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Senate budget panel cuts $50M from O’Malley budget

Mar 5, 2008 12:00 AM (310 days ago) by Len Lazarick, The Examiner
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Related Topics: Annapolis
Annapolis (Map, News) - The Senate budget committee slashed another $50 million from Gov. Martin O’Malley’s $31.5 billion budget Tuesday, including $32 million transferred from funds for the Intercounty Connector. Supporters of the toll road from Gaithersburg to Laurel said the shift would have no impact on building the project, but two Montgomery County senators, who also support the highway, voted against the plan.

The committee also gave Comptroller Peter Franchot a rap on the knuckles, telling him he should stick to tax collecting and stop meddling in other matters. But Franchot’s $97 million budget was pared only slightly, and no effort was made to remove funding for any of his three high-paid deputies, as the comptroller had feared.

Across the street at the same time, Republican delegates proposed their own $642 million in cuts to O’Malley’s spending plan in order to raise cash reserves and repeal the computer services tax.

The Senate Budget and Taxation Committee worked through minor reductions in budget growth, but the longest discussion came on the proposal to delay a payment from the state’s general fund for construction of the highway in order to use it for other budget items.

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“This is already a complex funding package,” said Sen. Rona Kramer, a committee member who chairs the Montgomery County delegation. The road will ultimately be paid off with tolls from drivers, but its construction is financed by a combination of bonds that anticipate federal transportation aid and long-term bonds financed by tolls on tunnels and bridges.

Kramer said delaying the $32 million payment might hurt the bond rating, and make building the road “more difficult” and “more complicated.” Budget analyst David Juppe said the rating agencies had not expressed similar concerns.

“We’re playing a very interesting shell game,” moving money around, said Sen. Richard Madaleno, a Montgomery County Democrat. “I wouldn’t want to do anything that jeopardizes this project.”

Kramer and Sen. Nancy King were the only two members to vote against the $32 million transfer. “We have all supported this project over the years,” Sen. James Ed DeGrange said.

llazarick@baltimoreexaminer.com

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Comments from Examiner Readers

8:23 PM MST on Sat., Jul. 5, 2008 re: "Franchot wrangles over, eventually approves O’Malley’s $75 million in proposed budget cuts"

Workin Stiff said:
Peter Franchot is our only hope in keeping Owe'Malley's over spending with taxpayer money in check. Franchot has stated that state budgets have been trimmed back to bare bones -- now start cutting into the bone. No more tax or fee increases, the taxpayer cant afford it!!

1 agree | 2 disagree
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9:35 PM MST on Fri., Jul. 4, 2008 re: "Franchot wrangles over, eventually approves O’Malley’s $75 million in proposed budget cuts"

Examiner Reader said:
True. It really is not news when a politician claims to oppose something, yet votes for it anyway. Too often, the motivation for lodging opposition is to get media credit, not to actually impact the outcome.

7 agree | 2 disagree
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11:42 AM MST on Fri., Jun. 27, 2008 re: "Franchot wrangles over, eventually approves O’Malley’s $75 million in proposed budget cuts"

Examiner Reader said:
This tactic is called "kissing up to the boss" when the chips are down or actually it is called kissing the bosses butt! Pathetic leadership in Maryland is a gross understatement.

4 agree | 4 disagree
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3:40 PM MST on Thu., Jun. 26, 2008 re: "O’Malley proposing $50 million in cuts as state eyes $214M extra for child care"

Examiner Reader said:
When are we in this state going to learn that incompetent baltimore leaders are not the ideal persons to run the whole state! We need a major streamlining of government, and that means less services, less layers of management, and low enough taxes, especially upon small business to encourage a stronger tax base to begin with, As to the per child cost of care for these children, try these three letters: BID.

4 agree | 3 disagree
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2:35 AM MST on Wed., Jun. 25, 2008 re: "O’Malley proposing $50 million in cuts as state eyes $214M extra for child care"

Examiner Reader said:
Don't worry folks. This is just more OweMalley, Miller & Busch bookkeeping magic! They are just trying to do what they want to do in spite of the fact the money/revenue is not there even after the largest tax increase in our history. GO TEAM OWE, GO!

3 agree | 3 disagree
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7:38 PM MST on Mon., Mar. 24, 2008 re: "House tentatively OKs budget, rejects GOP cuts"

Examiner Reader said:
I did not vote for O'Malley I live in the city and saw how he was destroying it. I be dam if I would vote the idiot to ruin the whole state. I voted for Bob E. My dad always said Maryland is a corrupt Democratic State and will continue to be until the people wise up and vote other wise. Get the house in order and cut taxes , how much will the people take until there is another revolution. Lets have a boston tea party but we will call it the Baltimore Crap Party and throw them all in the annapolis harbor . Oh darn that's right we will have to load them down with rocks as crap floats. haha

5 agree | 3 disagree
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8:25 PM MST on Sun., Mar. 23, 2008 re: "Md. House OKs budget, spending database"

Mike Brown said:
Gee, let's do the math. There is $1.3 billion in new spending, and $1.3 billion in new taxes. I thought these liberal jackasses said there was a budget deficet? Seems it was only a new spending deficet. Hey Democrats, when are you going to wise up and vote for responsible legislators? Oh, I forgot, most of you work for the government in one fashion or another and see their ever growing government as job security. I view you as nothing less then welfare queens. You feed from the teet of the taxpayers.

