News from Annapolis                                                         April 2, 2010 Budget Passed Today by Democrats Ignores Looming Deficit, Guarantees Post-Election Tax Increase Dear Friends,      I cast an emphatic "No" vote today on the state's unwieldy  $13.2 billion general fund budget for next year, mainly because of the huge tax burdens it lays at the feet of our working families and future generations.      Facing a $2 billion shortfall (not counting unfunded pensions and retiree health benefits), the new budget continues to rely on one-time accounting fixes and federal stimulus dollars to get us through one more year.      My House Republican colleagues and I had put forth $830 million in tough, but responsible, cuts. Instead, House budget leaders spent eight weeks and pared only $12 million from the Governor's proposed budget, paving the way for a tax increase after the election.      Marylanders already pay an average $5,669 per capita in state and local taxes, ranking fourth highest in the nation, according to The Tax Foundation.      With an historic unemployment rate of 7.7 percent, we cannot afford the massive tax increases that this budget guarantees. For four years, we have heard excuses from the Administration and the majority party about deficits, the economy and the previous Administration. But, here we are, after the huge tax increases of the 2007 Special Session, a failed slots plan and three rounds of state employee furloughs, and we still face more than $8 billion in deficits over the next four years.     The largest debt overload facing us is the promise of $32 billion in state pension and retiree health benefits that Maryland has not adequately funded.  The Pew Center on the States ranks Maryland at the bottom of the barrel, one of eight states with "serious concerns" regarding pension liabilities. While the Democratic leadership says they continue to study the issue, the problem only gets worse. This problem was not caused by the economic downturn, but by overpromising benefits and underfunding costs.          In related budget matters, the House of Delegates did the following: Rejected the shifting of teacher pension costs to local governments. The Senate voted for the shift. The two chambers must reconcile all their budget differences in conference committee before the legislative session ends April 12. Rejected a Republican proposal to halt additional donation "check-offs" on income tax forms, whereby the taxpayer checks a box to indicate he wants to contribute money to a particular cause. One of the existing check-offs is for gubernatorial elections. However, recent reports indicate that money is being used to shore up the budget--not help candidates who accept a spending limit. It's pretty misleading when people are checking off boxes and their contributions are going for an entirely different purpose. Rejected a Republican proposal to take $1 million from highway sound wall projects and spend it instead on a safety study of Route 32, north of I-70. People are dying on this road. Safety improvements and, ultimately, widening are far more important than sound walls.      For more information on this week's legislative issues, you may want to read the Legislative Wrap-Up, prepared by the state Department of Legislative Services every Friday.

 

Note from Susan:    I am dedicated to being your voice in Annapolis as we work toward better roads, schools and jobs, and also a reduced tax burden.    Please feel free to contact me with any concerns or ideas you may have. My legislative aide, Linda Schmuck, and I are always happy to help.