HEARING ALERT: Common Sense Spending Act Of 2017

Important Legislation Limits Growth Of Mandated Spending and Helps Restore Fiscal Responsibility

Note: Senate Budget And Taxation Committee to Hold Hearing on SB 303 on March 1, 2017, 1:00 PM
House Appropriations Committee to Hold Hearing on HB 420 on March 3, 2017, 1:00 PM

“We have repeatedly cautioned against the unsustainable forced spending increase that currently account for 83 percent of the state’s own source revenue, and which have put our budget on auto-pilot for even more massive spending increases, that we simply can’t afford in times when revenues are not there.” - Governor Larry Hogan, January 17, 2017

Governor Hogan Has Taken Consistent Steps To Show His Commitment To Restoring Fiscal Responsibility To Maryland State Government

Governor Hogan Successfully Stopped Over 85% Of New Mandated Spending Proposed by the General Assembly During The 2016 Session. (Maryland Department Of Budget And Management)
Governor Hogan: “Last year, not only did the legislature ignore our warnings on the need for mandate relief, they instead actually proposed a whopping $4.4 billion dollars in new forced spending increases – in just 90 days. Luckily we were able to stop most of that. But in spite of our best efforts, they were able to force another $519 million dollars in new mandated spending increases” (Remarks, “Governor Hogan’s Fiscal Year 2018 Budget Address,” 1/17/17)

Since Taking Office, Governor Hogan Has Shown Fiscal Restraint By Not Spending Over $182 Million In Funds Fenced Off By the General Assembly. In fiscal year 2016, the General Assembly fenced off $85.9 million which Governor Hogan did not release, additionally in fiscal year 2017, Governor Hogan has decided not to release $96 million in funds fended off by the General Assembly. (Maryland Department Of Budget And Management)

Governor Hogan Introduced Similar Legislation To The Common Sense Spending Act Of 2017 During The 2016 Legislative Session

In 2016, Governor Hogan Proposed Legislation To Offer Mandate Relief; Legislation Was Never Brought Up For An Up Or Down Vote.
The Washington Post Editorial: “The Fact That 83% Of State Spending Is Formulaically Mandated Is… Unsustainable.” “As Mr. Hogan pointed out, those mandates account for more than 80 percent of the state’s annual spending, which means that governors have relatively little budgeting leeway. There is a sensible argument to be made for trimming spending when state revenue falls or fails to meet projections… The fact that 83 percent of state spending is formulaically mandated is, as Mr. Hogan pointed out, unsustainable.” (“Maryland’s Budget Autopilot,” The Washington Post, 1/9/16)

Members Of The General Assembly Have Disregarded The Governor’s Call For Common Sense, Responsible Fiscal Action

Senate President Miller Stated That It Would Be A “Cold Day In Hell” Before Governor Hogan Were To Sign Legislation Ensuring Mandate Relief. “Senate President Thomas V. Mike Miller (D-Calvert) said Tuesday it would be a ‘cold day in hell’ before he will allow Hogan to get spending mandates relief…” (Ovetta Wiggins, “7 Things To Watch During The 2016 Maryland General Assembly Session,” The Washington Post, 1/13/16)

Senate President Miller And Speaker Busch Stated That They Were In Favor Of Preserving Mandates; Stated That They Oppose Cutting Education Mandated Spending; Governor Hogan’s Proposal Would Have Not Impacted Public Education Mandates. “But for House Speaker Michael E. Busch and Senate President Thomas V. Mike Miller, preserving the mandates to spend money on education, health and other programs is a priority. In separate interviews with The Baltimore Sun, both Democratic leaders put full funding for K-12 education — the costliest mandate of all — at the top of their lists. ‘Our No. 1 priority always starts with quality education,’ Busch said. ‘I'm not opposed to cutting mandates, but I am opposed to cutting any mandate for public education,’ Miller said.” (Editorial, “As General Assembly Session Begins, It’s Hogan Vs. Democrats,” The Baltimore Sun, 1/9/16)

Speaker Busch Suggested That Governor Hogan’s Decision To Be Fiscally Responsible And Call For Mandate Relief Was Representative Of The Governor Governing By “Opinion Polls’ And Was Not “Responsible.” “Alluding to his high job-performance ratings, which the most recent poll puts at 70 percent, Hogan said his administration has been moving Maryland in the right direction, but there is a disconnect between legislative leaders and the rest of the state. But House Speaker Michael E. Busch, D-Anne Arundel, wasted little time hitting back. ‘We don't govern by public opinion polls,’ he said during an impromptu question-and-answer session with a handful of reporters. ’You come down here and you get the data, you get the facts. You have 141 people that have been elected by the general public, by their constituencies, to come down and make responsible decisions. ... If we had to govern by every time we thought someone was popular or not popular, we would be changing positions every 15 seconds.’" (Tamela Baker, “Gov. Hogan And Md. Lawmakers Face Off Over Spending,” Herald-Mail Media, 3/8/16)

Senator Madaleno Stated That Governor’s Proposed Legislation Indicated That The Governor Wanted To “Avoid Responsibility For Tough Decisions.” “But Senate Budget and Taxation Committee Co-chair Richard Madaleno (D-Montgomery) said the governor is trying to avoid having to prioritize certain categories of spending during such times. ‘Governing is difficult,’ he said. ‘He seems to want to avoid responsibility for tough decisions by hiding behind a sequester idea that Republicans in Congress used two years ago. He wants to bring that same failed idea to Maryland.’” (Josh Hicks, “Md. K-12 Education Funding Unaffected By Hogan’s Mandate-Relief Plan,” The Washington Post, 1/28/16)

Common Sense Spending Act Of 2017

Governor Hogan’s Proposal Controls Forced Spending Increases Which Exceed Revenues; Legislation Ensures That Future Budgets Prioritize Key Expenditures Such As Education, While Giving Leaders The Flexibility To Trim Excessive Cost Increases That Exceed Revenues. “Be it enacted by the General Assembly of Maryland, That, notwithstanding any provision of law that requires the Governor to include a certain level of funding in the annual budget bill for a specific program or item, and notwithstanding any other provision of law and except as provided in subsection (b) of this section, beginning in fiscal year 2019: Any appropriation that is mandated by law shall have its mandated level of spending increased by the lesser of: the amount of the existing formula calculation; or an amount equal to 1% less than the reported amount of General Fund revenue growth in the report submitted by the Board of Revenue Estimates to the Governor under § 6–106(b) of the State Finance and Procurement Article for December. Subsection (a) of this section does not apply to:funding required for State aid to public elementary and secondary education… any appropriation required to be made to the Revenue Stabilization Account under § 7–311 of the State Finance and Procurement Article; or any appropriation required for the payment of principal or interest on State debt.” (“Senate Bill 303,” Maryland General Assembly, 1/20/17)