Comptroller releases annual MD revenue report
Maryland pulled in less revenue than almost any time in four decades -- but outperformed its bleak financial forecast, state Comptroller Peter Franchot reported this morning.
The state's revenue collections, which include sales and property taxes and various fees, amounted to $12.6 billion in the fiscal year that ended June 30, representing a year-over-year decline of 3.7 percent, Franchot said.
But because financial analysts had predicted an even more dramatic decline, the state actually ended the year with $183.7 million more than projected. The state ended the year with a fund balance of $344 million (the unexpected money plus planned transfers), which, by law, goes into the state's rainy day fund.
Franchot summarized the report this morning at the Board of Public Works, a three-member panel of Democrats that also includes Gov. Martin O'Malley and Treasurer Nancy Kopp.
It was a striking contrast from last year, when lower-than-anticipated revenues prompted the board to slash spending to bring the state budget into balance.
Still, Franchot maintained a gloomy tone, saying only that the state had "outperformed its catastrophic projections."
"That's great," O'Malley said.
"It's not just great, it's a great sense of relief," Franchot said. He went on to say that the national recession has taken its toll on Maryland, even though it is doing better than other states.
To get back to where state revenue stood before the recession, Maryland would have to see 14 percent growth each year for the next four years. State revenue is projected to grow by 3.6 percent this year.
"Anyone who thinks we can grow our way out of this is mistaken," Franchot said. "We simply have to face reality."
He said the state would need to continue its belt-tightening in "this new age of austerity."
O'Malley focused on the positive signs, pointing to five months of job growth, lower unemployment claims in recent months and Forbes Magazine's prediction that Maryland would be one of just three states to see revenue growth this year.
"We'll just have to keep up the cutting and the tough choices that we've shown ourselves capable of," the governor said.
Comments
To Echo the words of Governor O'Malley; "That's great" says this taxpayer. Now I want to see more bang for my hard earned buck since my buck was not as bad as it was this time last year.
Posted by: Carole | September 1, 2010 11:36 AM
The foks in Annapolis keep avoiding the real issues: spending is out-of-control and individuals and businesses are struggling because of the State's unsustainable tax burden. Don't you think its time for a change in leadership in Annapolis?
Posted by: Brendan Madigan for Comptroller | September 1, 2010 11:57 AM
"That's great"?? So Franchot sets the bar so low to almost guarantee an under promise over deliver scenario, and O'Malley is pleased? Sounds typical of O'Malley - saying things are great while the fundamentals are flawed.
Posted by: Ward | September 1, 2010 12:26 PM
Thanks for all the property and sales tax hikes. We now live a lower standard of living than all the previous generations since the Country was founded. Keep up the good work.
Posted by: Erik | September 1, 2010 3:13 PM
You're frickin kiddin me! Raises state sales taxes, all new fees, furlough's the world and all of a sudden we're in the black? These are our elected leaders miscalculating and spending (over charging taxpayers) hard earned dollars? If you vote to re-elect any these losers, we are doomed. It's time for change. Anyone but O'Malley & Co.
Posted by: John DuGood | September 1, 2010 10:00 PM
"Maryland pulled in less revenue than almost any time in four decades".
Really?
Really?
Posted by: aaharold | September 3, 2010 12:57 AM
Not only has the spending gone completely out of control, Calvert County Public Schools, Northern High in particular, doesn't have adequate books to issue to their students. 78% of the classes won't be using text books this year. That's outragious ! But hey, we planted 200,000 trees for Al Gore's enviromental vision. What a joke
Posted by: Tea Party Organizers | September 3, 2010 3:36 AM
Looks like that 6% sales tax and increases in everything else is really raking in the bucks.....isn't it Martin?
I can't wait to watch you pack, alonng with your tax and spend buddies.
Posted by: livewiremd | September 7, 2010 3:52 PM