Dear Constituent,

The 2012 Budget Highlights

In 2007 the structural budget deficit was addressed by raising $2 billion in new taxes. In 2011, we are still in the same dire situation. Instead of reining in spending during these perilous times we have increased the risk to future tax payers to satisfy special interest groups and unions. Last week, the Governor restored $58 million of the per-pupil cuts previously made in the Governor’s budget. He requested that it would be restored in the House Appropriations Committee (after a “March on Annapolis”).

Tax increases are not on the menu this year but we have fee increases in several areas that will touch people’s wallets.  When we have a special session to deal with Congressional Redistricting in the fall, will there be an appetite for more taxes? What a shame we cannot live within our means without further increases on our hardworking families!

Let me take you through the math from the State Expenditures-General Funds from page 8 of the House Appropriations Committee Report on House Bill 70-The Budget Bill and House Bill 72- The Budget Reconciliation and Financing Act, dated March 21, 2011.

On the Grand Total line, Adjusted Working Appropriation for 2011 for state expenditures is $13,228,000. The 2012 Appropriation is listed as $14,629,000. an increase of 10% or $1,401,000. for one year.

The Treasurer’s office listed that the state’s revenue projections will average around 3%.

If you look at page 3: the Administration Proposal total expenditures lists $14,636,400., the Appropriation actions of $14,629,900. This is a $6.5 million difference. We have a $34 billion dollar budget and to cut
only $6.5 million from it is a miniscule amount of .0004%. Come on!  This would equate to a family making $50,000./year and cutting $20.00 from what they earn.

The members of the Republican Caucus offered a plan that trimmed $651 million from the budget.  It would allow a savings for the future unexpected expenses and keep tax increases at bay.  We offered
cuts and level funding, not to backfill and spend the saving on new projects.

Our credit card budget leaves future generations at risk of affording our greed today. Is that responsible?

The budget is balanced but at what cost?  The 2012 increased by $1 billion from $33.1 billion to $34.1 billion.  Maryland found the increases from the following maneuvers:

The budget includes numerous fees, taxes, and assessments.  I think we all learned during the last campaign that a tax is a fee and a fee is a tax.  Here are some of the fees/taxes/assessments passed by the House leadership in Annapolis:

• Car titling fees increased from $50 to $100
• Land recording fees increased from $20 to $40
• Birth certificate fees increase from $20 to $40
• Hospital assessments increased 2.5%
• Nursing home assessments raised to 5.5% from 2%  2 years ago
• Parole supervision fees increased $25 to $50 per month
• Construction tax – 2% tax on IWIF worker’s compensation insurance + $4 million from IWIF – IWIF insures a majority of the construction companies in MD

The House Leadership is proposing new revenue streams to fund their spending habit and costing more from you.

I voted against the House bill 70 and House Bill 72 in its current state. I am unsure what the Senate will change when the Bill passes back from their House. I will keep you updated on the changes they make.

Below is the link from The Baltimore Sun, “O’Malley budget clears House hurdle, More fees, more money for education and counties” by Annie Linskey.  It outlines what Republicans did on the House floor and
what the burden of increased taxes/fees will mean to your family.

Article Link: http://www.baltimoresun.com/news/maryland/politics/bs-md-house-budget-debate-20110322,0,3464205.story

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This entry was posted on Friday, March 25th, 2011 at 9:09 am and is filed under Legislative Updates. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.