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Shortfall Solutions Can't Wait

Legislators Must Act At June 28 Session

AS I SEE IT

June 16, 1991|By Sharon Hornberger

So, you thought that you could breathe a sigh of relief . . . the General Assembly had adjourned and your pocketbook was safe for anotheryear.

Now you learn all is not well, your pocketbook is not safe . . . the General Assembly is reconvening for a special session June 26. The issue to be discussed is how to solve the major budget deficits facing Maryland. What else is new? And why didn't the members act during the regular 90-day session?

A one-day special session will cost the taxpayers $8,000 to $10,000. But when you are talking millions of dollars in deficits, what's a few more thousand?

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When the General Assembly adjourned April 8, Maryland was facing not one but two budget deficits: $553 million forfiscal 1991 and $192 million for fiscal 1992, and there had not beenone major revenue-producing measure passed to address these deficits.

Now, the state faces still more red ink. Something must be done and done fast.

The impact of the continuing recession has translated into an additional state shortfall of approximately $109 million for this fiscal year, which ends June 30, say documents distributed bythe Department of Fiscal Services. An additional shortfall of $150 million is possible for fiscal 1992.

Most of the new deficit has been caused by a further decline in income and sales tax revenues.

The governor recently acted by freezing all state purchases through this fiscal year. This will cut about $20 million from the deficit. Layoffs also have been discussed, but they have not taken place.

Withonly weeks left in the fiscal year, freezes and layoffs cannot raisethe money needed to balance this year's budget.

It is time for the members of the General Assembly to take a hard look at the facts and act during the special session.

Delegate Richard C. Matthews, R-5th, chairman of the Carroll County delegation, recently told me, "The downside of a special session is that the subject is not confined to just balancing the budget for fiscal year '91. Tax increases for the future years may be voted on as well. I assure you that I will voteagainst an increase.

"I don't think that the legislature has cut all of the waste and inefficiency from the budget." he said. "I am not a member of the Budget Committee, but I don't think that there is enough legislative oversight on departmental spending. The committee, as an example, has no handle on the transportation issues, and the delay in the Hampstead bypass is a perfect example.

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