Senate GOP Slate: Curing the Structural Deficit - Budget Hearings in Annapolis
http://www.facebook.com/notes/maryland-senate-gop-slate/curing-the-structural-deficit-budget-hearings-in-annapolis/375316535139
Thursday, March 4, 2010 at 6:58am Maryland Senate GOP Slate's Notes
After just ten months in office, Governor Martin O’Malley orchestrated the largest tax increase in Maryland history. His Executive Order issued in October 2007 to convene the General Assembly of Maryland into a special session stated the following goal: “for the purpose of passing legislation to address Maryland’s structural deficit.” The deficit was estimated to reach $1.7 billion by FY09.
Misguidedly, O’Malley also increased state spending during the special session and his lofty plan to tax-and-spend out of future deficits failed. His current budget contains out-year structural deficits in excess of the one he attempted to cure three years ago: $1.75 billion in FY12; $2.14 billion in FY13 and $2.13 billion in FY14.
The Brinkley-Pipkin budget reduction act (Senate Bill 1004) had a hearing before the Senate Budget and Tax Committee today. By taking significant steps to further reduce spending in this year’s budget process, the Brinkley-Pipkin plan buys additional time to constrain spending to the existing available revenues without the need to raise taxes.
A key feature of the plan is the elimination of built-in statutory increases in state programs. This feature and an additional $75 million in spending constraint over the next three years would allow current revenues to “catch-up” with spending, thereby bringing ongoing spending and revenues into balance.
Many lobbyists and county officials testified today against additional cuts to state spending. Representatives of unions also opposed the Brinkley-Pipkin plan of additional cutbacks including the removal prevailing wage from state projects. The majority of citizens and taxpayers who testified supported all efforts to cut back government overspending.
If adopted, the Brinkley-Pipkin plan would have fund balances instead of deficits over the next four years as shown by the chart below (O’Malley out-year deficits are shown in red; Brinkley-Pipkin fund reserves with balanced budgets are shown in green).
http://www.facebook.com/notes/maryland-senate-gop-slate/curing-the-structural-deficit-budget-hearings-in-annapolis/375316535139
Thursday, March 4, 2010 at 6:58am Maryland Senate GOP Slate's Notes
After just ten months in office, Governor Martin O’Malley orchestrated the largest tax increase in Maryland history. His Executive Order issued in October 2007 to convene the General Assembly of Maryland into a special session stated the following goal: “for the purpose of passing legislation to address Maryland’s structural deficit.” The deficit was estimated to reach $1.7 billion by FY09.
Misguidedly, O’Malley also increased state spending during the special session and his lofty plan to tax-and-spend out of future deficits failed. His current budget contains out-year structural deficits in excess of the one he attempted to cure three years ago: $1.75 billion in FY12; $2.14 billion in FY13 and $2.13 billion in FY14.
The Brinkley-Pipkin budget reduction act (Senate Bill 1004) had a hearing before the Senate Budget and Tax Committee today. By taking significant steps to further reduce spending in this year’s budget process, the Brinkley-Pipkin plan buys additional time to constrain spending to the existing available revenues without the need to raise taxes.
A key feature of the plan is the elimination of built-in statutory increases in state programs. This feature and an additional $75 million in spending constraint over the next three years would allow current revenues to “catch-up” with spending, thereby bringing ongoing spending and revenues into balance.
Many lobbyists and county officials testified today against additional cuts to state spending. Representatives of unions also opposed the Brinkley-Pipkin plan of additional cutbacks including the removal prevailing wage from state projects. The majority of citizens and taxpayers who testified supported all efforts to cut back government overspending.
If adopted, the Brinkley-Pipkin plan would have fund balances instead of deficits over the next four years as shown by the chart below (O’Malley out-year deficits are shown in red; Brinkley-Pipkin fund reserves with balanced budgets are shown in green).
Comparison of the O'Malley budget structural deficits (shown in red) with the fund balances of the Brinkley-Pipkin budget reduction act (shown in green).
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