Governor O'Malley Cuts Over $75 Million From State Budget
$1.9 Billion in Total Reductions, 736 State Positions Eliminated During O’Malley-Brown Administration
ANNAPOLIS, MD (June 25, 2008) – Governor Martin O’Malley today announced over $75 million in Fiscal Year 2009 budget reductions and cost containment measures, including the elimination of 11.5 state workforce positions, to help mitigate the revenue loss from the repeal of the sales tax on computer services. The announcement was made at the Board of Public Works meeting, where the Governor was joined by Comptroller Peter Franchot and Treasurer Nancy Kopp. The Governor’s proposal brings the total reductions during the O’Malley-Brown Administration to almost $1.9 billion, and the total of positions eliminated to 736.
“In our first sixteen months in office, we have been able to restore fiscal responsibility to our State, while making our State government more efficient. We remain committed to expanding economic opportunities for Maryland’s families and small businesses, and protecting our most valuable asset – our workforce,” said Governor O’Malley. “In order to stick to that pledge, together, we repealed the computer services tax, which would have been a burden on the backs of too many hard workers in Maryland. We made that decision, not because it was the easy decision, but because it was the right one to do for the priorities of our people.”
During the 2008 legislative session, the General Assembly directed the Governor to present at least $50 million of fiscal 2009 general fund reductions to the Board of Public Works by July 1, 2008.
Earlier this year, Governor O’Malley introduced the FY 2009 budget, which grows less than the Spending Affordability Limit set by the General Assembly for a second year in a row. Governor O’Malley’s proposed budget cut spending by $550 million – on top of the $280 million in reductions achieved last July. Governor O’Malley’s FY 2009 budget also saves for the future by allowing the Rainy Day Fund balance to grow to $739 million by the close of the fiscal year and allocating more than $100 million for future retiree health costs. The General Fund balance projected for the close of FY 2009 is $237 million. The fiscal 2009 budget includes $340 million for school construction, another year of record funding for K-12 Education, full funding of Program Open Space, increased funding for the environment and public safety, and funding for the expansion of health care coverage.
In their first sixteen months in office, the O’Malley-Brown Administration has made steady progress for the working families of our State, including protecting the State’s strongest asset – our workforce – and making government more efficient and accountable. Together they:
- Led efforts to repeal $200 million computer services tax on small businesses and middle class families;
- Introduced legislation to improve adult education programs by linking workforce one-stop centers, community colleges, nonprofit providers, state agencies and the business community;
- Led efforts to plan for, accommodate and encourage BRAC-related growth in the state – without contributing to sprawl – by directing the population growth to areas that are served by public transit and have underutilized capacity in housing, public facilities, and infrastructure;
- Created a Workforce Creation Sub-cabinet, part of a strategic re-alignment among state agencies, to identify potential synergies and increase collaboration;
- Expanded the P-20 Leadership Council to better align our educational system with workforce goals;
- Established the Maryland Life Sciences Advisory Board to support and attract biotechnology companies to our state;
- Invested $42 million in healing stem cell research over two years;
- Helped farmers protect the land by keeping farming profitable, with record investments in cover crops and agricultural innovation;
- Created new Department of Information Technology to make state government more accountable and more efficient;
- Established StateStat, a performance measurement system for State agencies that will improve accountability and efficiency;
- Established BRAC Subcabinet to work with local governments and military installations to coordinate planning for base realignment;
- Reconstituted the Public Service and Banking commissions with independent, professional regulators; and
- Closed an inherited $1.7 billion structural deficit to secure the State’s future.
