baltimoresun.com

« Obama weighs in on guv race | Main | O'Malley and Brewer, protecting America's borders »

July 9, 2010

O'Malley goes up on TV

Gov. Martin O'Malley released on Friday the first TV advertisement of the gubernatorial election cycle — buying time to show an ad that promotes his handling of the state's $32 billion budget.

The ad says O'Malley started in office with a $1.7 billion budget deficit and cut $5 billion in “waste and government spending” over four years.

“While other states are still struggling, Martin O'Malley is making the tough choices,” the O’Malley ad says. It will be aired in Baltimore markets starting Monday, but the campaign did not buy time in the more expensive Washington media market.

Republican former Gov. Robert L. Ehrlich Jr.’s campaign says the ad is false, and sorting out the truth requires a deep dive into budgetary nuance. Ehrlich’s camp contends he left office with a $1 billion surplus, and arrives at that figure by counting a $247 million cash balance — plus funds Ehrlich deposited in the state’s rainy-day fund over and above the amount required by law.

But the same documents Ehrlich’s camp sent also show that O’Malley took office facing a $1.4 billion imbalance. Within six months, deficit projections grew to $1.7 billion, prompting O’Malley to call a special legislative session to raise the sales tax and other revenues. That special session also spawned the referendum that legalized Maryland’s slots program.

O’Malley’s ad correctly notes that Maryland is in far better financial shape than some other states. Feckless fiscal management led to widespread layoffs and cuts to core services like health and education in places like New York, Illinois and California. O'Malley frequently points out that Wall Street analysts have given Maryland the highest bond rating.

And the governor has made some painful reductions. The most significant was a furlough program for state workers that has lasted several years and effectively delivered employees a pay cut.

But the budget is sure to be one issue that Ehrlich will embrace. He and other Republicans say O’Malley missed an opportunity to reshape government and instead used one-time sources of funds, such as federal stimulus money, to keep state government humming. Democrats, they say, will push through a tax increase to cover costs after November's election.

The ad does not mention that the next governor will inherit an estimated $1.5 billion structural deficit. The stimulus funds O'Malley used for operating costs are gone, as is the surplus from the income tax reserve fund — an obscure account from which O'Malley has borrowed hundreds of millions in the last two years. Continuing the furlough program, however, would take a chunk out of the shortfall.

There are short-term problems, too. Nearly $400 million in expected federal Medicaid money is now in doubt, though the state Senate installed a safety valve in this year’s budget that mandates more borrowing from a reserve fund if those federal dollars do not arrive.

Posted by Annie Linskey at 1:47 PM | | Comments (26)
Categories: Candidate Watch 2010
        

Comments

Annie,

Since you are a "whiz" when it comes to the state budget, please settle it once and for all, did the Ehrlich administration leave a $1.7B budget deficit for Marty or not?

I guess MOM is running out of smoke and the mirrors are cracking...

The budget was balanced through one time transfers and robbing Peter to pay Paul. It structural deficit is still there and the Governor chose to ignore it. A major tax increase must be enacted for the next fiscal year because of the tax and spend practices of Annapolis. O'Malley's touting of this year's budget solutions is the biggest lie ever to come out of his mouth.

We need that DEEP voice in the O'Malley commercials to present the facts. "If you elect O'Malley to another term as Governor you will suffer a cash income reduction therefore you will have less of your money to spend". No prior Governor in the State's history has acted to destroy Maryland, O'Malley's policies are intentionally destructive. O'Malley's legacy of punishing "working families", providing "leadership that failed", and outright LIES are criminal. O'Malley is a FAILURE!
The election in November 2010 is about removing the worse Governor in Maryland's history.
Voting for O'Malley is an approval for further destroying Maryland and your family.

As A State employees and dealing with Furloughs and layoffs as the leaders take lavish lunchs and travel i would never vote for this man.

This is the biggest lie to come from the Governor's mouth. I mean, first his negative ads against Ehrlich and now this, even after everyone stated that nearly 1 billion was left for OWE Malley that he blew through. This man is a absolutely beyond remorse. Continued spending and transfers all the while never dealing with the budget and taxing the middle class to the point many business had to fold up shop and move jobs out of Maryland. This Governor is a complete and utter failure.

