used for purposes other than upgrading wastewater treatment plants.

"You're doubling the tax, and yet we continue to raid money and replace it with IOUs," Pipkin said. "It's hard for people back home to understand why. If this is such a priority and we care, leave the cash alone."

Sen. Paul Pinsky, D-Prince George's, said while some money was shifted to help the state weather the Great Recession, the money was replaced.

"I think there's a strong commitment to get this done to improve the water quality in every jurisdiction in the state," Pinsky said.

The other amendment would have eliminated the tax in 2030, 18 years from now, when the work is expected to be complete.

The "flush tax" measure already has passed the House. The Senate version adds some changes that would have to be approved by the House, including an exemption for local fire departments.

In other business, a panel of lawmakers who are negotiating differences in a package of budget measures was scheduled to meet Saturday afternoon. Senate members of the panel have offered a compromise on how to raise revenue in a package of budget legislation by increasing income taxes.

The proposal, which would raise about $309 million for the next fiscal year, would not increase income taxes for anyone making $100,000 or less. Instead, it would raise income tax rates for people who make more than that.

The Senate compromise also would include some reductions in income tax exemptions.

Budget negotiations have been complicated this session because of efforts to raise new revenue and save money by sharing costs of teacher pensions with counties. The state currently pays the entire pension cost, which has gone up sharply in recent years.

Lawmakers are trying to balance the books for the next fiscal year and reduce an ongoing $1.1 billion deficit by about half.

Also, lawmakers are grappling with legislation to expand gambling in the state. A Senate measure would allow table games at the five casino sites now allowed under the law. It also would allow a sixth casino in Prince George's County. However, the House is working on taking a different approach by shaping the measure to allow table games like blackjack and roulette -- but not slot machines in Prince George's.

If a measure expanding gambling passes, it would have to be approved by voters in a referendum.

The session is scheduled to adjourn Monday at midnight.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

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