By Laura Smitherman and Gadi Dechter , laura.smitherman@baltsun.com and gadi.dechter@baltsun.com|January 13, 2009
With the economic recession in full swing, Maryland lawmakers return to Annapolis tomorrow to tackle the largest budget shortfall in state history, a painstaking exercise expected to rile constituents and spark competition over dwindling resources.
The $1.9 billion shortfall in the state operating budget means that many programs are likely to be cut or remain at the same funding level, an effective decrease when taking into account inflation and population growth. It means local governments probably will take a hit that could translate to fewer services for residents. And in a political climate hostile to tax increases, it means state employees could face layoffs and scrutiny of their benefits.
"We're all coming in knowing the dire economic times that we are living in and seeing how fearful many of our constituents are," said Del. Maggie L. McIntosh, a Baltimore Democrat and a leader in the House of Delegates. "It's sobering."
The budgetary crisis is such that many lawmakers said they don't expect to accomplish much else in the 90-day General Assembly session because they can't afford costly new initiatives. Some lawmakers have even floated the improbable scenario of adjourning immediately after a budget is approved to save money by cutting the session short.
Gov. Martin O'Malley, hamstrung by the situation, plans to roll out a legislative agenda primarily focused on inexpensive policy changes and social justice issues, such as strengthening domestic violence laws, according to aides. As for his budget, which he will submit to the legislature this month, aides said the governor wants to maintain a safety net for families that are hurting financially.
The budget "is still very much a work in progress, but he is committed to making sure families have access to resources during this recession," spokesman Rick Abbruzzese said, "and also to protecting progress that we've made over the last two years."
Economic problems have dogged O'Malley for much of his tenure. Shortly into his first year in office, he pushed through tax increases to plug a structural deficit. Then, as tax revenues fell with the slowing economy, he was forced to reduce spending by hundreds of millions of dollars over the next year.
Even after voters ratified his proposal in the last election to raise more money through legalizing slot machines, the state could have trouble balancing its operating budget for years to come.