Omalley cost taxpayers an estimate $2billion a year on illegal aliens. Millions $$ more every year to their groups like casa de md. Omalley allows them to work our state highways and landscaping projects through subcontractors. He also allowed them a drivers license in md using fake ids allowing them to vote. He allows them to work cash day jobs while on welfare and its freebies. Thanks to omalley, many citizens out of work yet illegal aliens in md are doing just fine. Where's the incentive for them to become productive citizens if our leaders allow them to scam tax $ from us and allowed to drive, vote and work cash jobs. Enough Already. I'm one democrat who won't go there any longer. btw. We were $2billion in deficit last year and $2billion to illegal aliens last year. The illegals pay back in votes people. The democrat vote.. Vote them out in november.

That would the the "MISHANDLING" of the budget Marty. Get it right!

The Bobby Haircut sycophants are out in full force, I see.

The tax problem in California was created when Gov Terminator cut the car tax by
approximately $4.5 billion annually. After 6 years the loss of revenue from the car tax exceeds the state of California's budget of
$19 Billion.

As an indication of the strength of the economy of California the voters approved four years ago a bond issue of three billion dollars to stem cell research. Maryland was able to get three MILLION
for stem cell research.

Please note that the last time that the state of California invested this kind of money and pledged the full backing of the research facilities of the University of California the result was SILICON VALLEY.

1. CALIFORNIA HAS A GREAT FUTURE.
2. CUTTING TAXES CAN DERAIL A PROSPERING ECONOMY SUCH AS CALIFORNIA'S BEFORE GOVERNOR TERMINATOR STATED THAT CUTTING THE CAR TAX WOULD INCREASE THE CALIFORNIA ECONOMY.

God Bless his brazen soul.

Raising taxes at the beginning of a recession and balancing the budget with fed money was genius. Not!
The only thing saving this state's finances is our proximity to DC. The feds are the only ones hiring and their pay is well above the average which makes me think whether they should be called public servants anymore.

Yawn! More lies, distortions and sleeze!

The add was not run in the DC area because the population in general is more educated than that of Baltimore. The add is most likely being directed to the semi literate segment of the Baltimore population.

A prudent plan for Maryland in 2007 would have been to cut costs and re-evaluate programs. Instead, they raised costs and taxes. Only then came the 'tough' decisions. O'Money did it bass-ackwards. And as carefully pointed out above, we blew well over 2 billion on illegals that could have gone to schools, public safety or simply returned to those that earned the funds. Instead we get nifty programs such as speed cameras.A fine is a penalty for doing something wrong. A tax is a penalty for doing something right.

I'm watching the Natl Governors' Assoc. mtg on CSPAN and they are talking about what each Governor has done to balance budgets in his/her state. Governor O'Malley talked about the sales tax hike but highlighted the his budget cuts as well as freeze on college tuition, triple-A rating, etc. When the moderator asked him if he dipped into rainy day or other funds to balance the budget, he said no. However, Annie, you write above that he did dip into an obscure fund - what's true?

Baltimore City... PG County... Montgomery County.....Game over O'Malley wins again!!! BOBBY BAD HAIRCUT falls down again and tears his skirt and cry's the Dems wouldn't let me win!!!!

Thank goodness for the remote - because if I see an O'Malley ad - I will change the channel.

As a State employee for 35 years who is now in the third year of a "Temporary Salary Reduction" I do not know one single State employee who is voting for Mr. O'Malley unless their job depends on it. Mr. Ehrlich - if you would make bumper stickers that say "State Employees for Bob Ehrlich" - I think you would run out of them in minutes.

This sums it up! Bribing people with their own money! Wake up AMERICA!

The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.
-Thomas Jefferson

We contend that for a nation to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.
Sir Winston Churchill

Let me start out by saying i have been a md resident all my life , my father and grandfather were md residents and i am totally embarassed to live here now. My wife and myself went to delware park casino's yesterday and much to my dismay this place was absolutely gorgeous and better then almost any casino in Atlantic city. The place was filled to capacity and i bet you anything over 70% of the cars in the parking lot were from Md. The poker room has 20 tables and was filled to capacity by 2:00pm. There was a waiting list of over 300 players waiting to play. Now you tell me what is wrong with this whole picture. Philly opens up there casino's july 18th and this glorious state that we live in can't even begin to open a slot parlor. The politican's in this state should be ashamed of themselves. Wv, penn, now delware have all gotten casino's and this piss poor state that has huge budget defecits can't even begin to get there act together. Imagine all of the money md is losing by md residents spending huge amounts of money in other states. But nobody gives a rat's a$$ in this town. What a total shame.

