Franchot talks of 'third way' to approach budget
Maryland Comptroller Peter Franchot says the state's $1.6 billion deficit is another sign that elected officials "have not adjusted to this new age of austerity."
Lawmakers yesterday learned that the budget hole is deepening. After a hopeful uptick in state revenues that posted over the summer, squeezing the gap to about $1.2 billion, spending on programs such as Medicaid has been higher than expected. And state revenues, as they stand now, aren't likely to recover to pre-recession levels anytime soon.
After the briefing by nonpartisan state analysts, Republicans worried the other party will push tax increases, and Democrats feared the minority party's counter offer would be draconian cuts to programs.
Franchot, who did not attend the legislative briefing, said in an interview yesterday afternoon that there's a "third way" -- a top to bottom review of state spending, estimated to surpass $15.5 billion next fiscal year.
Franchot, a Democrat, is a member of the state spending panel that has slashed the budget in the past few years. He has been talking about the "third way" for a year, and blogged about it in July.
"We need to look at what we're really getting for our money," Franchot said yesterday. "I think you could get the same or higher public services with significantly less money."
Asked what agencies or government programs are ripe for squeezing, Franchot said "everything" should be on the table. He named health care and transportation of areas in need of a careful look.








Comments
As usual Mr Franchot is the one looking at the correct ways to manage our economy. I am a life long Republican that supports and votes for Mr Franchots' fiscal common sense and abilities.
Posted by: laura Shaver | November 11, 2010 8:38 AM
Maybe Franchot can help usher in that new age of austerity by getting rid of the TWO bodyguards he doesn't need.
http://sports.espn.go.com/espn/page2/story?page=easterbrook/101102_tuesday_morning_quarterback&sportCat=nfl#wasteful
Posted by: brstevens | November 11, 2010 9:16 AM
Three strikes and you're out!
Posted by: Carole | November 11, 2010 9:39 AM
Jeanne Sahadi from CNN wrote a great piece yesterday about cutting spending. Essentially, politicians have spoken the same rhetoric as Mr Franchot for years. Cut waste, look for duplicate service, look for failing programs. We've heard that talk for decades. The fact is, the fat has been trimmed. All that is really left in the budget are programs that enjoy popularity with one side of the aisle or another. Or you can pass the buck onto the local governments.
Posted by: Josh | November 11, 2010 10:04 AM
Mr. Franchot seems to be the only one in Annapolis who understands the cycle we are in. He is correct. You need to manage to reality and not to hope and dreams.
Posted by: Bar | November 11, 2010 10:50 AM
A large part of elected officialdom in Maryland is owned by 1) public sector unions, 2) corporate and individual government dependents.
Expect a tax increase.
Expect Florida to gain wealthy residents.
Posted by: John | November 11, 2010 10:58 AM
I was a life long Republican that recently went independant, but I voted for you Mr. Franchot, because you have the MOXY to make it happen. Good luck with these spending counter parts. I have said all along we could definitely get more bang for OUR buck if the state throughly took a top to bottom review of all spending. TO bad you didn't challenge OWE' MALLEY...Hopefully you will be a thorn in his side for the next 4 years!
Posted by: Ravensrock19 | November 11, 2010 11:00 AM
OK look at all appointedpositions in state Govt. with double and triple dippers, all their exexc. staffs, all the layers upon layers of Assistants and all those duplicating services...Public safety is a great one to study where there are 7 Assistant commissioners, thier staffs, a Chief of Staff to the Secty(Double dipper by the way) and all his assistants and goes on and on...so should I continue..Oh yes medicaid as an example 150 mental health allowed sessions per year per recipient..hmm does your plan allow 150 sessions..so not hard to find cuts..and finally me..as i have had it with a state that just never gets it.
Posted by: fred nastri | November 11, 2010 11:36 AM
While I admire the comments of Mr. Franchot, I cannot forget his actions when he was in the General Assembly......he voted for every spending increase and every tax increase that came up for a vote!
Now he talks like a fiscal conservative.
When he had the power to control spending, he did nothing. Now that he has to write the checks, he is complaining. You cannot have it both ways.
Posted by: Jim | November 11, 2010 11:54 AM
Jimmy Carter called it zero-based budgeting.
Posted by: Jay | November 11, 2010 11:57 AM
How about a 5 percent across-the-board pay cut for all state employees? Talk about moxey!
Everyone, lawmakers, governor, state roads, office personnel.
Then challenge local and county governments to do the same.
Big Bucks.
It would hurt, yea, but as I mentioned in another post, if they don't like it, quit and watch hundreds apply for a job that many in this dire economy would love to have.
State workers have long lived large at taxpayer expense. Time for some shared sacrifice.
Posted by: Richard Kerns -- Frostburg | November 11, 2010 2:07 PM
In 1998 the most fiscal conservative Comptroller ever moved on to his heavenly reward. 12 years ago the General Fund budget was at 7.8 billion and the total budget was at 14 billion. The 2011 General Fund budget is 13.2 billion and the total budget is 31.6 billion. More than double what it was 12 years ago. The only bright spot was that the General fund budget was reduced this year by 400 million.
Does anyone miss Louis L. Goldstein? Is it any wonder that he was elected 10 times by the Maryland taxpayers. Peter Fanchot has a long way to go.
Posted by: Creekman | November 11, 2010 2:53 PM
R. Kerns-
I agree that that's a sensible way to trim spending, but are you aware that State employees have already taken such a cut in the form of unpaid furloughs - both last year and this year. I would be surprised if bigger furloughs are not part of the fix.
But as bad as this looks, Maryland is a very well run State compared to most others - look at our bond rating. And it has been for a long time, regardless of who's elected - Democrat or Republican.
Franchot is a sensible and intelligent man, and there are some very smart budget analysts in the legislative office and at DBM. This will be fixed, and MD will be just fine.
Posted by: John I | November 11, 2010 3:04 PM
We need to cut some of the hand outs the state gives across the board. cut food Stamp rpogram medical assistance and all other programs till we can afford it. If not more taxes will just push the people who are struggling into the poor house. Also why not cut all elected officals pay by 15% and stop them from getting all the free meals and trips at tax payers expense.
Posted by: Joe-Ball | November 11, 2010 3:43 PM
I'm another Republican that voted for Mr. Franchot. I like that he's an independent thinker and doesn't tow the party line. He's right on the money about what needs to be done and I hope he can do what he wants to do.
I seriously hope that he runs for governor in the next election. He'd have this Republican's vote.
Posted by: RavensChick | November 11, 2010 4:15 PM
Richard Kerns,
How about all the fat cat ceos and other executives take a pay cut? Then maybe the products and services we buy would be cheaper...
Posted by: unrest | November 11, 2010 6:46 PM
Here's a fourth way; Get rid of all the liberal, er, uh, I mean, progressive, politicians who take money from hard-working taxpayers and toss it down the toilet of liberal, er, uh, I mean, progressive, social programs that never work.
Posted by: HarlanR | November 11, 2010 7:14 PM
quick comment before i disappear.
next time my company is losing money, i will simply lower the pay of all of my employees by about 5 - 10%. Hopefully, this will create an increase in revenue.
Posted by: local business owner | November 12, 2010 12:44 PM
Mr Franchot is a bully who should of lost. Mr Franchot is a idiot who wants to recommend about raising taxes. Maybe Mr Franchot should invest the state pension into precious metals and precious stones that will grow in this miserable economy. Yes that is right we have a miserable economy.
Posted by: ready to move out of Maryland | November 14, 2010 8:37 PM