Governor Martin O’Malley encouraged members of the public today to submit comments on the State’s budget situation, including the latest round of budget cuts, through a new website launched by the Governor. The website, which also outlines the latest budget cuts, highlights impact of the national recession on Maryland, and compares Maryland’s fiscal circumstances to other states, invites members of the public to submit their comments using a form at the bottom of the page.
“As we work through this national recession, it’s important we continue to engage Marylanders in the process since we are all in this together,” said Governor O’Malley. “In that spirit, we have always recognized that the best ideas often come from outside the walls of the State Capital. I look forward to reviewing some of them in the context of those priorities that will secure the better, stronger future we envision for our children and that will position our State for economic growth and recovery.”
Governor O’Malley convened members of his Cabinet today, where the discussion centered on the latest round of budget cuts and the need to identify further budget reductions. Yesterday, the Board of Public Works unanimously approved more than $280 million in FY10 budget reductions, a step in addressing a projected budget shortfall of more than $700 million for Fiscal Year 2010. These actions will bring the total amount of reduced spending and budget cuts under the O’Malley-Brown Administration to $4 billion.
This week’s cuts combined with planned reductions bring the FY10 Operating Budget below $13 billion, representing the first known incidence of General Fund declines for three straight years in state history.
According to a recent Rockefeller Institute report, 45 of 50 states experienced revenue declines in the first quarter of 2009. The 11.7 percent overall drop in state revenues, according to the Institute, is the sharpest decline on record. While budget cuts in Maryland have been painful, the State has largely avoided the types of drastic scenarios such as cutting aid to public schools and implementing massive, large scale layoffs of state employees. California, for example, has enacted cuts of over $11.6 billion from K-12 education, and more than 25,000 teachers have already lost their jobs there. South Carolina has already laid off more than 1,500 employees in the past year.
Maryland’s unemployment rate remains well below the national average – 7.3 percent compared to the national 9.5 percent rate. And just this week, all three credit reporting agencies affirmed Maryland as one of only seven states to retain the coveted AAA bond rating, granted only to those governments that demonstrate remarkable fiscal stewardship.
Members of the public can submit comments here.