Week Ahead (The New Year Edition)

On Sunday, the Baltimore Sun printed Neil's letter to the editor showing that Maryland's Millionaires are mostly remaining in Maryland, that interstate migration is at low levels, that people move both ways in nearly equal number, and that the average income of people who leave Maryland is less than the average of those who stay. In short, there's no exodus of millionaires from Maryland, and migration decisions are related more to people's individual life events than to tax calculations.

2013 is just around the corner, and so is the legislative session! Don't miss our Legislative Preview next Monday, January 7th at the Annapolis Doubletree Hotel.  If you want to start off the session informed and prepared, our legislative kick-off is the place to be. For more information and to register go to Maryland Nonprofits' event page.

As the holiday season reaches its conclusion, there's a light schedule of public meetings this week.

Wednesday, January 2nd

• Board of Public Works meets. 10am in the Governor's Reception Room, State House, Annapolis.

Happy New Year!

The Week Ahead

Last week Neil blogged about the continued moderately good news coming out of the Board of Revenue Estimates, and the recommendation of the Spending Affordability Committee. However, as Neil points out Congressional action or inaction may still have a large effect on Maryland's budget.

The new General Assembly website has gone live. There are still a few glitches, but advocates should familiarize themselves with the new website now before the start of session 2013.
 
Monday, December 17th

• Alcoholic Beverages Article Review Committee meets to complete its review of material dealing with multiple licensing plans (Various Titles, Subtitle 14A of the Alcoholic Beverages Article) and miscellaneous provisions. 5pm in Judicial Training Room 3, 2009F Commerce Park Drive, Annapolis.
• Maryland Health Care Reform Coordinating Council meets. 10am in room 240, House Office Building, Annapolis.

Tuesday, December 18th

• House Health and Government Operations Committee reviews draft palliative care legislation. 10am in room 241, House Office Building, Annapolis.
• Joint Committee on Access to Mental Health Services is briefed on the effect of the Affordable Care Act on access to mental health services and the DHMH Behavioral Health Integration Report.

Wednesday, December 19th

• Board of Public Works meets. 10am in the Governor's Reception Room, State House, Annapolis.
• Workgroup on Access to Habilitative Services Benefits meets. 9:30-11:30am in the Maryland Insurance Administration Hearing Room, 22nd Floor of St. Paul Plaza, 200 St. Paul Place, Baltimore.
• General Provisions Article Review Committee reviews drafts of Title 4 "Public Information Act" and Title 5 "Maryland Public Ethics Law" changes. 3pm in room 241, House Office Building, Annapolis. 
• Maryland Nonprofits offers a webinar on Starting a Nonprofit: Planning and Preparation. This is a paid training, for more information or to register go to their events page.

Thursday, December 20th

• Maryland Health Care Commission meets. 1pm in conference room 100, Maryland Health Care Commission, 4160 Patterson Avenue, Baltimore.
• Board of Directors of the Maryland Health Insurance Plan (MHIP) holds a public session. Topics will include prescription drug utilization, MHIP Tier 4 prescription drug cost sharing alternatives; and a procurement update. The Board also holds a closed session about the MHIP Executive Director search. Participants can attend the meeting in person or by conference call Dial in: 888-603-9632 Participant passcode: 2184969. 9am in suite 630, 1 Calvert Plaza, 201 E. Baltimore Street, Baltimore. 

Friday, December 21st

• Bureau of Labor Statistics releases state employment data for November. Maryland's unemployment rate fell in October, to just 6.7 percent. 

More moderately good news

On Thursday, two of the last pieces of the 2014 budget puzzle fell into place.

The state Board of Revenue Estimates published the December revenue estimates. This is the number that the Governor will base his balanced plan on. The estimate adds $161 million to the previous estimates, from September. The bulk of the increase is in the corporation income tax. The full report is here.

Also the legislative spending affordability made its final recommendation to the Governor. The new revenue estimates would fully cover the cost of the state’s “current services” budget through June 2014. However, the budget is not sustainable into the future. It depends on spending down the fund balance accrued through past revenue gains.

