State budget hole deepens
Maryland lawmakers will face a $1.6 billion budget hole when they return to Annapolis in January, state fiscal analysts are reporting today, a deficit larger than what they had anticipated earlier this fall.
An unexpected uptick in state revenue from fees and taxes, which the anlaysts reported in September, shrank the gap between income and expenses to about $1.2 billion. But greater spending on programs such as Medicaid has essentially erased that gain, said Warren G. Deschenaux, director of policy analysis for the Maryland General Assembly.
The Assembly’s budget committees will be briefed this afternoon on the latest deficit analysis.
Democratic Gov. Martin O’Malley, reelected last week, has said he is preparing a budget without any new taxes.
Asked how the the now-rising deficit would be addressed, O'Malley spokesman Shaun Adamec wrote in an email today that the governor “has repeatedly said that we will continue to be on a steady diet of cuts until we come through the other side of this recession.”