20070709 Senator Pipkin This is Fiscal Magic at its Clumsiest

Senator Pipkin: “This is Fiscal Magic at its Clumsiest”

Proposed budget cuts will do nothing to fix the looming deficit

Press Release

For release: July 9, 2007

Contact: Mathew Palmer - 410.841.3639

Senator Pipkin: “This is Fiscal Magic at its Clumsiest”

Proposed budget cuts will do nothing to fix the looming deficit

“This is fiscal magic at its clumsiest,” said Pipkin. “For the Governor to suggest that $153 million in cuts, of which some will be replaced by federal dollars, some are simply not filling vacant positions, and still more is from the savings of shutting down the House of Corrections, is nothing more than window dressing.”

“I am pleased to see that the Governor is willing to make these types of efficiencies,” said Pipkin. “But there is much more work to do, and not a lot of time to do it.”

“I hope everyone in Annapolis is not going to point to these cuts and say ‘This is the best we can do, now we need to raise your taxes!’” added Pipkin. “As the Governor’s own spokesperson said ‘these are the first cuts, they certainly may not be the last’.”

Governor O’Malley’s meager cuts represent only ½ of 1% of the states total $30 billion budget and only 10% of the looming $1.5 billion deficit.

“Who’s kidding whom?” asked Pipkin. “I have suggested putting a lid on spending increases as an effective way to fix the budget shortfall, and that would save $955 million.”

Sen. Pipkin’s plan is a combination of holding the states spending growth to 2.5% for 2008, reallocation of a portion of the teacher’s pension and retirement back to the Counties where it is incurred, and legalizing video lottery terminals. The plan could net the state as much as $1.9 billion in combined savings and revenue for the 2008 fiscal year.

“This combination of belt-tightening, reallocation of fiscal responsibilities, and realizing revenue from slots, would allow the state to get its fiscal house back in order,” said Pipkin, “and would not dig even deeper into the pockets of the hard working families of Maryland.”

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