Journalist @baltimoresun writer artist runner #amwriting Chaplain PIO #partylikeajournalist

Journalist @baltimoresun writer artist runner #amwriting Chaplain PIO #partylikeajournalist
Journalist @baltimoresun writer artist runner #amwriting Md Troopers Assoc #20 & Westminster Md Fire Dept Chaplain PIO #partylikeajournalist

Tuesday, November 20, 2007

20071119 Special Report Annapolis

Special Session Report – Annapolis

Senate Republican Caucus

Senator David Brinkley Minority Leader

Senator Allan Kittleman Minority Whip

November 19, 2007 (2:41 a.m.)

50 days until the 2008 Session

Massive Regressive Tax Increase Passed in Dead of Night

Over Next Four Years, Tax Package Nets Almost $7 Billion More From Taxpayers

Average Increase of $1,222 Per Every Man, Woman and Child in Maryland

DLS Projects That Structural Deficit Still Exists Over Next 3 Years

  • Special Session Called for Deficit Reduction Fails to Meet Goals: Fiscal projections prepared by the Department of Legislative Services indicate that even with the massive tax increases mandated by the O’Malley Administration, structural deficits will continue over the next three years. Year-end balances projected for FY 2009 and FY 2010 will require rainy day fund balance transfers to eliminate the deficit. In FY 2011, a structural deficit of $49 million exists in spite of the fact that Maryland taxpayers will pay an additional $4 billion over that time period.

  • Overall Effect of Tax and Fee Increases Are Gargantuan: Total impact of the O’Malley tax package will be $6.9 billion of net new taxpayer funds over the next four years. Structural deficits will also exist in out-years if voters reject the slots referendum or if revenues from video lottery terminals fail to materialize at the level of DJS projections (anticipated to be $422 million in FY 2012). The tax increase amounts to $1,222 per every man, woman and child in Maryland – or almost $5000 per family of four.

  • The Grand Illusion of Budget Cuts: While the media has reported that “budget cuts” have been part of the equation in Annapolis, the final product primarily contains only “language of intent” since the Governor has not presented a budget bill before the legislature. Many of the cuts were offset or backfilled by new program spending, including an additional $1 billion in spending for the Chesapeake Bay Fund, Higher Education Investment Fund and expansion of health care programs.

  • SURPRISE! New MVA Fee Appears in Final Bill: Without any public notice, House Bill 5 emerged from an “informal” conference committee with a new MVA fee increase. The fee for a title certificate will be raised 120% (from $23 to $50) under amendments adopted by both chambers. While Governor O’Malley protested against such fee increases last summer as being too onerous for working-class families, his tax package as enacted will raise $32 million per year from this fee increase.

  • And the Winner of the Sales Tax Expansion Sweepstakes Is - Computer Services: Apparently, the presiding officers rejected the advice of Comptroller Peter Franchot, who lobbied against the computer services proposal because “computer firms form the nucleus of the state's new economy” and that the sales tax “plays into the hands of those who would unfairly question Maryland's business climate.” Franchot also questioned the long-term ramifications of this tax that would cripple our computer industry and “undermine our ability to compete effectively in the global technology marketplace.”

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.