The word from Annapolis gets more and more depressing. Last week's bad news was a reaffirmation of the bleak revenue outlook for the state -- not only for the current fiscal year, but for the next two or three years beyond that. Economic recovery may not be a reality in the state until 1995.
"There are no clear 'engines of growth' for Maryland's economy in the 1990s," said Deputy State Treasurer H. Louis Stettler III. All indicators point to a continued stagnation for the coming years. In fact, Dr. Stettler said the loss of jobs in recent years won't be reversed until the middle of the decade. "We see no major improvement in employment in the near term."
Defense cutbacks are having a big, negative impact on Maryland. Corporate contractions are leaving see-through office buildings without any tenants on the horizon, and construction firms with little work to bid on. Big corporate losses of recent years will mean far lower tax payments from these concerns. Fewer working Marylanders will mean far less money from the income tax -- a loss of a quarter-billion dollars. The fallout in consumer purchases will mean a drop in sales tax receipts of $84 million. Even money spent on the lottery is down sharply, cutting state profits by $25 million.