The Spending Affordability Committee recommended that the Governor resolve $200 million of the structural imbalance in his proposed budget. The remaining structural deficit of $183 million is judged to be “within normal budget management tolerances.” The full report is here.

Of course the wild card in the state’s budget remains the federal “fiscal cliff.” If Congress does not reach an agreement on the federal budget, then automatic tax increases and program cuts will take effect. If they do (and if they are allowed to remain in effect for more than a few weeks), then Maryland will lose considerable direct federal aid. More seriously, the federal actions would trigger a new economic downturn, which would reduce state revenues and send Maryland back into a new budget crisis.

The Week Ahead (Late Night Edition)

MBTPI staff are in New Orleans for much of this week at the annual Economic Analysis and Research Network (EARN) conference. This week's edition of the Week Ahead is very late because our travel was significantly delayed due to this mornings fog (and because the wifi at the airport didn't work). But we'll be back in Baltimore in time to cohost our conference call on the fiscal cliff (see Thursday, below).

Tuesday, December 11th

• Legislative Policy Committee holds their last meeting of the interim. 4pm in the Appropriations Committee Room (121), House Office Building, Annapolis.
• Capital Budget Subcommittee and the Public Safety and Administration Subcommittee (both of the House Appropriations Committee) go on a site visit to the Maryland State Archives and warehouses. 10am to 1pm, 350 Rowe Boulevard, Annapolis.
• House Ways and Means Committee holds briefings in preparation for the upcoming session. 10am to 5pm in room 130, House Office Building, Annapolis.
• Senate Finance Committee discusses energy issues and the Division of Labor and Industry and related laws and functions. 1pm in 3 East, Senate Office Building, Annapolis.
• Advisory Council for Alternative Response meets. 1pm in room 1044, Department of Human Resources, 311 West Saratoga Street, Baltimore.
• State Commission on Criminal Sentencing Policy continues to review and evaluate Maryland's sentencing guidelines and policies. 5-6:15pm in room 100, House Office Building, Annapolis.
• Maryland Community Health Resources Commission meets to discuss Health Enterprise Zone applicants. 2pm in room 230, House Office Building, Annapolis.

Wednesday, December 12th

• House Health and Government Operations Committee receives an update on Maryland's Health Benefit Exchange and state benchmark plan; an update by CareFirst; a briefing on Excelsior College's nursing program; and an update from the Department of Health and Mental Hygiene on generic drug reimbursement. 1pm in room 240, House Office Building, Annapolis, MD
• Special Joint Committee on Pensions meets. 2pm in room 120, House Office Building, Annapolis.
• Task Force on the Establishment of a Statewide Spay/Neuter Fund  meets. 1pm in room 250, House Office Building, Annapolis.

Thursday, December 13th

• Joint Committee on the Management of Public Funds is briefed on small business financing opportunities in Maryland and state banks. 1pm in the William Amoss Hearing Room, 4th Floor, Senate Office Building, Annapolis.
• Spending Affordability Committee meets. 4pm in room 120, House Office Building, Annapolis.
• House Emergency Medical Services System Work Group receives an update by the Maryland State Police Aviation Command and a Department of Legislative Services presentation on the Maryland Emergency Medical System Operations Fund. 1:30pm in room 318, House Office Building, Annapolis.
• Task Force to Study Maryland Insurance of Last-Resort Programs continues discussion comparing the four insurers of last resort programs. 1pm in room 231, House Office Building, Annapolis.
• Maryland Advisory Commission on Manufacturing Competitiveness holds a board meeting. 10am to noon at Frito Lay, 800 Hickory Drive, Aberdeen.
• Council for the Procurement of Health, Educational and Social Services meets. 2pm in room 240, House Office Building, Annapolis.
• MBTPI and Maryland Nonprofits host an informational conference call on the federal fiscal cliff at noon. Call 1-866-740-1260 and use passcode 7636737. 