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8:43 AM MST on Sat., Mar. 22, 2008 re: "Md. House OKs budget, spending database"

AMERICA CALLING said:
its time for the people of md to get some of these people out of state goverment think when you vote dont listen to lies we had a good governor what do we have now and for the look at the house and the senate spend spend your money for once think people

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1:00 PM MST on Fri., Mar. 21, 2008 re: "Md. House OKs budget, spending database"

Examiner Reader said:
Taxing lawyers when many politicians ae lawyers will not happen.This is in fact a good region to tax lawyer services do to the high density . Lawyers will say that we are taxing peoples right to a fair trial and this would be unconstitutional. It would be met with stiff legal recourse and this time any judge would side with the lawyers as opposed to the republican challenge. Democrats are known for taxing the people who can not defend themselves against liberal taxing for their benefit.Righteous are they not. Pennsylvania with twice the population spens less on government employment and does a better job.Go figure. I hope everyone who voted for omalley suffers long and hard.

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6:33 AM MST on Thu., Mar. 13, 2008 re: "Budget battle draws sparks and threats of tuition hikes"

Examiner Reader said:
An alternative way to come up with $200 million is an Attorney Services Tax. Better we cripple the lawyers than the computer geeks.

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4:57 PM MST on Fri., Mar. 7, 2008 re: "State revenue projections lowered by $333 million"

P. Ackerman, Columbia said:
Last year, during spring break, I rented a mini-van at a Los Angeles airport for a little over $300 per week. Renting the same type of van, this spring break, at BWI would have cost over $500 per week! $140 of it was taxes and fees! Guess what? I decided not to rent the van. This means Maryland gets ZERO tax money. Excessive taxation and fees is why the state is lowering revenue projections. Instead of buying (or renting), people will do without or go to another state to purchase goods.

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4:45 PM MST on Fri., Mar. 7, 2008 re: "State revenue projections lowered by $333 million"

P. Ackerman, Columbia said:
Tax Maryland’s Politicians Maryland’s politicians are not feeling the pain of the legislature's recent tax increases. Political contributions remain untaxed even though “Tech Firms” are subject to the state's 6% sales tax. Political contributions should be taxed at the greater of the sales tax plus 1% or the income tax rate plus 1%. The most recent campaign for Governor would have generated $70 million alone. Taxing political contributions will encourage the legislature to keep taxes down (Maybe even cut them?), and will balance the $200 million the state will lose when "Tech Firms" move out.

2 agree | 3 disagree
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10:32 AM MST on Fri., Mar. 7, 2008 re: "State revenue projections lowered by $333 million"

Examiner Reader said:
Come on people...the economy is suffering because of 2 reasons; (1)the War in Iraq and (2) the Republicans being in office. But, I do not want to see another 9-11 occuring in our great nation. Mayor O'Malley is not the problem, give him time to perform his job before condeming his way of doing things during this "economical downfall."

3 agree | 15 disagree
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3:07 PM MST on Tue., Mar. 4, 2008 re: "Senators cut spending"

Austin Foreman said:
I can't believe our governor would put $345,000 of tax payers hard earned money for a program to encourage employees to report to work on a regular and dependable basis. At my job if you are dependable and report to work on time you get a pay check. If you don't you get fired. Thanks for trying to reward dead beats.

8 agree | 5 disagree
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9:51 AM MST on Fri., Jan. 18, 2008 re: "The truth behind budget numbers"

Examiner Reader said:
The numbers do not lie, however people do! They will eventually kill themselves off. Trust only in GOD's will. Numbers can save our good name.

62 agree | 46 disagree
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9:32 AM MST on Fri., Jan. 18, 2008 re: "The truth behind budget numbers"

Examiner reader said:
Former Gov. Robert Ehrlich is now former Gov. Robert Ehrlich because his budget rose 9.5 percent. Former Gov. Robert Ehrlich is now former Gov. Robert Ehrlich because his budget rose 9.5 percent. Conservative Republican voters stayed home rather than support such nonsense. Maryland government is out of control on both sides of the aisle. A taxpayer revolution that changes the State Constitution is now the only way out.

59 agree | 66 disagree
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8:37 AM MST on Fri., Jan. 18, 2008 re: "Nonprofits could be hit hard by tight state budget"

Examiner Reader said:
I agree about the non-profits...take a look at the House of Ruth and the salaries of the executive director and other administrative salaries. House of Ruth is the biggest scam out there. It's outrageous that they rake in all that money and do NOTHING for victims of domestic violence. They 'warehouse' people, nothing else.

54 agree | 62 disagree
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8:34 AM MST on Fri., Jan. 18, 2008 re: "The truth behind budget numbers"

Examiner Reader said:
Ehrlich left office with a SURPLUS. Hel-LO! Maryland voted into office a locust, a destroyer, who desolates anything he comes in contact with. Take a look at Baltimore. Did that destroyer make a pact with the devil to get into office? WHO voted him in???

51 agree | 54 disagree
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4:37 PM MST on Tue., Jan. 8, 2008 re: "Nonprofits could be hit hard by tight state budget"

Examiner Reader said:
The state should tax these problem enabling so-called non-profits that continue to profit their top execs!

56 agree | 68 disagree
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1:45 PM MST on Tue., Jan. 8, 2008 re: "Nonprofits could be hit hard by tight state budget"

examiner reader said:
Hummmm our former Gov The Honerable Robert Erlich never made these kind of cuts and still did not raise taxes. What is the drunk driving teflon lepreCON doing with the State money. Could it be trips to kiss hillarys large butt what a joke he is.

66 agree | 50 disagree
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11:26 AM MST on Tue., Jan. 8, 2008 re: "Nonprofits could be hit hard by tight state budget"

Examiner Reader said:
Maybe the state needs to start taxing BG&E for its operations in MD. Since they bank in Deleware, MD doesn't tax them; or is it because they contribute so heavily to political campaigns and lobby extravagantly?

76 agree | 54 disagree
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