Statement from Governor Martin O'Malley on the Board of Revenue

Statement from Governor Martin O'Malley on the Board of Revenue Estimates

http://www.governor.maryland.gov/pressreleases/080909e.asp

BALTIMORE, MD (September 9, 2008) – Governor Martin O’Malley today issued the following statement following the Board of Revenue Estimates:

“Today, the Board of Revenue Estimates announced a budget shortfall for the current fiscal year and 2010. Given the national economic downturn, national foreclosure crisis, and the increased price of energy, gasoline and food, these revenue estimates are not unexpected; and we are preparing to bring hundreds of millions in cuts before the Board of Public Works in the coming weeks to address this challenge.”

“Given the national economy, other states are facing the same or significantly worse budget pictures. In fact, the Center for Budget and Policy Priorities estimates that at least 29 states are facing a total budget shortfall of $48 billion in FY 2009.”

“In Maryland, because of the tough decisions we made to protect public education, public heath and public safety, and expand opportunity for our middle class families, we are ahead of the game. Working with the General Assembly, we have already reduced spending by $1.8 billion and taken actions to address the structural deficit that we inherited.”

“Without these actions and tough decisions, our State would be facing an estimated $2.5 billion shortfall in FY 2010. Instead, Maryland is a facing a shortfall that is significantly less that is the result of a downturn in the national economy, not structural in nature.”

“We have worked hard to restore fiscal responsibility and accountability in Maryland over these last two years.”

“In 2008 and 2009, our state budget grew by less than 4 percent annually – less than the Spending Affordability Guidelines set by the General Assembly – compared to 22 percent in the last two years of our Republican predecessors.”

“We have already cut $1.8 billion from state spending, eliminated over 700 state positions, and yes, we have asked the people of Maryland to play a role in this solution by increasing the sales tax by a penny and enacting a more progressive income tax structure. The people of Maryland will also have an opportunity to vote on a slots referendum in November that is expected to provide an additional $650 million for public education in our State.”

“As we have worked together to address the structural deficit that we inherited, we will come together in the weeks ahead to address this latest budget challenge presented to us by our national economy; and we will do so in a way that recognizes the burden and challenges faced by our middle-class families as the cost of everything continues to rise even as wages remain stagnant.”

“The investments we have fought so hard to preserve in public education, public safety, and public health are intended for one purpose only – to strengthen and grow our middle class over the long-term and create a more sustainable future for our children.”

“This has been our goal from the beginning, and it will continue to guide the actions of this Administration as we work to address this latest challenge.”

20080909 St from O’Malley on the Brd of Revenue Estimates