Question 1 restricts necessary fund transfers at critical times

Voters are being asked to pass a referendum in November that would hinder the state’s ability to respond to financial crises and make it more difficult to protect education and other vital services from cuts. They should reject this attempt to interfere with lawmakers’ ability to responsibly manage Maryland’s finances during recessions and other emergencies.

What is question 1?

If passed, Question 1 would amend the state constitution  to prohibit transfers from the Transportation Trust Fund to other state funds. The rule could only be suspended if the Governor declares a fiscal emergency and more than 60 percent of the General Assembly votes to approve the transfer, a bar that is unlikely to be cleared.

Recessions Could Cause More Harm if Voters Approve Question 1

During and after the Great Recession, state leaders worked hard to prevent drastic cuts to education, healthcare, and important programs as revenue plunged. One of the tools they used was transferring resources from the Transportation Trust Fund and other Special Funds into the General Fund, which pays for most state services. For the most part, lawmakers either replaced the funds with bonds or agreed to a repayment plan. Most of the money borrowed from the Transportation Trust Fund has been repaid in the six years since the Great Recession hit.

Question 1 would significantly increase the barriers state leaders must overcome to quickly respond to financial crises in this manner. While the restrictions would not absolutely bar fund transfers, it would significantly delay or even prevent the state’s response to the next recession. The governor’s hands would be tied when it came to helping struggling families or avoiding massive layoffs of teachers or police officers. Drastic cuts to schools, healthcare, public safety, and the economic safety net would become much more likely.

Restrictions Would Hurt, Not Help, State Finances Question 1 will not increase financial accountability in Maryland. On the contrary, it will increase turmoil and uncertainty in times of crisis and prevent the stabilization of Maryland’s economy.

The ability to transfer resources into the General Fund was one method Maryland lawmakers used to protect residents and the economy from the worst effects of the Great Recession. While other states were sharply cutting funding for education, health care, and other important services, Maryland was able to continue providing quality services.

If the United States suffered another economic downturn, like we saw from December 2007 to June 2009, Question 1 would stall or even block the governor from taking necessary action to prevent deep cuts to services—at the very moment when those services are  needed most.