Friday, December 14th

• Board of Social Work Examiners meets. 11am in room 109, Metro Building, 4201 Patterson Avenue, Baltimore.

PLEASE ACT NOW - THE FISCAL CLIFF IS DANGEROUS!

This is a repost of a blog by Henry Bogdan, Managing Director of Public Policy and Public Affairs for Maryland Nonprofits and our own Neil Bergsman. At the end there is more information about our fiscal cliff conference call next Thursday.

The "fiscal" or as we're calling it, the "human cliff" poses a real threat for our nonprofits and our clients. It is not just a matter of protecting the deduction for charitable contributions.

The “fiscal cliff” refers to a series of tax increases and budget cuts that take effect around the first of the year, unless Congress acts to avoid them. Maryland Nonprofits is asking you to contact your member of Congress and urge them to REACH A RESPONSIBLE COMPROMISE AGREEMENT:

• INCLUDING A BALANCED PACKAGE OF TAX RATE INCREASES ON HIGH EARNERS AND MODERATE SPENDING REDUCTIONS
• AVOIDING CUTS TO PROGRAMS THAT WOULD THREATEN THE MOST VULNERABLE AMERICANS
• PRESERVING AN EFFECTIVE INCENTIVE FOR CHARITABLE CONTRIBUTIONS
  

The fiscal cliff will trigger automatic federal budget cuts of $109 billion each year, half to defense and half to “discretionary domestic spending.” Across the board this would be an 8.2% cut to hundreds of programs that relate to nonprofits’ missions in the discretionary domestic category: from nutrition, to substance abuse treatment, to job training, and the arts.  That automatic budget-cutting process is called “sequestration.” The sequestration cuts are estimated to mean a loss of over $117 million in Maryland’s state budget alone for the next year.  
At about the same time, tax reductions for people at all income levels adopted over the last 11 years would expire all at once with major impacts on the economy. Together with sequestration these are referred to as the “fiscal cliff”.
If nothing is agreed upon in Washington, there is a strong chance of renewed recession in addition to major spending cuts.  The State Department of Legislative Services recently estimated a potential combined negative impact on Maryland’s fiscal 2014 personal income and sales tax revenues (which make up about 80% of the state’s general funds) ranging from $337 to $635 million.  Together with the sequestration cuts listed above, this could reach over 5% of the state’s total general fund budget.
Much more likely is a gradual or phased package of negotiated tax changes combined with new revenue and significant new cuts in future spending.  For domestic programs, this will be in addition to cuts over the next ten years already adopted in the Budget Control Act of 2011. Failure to raise major new federal revenue, as the President is proposing by eliminating most of the Bush-era tax cuts for the wealthiest 2% of taxpayers, will magnify the size of additional spending cuts required. Domestic program funding through the states, Medicaid, Head Start, Title 1 Education, Women and Children’s Health, for example, are all at risk. Further, any cuts absorbed by states will likely mean reductions in additional areas as they try to re-adjust priorities at their level.   
WHAT CAN YOU DO?
 
Cuts are coming – even without the “cliff” the Budget Control Act has already put reduced spending caps on discretionary domestic spending, and rapidly growing costs of veterans’ benefits will compete with everything else in that category.  Nonprofits must be advocates for raising federal revenue – as much and as fairly as possible. 

1. Support the President’s tax proposal – it is the best chance to protect the most services for people and communities we serve!
2. Oppose ‘flat dollar caps’ on tax deductions – these are being proposed as an alternative to the President’s plan for tax rate actions and a modest limit on the percentage value of deductions for top earners.  Caps won’t raise as much revenue, so many more cuts must occur, and will have major negative consequences for charitable giving and many state tax systems that benefit from federal deductibility.  More information... 
   

HOW CAN YOU DO THIS?

