Maryland faces another $77 million drop in revenue

Does this surprise anyone?  What really gets me?  The State of O Malley Land continues to purchase land, and he still refuses to cut back his own staff and salaries.  He has yet to rescind the raises he gave the PSC, continues to fund his own Pet Projects, all the while, he continues his furlough programs and laying off state workers.  Remember how he said, I will not tax of hurt the middle class?  Who exactly are the middle class in his mind?  TO me, those would be state workers.  The failing Governor also states, without help from Washington again.  This has become O Malleys Campaign cry.  Help From Washington.  What happened to the other money?  I am sick and tired of the lies.  2010 can not get here soon enough.

Maryland faces another $77 million drop in revenue

Associated Press
12/16/09 8:48 PM EST

ANNAPOLIS, MD. — Maryland’s revenue projections dropped another $77 million in the latest revision released Wednesday, but state officials saw signs of a turnaround because the decline wasn’t nearly as steep as in previous revisions during the recession.

The projections released by the Board of Revenue Estimates cover fiscal year 2010 and 2011. The revisions marked down the current fiscal year’s revenues by about $15 million, with fiscal year 2011 revenues knocked down about $62 million from earlier estimates.

Despite the decrease, the revision represents a much lighter revenue writedown than one made by the board in September, when revenues were $683 million less than previously expected for fiscal year 2010 alone.

“It appears at this point that expectations of the economy have now caught up with reality, so it’s good news,” said David Roose, the board’s executive secretary. “Even though the estimates are being revised downward, they’re being revised downward by a relatively modest amount.”

Nevertheless, Maryland is once again running into serious budget challenges.

Gov. Martin O’Malley will submit a budget in January to the Legislature to account for a $2 billion budget deficit.

O’Malley cited the latest estimate and ongoing budget problems as evidence that states need more federal help.

“Without additional help from Washington, our state and many other states will be in a position of adding to the unemployment woes rather than helping to battle joblessness,” O’Malley, a Democrat, said.

Comptroller Peter Franchot said his initial reaction to the latest revenue estimates “is one of great relief.” But he cautioned it will take a very long time for the state to recover from loss of jobs, homes and financial security from the recession.

“In other words, the blizzard may have let up, but we’ve only begun to dig ourselves out,” Franchot said.

O’Malley also noted positive signs in the economy while describing the challenges ahead. As an example, he cited rising home sales, even though they are selling at lower values. O’Malley also said Maryland has created more jobs than it has lost in three of the last six months, although it appears jobs were lost in November.

“It’s my hope that we’re starting to see the job situation start to level off a bit, but until we are able to put a couple of months of solid job creation months under our belt we’re still in for some really rough and challenging times, especially with the upcoming budget,” O’Malley said.

That means more cuts.

“It’s going to be very painful and that’s why we really need additional federal help,” O’Malley said.

T. Eloise Foster, O’Malley’s budget secretary, said the budget is still in the works, and she declined to comment on any details.

“We’re still putting together scenarios,” Foster said. “We’re still putting together plans.”

The necessary spending reductions will come on top of myriad rounds of budget cutting in Annapolis since O’Malley took office in January 2007. The Board of Public Works already has cut more than $1 billion in the current fiscal year, which began in July.

O’Malley has been calling for more federal help in order to help states avoid more layoffs. He also is underscoring the need to create jobs.

“I think everything about this session needs to be about jobs and job creation,” O’Malley said on Maryland Public Television Wednesday evening.

House Speaker Michael Busch, who appeared on MPT with O’Malley and Senate President Thomas V. Mike Miller, also mentioned the focus on job creation and avoiding tax increases during the legislative session. Busch, D-Anne Arundel, noted that another round of furloughs for state employees may be necessary next year.

“We’re going to make this work,” Busch said. “We’re going to do it without a tax increase and we’re going to do it while trying to encourage job creation in this economy.”



Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: