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Economic pinch hits Maryland tax coffers

Tighter state budgets foreseen as collections fall $73.5 million short of forecast

August 29, 2008|By Laura Smitherman , laura.smitherman@baltsun.com

However, cigarette taxes also fell $17 million short of the forecast, as sales declined more than predicted after the state doubled the levy to $2 a pack during the special session.

Brinkley, who represents Western Maryland, said that more budget cuts are needed, and the sooner the better because a delay would only mean deeper reductions later. He also blamed the tax increases for hurting the state's economic outlook.

"If they wanted to win the race for highest-tax state, they may win," he said of Democrats who control the State House. "But they are losing on the revenue side."

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But Del. Norm Conway, the Eastern Shore Democrat who chairs the Appropriations Committee, said Maryland is not immune to what's happening on the national level.

"We have been very much aware that the revenues were below the estimates in almost every category," Conway said. "This is something that is happening not just with Maryland but with a number of other states. It's something that we will certainly try to stay on top of."

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