Responsible compromise stops doomsday clock

The Maryland General Assembly completed its work on the budget with 45 days remaining before “doomsday budget” cuts go into effect.   The legislature passed the (pre-negotiated) administration package without amendment. We’ll be reporting the details in the coming days … in the mean time, you can check out the legislature’s staff analysis here, and the administration’s testimony on the package (which provides a good, factual background and description), here.

On the last day of the regular legislative session, the Maryland legislature fell down on the job, giving the state’s governmental leaders black eyes.

In the special session, they did much to redeem themselves.

1.  They acted in a timely manner, so as not to require local governments, public schools, nonprofit service providers, scholarship recipients, businesses and many other affected parties to put contingency plans into effect.
2. They compromised. The administration package was not anyone’s first choice. It has been criticized from the left, the right and the center. But it is a practical plan that avoids disastrous cuts. The “doomsday budget” would have harmed families and communities today and Maryland’s prosperity in coming years.
3. They acted responsibly. The revenue plan is moderate and progressive. It affects individual tax filers with 6-figure incomes and households with incomes over $150,000. It increases taxes on these high earners by less than 1/3 of one percent. You can find Citizens for Tax Justice’s blog item here and the Institute on Taxation and Economic Policy’s analysis here.

The compromise plan relies on a shift of part of teacher retirement costs to local budgets, but it’s gradual – phased in over four years, and there are offsets in the form of local revenue and restorations of some state aid payments for police and public health.

In addition, the legislature’s action improves the state’s bottom line, reducing the chance of disruptive mid-year cuts this year, and reducing the revenue shortfall the governor and legislature will face next year.Responsible compromise. It’s a great American value. Maybe Annapolis can be an example for Washington.