Statement on Governor’s Budget Proposals

The Maryland Center on Economic Policy issued the following statement in response to Gov. Larry Hogan’s announcement of elements of his upcoming budget proposal:

“The governor’s remarks today were short on details and left out key pieces of the puzzle,” MDCEP Executive Director Benjamin Orr said. “What Marylanders should be paying attention to is what services and programs they will lose under the governor’s proposals. Gov. Hogan promised a significant tax cut while also pledging to increase spending on roads and schools, but didn’t say where the money will come from.”

Key facts:

• The reported cost over five years of the tax cuts is equivalent to about $80 million a year, more than all state funding for local health departments.
• Because, as the governor pointed out, less than 20 percent of spending is discretionary, there is a very short list of options where those cuts can come from, including higher education, public safety, hospitals and other health services, and juvenile services.
• The governor’s $17.1 billion operating budget proposal for fiscal 2017 would be about $484 million less than what the Spending Affordability Committee recommended and $236 million below what the Department of Legislative Services said is needed to maintain current service levels.