O'Malley Discusses Shift Of Pension Costs

ANNAPOLIS, Md. - Gov. Martin O'Malley discussed plans Tuesday with legislative leaders to shift teacher pension costs to Maryland counties and reduce tax exemptions for high-end earners, participants in the meeting said.

Maryland currently is one of the few states in the nation that picks up the entire teacher pension cost, which is projected to be about $900 million in the next fiscal year. O'Malley, a Democrat, is talking about a 50-50 split with counties. In return, the state would share half of the $450 million in social security costs currently paid entirely by counties. Overall, the state would save about $225 million.

"I think it was a balanced proposal by the governor _ some revenue enhancements, as well as a discussion about shared responsibility and liability for teachers' pensions that we've talked about in the past," House Speaker Michael Busch, D-Anne Arundel, said after the meeting.

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