O'Malley's big spending budget

FEBRUARY 17, 2010 E-MAIL THIS PRINTER FRIENDLY

On January 19, Governor O'Malley unveiled his Fiscal Year 2011 budget proposal. Here are a few facts about his proposal:

Proposed budget is $32 billion,[1] up from 28.1 billion in 2007.[2]

State-only spending is $19.1 billion, $43 million over last year.

Education spending increased from $5.513 billion to $5.7 billion, but only because the state is using $422 million in federal stimulus funding that will not exist in 2012.

The administration relies on borrowing to balance, putting burdens on future governors and legislators to pay for today's spending tomorrow. For instance, it borrows $350 million from the local income tax revenue fund to be repaid over the next seven years. It also pays for special funded capital projects through $422 million in bonds to be repaid over three years.

$1.8 billion in revenue is contingent on legislation that has yet to be passed. $389 million in federal Medicaid funding is assumed to exist even though no legislation has been passed to provide it and chances are slim that such legislation will be enacted.

The governor's spending proposals exceed revenue and the budget is only balanced with $500 million in special funds transfers. The budget projects a deficit of $1.5 billion in Fiscal Year 2012 and $2 billion in Fiscal 2013.

Funding for state employee pensions will increase by $183 million in Fiscal Year 2011.

While the total number of state workers has declined, salaries and wages for state workers increases by 5.3%.[3]

[1] Fiscal Year 2011 Fiscal Briefing, Department of Legislative Services, February 2010, accessed at http://mlis.state.md.us/2010rs/budget_docs/all/Operating/Fiscal_Briefing.pdf

[2] Fiscal Year 2008 Fiscal Briefing, Department of Legislative Services, January 21, 2008, accessed at http://mlis.state.md.us/2008RS/budget_docs/All/2008_Fiscal_Briefing.pdf.

[3] Maryland Budget Highlights FY2011, Department of Budget and Management, p. 142. http://dbm.maryland.gov/agencies/operbudget/Documents/2011/FY2011BudgetHighlights.pdf

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O'Malley's big spending budget

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