20060121 Ehrlich Submits Budget; MD Assembly Overrides Vetoes

Ehrlich Submits Budget; Senate Overrides Minimum Wage Veto; House Overrides Election Vetoes.

By Kevin Dayhoff Saturday, January 21, 2006 11 PM

Last Tuesday, January 17, 2006 was the day that Maryland Gov. Robert L. Ehrlich sent to the legislature his $30 billion state budget. More information is available at: Governor Ehrlich Submits $23.8 Billion Budget.

The Washington Post blog: Maryland Moment, had it’s own spin in, “Spending a Surplus.”

“With a news conference practically every day rolling out another spending initiative, there was little suspense when Gov. Bob Ehrlich delivered his $29 billion budget this morning.”

Gee, conveniently overlooked in the liberal commentary regarding the growth in spending in the Governor’s recently announced budget is that a majority of the spending growth is not discretionary.

The majority of spending growth is the result of mandated funding increases in education (Thornton), health care (Medicaid) and higher education (Cade and Sellinger formulas).

Each of these mandates were passed by the liberal legislature and governor PRIOR to the Ehrlich Administration. If the lawmakers have a problem with spending growth this year they should take a long, hard look in the mirror because they created it. They mandated the funding increases that are causing most of the growth.

In a January 17th, 2006 press release from the governor’s office: “Governor Ehrlich Introduces Fiscal Year 2007 Budget,” it was noted:

ANNAPOLIS – Governor Robert L. Ehrlich, Jr., today submitted a balanced, sustainable FY 2007 operating budget. For the fourth consecutive fiscal year, Governor Ehrlich balances the State budget without raising sales or income taxes, while making record investments in education and health care.

“Since taking office, we have turned $4 billion in inherited deficits into a $1.2 billion surplus through prudent fiscal management,” said Governor Ehrlich. “We have made government leaner and more responsive to the citizens of Maryland. This budget makes new investments in programs that make Maryland a cleaner, safer, and a more prosperous place to live while returning a portion of the surplus to the citizens of Maryland.”

Fiscal Responsibility: Governor Ehrlich saves for the future by allocating $644 million for the State’s “Rainy Day Fund” and establishing a $670 million reserve for Fiscal Year 2008 expenditures. The Governor proposes tax relief for military retirees, homeowners, caregivers, and small businesses, among others. The Governor also invests $100 million in future retiree health care. Maryland is one of only six states to retain its coveted “AAA” bond rating.

Education: To improve public schools, Governor Ehrlich proposes a record $462 million funding increase for K-12 education and $281 million for school construction, the largest allocation in 35 years. In addition to record investments in higher education, Governor Ehrlich proposes a $19.5 million (28 percent) increase in need-based college scholarships. Governor Ehrlich has doubled funding for need-based scholarships since taking office, helping more than 12,000 students go to college. Governor Ehrlich also launched a $1.5 billion capital campaign for the University System of Maryland.

Meeting Maryland’s Needs: The Governor proposes a $370 million increase in Medicaid and related programs to care for 770,000 vulnerable Marylanders and $43 million to fund wage increases for community health care workers. His budget also proposes full funding for Program Open Space to better preserve environmentally sensitive land. To attract and retain high-quality law enforcement officers, the Governor also proposes salary adjustments for police and correctional officers.

Fostering Economic Growth: The Governor proposes $20 million for stem cell research and $13.5 million for a new Center for Regenerative Research to attract world-class researchers. His budget also makes new investments in the biotechnology tax credit and nano-biotech to solidify Maryland’s reputation as a national leader in the technology economy. Governor Ehrlich also increases investments by $3 million (60 percent) for the Community Legacy Program to revitalize urban, suburban, and rural communities throughout Maryland. The budget also invests $10 million in state support for Maryland’s horse racing industry.

The Governor’s budget can be found online at: http://www.governor.maryland.gov.

An additional review of Governor Ehrlich’s budget reveals:

Environment:

Governor Ehrlich will fully-fund Program Open Space to preserve environmentally sensitive land. The Ehrlich Administration has preserved nearly 60,000 acres of environmentally sensitive land since 2003. The Governor also makes new investments in targeted watershed projects and to rebuild wastewater treatment plants.

Higher Education:

The Governor announced a $172 million funding increase for higher education and launched an unprecedented capital campaign for the 13-campus University System of Maryland. Governor Ehrlich has boosted higher education funding by $219 million since taking office, bringing it to its highest point in history.

K-12 Education:

Building on his unprecedented investments since 2003, Governor Ehrlich proposed a record $462 million funding increase for public schools. Since taking office, Governor Ehrlich has fully-funded public schools with a $1.4 billion increase. The Governor also increased school construction funds to $281 million, a 35-year high.

Disabilities Investments:

The Governor proposed nearly $90 million in funds to lower unemployment levels for individuals with disabilities and to support them in their communities. The Governor’s proposal fully implements a Medicaid Buy-In for workers with disabilities and enables more than 1,500 people to return to work without losing health coverage under Medicaid.

Sex Offender Initiative:

Governor Ehrlich will dramatically toughen Maryland’s sex offender laws by requiring lifetime imprisonment, lifetime supervision upon release for sexually violent predators and child sex offenders, toughens registration requirements, and closes a loophole that allows registered sex offenders to enter school grounds or childcare facilities.

Tax Relief:

Governor Ehrlich proposes tax relief for homeowners, military retirees, caregivers, small businesses and many more. Governor Ehrlich’s ability to turn $4 billion in projected deficits into a $1.2 billion surplus means taxpayers deserve tax relief.

Homeowners:

In addition to a 15 percent state property tax cut, Governor Ehrlich proposed overhauling the Homeowners Tax Credit Program to help 50,000 low and moderate income Marylanders. The Governor’s plan would save the average qualified homeowner $167 more on their property tax bill.

Science & Technology:

Governor Ehrlich will invest an unprecedented $13.5 million to build a new Center for Regenerative Research at the University of Maryland, Baltimore and $20 million to fund stem cell research, solidifying Maryland’s reputation as a national leader in science and technology. The Governor also makes new investments in Johns Hopkins University, East Baltimore Biotech Park, University of Maryland, and the Teacher Education and Technology Center at Salisbury University.

State Employees:

For the third consecutive year, Governor Ehrlich gives state employees Cost of Living Increases and steps, and accelerates salary schedules for law enforcement and correctional officers.

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News also traveled quickly last Tuesday: according to WBAL’s website: Ehrlich Submits Budget; Senate Overrides Minimum Wage Veto; House Overrides Election Vetoes. You may want to take a minute of your time to review the reporting of WBAL's Robert Lang and The Associated Press on the deliberations and votes taken in the legislature today.

Minimum wage. WBAL says:

“… today, Maryland became the 18th state to require a higher minimum wage than the federal baseline Tuesday when lawmakers voted to raise the wage a dollar, to $6.15.

The higher wage, which takes effect in 30 days, became law when the state Senate voted by the required three-fifths margin to override Gov. Robert Ehrlich's veto from last session. The House voted to override the veto last week.

As to the vote to override Governor Ehrlich’s vetoes of the two election bills. WBAL says:

“Lawmakers also overturned Ehrlich's vetoes on two election bills.

One would allow people to vote up to five days before an election -- including on a Saturday. The other would make it easier to cast provisional ballots for voters who show up at the wrong precincts. The House overrode those vetoes today, after the Senate overturned them last week.”

House Minority Leader Anthony O'Donnell (R): “… says the bills open the door to voter fraud since county election officials would not be ready to enforce the law.”

Kevin Dayhoff writes from Westminster Maryland USA.

E-mail him at: kdayhoff@carr.org

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