Next Governor Will Inherit $400 Million Structural Deficit
Governor Martin O’Malley will leave his successor with a lovely house warming gift of a $404 million structural deficit.
Although Governor O’Malley’s fiscal 2015 budget reduced the structural deficit from $506 million to 236 million, the on ongoing imbalance between spending and revenues Maryland’s chronic structural deficit will increase by $168 million in fiscal 2016 according to the 90 Day Report for the 2014 Legislative Session.
After each legislative session, The Maryland Depart of Legislative Services produces a 90 Day Report detailing the state budget and major bills passed by the legislature in several policy areas.
The 90 Day Report also estimates a $395 million cash shortfall and that though revenues are expected to increase by 4.6 percent between 2015-2016, they would need to rise by 7.1 percent to keep pace with spending.
The total fiscal 2015 budget increases by $1.6 billion to $39 billion, a 4.3 percent increase. General fund spending increases $479 million over fiscal 2014, a 3.1 percent increase.
The next governor will also inherit from O’Malley rapidly increasing debt payments totaling $557 million by fiscal 2019.