Please disable your Ad Blocker to better interact with this website.

Bad News for O’Governor

From the Examiner

State revenues this year are projected to fall $132 million behind official estimates, worsening a budget picture in which a $1.5 billion deficit was already predicted for the following year.

In a letter to Gov. Martin O’Malley and legislative leaders, Comptroller Peter Franchot said the primary reason for lowered estimates is that projections for the sales tax are down $115 million, growing only by 2.5 percent, not the 4.8 percent originally estimated.

Revenues are also projected to decline from death taxes ($20.7 million), tobacco levies ($11.4 million) and lottery sales ($16.7 million). Only individual income taxes have risen slightly, by $38 million.

Trending: Symphony of Destruction

This means that the O’Malley plan of raising sales tax one cent will not only not raise in excess of $700 million it won’t be a bandaid on this sucking chest wound.

A $1/pack tax to fund extended medicaid? With tobacco taxes down by $11.4 million it would seem that, at best, the increased taxes will support the same level of service. This, btw, highlights the point conservatives have long made about funding a program from the revenue derived from an activity the state is trying to suppress.

Of course, this is bad news for us, too. Because even though cuts will have to assume more importance we can be sure that tax increases will be much higher than we had thought.

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please hover over that comment, click the ∨ icon, and mark it as spam. Thank you for partnering with us to maintain fruitful conversation.

Send this to a friend