MD unemployment rate drops

Maryland's unemployment rate fell to 6.4 percent (PDF) in November, according to data released today by the Bureau of Labor Statistics, after stalling at 6.7 percent for the previous two months. This is the lowest unemployment rate Maryland has seen in almost five years.

The state unemployment rate fell in November because the number of employed Marylanders rose by just over 8,800 workers. The number of jobs in Maryland (these are two different measures-some jobs may be held by nonresidents, while some Marylanders may work outside the state) also went up, by roughly the same amount.

While this is welcome news, Maryland's economy still has a long way to go as it slowly recovers from the Great Recession. And the slow recovery is likely to continue: the Board of Revenue Estimates projected recently that job growth will continue to be sluggish in 2014 (PDF), at just 1.5 percent.

Maryland lawmakers will have the opportunity to take action in 2014 on a number of issues that could help working families, whether it's promoting job creation directly, providing supports to help while workers are between jobs, or investing in the things that make our state great (like our natural environment, our schools and hospitals, or the infrastructure that connects us. We'll be watching to see what they do. 

MD revenue projections down $61.9 million

Yesterday, the Board of Revenue Estimates released its latest figures for Fiscal Year 2014. The Board now projects General Fund and Budget Restoration Fund revenues of $15.4 billion. While this is less than the previous projection, revenues are still expected to rise 3 percent from FY 2013.

Looking closer, the revisions are quite different depending the source of the income. The personal income tax estimate has been revised upward by $114 million, but corporate income taxes are now projected to be $67 million lower. Sales and use tax, state lottery receipts, and a variety of other revenue sources are also projected to perform below previously anticipated levels.

The reason for these downward revisions continues to be the stubbornly lackluster economic recovery, and the fiscal uncertainty emanating from Congress. That's why Maryland must continue to take the initiative by raising the funds necessary to keep investing in what makes our state great (education, health care, innovation, a strong safety net), regardless of what happens at the federal level.

Getting By: Government Help Needed

What does it take to get by in Maryland? Much more than it used to, especially after the Great Recession. As prices rise and income stagnates, the gap between rich and poor grows ever wider. If it weren’t for government help, Maryland families would be even worse off, as documented in a new report.
 

The third edition of Maryland’s Self-Sufficiency Standard calculates how much is needed to make ends meet for individuals and families across the state. This resource (produced by the University of Washington School of Social Work and the Maryland Community Action Partnership) breaks out figures for each of the state’s 24 counties, and notes the different amounts needed for various types of families. Unsurprisingly, it’s a lot more expensive to live in some counties than others, and supporting children means needing significantly more resources.

The bottom line: government programs are crucial in defraying costs for many Maryland families. True self-sufficiency for more people in Maryland will require more good jobs with decent wages. In every county, costs have risen and incomes have failed to keep pace since 2001. Queen Anne’s County’s increase in the amount necessary to cover basic needs was the most dramatic, going from about $33,000 in 2001 to nearly double that in 2012.

In Somerset County a single parent with one pre-schooler and one school-aged child, receiving child support, child care vouchers, Medicaid, and food assistance, still has to make at least $7.53 per hour working full-time to make ends meet. Without government subsidies, the hourly wage would have to climb to about $20 to meet basic needs. In Baltimore County it would take nearly $30 per hour (about $60,000 annually) to support the same 3-person family type, more than three times the Federal Poverty Level of $18,500 for a family of three.

The Maryland Capital News Service has produced a package based on the Self Sufficiency Standard that highlights budget conditions around the state, and the kind of aid essential to keeping families afloat and helping them advance. In the short term, work supports such as transportation subsidies, child care vouchers, food assistance and Medicaid can make all the difference in enabling someone to get and keep a job. Other boosts such as the Earned Income Tax Credit help offset expenses and lead to long-term economic progress.

Americans all across the country rely on government help. MBTPI urges wise and necessary investments in our fellow Marylanders. Now is the time to expand state revenues, rather than cut the very programs that are helping so many families keep their heads above water. As it is, vital help (such as child care vouchers) is already inadequate and many programs have large and growing waiting lists. Ultimately, transitional assistance, education and training are the keys to better paying careers for greater self-sufficiency, security and success.