Halfway Through Budget Hearings: Recommended Cuts Total $101 Million So Far

With the General Assembly’s budget committees about halfway through their hearings, the biggest challenge facing lawmakers is how to continue investing in services that Marylanders rely on every day.

As the committees debate and amend the budget proposal, they are guided, in part, by the Department of Legislative Services’ (DLS) in-depth budget analysis. Last month DLS cautioned that the governor’s budget—while balanced—does not leave enough of a cushion at the end of the year to account for unexpected expenses during the year. Subsequently, as the committees work through each agency’s budget, DLS offers a menu of recommended cuts for each agency. While the legislature cannot add new money to the governor’s budget proposal, they can cut spending in some areas and transfer those funds to other priorities elsewhere in the budget. 

DLS is recommending several good solutions, including:

• Replacing $30 million allocated for debt service reduction with proceeds from anticipated sales of bond premiums.  
• Reducing various personnel and administrative costs in state agencies by $27.2 million, mostly through eliminating vacant positions or through technical adjustments, like turnover rates and cost-of-living adjustments. 
• Cutting $17.6 million from the Department of Agriculture, since this amount was already paid for by the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund.

Unfortunately, not all of DLS’s recommendations were so good. In fact, some of the agency’s recommended reductions would cut money from important state programs and services, including: 

• $14.4 million cut to economic development efforts, which includes $8.9 million for the Maryland Economic Development Assistance Authority and Fund (MEDAAF), $2 million for a biotechnology tax credit, $1 million for a cyber-security tax credit, and $2.5 million in tourism development grants. 
• Cuts to investments that support Maryland's working families, which include a $3.6 million for job training through Employment Advancement Right Now (EARN), $2 million for child care assistance, $500,000 grant for the Maryland Food Bank, and a $100,000 grant for Roberta's House. 
• $3 million cut to foster care
• $799,000 cut to agricultural land preservation through the Tobacco Transition Program
• $125,000 cut to the Department of Aging's Maryland Access Point

Lawmakers should think twice before cutting any of these programs, and should instead focus their efforts on other parts of the budget.

Next month the Board of Revenue Estimates (BRE) will release updated forecasts of state revenue for Fiscal Years 2014 and 2015.  Any increases from the December forecast will provide additional flexibility and funding as the General Assembly moves towards passing their final budget plan in April. 

As the budget committees continue their work, check back here for updates.

Book review: The 90 Day Report

The 90 Day Report, an indispensable reference published by Maryland's Department of Legislative Services, is now available on line. (Don't be quick to click "print" -- It's 446 pages.)

The book includes sections on the budget, aid to local governments, and on topic areas from agriculture to workers' compensation.

It includes extensive explanations of all the hot topics like death penalty repeal and gun regulations. It also covers most of the obscure topics of great interest to more limited audiences, like elevator inspections and pub breweries.

And ... it's free!

At MBTPI, we make extensive use of this resource year round (and often consult editions from previous years to refresh our aging memories).

If you want to know what happened in the 2013 legislature, this is the book for you.

The Week (and the Session) Ahead

Today is our annual Legislative Preview at the Annapolis Doubletree Inn. We're sharing important information for advocates and nonprofits about the upcoming legislative session. Speakers will include:

• US Senator Ben Cardin,
• Delegate Samuel I. (Sandy) Rosenberg,
• Tequila Terry, Director of Plan and Partner Management for the Maryland Health Benefit Exchange,
• Henry Bogdan, Maryland Nonprofits' Managing Director for Public Policy,
• and last but not least MBTPI's Director, Neil Bergsman.

If you want to start off the session informed and prepared, you can’t miss our legislative kick-off. Space is still available for $150 at the door.

Tuesday, January 8th

• Advisory Council for Alternative Response meets. 1pm in room 1044, Department of Human Resources, 311 West Saratoga Street, Baltimore.
• Bureau of Labor Statistics releases metropolitan employment data for November 2012.

Wednesday, January 9th

• First day of the 2013 Legislative Session.
• Maryland Nonprofits offers Forming a Nonprofit: Paperwork. This is a training, for more information or to register see their events page.  

Thursday, January 10th

• House Appropriations Committee holds an organizational meeting at 1:30pm.
• House Economic Matters Committee holds an organization meeting at 10:30am or immediately following session.
• House Environmental Matters Committee holds an organizational meeting at 11am.
• House Judiciary Committee holds an organizational meeting at 10:30am.
• House Ways and Means Committee holds an organizational meeting at 11am.
• Senate Budget and Taxation Committee holds an organizational meeting at 1pm.
• Senate Finance Committee holds an organizational meeting at 1pm, followed by a discussion of Senate Bill (SB) 14 which alters the deadline for the Utility Service Protection Program annual report. 
• Senate Judicial Proceedings Committee discusses SB 3 (a salary increase for the Howard County Sheriff), SB 29 which would authorize personal representatives of estates to take control of the online accounts of decedents, and SB 71 which would expand the ability of the Department of Human Resources to collect child support payments. Starts at 1:00 P.M. 
• Maryland Nonprofits offers Effective Relationships Between Board and Executive Director. This is a training, for more information or to register see their events page.  
• Maryland Nonprofits offers Succession Planning for Leadership. This is a webinar, for more information or to register see their events page.  

The Week Ahead

Last week we unveiled our Doomsday Clock on our website and blog, counting down the days left for the legislature to fix Maryland's budget.  Hopefully, the General Assembly moves much sooner than that, as counties, colleges, school districts and other entities reliant on state aid need time to plan their own budgets.  We also blogged the truth about taxes, and analyzed the latest Maryland employment figures.

Monday, April 23rd

• We are releasing an updated and expanded version of our brief on the doomsday budget today. The updates reflect the most recent analysis of the constitutionality of some of the cuts it contains.  We have also added an analysis what will happen to the general fund balance if the doomsday budget goes into effect on July 1st.
• Health Care Reform Delivery Subcommittee of the Health Care Reform Coordinating Commission will hold their regular meeting.  11am at the UMD School of Pharmacy, Baltimore.

Tuesday, April 24th

• The Governor, Speaker of the House, and President of the Senate will meet over breakfast to discuss a compromise revenue package as a preliminary step toward calling a special session.
• Community Services Reimbursement Rate Commission holds their regular bimonthly meeting.  6pm at the Maryland Association of Community Services, 8835 Columbia 100 Parkway, Unit P, Columbia.

 Thursday, April 26th

• Task Force on Industrial Job Creation board meets at the Baltimore Operations office of General Motors.  10am at 10301 Philadelphia Rd, Baltimore.
• Medicaid Advisory Committee meets at the State Center in Baltimore, subject to be announced.  1pm in conference room L-3, 201 W. Preston St., Baltimore.