Happy New Year 2014!

On Monday, July 1 Maryland began its fiscal year 2014. Last week, we reviewed the fiscal year 2013 budget that we rang out with the old year at midnight on June 30. The new budget totals $36.7 billion. That’s 3% higher than last year. After adjusting for inflation and population growth, the budget grows only 0.5 percent . On an inflation-adjusted, per person basis, this budget is below the budget in place three years ago in fiscal 2011.

Most of the money is stated for education, healthcare, transportation and public safety. These four slices make up over three-quarters of the total. Most of the budget growth over the current year will be in health and education programs.

The budget is balanced, with a surplus if over $1 billion projected to be available at the end of the year, one year from today (counting both general fund balances and the state’s “Rainy Day Fund”).