Senate Approves $14.6 Billion Budget

Includes new tax on alcohol, must be reconciled with House plan

The state Senate added millions to Gov. Martin O'Malley's budget proposal Tuesday evening, passing a $14.6 billion spending plan that relies on a new tax on alcohol to restore funding to schools in Baltimore and Prince George's County next year.

The Senate is expected to give final approval Wednesday to add a 3 percent surcharge to the sales tax on beer, wine and liquor, which appears to be the largest area of difference to emerge between the House and Senate budget bills — a conflict that sets up a philosophical battle between the two chambers.

Gov. Martin O'Malley, who pledged during his re-election campaign that he would not propose new taxes this year, has not ruled out accepting increases initiated by the General Assembly. He would need to sign any legislation to increase taxes.
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