The Governor maintains the balanced budget by recognizing $140 million of the cuts the legislature is expected to make in the original budget. Even if the legislature approves all of the proposed amounts in the supplemental budget, the budget remains balanced with a cushion of over $1 billion in the state’s Rainy Day Fund plus the year-end general fund balance under either the House of Delegates or the Senate plan.
The
supplemental budget includes 101 separate items ranging from a mere $75 to
correct a funding formula for limited English proficient education to $83
million in additional federal Medicaid funding. Here are a few highlights
(figures reflect the total of all fund sources):
Sequester Reserve
The supplemental budget places $10 million into the “Dedicated Purpose Account” to support critical programs which may be disrupted by federal “sequester” cuts. These funds would be available for release during the fiscal year following review by legislative committees.Providing for New Legislation
Some of the supplemental budget items relate to costs associated with pending legislation.Gun control, wind energy, and the Baltimore City school building initiative all have items related to them.Other Initiatives
A $3.3
million initiative is designed to help remedy persistent needs at Maryland’s
four historically Black colleges and universities. Other items provide additional funds for low-income local governments, tourism promotion, and the men's baseball team at Towson Unversity.
Normal Operating Needs
Some
supplemental items provide funds for normal operating needs of state operations,
or cover shortfalls in the existing budget. Disablilty services, police, mental hospitals and juvenile services all get operating funds.
Casino dollars replace state funds for schools
New estimates of casino revenues added $10 million to the Education Trust Fund. This allowed the governor to subtract $10 million in general funds from school aid budgets. This item demonstrates that while the state share of Maryland’s casino revenue is dedicated to local schools, it does not add to the schools’ resources–it merely replaces other state funding.Assorted Good Causes
The
supplemental budget contains funding for many local organizations and projects.
Often, these address particular needs and opportunities which legislators or
others have brought to the governor’s attention. Some people consider these items "pork." Here is a partial list.
$2.5 million For the Eastern Family Resource Center in
Baltimore County.
$1.35 million For eastside redevelopment projects in
Baltimore City.
$500,000 To the Prince George’s County State’s
Attorney for violent crime prosecution.
$500,000 To assist non-public schools with
textbook purchases.
$366,000 Operating cost assistance for the
Hippodrome Arts Center in Baltimore City.
$160,000 For the Civic Justice Corps summer
program.
$120,000 For the Historic Annapolis Foundation.
Process
The budget
bill is currently referred to a House-Senate conference committee to negotiate
differences between the two chambers. The conference committee will also approve,
disapprove, or reduce the supplemental budget items. The House Appropriations
Committee and Senate Budget and Taxation Committee will review the items, and
provide guidance to their respective chambers’ conference committee members.
The
conference committee must complete its work and the House and Senate must approve
the conference committee’s report by the last day of the regular legislative
session, Monday April 8. Otherwise, the legislature will go into an extended
session to complete the budget.
The
Department of Legislative Services’ analysis and recommendations are here.
MBTPI's full briefing paper on the supplemental budget is here.
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