Possible Compromise On Pension Shift, Taxes

With just four days left in the Maryland General Assembly session, House and Senate budget negotiators appear to be moving closer to a compromise.

The conferees had disagreed all week over when to shift the cost of teacher pensions from the state to county governments, and they disagreed over the size of an income tax increase.

Late today, Senate budget negotiators offered to accept the House proposal to phase in a pension split over three years wwith half of the county portion shifting in the first year, 75 percent in the second and 100 percent in the third year. The Senate originally wanted to phase-in the shift over four years.

Senate budget negotiators also proposed accepting the House passed income tax increase.

That measure would increase income tax rates for individuals with a taxable income above $100,000, and joint filers earning above $150,000. Exemptions would also be limited above that income level.

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