Economy

How Larry Hogan Transformed Maryland's Economy: A Success Story

How Larry Hogan Transformed Maryland's Economy: A Success Story

In the final month leading up to Maryland’s 2014 gubernatorial election, political forecasts projected a substantial loss for Republican candidate Larry Hogan against his Democratic opponent, Anthony Brown. Defying expectations, Hogan secured an unexpected victory with a margin of five points. This victory marked the beginning of a transformative era for Maryland, characterized by notable economic expansion over the next eight years. I have fond recollections of collaborating with Governor Hogan and a remarkable team of cabinet secretaries. We followed a strategic "playbook," and, as Hogan frequently emphasized, "We did exactly what we said we were going to do"—a strategy that proved successful.

After the election, I was approached by Jim Brady, Hogan’s campaign chair in 2014 and a lifelong friend, with an unexpected proposal. He asked if I had considered the role of Secretary of Commerce, suggesting that Hogan and he believed I was well-suited for the position. Initially, the idea had never crossed my mind, but soon after, I met with Hogan at his Annapolis transition office and accepted the offer. Hogan expressed, "We campaigned on 'Change Maryland.' The previous administration had imposed 43 tax and fee hikes. With more residents leaving than moving into Maryland, our economic status was stagnant." To symbolize optimism and perseverance, I handed him a copy of my esteemed book, "The Little Engine That Could," reinforcing a mindset of determination. As I exited his office, he asserted, "We will open Maryland for business."

Faced with the challenge of revitalizing Maryland's economy, the Hogan administration inherited a daunting $5.1 billion structural deficit. Yet, by the conclusion of Hogan’s tenure, a remarkable financial turnaround resulted in a $5 billion surplus. Hogan’s efforts in streamlining government included halting tax increases and repealing many redundant regulations—of which Maryland had over 10,000. Early in my tenure, I learned that Maryland was home to over 500,000 businesses, from modest ice cream parlors in Cumberland to giants like Marriott and McCormick. Recognizing them all as our "customers," we embarked on a mission to engage with businesses across the state, fostering what Hogan termed a "culture of yes." Our strategy prioritized listening and responding to the needs of businesses across all 23 counties and Baltimore City to ensure equitable growth statewide.

To maximize economic progress, the Hogan administration established a commerce sub-cabinet, integrating departments like Housing, Environment, and Transportation, crucial for customer interaction. Our collective focus narrowed on three core priorities: workforce development, job creation, and enhanced customer service. Within six months, Hogan publicized the "Customer Service Promise" in the State House, setting an unprecedented standard for state government interactions with the public. Maryland soon reported substantial job growth and became increasingly attractive to businesses seeking new locations. Hogan successfully instilled confidence in corporations that Maryland’s business environment was robust and favorable.

Reflecting on Governor Hogan’s tenure, it’s evident that his leadership deeply impacted Maryland’s economic landscape, showcasing common sense, integrity, and a commitment to the state's overall prosperity. Looking forward, Hogan is expected to bring his formidable leadership to the U.S. Senate, continuing his legacy of serving Maryland’s best interests. I am grateful for the opportunity to have been part of his team and witness our collective success in opening Maryland for business.