Md. shows nearly $1 billion budget surplus
Maryland finished the fiscal year with $990 million in unspent funds, showing an end-of-year surplus that was about 50 percent higher than expected, according to a memo obtained by The Sun.
The administration attributes the balance to better-than-anticipated income tax returns, a sign that the economy firmed over the past year. The new data shows the state has $344 million over their estimates.
In a memo sent today to Gov. Martin O'Malley, State Budget and Management Director T. Eloise Foster warned Administration officials that it is "unclear" whether they can count on the trend to continue "due to the current uncertainties in the national economy."
Maryland budget writers had expected to close the FY2011 fiscal year which ended on June 30 with $641 million excess funds, and had planned to use nearly all of it ($590 million) to balance the FY2012 budget.
Much of the newly identified unspent funds must go into the state's Rainy Day Fund, but about $10 million will be available for day-to-day operations, according to the memo.
The administration attributes the balance to better-than-anticipated income tax returns, a sign that the economy firmed over the past year. The new data shows the state has $344 million over their estimates.
In a memo sent today to Gov. Martin O'Malley, State Budget and Management Director T. Eloise Foster warned Administration officials that it is "unclear" whether they can count on the trend to continue "due to the current uncertainties in the national economy."
Maryland budget writers had expected to close the FY2011 fiscal year which ended on June 30 with $641 million excess funds, and had planned to use nearly all of it ($590 million) to balance the FY2012 budget.
Much of the newly identified unspent funds must go into the state's Rainy Day Fund, but about $10 million will be available for day-to-day operations, according to the memo.
Neighboring Virginia also recently announced a budget surplus -- though not as large as Maryland's. The Old Dominion state ended their year with $544 million extra money, about $234 million more than expected, according to The Washington Post.
Last month in a news release, the Virgina State Republican Party pointed to their surplus as proof that GOP Gov. Bob McDonnell manages his state's books more prudently than O'Malley, who is a Democrat.
The comparison used an unorthodox method of pairing Virginia's FY2011 budget surplus to Maryland's FY2013 deficit projections. Maryland's FY2011 books had not yet closed, and Virginia budget officials do not provide out year projections.
Last month in a news release, the Virgina State Republican Party pointed to their surplus as proof that GOP Gov. Bob McDonnell manages his state's books more prudently than O'Malley, who is a Democrat.
The comparison used an unorthodox method of pairing Virginia's FY2011 budget surplus to Maryland's FY2013 deficit projections. Maryland's FY2011 books had not yet closed, and Virginia budget officials do not provide out year projections.
Comments
Wonder what they will spend it on...
Posted by: pem | September 1, 2011 5:14 PM
I wonder what they will spend the surplus on...
Posted by: pem | September 1, 2011 5:16 PM
For those of you who regularly post here with very unflattering comments about our Governor, will you now give him one scintilla of praise?
Posted by: Woodie | September 1, 2011 5:44 PM
How about a raise for state employees, I haven't had a raise from the state in almost 7 years.
Posted by: Eric Strauss | September 1, 2011 5:46 PM
That still will not stop O'Malley Busch, and Miller from raising our taxes again in the next session.
Posted by: Charlie Shettle | September 1, 2011 5:49 PM
How about reopening some things or rehiring back people who are unemployment? Please dont pee it away...PLEASE
Posted by: leelee | September 1, 2011 6:22 PM
Good Job Govenor .Now there will be No increase during our special session right?
Posted by: kevin | September 1, 2011 6:29 PM
so why are we raising the tolls again?
Posted by: myopinion | September 1, 2011 6:40 PM
What kind of brainiacs is this Governor employing? 1 Billion $-- refund it to the people --the TAXPAYERS!
Posted by: get real | September 1, 2011 6:51 PM
A billion ain't what it used to be. O'Baldy will need more than a measley billion dollar to spend. How about returning it to the taxpayers. of the state? By the way, I don't believe it.
Posted by: mark c | September 1, 2011 6:55 PM
Woodie,
Seven responses after you posted your message, and not a one saying anything good about the Governor.
I think you got your answer. They are not going to give anything near a good word, let alone praise, to any politician who isn't a GOOPer and/or TEA BAGGER.
Posted by: Mike | September 1, 2011 8:00 PM
Stash that money. Let's try to get by fiscal year 12 with limited expenditures, and then create a sensible budget that the state can operate on. This is a chance to get a real foothold on the state's fiscal future. Don't muck it up...
Posted by: mike | September 1, 2011 8:11 PM
Give the Governor some credit? YOu've got to be kidding. He's not the one telling us of this surplus and instead wants to raise taxes and increase tolls and still not give workers a raise? You've got to be kidding!!!
Posted by: XCareBearK9 | September 1, 2011 8:32 PM
Schools! Build schools, equip classrooms, hire teachers. It's a win-win for kids and for jobs!
Posted by: Karen | September 1, 2011 9:06 PM
McDonnell gave last year's surplus to his state employees. O'Malley didn't. I don't expect him to give us any of this either. One year of furloughs and salary decreases comes to $67 million. That isn't even a drop in the bucket. We'll see what happens.
Posted by: Nicky7 | September 1, 2011 9:08 PM
Surplus, and especially surprise surplus, should go to one time lump payment uses.
Here are two to start the ball rolling:
replenish the rainy day fund
re-pay the transportation trust fund
Posted by: MrRational | September 2, 2011 11:54 AM
Surplus, and especially surprise surplus, should go to one time lump payment uses.
Here are two to start the ball rolling:
replenish the rainy day fund
re-pay the transportation trust fund
Posted by: MrRational | September 2, 2011 11:56 AM
Split the money between the Rainy Day Fund and Transportation.
Stop raiding the Transportation Fund.
Minimalize the gas tax increase.
Stop raiding the Transportation Fund.
Zero growth in the 2012 budget MOM.
No new taxes or fees otherwise MOM.
Then I will give you credit!
Posted by: john | September 2, 2011 1:00 PM
So, why is there over $1 billion projected budget shortfall for FY2013 for MD?
http://washingtonexaminer.com/local/2011/08/omalley-says-tax-increases-will-take-group-effort
Posted by: Pat | September 3, 2011 6:43 PM