To all the O'Malley supporters who took the time to post, I have a question.
If O'Malley is so darn good at balancing My state of Maryland's budget, why did he have to go and beg the federal government for more money? Federal money is also your hard earned tax dollars but in a much larger deduction from your pay check.

The same furloughs are in place for this fiscal year as were in place last year. Right off the bat, 5 forced days off (state workers get 'paid' but give the money right back to the state) + 3-5 additional days with out any pay. net result : a 3-4% pay reduction for state workers.

This is on top of the additional funds we are now pumping into the pension plan (our contribution was raised 3 years ago as well).

HELLO ALL STATE WORKERS!!! Stop complaining about furloughs. At least you HAVE A JOB! I am so sick of the bellyaching about furloughs and no pay increases when millions of Americans pray each and every day that a job, any job, will come along to feed their kids and keep a roof over their heads.

I am a MD Date employee who IS grateful to Gov. O'Malley for his stewardship of my state over the hell that has been the last 3 years. You hate him and this state, move to Nevada, NY, California, etc. where state workers by the THOUSANDS have LOST their jobs.

Oh, and by the way, most Governors of these sates with horrid budget problems are Republicans. Ehrlich had his chance and the voters rejected him after seeing how he would govern. They will reject him again.

Well I don't like either candiate, they both suck big time.

With that said, the biggest problem with the ad's are that Stats O'Malley forgets to mention that the State of Maryland received more Federal Stimulus money than any state in the country. Let's see him and or Bob do it without Federal assistance.

This is why we need political reform in this country, so we can get a candidate to run that is a positive force to represent the state.

I for one am tired of having to choose betweeen the lesser of two evils.

Oh by the way California has been in the red since Regan was Gov. and it will not change any time soon with the cost of living in that state. Maryland is working hard to catch up though.

Maryland's furlough plan equals a three percent to four percent temporary pay cut, depending on a state employee's income.

Bob Ehrlich repeatedly attacks Gov. O'Malley for the three to four percent temporary pay cut, but Bob Ehrlich's lobbying law firm permanently cut workers' pay ten percent due to the same recession forcing Gov. O'Malley to cut.

So Bob Ehrlich's employees took a cut twice as deep as state employees under Gov. O'Malley, and they did not receive days off as state employees did.

Mr. Ehrlich's furlough hypocrisy was on display when he endorsed Republican Anne Arundel county executive John Leopold, who enacted a furlough plan identical to Gov. O'Malley's the same week he attacked Gov. O'Malley.

Then Mr. Ehrlich attended a ritzy fundraiser in Virginia hosted by Republican Gov. Bob McDonald, who furloughed workers in his state, as did Gov. O'Malley and at least 30 other governors coping with the deepest recession since the Great Depression.

Bob Ehrlich exploits this issue for political gain, but if he really cared about workers and furloughs, he would have spoken up when his own firm cut employees' pay ten percent across the board, and he would criticize Republicans John Leopold and Gov. McDonald for relying on the same temporary saving measure employed by Gov. O'Malley.

- Steve Lebowitz, Annapolis

I'm not voting for either one of them - neither one gets the job done - too bad we can't get some new blood with vision and the capability to increase jobs and - most important - cut down on the rampant crime that is destroying the state.

Post a comment

All comments must be approved by the blog author. Please do not resubmit comments if they do not immediately appear. You are not required to use your full name when posting, but you should use a real e-mail address. Comments may be republished in print, but we will not publish your e-mail address. Our full Terms of Service are available here.

Verification (needed to reduce spam):

-- ADVERTISEMENT --

Headlines from The Baltimore Sun
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.
Most Recent Comments
Sign up for FREE local news alerts
Get free Sun alerts sent to your mobile phone.*
Get free Baltimore Sun mobile alerts
Sign up for local news text alerts

Returning user? Update preferences.
Sign up for more Sun text alerts
*Standard message and data rates apply. Click here for Frequently Asked Questions.
  • Breaking News newsletter
When a big news event breaks, we'll e-mail you the basics with links to up-to-date details.
Sign up

Blog updates
Recent updates to baltimoresun.com news blogs
 Subscribe to this feed
Charm City Current
Stay connected