Early look at Maryland's 2010 state budget
Gov. Martin O'Malley is unveiling his proposal for the 2010 budget as we speak, but here are a few salient details:
Spending will actually decline next year. O'Malley is proposing a general fund (the part of the budget that is funded by state tax dollars) of $14.4 billion. That's 1.3 percent less than last year's budget of $14.6 billion and even a bit smaller than the budget from the year before. In fact, it's only about $250 million more than Ehrlich's last budget. That's pretty remarkable; given spending on education, Medicaid and other formula-driven programs, state government spending pretty much always goes up. In fact, spending has never declined in the last 25 years.
O'Malley is proposing about 700 layoffs of state employees.
K-12 education funding takes a hit after years of rapid growth as a result of the Thornton formula. But spending on the University System of Maryland increases enough to maintain a tuition freeze.
The administration's figures assume $350 million in federal stimulus money to help fund Medicaid.
O'Malley resolves a $400 million shortfall in the current year budget through $208 million in cuts and $619 million in fund transfers, which also provides some cash to help the state get through 2010.
In spite of all that, the state budget is still out of whack in the long term. The budget department estimates ongoing gaps between general fund expenditures and revenues of $600-$700 million for the next several years.
Comments
Why is it whenever there is a shortfall in the budget the State Employee's must always take a hit. I am sure there are other means of trimming the budget. The Government never have lay offs so why does the State always have to make up for the Governments bad habits. This will surely not help the budget if people are laid of there will be homes lost and of course less spending. If you check the history of Maryland's recessions you will see that State Employee's are always hit the hardest.
Posted by: Valerie Hughes | January 21, 2009 5:51 PM
It is shameful that State workers, who now take home a fraction of what others do, should take another hit. Some State workers are losing their homes, having trouble putting food on the table and clothing their children. I realize that Governor O'Malley is doing his best but it's time for the priorities of our government to change. It will take President Obama years to undo the damages wrought by the Bush administration.
Posted by: Marylandgirl | January 21, 2009 8:45 PM
He asked us to pay higher taxes, he fuloughed state workers, he got his slots bill, now he wants to close more hospitals and fire state workers, many with decades of public service.
Posted by: Mark Lee Spangler | January 22, 2009 2:58 AM
I am a public goverment employee, but I understand the problem. When over 80% of your budget is employee wages and benefits you cannot make up this kind of a funding shortfall with out additional tax revenue, or job cut's with out making other big cuts to education, and public services.
Posted by: Raymond Rankin | January 22, 2009 7:07 AM
You can't balance the budget on the backs of State Employees. We have endured lower salaries for years in exchange for benefits, and now O'Malley is attacking those thing that run the state. We state employees make o"Malley and the other tax & spend Democrats look good. It's time for the Univ. System and the counties to share the pain. Since AFSCME is the only group fighting for employee rights, employees are forming groups to protect outselves and call for O'Malley's removal if he continues to target State employees.
Posted by: JoeB | January 22, 2009 7:36 AM
Unfortunately Maryland has to balance it's budget every year. The federal government avoids layoffs because it can approve a $1 trillion debt to carry over.
If you're complaining about "tax and spend," then don't complain where there are cuts. Spending swelled when times were good. The jobs being cut aren't jobs that have been in the state forever. They're NEW jobs that grew when there was more money. It's like the stock market, Maryland enjoyed the "bubble" and it popped and we're facing a correction.
It's how economics work.
Posted by: James C | January 22, 2009 11:11 AM
How about taking the 2010 casa money and pay those workers. Illigal immigrants benefitting at the expense of tax paying Americans is just not right any way you slice it. Change should come to Maryland.
Posted by: 700 american workers | January 23, 2009 8:23 PM
Does O'Malley's budget still contain millions for non-public schools or does it not? The answer to that question will tell me and other Marylanders whether that budget item is sacrosanct and it's only the other items that are in play for reduction or elimination.
Posted by: Ken Stevens | January 24, 2009 7:01 AM