Sep 25, 2008 12:41 pm US/Eastern
O'Malley Asks Budget Director To Recommend Cuts
ANNAPOLIS, Md. (AP) ―
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Maryland Governor Martin O'Malley has asked the state budget director to recommend spending cuts.
Gov. Martin O'Malley announced Thursday that he has asked his budget director to work with state agencies to identify spending cuts of up to 5 percent to deal with lowered revenue estimates through mid-2010.
O'Malley issued a statement saying he is expected to bring hundreds of millions of dollars in cuts before the Board of Public Works, which approves state contracts, when it meets Oct. 15.
Budget and Management Secretary Eloise Foster will work with all state agencies, which are "working aggressively" to identify up to 5 percent in cuts to the current budget, the statement said.
"The more reductions we make now, the better off we will be in dealing with an extraordinarily difficult budget next year," O'Malley said in the statement.
Comptroller Peter Franchot announced earlier this month that
state revenues are expected to be more than $400 million below
estimates for this fiscal year, which began in July, and more than
$500 million in the following fiscal year.
The governor noted 80 percent of the state budget is dedicated
to public education, public safety and public health, and the cuts
will "no doubt spark spirited debate in Annapolis."
The governor said he would work with state lawmakers "to make
these very painful cuts in a way that recognizes the burden middle
class families are facing and maintains the critical safety net of
unemployment insurance, foreclosure prevention and energy
assistance."
Franchot said earlier this month that much of the reduction
reflects lowered expectations for revenue from sales and personal
income taxes.
The budget secretary said at the time that the state has about a
$185 million balance from the previous year and would be looking to
make between $250 million and $300 million in cuts for the current
fiscal year.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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