Arguing Until Doomsday; Fair and Moderate Revenues Needed to Prevent Catastrophic Cuts

Earlier today the legislature’s top staff analyst briefed Senators on the “Doomsday Budget” scenario. The document is officially called Contingent Reduction Options, but “Doomsday Budget” is much more descriptive.

The Doomsday Budget cuts, totaling $795 million, would take effect if the legislature does not approve new revenues, the pension shift or both.

As we outlined earlier (Plan B: Crippling cuts to education, healthcare and jobs) the cuts would hit public schools ($205 million), colleges, universities and scholarship programs ($186 million), local governments ($103 million), medical assistance ($100 million), public employees ($78 million), and more.  

These cuts go far beyond the normal adjustments that the legislature makes, and will continue to make, to the Governor’s proposed budget. Frighteningly, the “Doomsday” cuts are not just rigged to create shock value. They are realistic. If the state takes an all-cuts approach to the budget then local schools, healthcare, college kids, and local governments will be the biggest losers. That’s because those are the areas where the vast majority of state dollars go.

These cuts would hurt Maryland families and businesses in their day to day lives beginning July 1, 2012 when the budget takes effect. They would hurt Maryland’s ability to grow and prosper for years into the future. “Doomsday” is a little dramatic – but these cuts would be much worse for our state than the taxes needed to raise the equivalent revenues.

And we do not need to inflict them on ourselves. In our next blog, I’ll discuss the reasonable and moderate revenue measures that are now under consideration.  Supporting a balanced revenue package to avert doomsday is the responsible thing to do.