Outside the state, the comments on Maryland's business climate are less glowing. "From a competitiveness standpoint, Virginia and Pennsylvania are generally more competitive than Maryland or Delaware," says Tammy Propst, a site selection and tax incentive consultant based in Greenville, S.C.
   Propst says she's particularly concerned by Maryland's recent passage of a bill mandating that very large employers spend more on employee health care in Maryland. The law, which won approval from lawmakers on Jan. 12, is primarily aimed at Wal-Mart. It requires companies with more than 10,000 workers to spend at least 8 percent of their payroll on health benefits, or pay the difference into a state fund providing health insurance for low-income workers.
   Business groups such as the U.S. Chamber of Commerce opposed the bill, as did Gov. Robert Ehrlich, whose veto was overridden by Maryland lawmakers. A Wal-Mart spokesperson accused the lawmakers of caving in to union leaders in Washington, D.C.
   So far, only four private employers are large enough to be affected by the bill: Wal-Mart, Northrop Grumman Corp., Giant Food LLC and Johns Hopkins University. Only Wal-Mart, which employs 16,988 people in Maryland, falls short of the 8-percent spending threshold on health care.
   There is some concern that the new legislation may cost the state a shot at landing a large Wal-Mart distribution center on Maryland's Eastern Shore. The planned project was estimated to add up to 1,000 new jobs to the state.
   A Wal-Mart spokesman in early February pledged that the project decision would be based on business needs and not politics. Meanwhile, the cleared site in Princess Anne sits and waits.
   Propst says while the state will still get consideration for projects, it will now be necessary to factor in this cost issue "at the appropriate time in the project. She also says, "it could be inferred that Maryland is not targeting retail and/or distribution … and, as always, it's the inconsistency and unknown that sometimes sends projects the other direction."
   Gene DePrez, site consultant for IBM Business Consulting Services in Florham Park, N.J., says the bill would have "little impact on employers that are involved in making decisions related to mobile investment such as a business unit, operations center, manufacturing and so on, that could be located in a variety of places. This impacts retail and other related services like fast-food restaurants, which ultimately need to be where their consumer markets are."
   DePrez adds that "most companies that we work with that are looking at alternative locations for projects are well above the wage and health benefits thresholds involved in this issue."
   The health-care benefits issue does not appear to be affecting the decisions of other large employers to expand operations in Maryland.
   On Nov. 16, 2005, MedImmune Inc. announced that it would expand its biologics manufacturing capacity by building a new facility next to its current plant in Frederick. MedImmune will add up to 840 new jobs by 2008.
   Casting a vote of support for Maryland's business climate, MedImmune's vice president of engineering and facilities Randall Turner said, "MedImmune is committed to strengthening its presence in the region's biotechnology corridor. Our current manufacturing site in Frederick thrives because of the abundance of resources and talent that is available to MedImmune through the support of local and state government and educational institutions in the area."
   The first phase of the planned Frederick expansion represents a US$250-million capital investment and 331,000 sq. ft. (30,750 sq. m.) of new space for offices, laboratories and manufacturing. The remaining phases will add another 379,000 sq. ft. (35,209 sq. m.) of space in Frederick.