Wednesday, June 13, 2012

Maryland Spending Growth Highest in Region







Maryland Spending Growth Highest in Region

6.13.12

Annapolis, MD - A report issued yesterday underscores again

dramatic spending growth in Maryland, where the budget has increased

more than any other state on the eastern seaboard and the mid-Atlantic

region. Nationally, the rate of growth is higher than all but five other states,

according to the non-partisan National Governor's Association which

compares state general fund budgets from fiscal years 2011 to 2013.


"What happens when you increase spending by more than most other
states and you pass 24 tax and fee hikes? You end up having the
biggest job loss in the nation," said Change Maryland Chairman Larry
Hogan, referring to the latest U.S. Department of Labor report which
showed Maryland leading the nation in lost jobs.

The report, issued twice a year by the National Governor's Association
and the National Association of State Budget Officers, details budget
levels among the fifty states. Taking into account the last two years
and the next fiscal year's budget, Maryland's 15.5% growth contradicts
numbers the O'Malley Administration pointed to just six months ago.
At that time the spending increase was 11.4% between fiscal years
2011and 2012, which the Administration tried to dismiss due to
expiring federal stimulus dollars.

An O'Malley Administration spokesperson said in November that,
"Maryland has increased general fund spending more slowly over the
last two years than most of our neighbors."

"Once again, the Administration is making it up as they go," said
Hogan. This is just like the fictional $8 billion in 'cuts' the
Administration claims to have made. Fortunately, a non-partisan
organization, of which the Governor is a member, provides some
much-needed facts."

The total operating budget has grown from $28.8 billion in 2007 to
$35.5 billion today. The general fund accounts for discretionary
spending funded by state tax dollars.

The report adjusts budget numbers with each issue based on estimated
versus actual spending. The average budget growth among all states
from 2011 to 2013 is 5.5%.

###

Background:

"Fiscal Survey of the States," Spring 2012 page 7, table 6.
http://www.nasbo.org/sites/default/files/Spring%202012%20Fiscal%20Survey%20of%20States.pdf


Baltimore Sun "Maryland Budget Increase Highest in Region"
http://weblogs.baltimoresun.com/business/hancock/blog/2011/11/maryland_budget_increase_highe.html




1 comment:

Jeff said...

Most of that increase is due to loss of federal funding and almost all of it is related to education. You can make cuts to education(mainly no child left behind and other mandated testing)and save some, but education has always been easy pickings for budget cuts while politicians on both sides push their pet projects.

I get your point though and I do agree that the state budget should always be up for debate. But I it is a little more complicated than what it was boiled down to in the post.

BTW, I like the community related info in your blog and because of it, I plan to visit Pocomoke City again soon. It looks like there are some nice things happening downtown!