Most state agencies will see neither increases nor reductions to their budgets, O'Malley said, though he plans to ask for a $25 million to $30 million increase for higher education that would allow Maryland's public universities to keep tuitions frozen for a fourth consecutive year.
Miller, however, said he did not believe a tuition freeze could be sustained, another potential area of conflict between the governor and legislature.
Miller and House Speaker Michael E. Busch, both Democrats, said they would consider tapping a $366 million reserve fund in the comptroller's budget to plug part of the $1.9 billion projected revenue gap. O'Malley said such a move could spare local governments from some, but not all, cuts in state funding.
Republicans, far outnumbered by Democrats in both chambers, said they hope to be included in budget discussions, and they vowed vigilance against any tax increases.
The American Federation of State, County and Municipal Employees, the largest union for state employees, has been in negotiations with O'Malley's administration in recent days. Maryland director Patrick Moran said union members oppose layoffs and shifting health care costs and he is confident the two sides will achieve a "middle ground" settlement.
"Our union is fighting tooth and nail to maintain health care benefits and to make sure we do not have budgets balanced on the backs of state employees who provide essential services every day to the people of Maryland," Moran said.
Miller predicted an "extremely contentious" legislative debate over an O'Malley-backed bill to strengthen state efforts at curbing urban sprawl. It could be opposed by local governments worried about preserving their land-use authority, but Miller said that, ultimately, "we're going to pass some meaningful legislation."
Busch predicted that another of O'Malley's priorities - a bill limiting State Police authority to spy on political activists - would become law. The governor's legislation will address a Maryland State Police surveillance program that included troopers infiltrating peaceful protest groups and wrongly labeling dozens of activists as terrorists in a police database.
Col. Terrence B. Sheridan, the State Police superintendent, has called the operation, which began in 2005 under a different superintendent, "disconcerting" and said his agency has abandoned the practice.
