House Republicans Fight to Return Fiscal Sanity To Maryland

Joe:

We had a very lengthy debate on the State budget today. Unfortunately, all of our attempts to reduce spending and bring fiscal responsibility back to Maryland were rejected by the majority. We will be returning to the House floor at 6pm to continue the debate and take a final vote.

The Republican Caucus offered amendments that would have restrained growth, allowed for a repeal of the Computer Services Tax (without additional taxes) and added more money to the Rainy Day Fund in case there are additional economic downturns.

There is a real possibility that we will have additional write-downs in revenues in September because of the economic climate. If the referendum on slots fails, we will have even less revenue than anticipated. The level of spending in the current budget does not take any of this into consideration. Allowing spending to continue at this level could make it necessary to increase revenues again even after the largest tax increase in Maryland’s history.

This, in my opinion, is wholly unacceptable.

Sincerely,

Delegate Jeannie Haddaway-Riccio
Maryland House of Delegates
District 37B
216 Lowe House Office Building
Annapolis, Maryland 21401
(410) 841-3429 phone
(410) 841-3523 fax

For Immediate Release

March 19, 2008

Contact: Carrie Simons-Sparrow, 410-841-3401

House Republicans Fight to Return Fiscal Sanity to Maryland

Annapolis – House Republicans today offered a series of budget amendments that would further reduce state spending, allow for a repeal of the computer service tax, and cushion the state against further economic downturn and additional revenue write-downs.

“Over the last year, the House Republican Caucus has brought forth three individual budget plans that would have preserved state services and controlled spending without increasing taxes”, said Minority Leader Anthony J. O’Donnell. “Our pleas and the pleas from the taxpayers for fiscal restraint have all fallen on deaf ears. Each plan we have presented has been soundly dismissed with little consideration. Now, on the tails of the largest tax increase in Maryland’s history, in the face of a grim economic forecast with $333 million in revenue write-downs, we offer yet another plan. We are hopeful that finally, our colleagues across the aisle will agree that it is time to restore some fiscal sanity to the State of Maryland.”

Part of the Republican Plan included an amendment from the Minority Leader that would reduce the overall budget growth from the Governor’s original proposal of 6% growth ($1.8 billion) to a growth of 2.5% ($733 million). O’Donnell’s amendment would allow for a repeal of the Computer Services Tax without backfilling with new taxes. It also created a fund balance to cushion the state against future revenue write-downs.

“Trimming a few hundred million off the budget is a good first step, but it does not go far enough to meaningfully address Maryland’s fiscal health”, said Delegate Gail Bates, the ranking Republican member of the House Appropriations Committee. “Spending has not been restrained and the Administration and the General Assembly continue to create new programs. Even with the reductions taken by the House Appropriations Committee, the budget grows by $1.3 billion, a 4.3% increase over last year”.

“Truth in budgeting does not exist in Maryland”, said Minority Whip Christopher Shank. “There are slush funds masked as hundreds of vacant but funded positions and there is no will in the majority party to truly eliminate them. Enough is enough. The chronic overspending must end. It is not sustainable and will have catastrophic effects on the citizens of Maryland. With all indications pointing to another revenue write down in September, if we do not get a tight grip on spending the Democrats will be responsible for additional taxes, actual cuts in services people are receiving and actual layoffs of the State’s workforce.”

Carrie Simons-Sparrow
Special Assistant
House Republican Caucus
Maryland General Assembly
410-841-3401