If there was ever a time to come together on Maryland’s budget woes, now would be the time. With a cumulative $8 billion deficit by 2015 on the horizon, we have to make systemic changes in Maryland’s budget unless we want future generations to inherit the burden.
Recently the Democrat leadership of the Maryland General Assembly invited the Republicans to share their ideas on how to resolve the structural deficit. The House Republican Caucus accepted that invitation and unveiled a plan that would end the structural deficit, fully fund the Chesapeake Bay Restoration Fund, eliminate the need for state employee furloughs and allow Maryland to roll back the tax increases from 2007.
I realize that with 188 legislators there are 188 different opinions on how to balance the budget and I also realize that the devil is always in the details. However, the challenge for this legislative session will be choosing options from both sides of the aisle that will ultimately result in a balanced budget without the need for future tax increases. While some have chosen to stand on the sidelines and pick the Republican plan apart or criticize the Democrats for inviting us to the table, the exercise was never meant to be a fait accompli. Rather, it is a starting point. In the words of one Democrat Senator who attended the meeting, “we need all hands on deck” and in the words of Ronald Reagan, “all great change in America begins at the dinner table”.
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Thanks for your comment. I added the chart above which is from the Department of Legislative Services. I know it is hard to see, but the top line is on-going spending and the bottom line is on-going revenues. The middle line is on-going minus the federal stimulus money. This will give you an idea of why we have a structural deficit.
While we do have a AAA bond rating, I would encourage you to read the full report and see some of the comments that were made. Standard and Poor’s report for example cites concerns about the unfunded liabilities in the state’s pension system which have “grown significantly”. It also reports that the state “will continue to face a structural imbalance for the next several years” and “will have to find ways to balance operations while the economy recovers”.
Which portion of the State budget would you be reffring to?
As far as I can tell the you’re speaking about the ledger of the OPERATING BUDGET, however, aren’t there 3 other ledgers that comprise the total Comprehensive Anual Financial Report?
Please help us all to understand how a State that is purportedly bankrupt maintains a AAA bond rating.