Proposed Budget is Tight, Innovative and Preserves Key Initiatives
The state budget proposed by Governor O'Malley for Fiscal Year 2011 (beginning July 1, 2010) is tight, full of some one-time tricks and adjustments but preserves the Governor's key initiatives without raising taxes. The budget total of $32.072 billion (including the general fund, capital accounts and federal contributions) is 0.8% below the previous year. Approximately $20.8 billion is for health and education with another $3.4 billion for transportation and $1.8 billion for public safety. The approximately $6 billion remaining covers everything else.
Some highlights of the budget include $5.7 billion for K-12 education, a 3% increase in tuition at Maryland public colleges and universities after four years of tuition freezes, $20 million for a Job Creation Tax Credit and $20 million for th eChespaeake Bay Trust Fund.
The budget relies on about $400 million in additional Medicaid funding from the Federal Government. This funding has been proposed in the House but may not materialize. The Governor continues to $330 million cut in aid to local jurisidictions that was in the 2010 budget and borrows more than $300 million from an account that holds certain taxes collected on behalf of local jurisdictions. Furloughs of state workers are continued and additional positions are cut. The Governor also chose to fund all capital expenditures through bond issuances.
Many progressives in Maryland think the Governor should bite the bullet and raise taxes slightly to reduce the long-term deficit and provide additional funding for the environment, education and health. Realistically, though, tax increases on Maryland residents or small businesses are politically impossible at this point and probably for some time to come.
Locally, Worcester County comes out with a slight increase in state assistance, from $20,977,000 in 2010 to $21,677,000 in 2011. Virtually all of the increase is in education with a slight increase in library funding. It should be noted that proposed state education assistance to Worcester County is $4,155 per pupil - the second lowest in the state after Talbot County. Baltimore City receives the highest per pupil aid at $12,299 per pupil. Allegany County is second highest at $10,678 per pupil.
