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Wednesday, November 16, 2016

State Must Get Real With Spending

For nearly a decade, the members of the House Republican Caucus have held firm in the belief that our state does not have a revenue problem, it has a spending problem. A recent meeting of the state’s Spending Affordability Committee is yet another reminder that, without meaningful spending reforms, our chronic budget deficits will only continue. During the O’Malley years, the constant answer to the state’s budgetary woes was tax and fee increases (more than 80 of them in eight years), whopping increases in borrowing, and robbing funds from transportation and environmental programs.

Enter Governor Hogan, who has had the audacity to suggest that instead of increasing the tax burden on our citizens, he and the General Assembly work together to rein in spending and enact fiscally responsible measures to put Maryland on a secure path that eliminates the constant cycle of deficits and tax hikes. But the Democratic leadership in the General Assembly has fought the governor’s efforts and pushed for even more spending.

It’s not as though Maryland’s economy is doing poorly. In fact, it is very strong. Revenues have grown by about 3.5 percent — more than three times the national GDP (gross domestic product) growth. Governor Hogan’s commonsense reforms have led to rapid private sector job growth, median income growth and Maryland’s lowest unemployment rate in nearly a decade. But even with growing revenues, the legislature is still writing checks that Maryland’s taxpayers cannot cash. The fact that the state is once again faced with a structural deficit is a testament to the Democratic leadership’s addiction to spending and their refusal to make legitimate spending reforms.


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11 comments:

Anonymous said...

I love this article. Hogan has been great for Maryland. Much like Orioles fans, we are quick to forget how bad it was just a few short years ago. Maybe those who frequent this site who blasted Hogan last week for not overtly supporting Trump should take a second to read it.

Anonymous said...

Hogan has it right. Get off this tax and spend train.

Anonymous said...

Reduce state employees benefits and size of government. Save some money.

Anonymous said...

Time for a recall campaign on the senators and representatives

Anonymous said...

He has done a good job but the locals around here only care about getting the right to carry a gun and still insist that the economy sucks because the eastern shore's glory days are long gone will never return to prosperity no matter who is the governor or president.

Anonymous said...

Anonymous said...
Hogan has it right. Get off this tax and spend train.

November 16, 2016 at 6:47 PM

Jim Ireton and Jake Day should take notes!

Anonymous said...

For the record, Maryland is a "balanced budget" state, as required by the state constitution. Any new programs initiated by the state legislature, or the governor, must be funded, one way or the other (reductions in other areas or tax increases). Anytime one of our legislators proposes a new program to address a social issue, it must include a funding request. The governor is required to submit a balanced budget to the legislature for approval every year. There is no "deficit" spending, it is not allowed in the budget, in this state.

For those who think a balanced budget amendment for the US constitution will stop our congressmen and women from spending money they don't have and contributing to the enormous federal deficit, think again. It will just guarantee enormous tax increases to fund the programs that they enact to buy votes for re-election from their constituents. And the deficit will still be there and have to be financed into eternity. Only spending CUTS, or raising taxes, will reduce the deficit. And that will happen only if there is no new spending. Balanced budget amendments only guarantee tax increases and not reduced spending. Maryland is a prime example of that.

Political Science 101 class is dismissed.

Anonymous said...

Many of you have it backwards. They don't tax and spend, it is the other way around. They spend, then tax to cover the spending, as required in a balanced budget state.

Anonymous said...

I think Hogan is a joke! How can we support a republican who Did't vote in our election? He said he wrote in his father which is't a vote at all unless he was on the write in list. He is a democrat in republican clothing!

Anonymous said...

9:48 you said nothing about robbing the State Employee Pension fund to pay for these added expense. This is not a balanced budget using these funds.
6:49 where would MD be if they didn't have the State Employees Pension Fund to pay for your liberal programs. Yes the State is top heavy in personnel but you are ignorant enough to believe the lower workers are the problem. They have lower salaries and 10 of their pension cost equals one of the Politians, Judges, Administrators etc.
Also what about the Illegals in MD costing Tax dollars.

Anonymous said...

November 17, 2016 at 11:57 AM:

Didn't you read the following in my post?: "Any new programs initiated by the state legislature, or the governor, must be funded, one way or the other (reductions in other areas or tax increases)."

So taking from the pension, to balance the spending in another area, is "balancing the budget." So is raising taxes to cover increases in spending. Or reducing spending to match revenue. All methods can be used to balance the budget. Revenue and spending must be equal for a balanced budget. It doesn't matter where the revenue comes from, whether its taxes, or the pension fund, or some other revenue source.

Do you get it now?