Grim state budget includes good news for some
Environmentalists will have something to cheer in Gov. Martin O'Malley's budget plan for next year: The Chesapeake and Atlantic Coastal Bays Trust Fund is set to receive slightly more money than in previous years.
O'Malley plans to transfer about $20 million from it -- a large chunk -- but one that is smaller than in previous years.
We have a story in today's Sun outlining some budget highlights along with a few details about the governor's plans to fix the pension system. The governor will formally present the budget in a news conference this afternoon.
Details include:
* O'Malley closes a $1.35 billion budget hole with about $950 million in cuts and about $400 in transfers;
* The governor freezes funding for K-12 education at last year's levels, which will be painful for schools but is not as tough as the rumored 5 percent cut;
* Health care gets the largest whack, with about $250 million in lower Medicaid payments to hospitals;
* State workers will not see furloughs, relief that could be short lived. O'Malley also will ask them to pay more into their pension plan;
* The governor will again go to the capital budget to backfill operating costs, taking $200 million from a fund meant for construction projects. In the past O'Malley has bonded more of those projects.
The plan will have to be approved by the General Assembly, which has the ability to cut further. The legislative body can also raise taxes -- an option county government might like since they are not set to have their road repair money restored.
O'Malley plans to transfer about $20 million from it -- a large chunk -- but one that is smaller than in previous years.
We have a story in today's Sun outlining some budget highlights along with a few details about the governor's plans to fix the pension system. The governor will formally present the budget in a news conference this afternoon.
Details include:
* O'Malley closes a $1.35 billion budget hole with about $950 million in cuts and about $400 in transfers;
* The governor freezes funding for K-12 education at last year's levels, which will be painful for schools but is not as tough as the rumored 5 percent cut;
* Health care gets the largest whack, with about $250 million in lower Medicaid payments to hospitals;
* State workers will not see furloughs, relief that could be short lived. O'Malley also will ask them to pay more into their pension plan;
* The governor will again go to the capital budget to backfill operating costs, taking $200 million from a fund meant for construction projects. In the past O'Malley has bonded more of those projects.
The plan will have to be approved by the General Assembly, which has the ability to cut further. The legislative body can also raise taxes -- an option county government might like since they are not set to have their road repair money restored.
Comments
State workers will lose in the end. The new union contract, if ratified, includes direct deductions from all state workers pay, whether they decide to belong to the union or NOT, for union fees. These "fair share" deductions have yet to be specified. So, any gains the state workers recieve will be going directly from thier paychecks to the union pockets. Don't believe all you read!
Posted by: guest1 | January 21, 2011 8:26 AM
He should hit the easy button when it comes to paying the bills.
Put the Gas and Electric check into the Cable bill envelope, mail the cable bill to BGE, mail the telephone check to the telephone people but forget to sign it....etc., etc., etc.
This should buy him a couple of months.
Oh, I forgot, confusing our fiscal obligations is what has been going on for years.
Why stop now?
Posted by: Carole | January 21, 2011 9:54 AM
... and not one word about eliminating redundant county government functions by merging them. How much would be saved by consolidating the public works departments of the 5 counties and Baltimore City, or the court system, or the police, or fire, or schools. Billions.
Posted by: Carl Hyman | January 21, 2011 11:17 AM
@Carl Hyman: You are on to something there.
But why stop at the County level?
The same streamlining could be applied to all of the governing and legal functions of the several states as well.
Start by applying such to the more mundane things to begin with and over time we might actually become one nation. Let the Supreme Court sort out the touchier ones.
An off hand example: are the commercial property insurance regulations substantially different between Maryland and Massachusetts? How about with Missouri and Montana? Different enough to justify the redundancy of having 50 distinctly different sets of rules and protocols?
There is no limit to this idea!
Posted by: MrRational | January 21, 2011 12:19 PM
Yes, state employees come up short again. If I'm going to make a charitable contibutions (union dues) I would rather make it to a charity of my choice which I know makes a positive impact in the community and not just to pay union bosses who don't look out for the employees. The state already creams 5% off the top for the pension fund - where will it stop? I've heard 10% or more. So don't look for the 'high paid state employees' to stimulate the economy as our pay checks continue to shrink even more. (And don't tell me to be grateful I have a job - if I didn't have a job, I would qualify for mortgage forgiveness, student loans, and other programs.)
Posted by: Questioning | January 21, 2011 12:22 PM
It seems that State workers think they are the only ones who are disenfranchised. At least you can travel public transportation at no extra charge. Also, you all just have your cuts laid out in the media. The rest of us hear about our cuts on the news, then we receive a memo from our boss, Stephanie Rawlings-Blake, informing us that though President Obama has cut our Social Security taxes, we will have to pay an extra $5.00 each pay for now and an extra $7.00 next fiscal year above and beyond the furlough. That means that more than likely, though the State employees won't have to pay a furlough, City workers will.
I think it's time that some of the individuals who don't work at all and get all of their drug services, housing, childcare and healthcare paid in full should be looking at cuts. All that trash in the City streets needs to be cleaned up. Creating jobs in the City is easier than you think. I also agree with Questioning, we need to investigate mortgage and student loan forgiveness for working adults who are expected to bare the brunt of the deficit.
Posted by: Sick of It | January 21, 2011 12:41 PM