New Jersey’s governor, Chris Christie, recently commented on the broken budgetary policies in our state, saying, “In Maryland, they are borrowing to cover current obligations. And in doing so, they are piling one problem on top of another, reducing the creditworthiness of their state, and creating a fiscal crisis that will be larger in the future.” He followed up that comment with this warning: “[In New Jersey] we’ve done that already, too. Today we live with the choking debt service that this failed policy has wrought.” We must change so our financial situation avoids becoming like New Jersey’s.
And I am happy to announce that change is coming to Annapolis! We have knocked on thousands of homes and talked to even more people. The message we have heard is loud and clear: Republicans, Independents, and Democrats all want Fiscal Responsibility!
Still we need your physical and financial support. You can make difference by visiting kylelorton.com. If you would like to walk or sign wave please call my campaign manager , Danny Eaton, at 301-452-8244.
Today, I am writing you to update you on what is taking place in the General Assembly.
The FY 2011 Budget, though balanced as required by state law, is full of gimmicks. It borrows $422MM of cash in special funded capital projects and transfers it to the general fund to cover deficit spending. Bonds will have to be issued while the loans will ultimately have to be paid back by Maryland taxpayers. And rather than work to reform the Medicaid program that eats up so much of our budget, as reforming legislators and governors in Louisiana and Florida have done, in Annapolis they have pushed for the expansion. The Governor’s budget consists of a number of one time fixes that will not be available in the out-years. Hence, there is no long-term strategy to resolve the out-year deficits that figures in the billions.
In contrast, Governor McDonnell of Virginia is launching an initiative to cut spending by looking at closing some of their 130 state agencies (we have over 300!) and identifying creative things such as having some prison inmates clean-up the state buildings.
Make no mistake about it, these politicians will raise taxes in 2011. They are talking about taxing non-profit entities such as Johns Hopkins, increasing the sales tax, the personnel income taxes, and raising the alcohol tax. Finally, they want to renew the surcharge on high income earners. But targeting the job creators in Maryland only drives wealth elsewhere. This hurts our state!
Meanwhile, the Senate Republican caucus is sponsoring SB 712, the Maryland Taxpayer Protection Act. This bill would require a super-majority vote to create a new or increase an existing tax. If passed, the General Assembly could not increase taxes unless a majority of 60% existed in each chamber’s vote. Contrast this to the special session 2007 sales tax increase from 5% to 6% that passed by one vote. If I was there, this would not have occurred!
The time for action is now. We must Fight for Fiscal Responsibility!
Candidate for State Senate, District 13