Maryland May Need 56-Percent Property Tax Hike To Cover State Debt, Report Says

Maryland lawmakers will either have to raise property taxes by 56 percent over the next five years, or take away $1.1 billion from classrooms, police, and other core state services to cover record state borrowing, budget analysts said Friday.

The dire predictions come from a combination of bills coming due on Maryland's long-term debt, plus falling property tax revenues, which have traditionally covered the costs.

The approach Gov. Martin O'Malley (D) took to blunt years of recessionary budget problems is partly responsible, according to a report released Friday afternoon by the state's nonpartisan budget analysts.

In the last three years, O'Malley has accelerated a decade-long practice in Annapolis of shifting expenses once paid entirely with cash to the state's capital budget, which is funded with bond money repaid with interest over 15 years.

GO HERE to read more.