BUDGET
THE BUDGET
Governor O’Malley unveiled his $31.6 billion fiscal ’09 budget this week. Overall, expenditures are expected to increase by about 4% The budget reflects the $550 million in reductions mandated by the November 2007 special session of the Legislature and eliminates 500 positions which are currently unfilled. The Rainy Day Fund balance, which reached its statutory minimum last year, is projected to increase to $739 million by the end of fiscal ‘09.
The budget includes $333 million for school construction (down from $400 million last year), $5.3 billion for K-12 education including $75.8 million for first time funding of the Geographic Cost of Education Index. Additional education funding increases include $81 million for community college capital projects and $16.3 million to freeze in-state university tuition. K-12 funding is not as high as it might have been since it reflects the decrease in the rate of growth passed by the Legislature in November.
Other budget highlights include $124.5 million for expansion of subsidized health care coverage, and the new $50 million Chesapeake Bay cleanup trust fund in addition to other expenditures on the environment, although overall expenditures for natural resources and the environment are projected to decrease by 9.5%.
Major capital projects proposed include $100 million for Purple Line engineering and design, $71.3 million for the new Rockville District courthouse, $29.4 million for a Science Center at Montgomery College, $6 million for a Journalism building at the University of Maryland, College Park, and $156 million to upgrade waste water treatment plants.
The Maryland Constitution requires that the General Assembly pass the budget by the 83rd day of the session (March 31). The governor must proclaim an extended session if the budget is not passed by the 90th day during which the General Assembly may only deal with the budget. The General Assembly has the power to reduce the governor’s proposed budget but may not increase it.
Further analysis of the budget will be available in the next couple of weeks and will be reported in the next RSC.
Barbara Hankins