Governor Should Allow Programs to Use the Money They Need

Marylanders may once again see schools and other services essential for broad prosperity funded at levels below what meets public needs due to an ongoing disagreement between the governor and legislature about the budgeting process.

With the start of the new budget year looming July 1, Gov. Larry Hogan is still deciding whether to spend $80 million that the legislature designated to meet a range of needs, from nutrition assistance for older adults to renovating aging schools.

This should not be up for debate. The state has the money to invest in these vital needs and there is no reason – other than politics – to hold back these funds.

In the process of reviewing the governor’s proposed budget, the General Assembly identified some areas that needed additional funding. Legislators added language to the budget stating that $80 million the governor had designated for the state’s rainy day fund should instead be used to meet those needs.

It’s important to note that the General Assembly’s approach would also still put sufficient money into the rainy day fund – money held in reserve for emergencies — for this year. Governor Hogan has said he wants to put in more money than is required. But that approach is like bulking up your savings account when you can’t afford to buy enough food or get medical care.

The programs in question include:

• $19 million to local governments to support teacher pensions. Without it, school districts might have to shift money out of the classroom to cover pension costs.
• $15 million for repairs and renovations to aging public facilities.
• $9.2 million for updates to public safety communications systems.
• $6.6 million to demolish the old Baltimore city jail complex.
• $6.1 million to renovate outdated school buildings.
• $6 million to help farmers use practices that better protect the Chesapeake Bay.
• $14 million to increase the rates that medical professionals who treat Medicaid patients are paid for their services. Right now, Medicaid providers are paid less for their services than if the patient was enrolled in Medicare and this would make the reimbursement rates more equal. If provider rates remain the same, doctors may further reduce the number of Medicaid patients they accept, making it harder for people who rely on Medicaid to afford care to see a doctor when they need to.
• $1 million to allow people age 62 and older to receive a minimum of $30 per month in food assistance, instead of the current $16 per month minimum. Without this funding it will be difficult to implement the new law increasing the minimum benefit.

When the legislature made a similar move last year to provide sufficient funding to higher-cost school districts, the governor refused to spend the money and local school districts had to scramble to adjust their budgets.

Because of Maryland’s unusually governor-dominant budget process, this tactic of “fencing off” money in the budget is one of the only ways the legislature can influence state spending. While the governor may not like this approach, punishing schoolchildren and hungry seniors by refusing to make investments the state can well afford is not the answer.