Gov. Martin O'Malley is planning to lay off hundreds of state workers and is asking for other labor concessions to help close a nearly $2 billion budget gap projected for the fiscal year that begins in July.
That warning came hours before the Maryland General Assembly convened yesterday with ceremonial speeches pledging "One Maryland" unity.
But signs of discord soon surfaced between the Democratic governor and lawmakers, who must ratify the budget, revealing tensions aggravated by economic woes that are sure to grow as the 90-day session unfolds.
When he submits his budget next week, O'Malley will ask the legislature to approve between 500 and 1,000 layoffs, aides said, in an executive branch work force of more than 70,000.
But Senate President Thomas V. Mike Miller objected, arguing that local governments should shoulder more budget cuts instead.
"State employees can only do so much," Miller said. "Most of the counties haven't had any furloughs. They haven't had any layoffs, and they've gotten pay increases. ... Everybody's got to pay their fair share ... and that means the counties are going to have to step up just like the state."
The O'Malley administration has also been negotiating with labor unions representing tens of thousands of state workers, asking workers to pay more for their health care benefits. But the largest union, whose members have already been furloughed, is balking at the requests.
As lawmakers and lobbyists swarmed back to Annapolis, many eyes were fixed on Washington and hope for a federal bailout for the state.
Inside the ornate House and Senate chambers, politicians pledged their commitment to public service but left the real work to the days ahead. In addition to the budget, the talk was about looming legislative battles on police spying, urban sprawl, climate change and the death penalty.
"We have never been so needed as we are today," O'Malley told a packed House chamber. "So we're going to step up."
By law, Maryland must maintain a balanced budget. O'Malley has already had to hack hundreds of millions from his current $14 billion operating budget to compensate for plummeting tax receipts amid a global economic meltdown.
During a radio interview recorded yesterday morning, he held out hope that "very serious layoffs" might be lessened if President-elect Barack Obama persuades Congress to send hundreds of millions in stimulus money to Maryland through a bailout program. Federal money is a "huge variable" and could improve the bleak budget outlook, he said.
