Governor Martin O’Malley today outlined over $450 million in budget cuts including reductions to local aid which will cost Harford County $9.6 million. The Governor’s plan also includes furloughs and salary reductions for state employees, but does not cut funding to public schools. O’Malley will bring his plan to the Board of Public Works for approval tomorrow.
Here’s the breakdown of the proposed cuts to local aid:
And here is the Governor’s press release:
GOVERNOR OUTLINES $454 MILLION IN BUDGET CUTS
Governor renews commitment to protecting public schools, Maryland families
ANNAPOLIS, MD (August 25, 2009) – Governor Martin O’Malley outlined more than $450 million in budget reductions that will be presented to Maryland’s Board of Public Works tomorrow. These actions are the second step in addressing a projected budget shortfall of more than $700 million for Fiscal Year 2010, and bring the total amount of reduced spending and budget cuts under the O’Malley-Brown Administration to over $4.3 billion.
“These are not easy decisions. Just as families, businesses, and individuals across Maryland struggle to find ways to tighten their belts, our state government must do more with less,” said Governor O’Malley. “Our citizens expect and deserve a government that works, and in spite of the most severe recession in a generation we’ve been working to reform our State government to make more efficient and effective.”
Governor O’Malley, joined earlier today by Lt. Governor Anthony Brown and Maryland Secretary of Budget and Management Eloise Foster, made public the details of a plan to reduce the budget by more than $450 million. These budget actions focus on over $210 million in reductions to local aid a furlough and salary reduction plan for state employees, and reductions to state agencies, protecting entirely investments made in Maryland public schools. General fund support for public education has increased nearly $700 million since FY07, while spending for the remainder of the Operating Budget has decreased more than $1 billion.
Budget reductions to be presented to the Board of Public Works include $17 million in savings from the elimination of over 360 state positions, including 205 filled positions. The furlough and salary reduction plan, estimated to save approximately $75 million, prevents the layoff of about 1,500 additional state employees.
In July, over $280 million in budget actions were unanimously approved by the Board of Public Works. These cuts represent the first incidence in at least thirty years that state spending will be less than it was three years ago.
Despite historically challenging economic times, Maryland remains poised to come through this national recession more quickly than other states. Maryland is home to one of America’s most highly skilled workforces, holds an unemployment rate consistently 20 percent below the national average, and is one of only seven states to defend a highly coveted Triple A bond rating.
View the presentation Governor O’Malley made public today.
View a detailed accounting of local aid reductions.
Harford County’s Director of Administration Lorraine Costello tells The Dagger that the impact of a $9.6 million state cut to local aid is still being determined and even the decision-makers will vary depending upon the area affected. With the caveat that it is early in the process and no final decisions have been made, here’s the latest on the outlook provided by Ms. Costello:
The biggest dollar hit from the state was a $7. 2 million cut to Highway User Revenue. Of this figure, $1.4 million is combined aid to the towns of Bel Air, Aberdeen and Havre de Grace and each town government will determine how to handle their respective cuts. The $ 5.7 million remainder is the county portion and County Executive David Craig is looking at options which may affect capital projects and operating expenses. Looks like no layoffs or additional furloughs at this time, possibly subject to change later this fall.
A cut of approximately $962,000 to Police Aid is also divided between the county and the towns, with the county losing $688,000 of that amount. The county executive is considering options for the county portion.
Harford County Health Officer Susan Kelly is currently analyzing how to handle a $936,000 cut to her department. A Tuesday meeting is scheduled to discuss options.
Word from Harford Community College is that their $528,000 cut may be absorbed by attrition and turnover – no mention of a tuition increase at this point from John Cox, Vice President for Finance, Operations, & Government Relations
Director of Administration Costello said that some of the cuts under the purview of the county executive could be offset with a transfer of fund balance. Such a transfer would require approval by the Harford County Council.
O’malley is such a DOUCHE, he has ruined the state I love!!!
You seem quite enlightened, danp. Why don’t you tell us what’s been ruined for you, and what of it is O’Malley’s fault.
I find it interesting that some protest for lower taxes but do not accept the spending cuts to go along with it.
Phil Dirt says
I find it interesting that some people still have a hard time understanding that the problem is massive waste, corruption, and misuse of funds, the correction of which would allow for lower taxes.
Of course, if a Republican cured cancer, those same people would say that the researcher was in cahoots with Big Medicine and only did it to extort money from cancer victims. If they really cared, they would give the cure for free to everyone (forgetting about the cost of research) and we could all dance in the meadows with rainbows and unicorns.
