The House Republican Caucus will offer an alternative budget plan that would correct Maryland’s fiscal problems and eliminate the structural deficit while still allowing for retirement enhancements, increment and COLA increases for State employees, new corrections officers, and a 1% increase in core agency spending – all without depleting the Rainy Day Fund or raising taxes.
“Many in Annapolis are giving stern warnings about the looming budget crisis but few are offering any meaningful solutions”, said Minority Leader Tony O’Donnell, “It is fiscally and socially irresponsible to continue digging this budget hole when we know that doing so will mean large tax increases and severe cuts to services in the very near future.”
The proposal increases FY 2008 general fund spending to $13.8 billion, 1.5% from FY 2007’s record levels of funding. The proposal includes a pause in the increase of Thornton Funding for FY 2008 and a phase in of the increase starting in FY 2009. This proposal is similar to Governor O’Malley’s plan to phase-in the Geographic Cost of Education Index (GCEI) as seen in House Bill 139.
“As Chairman Conway pointed out in his Committee Report Monday night mandating funding and creating formulas to fund programs ties our hands and reduces our flexibility to address fiscal problems”, said Delegate Christopher Shank, “pausing the increase in Thornton monies prevents us from having to make significant cuts to education next year.”