1. Craft a message (you can use this sample format and vary the details for your audience) that: 
1. describes the people (children, families, communities, etc.) that your nonprofit serves or advocates for, and the importance of their needs; 
2. summarizes how cuts in the government-supported services they use and need will impact them and the community; and 
3. supports the President’s tax and revenue plan to help protect those services. 
2. Communicate this message (by phone, letter, email, meetings) to your member(s) of Congress (use http://mdelect.net/ to find your representatives and their contact information). 
3. Communicate to the public through social media, letters to editor, other local media, etc., to raise the profile of the issue. Communicate the same message to your state legislators and state officials (and local officials if they are involved in the services or funding). They will decide whether or how to make up for federal cuts, and how to cut or re-allocate their own resources. 
4. Reach out through your networks, coalitions, or state associations of providers or advocates, to reach more of the state’s delegation in congress (and more of the media and the public). 
5. Keep up with developments and keep your message current and fresh – follow the Maryland Budget and Tax Policy Institute’s updates at www.marylandpolicy.org 
6. Involve your board, staff, volunteers, supporters and clients in the steps above. 
7. AND Join us for a “fiscal cliff” information conference call at noon on Thursday, Dec. 13 at 1-866-740-1260, passcode 7636737.

The Week Ahead

Today is the last day to register for our Legislative Preview at early bird prices!

The 2013 Legislative Preview will be held Monday, January 7th, from 8:30am to 12:30 pm, at the Doubletree Hotel Annapolis. MBTPI, in partnership with Maryland Nonprofits, will convene public officials, legislative experts, and advocacy leaders to give their perspectives on the budget and other legislative issues for this year. We will learn the latest news about federal budget and economic policies and how Maryland government is likely to respond. For pricing and to register go to the Maryland Nonprofits events page, then fax or email the registration form.

Tuesday, December 4th

• House Appropriations Committee holds its retreat. 8:30am to 4:30pm in room 121, House Office Building, Annapolis.
• Joint Committee on Health Care Delivery and Financing meets to discuss medication shortages and environmental pollution as a cause of illness. 1pm in room 240, House Office Building, Annapolis.
• Joint Committee on Transparency and Open Government is briefed on the Public Information Act and discusses SB 740 of 2011, SB 253 of 2012, and HB 1202 of 2012. 10am in room 130, House Office Building, Annapolis.
• Task Force to Study the Laws and Policies relating toRepresentation of Indigent Criminal Defendants by the Office of the Public Defender discusses subcommittee work and overall work of the task force. 1pm in room 100, House Office Building, Annapolis.
• Interagency Committee on School Construction holds a hearing on the 2014 Capital Improvement Program. Local education agencies will appear before the Committee. 9am to 4:30pm in the 8th Floor Conference Room 1, 200 W. Baltimore Street, Baltimore.

Wednesday, December 5th

• Joint Audit Committee discusses audit finding about the Maryland Department of Transportation and Maryland Transit Administration, a report on the Fraud Hotline, and other committee business. 1pm in room 120, House Office Building, Annapolis.
• Joint Committee on Children, Youth, and Families recieves a presentation on alternative education programs. 10am in room 130, House Office Building, Annapolis.
• Board of Public Works meets. 2pm in the Governor's Reception Room, Second Floor, State House, Annapolis.
• Maryland Underground Facilities Damage Prevention Authority meets. 9am in the lower level conference room, One Call Center, 7223 Parkway Drive Hanover.

Thursday, December 6th

• Southern Maryland Higher Education Council holds a work session. 10am to noon in the conference Room at the Courthouse Square Office Building, 205 Main Street, Prince Frederick.
• Commission on Maryland Cybersecurity Innovation and Excellence meets. 9-11am, University of Maryland University College, ICC 2101, 3501 University Boulevard East, Adelphi.
• Maryland Economic Development Commission holds a board meeting. 10am to 12:30pm in the 15th floor conference room, World Trade Center, 401 East Pratt Street, Baltimore.
• Maryland Nonprofits offers Financial Leadership. This is a Maryland Nonprofits training, for more information or to register go to their events page.

