Thursday, January 21, 2010
State Budget Flat, But Shaky
Governor O’Malley presented a state budget to the General Assembly for FY 2011 yesterday that was slightly less than the current year budget, but contained no solutions for the state’s ongoing structural deficit. The budget was largely balanced by reliance on federal stimulus funds, one-time shifts of funds, and a continuation of the budget cuts approved by the Board of Public Works last year. Employers should be concerned regarding:
- Continued funding and personnel cuts to DBED;
- $123 million in Medicaid cuts to hospitals that will be passed on to full-pay clients (such as employers);
- A 22 percent reduction in aid to private colleges (40 percent below FY 07);
- Budget actions inconsistent with a AAA state, such as borrowing from special funds, heavier use of debt, and estimating illusory new federal stimulus funds; and
- Unchecked growth in teacher and public employee pension and fringe benefit costs.
See a quick budget summary here (PDF). For more information, email .(JavaScript must be enabled to view this email address).
