Baltimore Sun

Recent economic turmoil has diminished Maryland tax collections so much that legalizing slot-machine gambling would no longer be enough to solve the state’s long-term budget problems, according to new fiscal estimates.

A year ago, state officials hailed the closing of the so-called structural budget deficit – a persistent gap between revenue and spending of as much as $1.7 billion – after Gov. Martin O’Malley and the General Assembly approved a package that included tax increases, budget cuts and the slots proposal that goes before voters this November.

Estimates then showed that when slots revenue fully kicked in, the expected $600 million a year in new revenue would be enough to keep the budget balanced for the foreseeable future.

But in a matter of months, the structural deficit has returned, to the tune of more than $800 million annually for at least five more years, even if voters approve slots, according to projections from the nonpartisan Department of Legislative Services.