Friday, December 7th

• Commission to Study Campaign Finance Law meets to review final report (if needed). NOTE: Commission meeting subject to cancellation. 3:30pm in room 130, House Office Building, Annapolis.
• Bureau of Labor Statistics releases national employment figures for November. In October the unemployment rate ticked up slightly, but employers added 171,000 new jobs.

The Week Ahead (Cyber Monday Edition)

Welcome back from the Thanksgiving break! Last week - in addition to consuming copious amounts of turkey, stuffing, cranberries, and pie - we blogged about #GivingTuesday (which is tomorrow) and the latest good news about employment in Maryland.

Neil Bergsman also appeared in a Washington Examiner story about upcoming MD budgets. We've asked the Examiner to clarify that MBTPI is not in favor of increasing the corporate tax rate. We do support a combination of reducing Maryland’s corporation tax rate while broadening the base - by reforming the tax code to make it harder for multi-state corporations to use accounting maneuvers to escape Maryland’s tax. This could modestly increase state revenues and reduce taxes for local businesses while making sure that large multi-state corporations pay their fair share. Neil also appeared in a story on holiday giving for the Gazette.

Today is also Cyber Monday, the traditional day when office workers spend their work hours shopping for online deals. Finding a deal online is fun, but remember that Maryland will lose $200 million dollars in owed but unpaid sales tax to internet retailers this year. Not only is that lost revenue for the state, but it represents more than $3 billion in lost revenue for local businesses and fewer Maryland jobs.

Monday, November 26th

• Alcoholic Beverages Article Review Committee reviews material dealing with the conditions for issuing licenses. 5pm in Judiciary Training Room 3, 2009F Commerce Park Drive, Annapolis.
• Community Services Reimbursement Rate Commission meets. 6-8pm in the basement conference room, Mental Hygiene Administration, 55 Wade Avenue, Dix Building, Catonsville.

Tuesday, November 27th

• Maryland Nonprofits, MBTPI, and many other nonprofits around the country take part in #GivingTuesday. You've heard of Black Friday, Small Business Saturday, and Cyber Monday. Now celebrate the important work done by nonprofits and give back to your community on #GivingTuesday.
• Land Use and Ethics Subcommittee and the Local Government and Bi-County Agencies Subcommittee (both a part of the House Environmental Matters Committee) jointly meet to review the "flags" identified in the new Land Use Article. 10am in room 250, House Office Building, Annapolis.
• Joint Information Technology and Biotechnology Committee meets to discuss digital textbook use in Maryland, electronic medical records, the Maryland Innovation Initiative, Cigarette Restitution Fund grants, stem cell research grants, and Invest Maryland. 1pm in room 231, House Office Building, Annapolis.
• Task Force on the Establishment of a Statewide Spay/Neuter Fund meets. 1pm in room 250, House Office Building, Annapolis.
• Interagency Committee on School Construction meets via teleconference to discuss the Baltimore City Block Grant MCR draft report. 3:30-4:30pm on the 8th floor, conference room 1, 200 W. Baltimore Street, Baltimore.
• Maryland Nonprofits offers Enhance Your Individual Donor Program. This is a Maryland Nonprofits training program, for more information or to register go to their events page.

Wednesday, November 28th

• Capital Budget Subcommittee and the Health and Human Resources Subcommittee (both a part of the of the House Appropriations Committee) goes on a site visit to the Prince George's County Health Care System. The visit begins at 11am. 
• House Environmental Matters Committee holds its retreat to discuss legislation for the next legislative session. 9am in room 250, House Office Building, Annapolis.
• Senate Education, Health and Environmental Affairs Committee and House Environmental Matters Committee jointly meet for a presentation on proposed regulations stemming from the Sustainable Growth and Agriculture Preservation Act of 2012. The presentation will be given by the Department of the Environment. 1pm in room 250, House Office Building, Annapolis.
• Joint Committee on Unemployment Insurance Oversight meets to discuss the status of the Unemployment Insurance Trust Fund, tax tables for 2013, the impact of the Modernization Act from 2010, implementation of the Victims of Domestic Violence Act from 2012, the legislative audit of the Division of Unemployment Insurance, and unemployment benefits for individuals unable to work due to cancer in other states. 9am in room 3 East, Senate Office Building, Annapolis. 
• Bureau of Labor Statistics releases metropolitan-level employment figures for October. 
• Maryland Nonprofits offers Forming a Nonprofit: Paperwork. This is a Maryland Nonprofits training program, for more information or to register go to their events page.

