Senate Budget

Pro-gambling lawmakers scrambled yesterday to assemble a significant tax package that could win approval from Gov. Robert L. Ehrlich Jr. and free the administration's slots bill for a long-sought vote in the House of Delegates. House Democrats insisted that no vote would come on legalizing slot-machine gambling until Ehrlich agrees to at least $500 million in new revenues. "The House position is: No taxes, no slots," said Del. Sheila E. Hixson, a Montgomery County Democrat and chairwoman of the House Ways and Means Committee.

The stalemate in Annapolis hardened yesterday as Senate leaders said there's no point in talking to their counterparts in the House of Delegates until Gov. Robert L. Ehrlich Jr. and House Speaker Michael E. Busch strike a deal over slots, spending and taxes. The Senate is refusing to appoint a negotiating team to settle differences with the House on the budget and taxes, an unusual move that makes it probable that the General Assembly will miss a constitutional deadline to pass a budget by Monday.

WASHINGTON - The House Budget Committee approved yesterday a $2.4 trillion budget for the 2005 fiscal year and separate legislation that would impose caps on spending, in each case voting along party lines - 24 Republicans in favor and 19 Democrats opposed. The budget bill is scheduled for consideration by the full House on Wednesday. The panel's actions set the stage for what will probably be contentious negotiations between the House and the Senate, both controlled by Republicans, to reconcile differences in their 2005 budget bills.

The Maryland Senate gave preliminary approval yesterday to a $23.6 million state budget despite complaints from Republicans that a $159 million tax package used to balance it is excessive and unnecessary. Majority Democrats fought back a Republican attempt to scuttle a proposed 5 percent sales tax on potato chips, popcorn, nuts and other salty snack foods, which are exempt from the sales tax. The $16 million it would raise was needed to compensate for incorrect health care spending estimates from Gov. Robert L. Ehrlich Jr., Democratic leaders said.

Gov. Robert L. Ehrlich Jr.'s ambitious proposal to provide drug treatment, counseling and education so prison inmates can start productive lives in their communities is not ready for statewide rollout, key General Assembly members said yesterday. Ranking members of House and Senate budget committees say they will not provide the full funding Ehrlich wants for a Division of Correction addictions and rehabilitation program, delivering a significant blow to one to the governor's top initiatives of the year.

Potato chips, pretzels and cheese puffs would be taxed for the first time in seven years under a $23.6 billion spending plan adopted by a Maryland Senate budget committee yesterday that has drawn the ire of Gov. Robert L. Ehrlich Jr. Senators said they need to restore a sales tax on snack foods to raise $16 million yearly, and generate $143 million through a variety of other business-related tax code changes because Ehrlich underestimated the cost of...

After its second major rewrite of Gov. Robert L. Ehrlich Jr.'s gambling proposal in less than a week, a Senate committee approved last night a plan to permit 15,500 slot machines at three racetracks and three tourist destinations in Maryland. The plan, which now goes to the full Senate for a vote, could shut out slot machines from both of Maryland's harness tracks -- Ocean Downs near Ocean City and Rosecroft Raceway in Prince George's County -- but it adds Dorchester County as an Eastern Shore site eligible for expanded gambling.

Senate President Thomas V. Mike Miller said last night that the Ocean Downs harness track will come out of Gov. Robert L. Ehrlich Jr.'s proposal to legalize slot machines in Maryland. The announcement came after the governor spent more than an hour meeting with eight senators late last night, arguing - on the eve of a crucial Senate committee vote this afternoon - against allowing expanded gambling near Ocean City. "I think in light of the governor's proposal and the fact it is an administration bill, and he indicated very strongly he would like to keep his commitments, I think the recommendation of the committee will be for Ocean Downs to come out of the bill," Miller said.

Gov. Robert L. Ehrlich Jr. said yesterday that his plan to legalize slot machine gambling would generate almost $900 million a year for the state within four years, providing nearly 70 percent of the money needed to pay for a landmark public schools funding plan. "It's not the entire answer, but it's a significant part of the answer," Ehrlich said during a rare gubernatorial appearance before a legislative committee. But legislative analysts questioned some of his projections, estimating the state might take in as much as $200 million less annually, in part because of potential declines in lottery sales.

The state Senate's powerful budget chief said yesterday that he may sponsor legislation that would attempt to force Gov. Robert L. Ehrlich Jr. to restore nearly $50 million he trimmed from a popular public school aid program. Sen. Ulysses Currie, chairman of the Budget and Taxation Committee, said he will propose legislation to require the governor to include in the budget money to alleviate cost disparities among the state's school districts -- unless the Education Department submits a bill doing the same.