Release: House Republicans Fight to Return Fiscal Sanity to Maryland

House Republican Caucus Press Release

FOR IMMEDIATE RELEASE
From the House Republican Caucus
March 19, 2008

House Republicans Fight to Return Fiscal Sanity to Maryland

Annapolis – House Republicans today offered a series of budget amendments that would further reduce state spending, allow for a repeal of the computer service tax, and cushion the state against further economic downturn and additional revenue write-downs.

“Over the last year, the House Republican Caucus has brought forth three individual budget plans that would have preserved state services and controlled spending without increasing taxes”, said Minority Leader Anthony J. O’Donnell. “Our pleas and the pleas from the taxpayers for fiscal restraint have all fallen on deaf ears. Each plan we have presented has been soundly dismissed with little consideration. Now, on the tails of the largest tax increase in Maryland’s history, in the face of a grim economic forecast with $333 million in revenue write-downs, we offer yet another plan. We are hopeful that finally, our colleagues across the aisle will agree that it is time to restore some fiscal sanity to the State of Maryland.”

Part of the Republican Plan included an amendment from the Minority Leader that would reduce the overall budget growth from the Governor’s original proposal of 6% growth ($1.8 billion) to a growth of 2.5% ($733 million). O’Donnell’s amendment would allow for a repeal of the Computer Services Tax without backfilling with new taxes. It also created a fund balance to cushion the state against future revenue write-downs.

“Trimming a few hundred million off the budget is a good first step, but it does not go far enough to meaningfully address Maryland’s fiscal health”, said Delegate Gail Bates, the ranking Republican member of the House Appropriations Committee. “Spending has not been restrained and the Administration and the General Assembly continue to create new programs. Even with the reductions taken by the House Appropriations Committee, the budget grows by $1.3 billion, a 4.3% increase over last year”.

“Truth in budgeting does not exist in Maryland”, said Minority Whip Christopher Shank. “There are slush funds masked as hundreds of vacant but funded positions and there is no will in the majority party to truly eliminate them. Enough is enough. The chronic overspending must end. It is not sustainable and will have catastrophic effects on the citizens of Maryland. With all indications pointing to another revenue write down in September, if we do not get a tight grip on spending the Democrats will be responsible for additional taxes, actual cuts in services people are receiving and actual layoffs of the State’s workforce.”

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