April 8, 2010

Md. Senate panel OKs county equity investment bill

A Maryland Senate panel has endorsed letting Montgomery County use tax dollars to make private equity investments in companies. The Senate Finance Committee approved legislation Tuesday to allow county leaders to make the investments in local firms or companies that would relocate to the county. It says local government could not own more than 25 percent of any firm. It also prohibits county leaders from engaging in any oversight of the firm. Representatives of the Montgomery County Civic Federation and activist group Citizens Above Party have urged legislators to oppose the bill because they don't want officials making risky business decisions with tax dollars. The county has a budget deficit of more than $700 million. The measure now moves to the Senate floor. SOURCEBusiness Week

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