Will They Spend More to Solve This Deficit
Surpise Surpise Maryland now faces another looming deficit. Then again what would you expect from a governor and a legislature that “solves” deficits through increased spending.
Despite the tax increases and spending cuts approved in last month’s special legislative session, legislative analysts see another possible budget shortfall looming by fiscal year 2010.
The projected deficit is $237 million. It is projected to grow by another $26 million the following year.
Accoding to the Baltimore Sun the General Assembly is recommending signifcant reductions in spending growth.
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If Gov. Martin O’Malley follows the benchmark set by the Spending Affordability Committee – a bipartisan group of lawmakers assigned to keep state spending from exceeding economic growth – Maryland would spend 4.27 percent more on public services than it did last year, a smaller increase than in all but five of the past 25 years.
Of course this all contingent on O’Malley acting on this recommendation, and the $550 million in recommended cuts from the special session(which cost taxpayers $360,000), in the budget he sends to the legislature in January.
Warren G. Deschenaux, the legislature’s chief fiscal analyst predicts an economic rebound that will help state revenues through the “tens of thousands” of workers relocating to Maryland from BRAC. But will it offset the new state spending on roads, schools and other infrastructure needed to accomodate the people moving to Maryland?