20071026 Governor O'Malley Introduces Legislation to Address Maryland's Deficit

Governor O'Malley Introduces Legislation to Address Maryland's Deficit

Governor introduces comprehensive, long-term solution to deficit;
Six Bills to reform the State’s income tax, lower property tax, and legalize slot machines

ANNAPOLIS, MD (October 26, 2007) – Governor Martin O’Malley today submitted six pieces of legislation to the Maryland General Assembly as part of his comprehensive, long-term solution to the State’s $1.7 billion structural deficit. Governor O’Malley introduced the legislation in advance of next week’s special session of the General Assembly.

“We have put together a comprehensive, long-term solution to the State’s structural deficit,” said Governor Martin O’Malley. “Under the leadership of Senate President Miller and Speaker Busch, I am confident that members of the General Assembly will come together to move our State forward. The cost of delay is simply too great for us not to take action.”

Governor O’Malley introduced six bills today that will continue to make historic investments in public education, reform the State’s income tax, lower the state property tax, establish a Higher Education Investment Fund to stabilize college tuition costs in Maryland, and legalize up to 15,000 slot machines at five locations around the State.

The Governor’s bills include:

Transportation Investment Act

Tax Reform Act of 2007

Budget Reconciliation Act

Maryland Education Trust Fund – Video Lottery Terminal

Video Lottery Terminals – Authorization and Limitations

Working Families and Small Business Health Coverage Act

Governor O’Malley has spent the last two months rolling out individual components of his solution, which include:

Reforming the income tax to make it more progressive and fair.

Reducing state property taxes.

Closing corporate loopholes.

Investing in Maryland by raising the corporate income tax by1%, and splitting it between higher education and transportation.

Protecting public education by making the Thornton law sustainable.

Making healthcare more affordable and reduce smoking by increasing the tobacco tax by $1 to invest in reform.

Helping seniors by doubling the senior income tax exemption – and creating a new sales tax rebate.

Modernizing the sales tax – so it’s still in line with surrounding states.

Recapturing slots revenue, once and for all, by letting the people decide in a referendum.

Under the Governor’s proposed reforms to the State’s income tax, reductions in the state property tax and sales tax proposals, the Maryland Department of Budget and Management estimates that 83 percent of Marylanders will pay less overall.

Earlier this week, Governor Martin O’Malley released a Cost of Delay budget to reflect more than $1.7 billion in cuts that will have to be made to balance the Fiscal Year 2009 budget if the General Assembly is unable to reach a consensus during the upcoming special session.

[ More information on the bills can be found at www.gov.state.md.us/special2007.asp and http://mlis.state.md.us/ ]

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October 26, 2007