Gov. Martin O'Malley will present about $300 million in state budget cuts today to the Board of Public Works, as fiscal analysts warned that the state's financial outlook is rapidly deteriorating.
The board, made up of the Democratic governor, Comptroller Peter Franchot and Treasurer Nancy K. Kopp, is expected to approve the budget-balancing plan, which also includes transfers from other accounts to create a $150 million cushion in the $14 billion operating budget.
"It's going to cause some pain and discomfort all around. It's not because we want to do any of these things, but we must," O'Malley said. Warren G. Deschenaux, the legislature's chief budget analyst, outlined possible future budget trims. They include restructuring state employee benefits to delay retirements and reduce retiree health costs, rolling back an expansion of health care coverage for the uninsured and raising tuition at the University System of Maryland.
In the short term, O'Malley plans to propose steep cuts to health care and higher education, among other programs. Other recommended budget cuts - state worker furloughs and reducing state aid for schools where the cost of education is higher - are off the table for now. The governor has said he needs more time to discuss those proposals with state employees and educators.
The governor is reducing this year's budget more sharply than previously anticipated, a move that reflects the worsening economy and builds savings. Nonetheless, O'Malley said, additional budget cuts could be made in the coming months before he presents next year's budget to the General Assembly.
Meanwhile, legislative leaders have agreed to ban out-of-state travel by lawmakers and postpone renovations and maintenance on buildings for a savings of about $6.5 million.
"These are tough times, and everyone's got to do their part," Senate President Thomas V. Mike Miller said.
But Republicans have criticized O'Malley, saying he should have slowed the rate of growth in government spending more severely over the past year. They also charge that in addition to $1.3 billion in higher taxes, O'Malley has backed new spending.
"We knew that the good times weren't going to last," said Sen. David R. Brinkley, a Frederick County Republican on the Budget and Taxation Committee.
