If that happens, Feb. 16 "would be very, very good for all of us," O'Malley said.
Roughly $1 billion over two years would be set aside for road, transit and sewer projects under one version of federal legislation under consideration. Another $1.6 billion would go to education and general government funding in the federal bill.
While legislation moving through Congress largely directs portions of the package to specific programs, it is unclear how much flexibility states will have. Sen. David R. Brinkley, a Frederick County Republican, said he favors using the federal money for infrastructure projects and not for government operations.
Maryland lawmakers who oversee the state's budget were cautioned yesterday by Warren Deschenaux, the General Assembly's chief fiscal analyst, that the state still faces annual budget shortfalls of at least $700 million in future years. He urged lawmakers not to use federal aid to fill budget gaps in the short term while ignoring a long-term imbalance between revenues and spending.
Deschenaux also said O'Malley's proposed budget for next year leaves just $46 million in unspent funds, a cushion he called "grossly insufficient" because the economy might decline further. Moreover, he warned, Congress could ultimately fail to pass an aid package. "This is a very unusual year with very unusual levels of uncertainty," Deschenaux said.
Hoyer estimated that the so-called American Recovery and Reinvestment Act would create or save about 100,000 Maryland jobs, offer tax cuts for 2 million families in the state and pump money into education, highway and health care programs.
Patrick Moran, Maryland director of the American Federation of State, County and Municipal Employees, said he was "encouraged" by the optimistic talk on the stimulus plan. But he said AFSCME, which represents about 30,000 state and higher education workers, has received no assurances from the governor that extra money would prevent the 700 layoffs in O'Malley's proposed budget for the fiscal year starting July 1.
"We would hope that the state would come to that decision," Moran said, "and we're going to do everything within our means to hold them to that."
Baltimore Sun reporter Julie Bykowicz contributed to this article.
STIMULUS PROPOSAL
Maryland stands to receive about $3.5 billion in the House version of the proposed federal stimulus package. Among the elements:
Balancing state budget: $1.1 billion
Medicaid: $650 million
Needy schools (Title I) and special education: $406 million
School construction: $191 million
Tax cuts: 2 million families to receive $500 (individual) or $1,000 (family) tax cut
Unemployment insurance: 242,000 workers to receive additional $25 weekly; 40,200 to receive extension of benefits
Sources: Federal Funds Information for States; office of Rep. Steny H. Hoyer
