Maryland Allocates Funds to offset Federal Cuts

Maryland Governor Martin O'Malley announced the allocation of $8.8 million in reserve funds to offset federal budget cuts. This action commits nearly $9 million of the $100 million set aside during the 2013 legislative session to offset the results of federal budget actions.

The Governor's statement says:

Nearly 500 low-income children will be able to participate in Head Start programs that will prepare them to enter school ready to learn ($4.1 million). Approximately 3,000 individuals will receive the substance abuse prevention and treatment services they need ($1.6 million). Approximately 3,000 older adults will receive 180,000 meals, 2,500 seniors will have access to health screenings, and 200 seniors will be provided with home and community-based services, including personal care and adult day care. ($1.4 million). Fifty individuals in need of vocational rehabilitation services will receive those services without delay ($800,000). Approximately 7,000 people will receive job placement and training assistance ($500,000). Seventy-five adult education classes serving about 800 students will be offered as planned ($400,000).

Congress will confront another set of deadlines shortly as the federal fiscal year ends without an approved budget one September 30, and the Treasury runs out of authority to issue new debt in mid-October.

The continued federal budget impasse harms Maryland in two ways. First, the direct budget cuts affect services currently received by Marylanders. Secondly, the reduced federal activity in paying salaries and in buying goods and services hurts Maryland's economy.

These temporary back-fills from state funds are helpful in reducing the hardships to families and individuals that would occur if the federal cuts took their full effect. In the long run, however, Congress must do its job of approving a regular budget for the nation on a timely basis.