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January 21, 2009

Maryland's budget: How our fortunes have changed

A look back through budget documents over the last several years shows just how much the economic downturn has affected plans for state spending this year. The first projection for FY 2010 came in Bob Ehrlich's FY 2005 budget. Over the next few years, both he and O'Malley significantly revised that projection upward, with the state anticipating at one point that it would spend more than $16 billion next year. Now O'Malley's proposal -- likely only to be cut more by the legislature -- has us back below where we started from five years ago. You can see the trend in the chart below. (Figures in billions.)

 

FY2010chart.bmp
Posted by Andy Green at 2:40 PM | | Comments (7)
        

Comments

MOM should have done this 2 years ago-funding the budget at this level to avoid tax raises!
How about we eliminate funding to CASA?

These layoffs will only change the manor in which the State does business. Instead of having employees "do the job", they will spend money to outsource our work (pay consultants more $/hour and overhead)(usually around 30%). Also, they are famous for doing agreements with other government agencies to do the work formerly done by a State employee, pay them LOTS more + inflated overhead. These institutions/private consultants even have their employees sitting in State offices doing the work that the employees used to do. Dont u think it would be cheaper to keep the employees? Oh,but it makes the citizens believe the Governor is doing what he has to do...

Correct me if I'm wrong, but didn't Ehrlich inherit a budget surplus from Glendening? And O'Malley inherited a deficit from Ehrlich? Can someone with access to data other than Wikipedia shed some light on the facts for me? Thanks.

I agree Jay! to much money is spent on contracts, their management and their employees. The outsourcing of Maryland taxpayer money to these out of state contract companies and their employees that come from other state paying taxes in their companies state. Many times, a state worker has to train the contractor to do the job they were hired for, only to have the state hired that contractor to be the employees boss. President Obama is calling for a cut back on contract and contractuals is federal government.

A reply to Robin- Ehrlich gave O'Malley a budget surplus when he left office. Look up the budget numbers on the state budget website. Although the Democrats will try and spin otherwise, he had a surplus. Also, Ehrlich recognized that there was a structural deficit looming out there for the future years which we are now in.

As for the possibility of the layoffs, first O'Malley cut 700 vacancies last year and now it is being reported that several hundred more vacant jobs are being cut. Why are they in the budget in the first place ?
Second, there are plenty of state "employees" who are in essence contractors working in jobs that they use to do; they were given a nice buy out several years ago and are now back working the same job they were doing before. They should be the first to go.
Third, I don't understand some of the previous comments from state employees. If the program you are working in is reduced in funding or eliminated then the employees have to go to. That is what happens in the real world.

In response to Mr. Truth in Politics: As a state civil "servant" who sees the way the budget is crafted, programs aren't necessarily reduced or eliminated, they shift the salaries of employees off of general funds and use the surplus to fund consultants & other agencies to do the job at a higher cost. It can be literally impossible to hire or fill vacancies in many agencies. Managers are forced to whip together contracts to outsouce jobs to other agencies, institutions or private consultants.
This unfortunately costs more than using state employees and it creates the appearance to the public that there is a general fund saving. It is the proverbial shell game. This is the real world in Government.

Regarding Medicaid spending in Maryland - I reviewed some of the data on the web and found: The 2006 spending in Maryland was $5,000,486,138 (of course the Feds kick in a portion of that). Maryland has made no effort to contain Medicaid costs but has actually expanded programs. What portion of our states budget is expended on Medicaid recipients?

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About the bloggers
Annie Linskey covers state politics and government for The Baltimore Sun. Previously, as a City Hall reporter, she wrote about the corruption trial of Mayor Sheila Dixon and kept a close eye on city spending. Originally from Connecticut, Annie has also lived in Phnom Penh, Cambodia, where she reported on war crimes tribunals and landmines. She lives in Canton.

John Fritze has covered politics and government at the local, state and federal levels for more than a decade and is now The Baltimore Sun’s Washington correspondent. He previously wrote about Congress for USA TODAY, where he led coverage of the health care overhaul debate and the 2010 election. A native of Albany, N.Y., he currently lives in Montgomery County.

Julie Scharper covers City Hall and Baltimore politics. A native of Baltimore County, she graduated from The Johns Hopkins University in 2001 and spent two years teaching in Honduras before joining The Baltimore Sun. She has followed the Amish community of Nickel Mines, Pa., in the year after a schoolhouse massacre, reported on courts and crime in Anne Arundel County, and chronicled the unique personalities and places of Baltimore City and its surrounding counties.
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