Maryland revenue needs are on legislators’ minds, but not on special session agenda

Maryland’s 188 legislators are now meeting in special session to draw new lines for the state’s eight Congressional districts. Final census counts were released in the spring, and they must decide the new district boundaries in time for candidates to file in January for the primary elections in April.

This would have been a good opportunity to get a head start on fixing Maryland’s future revenue shortfalls.

Once the legislature is in special session, it may consider bills related to anything. Earlier in the year, there was speculation that the special session would consider some new revenue measures. Now, however, that appears unlikely.

That’s too bad, because even though Maryland’s state budget is balanced through June, 2012 -- and there has been a bit of good news about revenue collections rising --in fact the cushion is thin, and new revenue shortages are looming in the next fiscal year.

Projected revenues for 2013 will be at least $500 million short – and maybe a lot more than that -- of what’s needed to fund the existing level of state services.

And keep in mind, the existing level of services already is much less than it used to be. Cuts of $5 billion over the past 4 years are jeopardizing public education, local transportation, healthcare funding, child care, and much more. They hurt the state’s ability to create jobs and build a strong economy.

That’s the reality that legislators will face in January when they come back to Annapolis for their regular session.

The Governor has signaled that he will propose an end to the cuts-only strategy and offer a balanced approach that includes revenue. A recent Gonzales poll found that 64% of likely Maryland voters support some combination of revenues and cuts – far more than favor a cuts-only approach.

There are sensible options for raising revenues, One is to reinstate the three-quarters of one percent tax on income over one million dollars that expired in 2010. Another is to plug loopholes in the corporation income tax that allow multistate companies to hide their profits from Maryland taxes.

The Governor and legislature should at least think about these measures while they are in Annapolis for the special session. Even better, they can talk to each other and their constituents about the serious damage that will come with further service cuts. They can identify the best options for adding revenue as part of a balanced approach. Then, when they come back in January, they should pass the bills to enact them.