Or just the mere the fact that our man omalley balanced the state budget last year on our other man obamas’ 300 million ‘stimulus’ to fill out our budget short fall with virtually NO cuts in the state budget.
What a man our state has elected! I’m embarassed to call myself a Marylander.
Joseph Caruso says
Well, I find it interesting that I never hear people that don’t pay income taxes complaining about income tax rates.
I do to but I pay income taxes so that would not be me.
CDEV dont you rember all sweet tax increases that we got when the GOV O’malley took over! Where did the money go?
Dave O’malley is driving people out of MD like crazy……No one wants to be in this tax hell. Where is are money going?
Explian what he is doing for us!
Who is Dave O’malley?
The increases where what was needed to make up for the deficet that Ehrlich put in the budget from his last year by robbing Peter to pay Paul. Which although techniclly not a deficiet is not sound. Thus he manuevered around the balanced budget requirement.
that second part was directed towards Dave
Looks like the biggest hit will come from Highway User Revenue, $7.2 million. Police Aid and Local Health will each be cut by just under $1 million and Harford Community College will lose around half a million.
What I would like to know is if they have already spent those funds and if so where is the money going to come from to replace it???
County Spokesman Bob Thomas says they found out about the cuts at 2PM yesterday afternoon and it’s too early to say what the effects will be. Thomas referred me to the Director of Administration – hope to have more soon…
In the immortal words of Ray Arnold: “Hold on to your butts…”
Tax and spend, tax and spend, the “people” got the government that they elected. Election time on the horizon, can’t tax and spend so it’s time to trim in areas of need and keep the fat around your cronies and their projects.
O’Malley did it to Baltimore when he expanded city government and added three deputy mayor positions that never existed complete with staffs that never existed costing the city tax payers millions that simply wasn’t there. He did the same thing when he rode the Pumpkin Carriage to Annapolis. Gave jobs to friends that stayed in pay grade for 18 months and get a state check now.
The Communicator says
Cigarette tax, HMO tax, sales tax, vehicle title tax, corporate taxes, property taxes, personal income tax, (I know I have ommitted many more) etc.
Where did the money go? My God, The 20% increase in sales tax; somebody tell me how much more money has been collected by the state?
Where did it go?
The 300% increase in utilities. Paying back the money borrowed from the pension fund to pay for other spending by the previous administration. Increased psychometric costs for MSDE.
Ed Kabernagel says
CDEV – interesting points – please tell us your source for a 300% utilities increase. Also, where can I find some information on this pension loan, how much, etc…
Phil Dirt says
He made it up like he always does.
My utilitiy bills and comparing the cost per kWh on the bill. I made the assumption that utility bills inflate for the govt at the same rate.
As far as the pension info it was an article I read in the Washington Times a few years ago.
The reality is: O’Malley today outlined over $450 million in budget cuts including reductions to local aid which will cost Harford County $9.6 million.
The spin from the gov’s office is:
Governor renews commitment to protecting public schools, Maryland families
They must sit around for hours dreaming this crap up. The white flag is up in Harford County. Please for the love of Christ, just send ALL OF IT to Montgomery, PG and most of all Baltimore City.
Harford county got away with a litle pain, so far. The cuts in transportation will hurt our infrastructure needs. It could have been worse, or maybe its yet to come. I think the county and state better make some wise choices as to what is needed or wanted. Many more millions can be cut to indeed lower the taxpayers obligation to a reasonable level
Thanks for the updates Cindy!
Obama – O’Malley – Oh Shit!
Terence O. Hanley says
The Governor’s recent budget cuts translate for the Town of Bel Air into $434,273 less in Highway User Revenues and $83,104 less in State Aid for Police. This is real money that goes directly to the residents towards Public Safety, road and sidewalk construction these reduction affect the FY 2010 Budget.
Can’t we substitute the sidewalks, the highway improvements, good law enforcement and just cut, say four or five of the 100k + administrative positions that the town has?
You got that right, Redharford. Maryland is known as “America in Miniature”. Bel Air should be known as “Maryland in Miniature” because the same thing that is happening on the state level is happening here–overblown, inflated egotists in high paying administrative positions thinking they are entitled to six figures. These people are tiny little people in a tiny little county in a tiny little state walking around like they are the most important people on earth. Get rid of them all.