Thursday, November 29th

• Maryland Medicaid Advisory Committee meets. 1-3pm in the lobby level conference room, L-3, 201 West Preston Street, Baltimore.
• Maryland Nonprofits offers Streamlining Your Marketing Through Content Strategy. This is a Maryland Nonprofits training program, for more information or to register go to their events page. 

21,000 more Marylanders employed

Yesterday Maryland received some good news from the Bureau of Labor Statistics when the latest jobs report showed that 20,977 more residents were employed in October than September. 5,104 fewer Marylanders were unemployed, and the unemployment rate dropped two tenths of a percentage point to 6.7 percent.

Click to enlarge

The state added a total of 14,000 new jobs during the month. The largest increases were in the professional and business services industry (+3,900); trade, transportation, and utilities (+3,700); leisure and hospitality (+3,700). The construction (+2,300), financial activities (+1,700), and education and health services (+2,700) industries also added jobs. Manufacturing (-2,300) and government (-2,700) lost jobs.

This is the lowest Maryland's unemployment rate has been since May, and the most private sector jobs created in one month since 1996.

While this is great news, there are still more than twice as many unemployed Marylanders as there were before the Great Recession. As Governor O'Malley develops the budget he will submit to the legislature in January, we urge him to continue to support and expand programs for struggling families all across Maryland.

Giving Tuesday

This is an edited version of a post that originally appeared on the Maryland Nonprofits blog. Dawn Edwards, Director of Development for Maryland Nonprofits (our parent organization), is the author.

The holiday season is upon us…  If you failed to notice, you’re one of the lucky few that haven’t seen holiday decorations (already!!) festooning storefronts; and you’ve somehow avoided bombardment by Black Friday, Small Business Saturday, and Cyber Monday sales ads.  I can’t help but wonder, “what’s the rush?”  We barely have time to give thanks before we are encouraged to leave our tables to shop for that “perfect present” for everyone on our list.

This year there is  an alternative to the corporate takeover of the holiday season… it’s called #Giving Tuesday^TM.

#GivingTuesday, scheduled for Tuesday, November 27th, is a special call to action, culminating in a new, national day of giving. It is the first effort of its kind, designed to harness the collective power of a unique blend of partners – charities, families, businesses, and individuals – to transform how people think about, talk about, and participate in the holiday giving season.  The goals are to inspire people to take collaborative action to improve our communities, give back in better, smarter ways, and to help create a better world.  

If you are a nonprofit organization you can be a part of this ‘opening day’ to the giving season by becoming a partner.  Between now and November 27th, tell your donor community (really everyone in your network) about #GivingTuesday to inspire early giving…before the year-end tax deduction rush we are all too familiar with. 

As individuals, we encourage you be a part this new day dedicated to giving by donating to your favorite causes.  And spread the word about #GivingTuesday to everyone you know!

#GivingTuesday will prove that the holidays can be about both giving and giving back.  It will celebrate Americans doing more with their wallets than just shopping – and that we Americans can give as good as we get!

With just 7 days left until #GivingTuesday, how do you plan to "Get out the Give" this giving season?!

More information...
Read the Maryland Nonprofits press release on #GivingTuesday
#GivingTuesday on Twitter
#GivingTuesday on Facebook

The Week Ahead (Thanksgiving Edition)

Registration is now open for our annual Legislative Preview!  On Monday, January 7th Maryland Nonprofits and MBPTI will convene public officials, legislative experts, and advocacy leaders at the Doubletree Annapolis Hotel to bring you important information about the upcoming legislative session. If you want to start off the session informed and prepared, you can’t miss our legislative kick-off. For registration information please go to Maryland Nonprofits event page.

