Photo by Ed Waters, Jr. Thomas Perez, Maryland Secretary of the Department of Labor, Licensing and Regulation, spoke Friday to the Frederick County Chamber of Commerce. He praised the local workforce development program, headed by Laurie Holden, right, as a model of success. At left is Jessica Hibbard of the chamber.

That was one of the accolades given Friday morning by Thomas E. Perez, secretary of the Maryland Department of Labor, Licensing and Regulation.

Speaking to the Frederick County Chamber of Commerce, Perez lauded Laurie Holden, director of the local workforce development office.

"The best investment we can make is in our human resources. That is the key, the linchpin to economic development," Perez said.

He uses Frederick County's workforce programs as a model for others, he said, noting the cooperation between businesses and local government.

More than 930,000 Marylanders are significantly undereducated, Perez said, challenged by either a lack of English or lack of training.

"Almost one in six Marylanders need retooling," he said.

BRAC

The secretary noted that he and other state officials had been to New Jersey to discuss the influx of military and government personnel to Maryland due to federal Base Realignment and Closure decisions.

"We talked not only about the jobs here, but where people can live, the many things to do in Maryland," Perez said.

BRAC will bring about 60,000 jobs to Maryland.

"Frederick County is fortunate to be working with Fort Detrick and the state on this," Perez said, adding that education and transportation are integral parts of that impact.

"All children are gifted and talented," Perez said, calling for more aggressive science, technology, engineering and math programs in schools.

He also noted the need for career-technology training.

"College is not the answer for everyone," Perez said. "We need to train people for those jobs that are vital and can't be outsourced."

He has had complaints from businesses, such as heating and cooling firms, about the severe lack of trained young people in those fields.

The looming deficit and slots

But, Perez said, paying for all of those programs will have to wait until the state sorts out its structural deficit -- a $1.5 billion difference between what state government spends and its income.

Perez supports Gov. Martin O'Malley's call for slot machines, a 1-cent increase on the 5-cent sales tax, and closing corporate tax loopholes that allow corporations registered in other states, but doing business here, to avoid state taxes.

"The $400 million expected to be raised is only a fraction of what is needed, especially considering transportation," he said. "But if you demonstrate to people where the tax money is going, we can convince them of the need to increase it."

Perez said the deficit was the result of a tax cut under Gov. Parris Glendening and a $1.3-billion yearly investment that ramped up funding to education.

"There are diverse reactions (to the governor's plan)," he said. "Some people favor slots, some are opposed, some say no more taxes, others say use taxes to meet the needs.

"We can't budget by gimmickry," Perez said, but added that slots revenue is going to parlors in West Virginia, Delaware and Pennsylvania.

When it comes to horse racing, Perez said most people only think of tracks and betting.

"But there are farmers who supply the feed and other businesses that support the industry that includes 10,000 to 20,000 people and conserves open space."

Maryland has fallen behind in horse breeding, he said, noting that purses at tracks are much higherin West Virginia and Delaware.

At Ocean Downs, the total purses add up to $21,000. At Dover Downs, Del., the purses are $210,000 for horses bred within the state, he said.

The moral impact

Asked about the moral impact of slot machines on the poor, Perez said studies have shown that the typical slot machine gambler is white, middle class and retired.

"There are buses from Leisure World to Charles Town," he said.

Slots are an imperfect solution, he said, but one that will help the state's economy.

Perez also touched on the subprime meltdown that is forcing many homeowners into foreclosure.

"There will be more people in the soup," he said. "But Gov. O'Malley is aggressively working to preserve homeownership and I'm on a task force that will report in November on what can be done."

Much of the problem, he said, are the non-bank loan originators that are "for the most part unregulated. It takes 1,500 hours of study and apprenticeship to become a barber in Maryland, but only $300 and a fingerprint to become a mortgage loan broker. We need more meaningful oversight."