Press Release: Chairman Scott vs. O’Malley’s Budget Gimmicks

Statement from Maryland Republican Party Chairman Audrey Scott on

Governor Martin O’Malley’s Budget Gimmicks

“It is time for Governor O’Malley to come clean with the people of Maryland regarding his budget gimmicks. While Maryland is in economic crisis and families are being forced to tighten their belts it is becoming clear that Governor O’Malley’s only hope to meet his budget is to continue to raise taxes. It is time for Governor O’Malley to be honest with the people of Maryland.”

23 PERCENT TAX INCREASE?

That’s How Much Another Year Of O’Malley Could Cost Marylanders

FIRST, O’MALLEY TRIED TO USE “ACCOUNTING GIMMICKS” AND “WISHFUL THINKING”

TO GET RID OF $2.9 BILLION BUDGET SHORTFALL

Gov. Martin O’Malley’s Budget Results In A $2.9 Billion Budget Gap. “Under laws and contracts Maryland lawmakers have approved in prior years, the state has committed an estimated $15.7 billion in general fund spending in the budget year that begins July 1. The state, however, expects to collect only $12.8 billion in taxes during that time.” (Aaron C. Davis & John Wagner, “O’Malley Aims To Limit Maryland Budget Cuts,” The Washington Post, 1/20/10)

The Washington Post’s Editorial Board Says O’Malley Using “Accounting Gimmicks” And “Some Wishful Thinking” In Attempt To Eliminate Budget Gap. “At the same time, the governor has resorted to more than $1 billion of one-time accounting gimmicks and quick fixes, as well as some wishful thinking. He would transfer $350 million from a fund that collects localities’ income taxes (which will have to be repaid, in $50 million annual chunks, starting in 2012); use $442 million for programs that would otherwise be spent on state construction projects (which will now be postponed); and bank on $389 million in additional federal stimulus funds that may not materialize. On top of all that, the governor — who has already laid off 400 public employees and cut another 3,100 jobs from the payroll — is extending mandatory 10-day unpaid furloughs for 70,000 state workers.” (Editorial, “Postponing The Pain: An Election-Year Budget In Maryland Papers Over Tough Choices To Come,” The Washington Post, 1/24/10)

BUT NOW O’MALLEY CLAIMS HE CAN’T MAKE ANY MORE BUDGET CUTS

BECAUSE HE WOULD BE “FORCE TO CUT FROM BONE AND MUSCLE” …

O’Malley Claims “The Longer We Go Through This Recession, The More We Are Forced To Cut From Bone And Muscle.” “Deep within Maryland’s budgetary catacombs sits a giant pot of money to be used only in a fiscal emergency. But as Gov. Martin O’Malley prepares to bring a third round of proposed budget cuts to the Board of Public Works next month with a $2 billion shortfall looming for fiscal 2011, a number of legislators and state officials say it’s time for the General Assembly to consider drawing down the ‘rainy day fund’…O’Malley (D) said he would like to avoid using reserve funds for operating expenses. But he acknowledged the increasing difficulty of slashing aid to programs, as revenue collections continue to lag. ‘The longer we go through this recession, the more we are forced to cut from bone and muscle,’ he said during last week’s Board of Public Works meeting.’” (Alan Brody, “State Eyeing Rainy Day Fund,” Southern Maryland Newspapers, 10/16/09)

SIGNALING HE WILL INCREASE TAXES BY 23 PERCENT,

SOMETHING O’MALLEY WOULD HAVE NO PROBLEM DOING

To Cover $2.9 Billion Budget Gap, Revenue Would Need To Be Increased By 23 Percent. (Aaron C. Davis & John Wagner, “O’Malley Aims To Limit Maryland Budget Cuts,” The Washington Post, 1/20/10

O’Malley Has Not Ruled Out Tax Increases In The Future. “When pressed on whether he was leaving open the possibility of raising taxes should he be reelected, O’Malley did not rule them out. He said that after taking office, he supported a $1.4 billion tax increase, the state’s largest, to close a budget gap he inherited. And he said that while dealing with the recession, he has cut more from the budget than any Maryland governor.” (Aaron C. Davis, “O’Malley Puts ‘Economic Recovery’ Ahead Of Tax Increases,” The Washington Post, 1/22/10)

  • The Baltimore Sun Sees Higher Taxes This Year As A Result Of Budget Problems. “That’s the reality. Where Maryland budget policy is clearly headed – political showmanship or no – is another year of embracing short-term fixes, hunkering down and hoping for the best. Might this lead to a tax hike after the election? Maybe. Unless the economy recovers, it’s hard to believe that won’t happen no matter what lawmakers do this year.” (Editorial, “Budget By Bluster, The Baltimore Sun, 2/16/10)
  • O’Malley’s Budget Relies On Borrowing And Stimulus Money, “Setting Up Marylanders For A Broad Tax Increase In 2011.” “Critics have said that the final spending plan of O’Malley’s term, which relies heavily on borrowing and federal stimulus money, is setting up Marylanders for a broad tax increase in 2011 should he be reelected.” (Aaron C. Davis, “O’Malley Puts ‘Economic Recovery’ Ahead of Tax Increases,” The Washington Post, 1/22/10)

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Authority: Maryland Republican Party, R. Christopher Rosenthal, Treasurer. Not authorized by any candidate or candidate committee.

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One Response to Press Release: Chairman Scott vs. O’Malley’s Budget Gimmicks

  1. Yet there are still “Bond Bills” being read each and every day on the floor of the General Assembly….EVERYDAY! This is not hard, O’Malley, Miller and Busch, earmark spending/borrowing is a “hair cut” easy to do and it saves a potential 15M….right NOW.

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