Last week we hosted a guest blog from Henry Bogdan, Managing Director of Public Policy and Public Affairs for Maryland Nonprofits, on the variation in support for the various ballot measures across Maryland. We also posted a great infographic about growing income inequality in Maryland and a summary of last week's Spending Affordability briefing. Neil Bergsman also appeared in the Washington Examiner, in an article on the need for new sources of transportation funding.

Tuesday, November 20th

• General Provisions Article Review Committee reviews drafts of Title 4 "Public Information Act" and Title 7 "Emblems; Designations; Commemorative Days and Months." 5pm in room 241, House Office Building, Annapolis.
• Maryland Commission on Artistic Property meets to discuss the state's art collection. 10:30am at the Washington County Museum of Fine Arts, 401 Museum Drive, Hagerstown.
• Bureau of Labor Statistics releases state employment figures for October. In September, Maryland's unemployment rate fell to 6.9 percent as 11,000 people found work.

Immediate budget problem evaporating – serious challenges remain

Maryland’s budget deficit for fiscal 2014 is nearly gone. The legislature’s fiscal staff recently briefed the Spending Affordability Committee and presented new estimates. These incorporated revised estimates of state debt service requirements and casino revenues.

Source: Dep't of Legislative Services

The result is a projected shortfall of only $27 million. In the context of a total budget of $35 billion, that is essentially balanced.

Does that mean the Governor and legislature don’t have any budget work? Hardly. There are three big, big challenges.     

1.  The fiscal cliff. As we have shown, an impasse on the FEDERAL budget would have severe effects on Maryland’s economy and budget. The White House and Congress must achieve a responsible compromise that avoids precipitous cuts and middle-class tax increases, but that significantly reduces the federal deficit over time. Legislative staff recommended that the upcoming Maryland budget should leave a positive fund balance of $200 million as a buffer.
2. The structural deficit. Even though Maryland has virtually balanced its budget for the upcoming year, the state’s finances are not yet sustainable for the long haul. The projected budget for the upcoming year – fiscal 2014 - could be balanced without much effort because there’s a ¾-billion-dollar surplus to start the year. If we finance the budget by spending down that surplus, then revenues will continue to fall short of expenses after the balance is gone, and the state will be looking at budget shortfalls again in a year or two. So the Governor should propose ongoing revenue increases or spending reductions to bring the budget into long-term balance. One idea for raising revenues is an increase in the tax on cigarettes proposed by the Maryland Citizens’ Health Initiative. This would help balance the structural budget and reduce future health expenses by discouraging smoking.
3. The Transportation Trust Fund. Like most states, Maryland has a special, dedicated fund to pay for roads and other transportation projects: the transportation trust Fund. The gas tax, the transportation fund’s major revenue source has not increased since 1992. And the gas tax does not adjust to account for inflation or for fuel process. The fund is now running out, and without new revenues there will not be enough money for any new construction of roads or mass transit. Maybe not enough to cover operation and maintenance of what we have now. The 2013 legislature will need to consider increasing the gas tax for the first time in 20 years.

Growing income inequality in Maryland

Our friends at the Center on Budget and Policy Priorities and the Economic Policy Institute have released a new report looking at the growth in income inequality between the top, middle, and bottom of the income spectrum. They've created a great infographic about how inequality in Maryland has widened in recent decades:

Click to enlarge

This prolonged growth in income inequality undermines the basic American belief that hard work should pay off. Continued growth in income inequality would harm our state’s future economy. Policies that narrow rather than widen income inequality will help Maryland recover from the downturn and grow our economy into the future. Policies such as:

• Promoting access to education and job training for tomorrow's labor market.
• Continued growth in investments in transit, childcare, and other programs that help workers connect with employers and keep jobs once they're hired.
• Other protections for low-wage worker incomes such as paid sick leave.

Growing income inequality is bad for Maryland and policymakers should pursue policies that narrow – not widen – income gaps.