ANNAPOLIS, Md. (AP) - Maryland's budget gap is about $1.6 billion for the next fiscal year, state budget analysts warned lawmakers on Wednesday, creating difficult conditions again for balancing the state's budget.
Lawmakers must try to balance the next state budget at a time when federal aid used by states in the last two years is drying up, particularly in the federal government's past enhanced match of Medicaid money that will disappear.
"We are now seeing what it means to rely on one-time money for ongoing expenses," said Warren Deschenaux, director of the nonpartisan agency that reviews state fiscal matters.
Nonpartisan budget analysts also warned that the state's use of bonds to help ease pressure on the state's operating budget during the recession has significantly cut into the amount of bonding available next year for a variety of competing state needs for state facilities, health and social services, education and public safety.
Deschenaux told lawmakers that the state's structural deficit - the difference between revenue the state brings in and the costs of running the government - is about $2.1 billion a year for the next several years. While he noted that the state could see moderate upward revisions in revenue estimates in December, he emphasized that no easy answers are in sight.
"There are a lot of variables that can shave a few hundred million dollars off of the gap, but when you're starting at a number like $2.1 billion, a couple hundred million dollars is nice, but it doesn't really mitigate the dimension of the problem," Deschenaux said.
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9 comments:
Prepare for more taxes and fees....remember we collectively reelected our local government leadership...
but omalley said everything was fine...so this article must be lying, not omalley.
Imagine 4 years from now -- at least it will be curtains for O'Malley then.
And they voted this imbecile in for another 4 more years of mismanagement and misery!
State Employees, get ready to get bent-over again.
UH, HELLO to all you idiots. The Baltimore Sun, had an article prior to the election stating that O'Malley!!!!!! said we had a 300 million dollar surplus right before election, funny how we have no money all of a sudden. No problem just take it out on the State employees again....
O'Malley needs to spread the wealth. That means tax the rich and give to me. OOPS!!! I forgot they elect him. The Washington suburban areas in MD makes the average income in MD look higher than what it is. You want to cut? Then cut the Open space program. Sell that land and put back on the Tax records. Cut the double dipping on retirements paid by Tax Payers to Politians and their supporters. Cut programs that give away Tax dollars for Politcal reasons. Cut Tax dollars from going to non-profit organizations that are culture events for higher class of income. Cut illegals benefits and quit being a sanctuary State. Eliminate Union mandates that are for the Union and not the worker. Cut Politians salary and benefits by 50% or make it year round sessions instead of 3 - 4 months for their salary. These suggestions are a start that will never be considered. Politians are full of promises to get elected by stretching, playing the word game, the half truths to the extreme limits of falsehood. Politians are spineless when it comes to their share of the money
We can cut the budget by increasing probation fees and court costs. Plus, we can send the Maryland inmates to Guatanamo for a much cheaper stay.
We can quit rewarding single moms for having babies every year that we are taking care of. There has to be welfare reform, but I might as well talk to this computer. That will never happen. One days when the workers are all retired or dead, the free loaders will see what the real world is like.
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