Governor O’Malley recently released his budget plan for Fiscal Year 2014. Since the state’s constitution gives the governor a large amount of authority in setting the state’s budget, it’s likely that the final budget passed by the General Assembly will be very close to the governor’s budget proposal. What, then, does Gov. O’Malley propose?

 Here’s what stood out to me when looking over the legislative analysis of the governor’s budget:

• The governor proposes spending $37.218 billion in total spending, an increase of 29% over the state’s total spending level in 2007 ($28.757 billion), when he entered office. Much of this increase is in federal funds, but this means the state is heavily reliant on the federal government to fund services. Given the fiscal situation of the nation, this is an unhealthy reliance on a revenue source that may soon be unable to continue propping up this state’s budget.
  

•  O’Malley loves corporate welfare. He’s proposed spending $26.5 million in expanding or starting new corporate welfare programs. These programs will funnel your tax dollars to business owners. If these business owners are successful, they will reap the profits. If they fail, you, the taxpayer, will have paid them to do it. I’m all in favor of business, but I’m not in favor of government giving our tax dollars to those seeking profits.

The biggest item on the governor’s list is an expansion of the state’s tax credit to movie producers ($13.6 million). This tax credit is especially odious considering that the economic evidence is clear that credits of this sort have no economic justification. All this credit does is give your money to rich Hollywood producers. If anyone is deserving of welfare, it’s not these guys.

•  The capital budget is the budget for capital projects, at least in theory. It’s financed by borrowing, under the reasonable assumption that since capital projects like roads and school buildings will be enjoyed for years to come, it makes sense to spread out the financing of it over time. However, the governor and legislators have been regularly using the capital budget as a way to fund current operations of government. Borrowing from tomorrow to pay for today’s needs is a poor use of the capital budget. This year’s budget is not as bad as past years’ budgets, but the governor wants to borrow $158 million to pay off current operating expenses or repay money borrowed from trust funds.
  

•  In the capital budget, $15 million is allocated for bond bills. These bills are essentially legislative pork. Legislators introduce bills to benefit their constituents, with little oversight or any study on whether a need for such spending actually exists. Like earmarks at the federal level, they are a way for legislators to lavish spending on pet projects that they select, regardless of actual need.

What these things say to me is that this is an irresponsible budget. The governor has increased spending dramatically. He is borrowing from tomorrow’s taxpayers to pay for today’s (and yesterday’s) spending. He is heavily relying on the federal government to pay for state government services. This type of budgeting will get O’Malley through his term, but it’s an unreliable way to do long-term budgeting.