Finally, a Fiscally Responsible Governor Who Shares Our Priorities

Gov. Martin O'Malley's Practical Budget Reflects the Needs of Maryland

This has been one of the most exciting and inspiring weeks in the history of our State. Governor Martin O'Malley and Lieutenant Governor Anthony Brown are already working hard steering Maryland in a better, more hopeful direction. After four years of a governor who played damaging budget games that depleted funding for schools, open space, transportation and higher education, Governor Martin O'Malley's first budget demonstrates fiscal responsibility and commitment to the needs of all Marylanders.

In Governor Martin O'Malley we have a leader who is not afraid to say what he'll do and do what he says. The proof is in the FY2008 Budget that funds key priorities with a prudent slow-growth budget proposal. This is what intelligent and focused governance can do and we haven't seen that from the chief executive in about four years.

In sharp contrast to the previous administration, Governor O'Malley's has produced a budget within the Spending Affordability Limits. It slows spending growth to 2.5 percent - far below the 12 percent growth in the election-year budget of the previous administration. Yet, school construction will receive record funding, land preservation will be protected and college tuitions will be frozen.

No Governor can ever fund all the things we might want, especially when Maryland faces serious budget issues in the years ahead. We now have a Governor who controls spending while ensuring our State can meet the health, education and economic needs of Maryland families. Some FY2008 Budget Highlights are listed below or you can see the entire list for yourself at http://governor.maryland.gov/BudgetPresentationFIN.pdf .

Regards,

Terry Lierman, Chair
Maryland Democratic Party

FY2008 Budget Highlights

Modest Growth, the Right Priorities

• Budget increases only 2.5% over FY 2007 budget
• Lower rate of growth than 9 of the last 10 budgets
• Grows less than Spending Affordability limit of the General Assembly

Addressed $394 Million Budget Challenge

• Revenue estimates lowered by $394 million in December
• Balanced the budget
• Restrained spending
• Did not raise taxes

Saving for the Future

• Rainy Day Fund Balance will be $674 million, 5% of General Fund Revenue at the end of FY 2008
• Set aside $100 million for future retiree health care costs

Maintaining Resources for Open Space and Transportation

• Fully funded Open Space & other land preservation programs
• Transportation Trust Fund used only for Transportation

Education

• Increasing aid for K-12 Education to $5.2 billion
• Funding increases by $680 million or 15%
• Provides largest increase ever for school aid
• Reflects final year of Thornton Plan phase-in
• Funds teacher pension enhancements
• Committing $400 million for School Construction - Largest amount ever provided in a single year
• Funds construction of new schools and improvements to existing facilities
• Helps make up deferred investments in school construction
• Exceeds recommendations of the Kopp Commission
• General Fund support for higher education increases by 8.3%
• Enables an In-State Tuition Freeze at University System of Maryland campuses and at Morgan State University
• Expands funding and financial aid for HBCUs

Health

• Expanding funding for Stem Cell research by $10 million
• $14 million for the Senior Prescription Drug Assistance Program to assist 39,000 lower income Medicare beneficiaries with out-of-pocket costs for prescription drugs
• $7.6 million funds services for 500 developmentally disabled young adults to transition from public school educational programs
• $6 million restores medical assistance funding for women and children who are legal immigrants
• $3 million for the Babies Born Healthy Initiative to reduce infant mortality
• Increasing Drug Abuse Treatment by $5 million
• Strengthening Health Care Provider Systems
• $40 million to increase payment rates for physicians participating in the State's Medicaid Program
• $40 million to improve Maryland's hospitals and community health facilities
• $25 million to increase rates for providers of community based services for the mentally ill and developmentally disabled
• Allocates $9 million for the Nurse Support Program to increase the number of nurses in Maryland

Environment - Restoring the Chesapeake Bay

• $177 million for Program Open Space - Fully Funding Open Space and Land Preservation
• $70 million for Agricultural Land Preservation
• $26 million for Rural Legacy
• $98 million for nutrient removal from wastewater treatment plants
• $8.8 million for the Cover Crop program, the largest amount ever
• $6 million to upgrade 500 septic systems
• $5 million to upgrade 12 sewer systems
• $5 million for Agricultural Cost-Share Program to support Best Management Practices on Maryland farms
• $10 million for Soil Conservation services, a 14% increase

Public Safety - Improving Security at Correctional Facilities

• $32.6 million for a new 192-cell medium security housing unit at the Maryland Correctional Training Center in Hagerstown
• $6.7 million for 155 new correctional officer positions
• $6.1 million for security camera systems and improved security equipment
• $1 million to improve monitoring of sexual offenders
• $984,000 to assist local law enforcement agencies with sex offender registration and community notification
• Expanding Death Benefits for Public Safety and Military Personnel
• Enhancing Juvenile Services - $1.3 million for non-residential community-based sex offender treatment
• $1.1 million to improve behavioral health assessments, substance abuse treatment, and other services
• Increasing Drug Abuse Treatment by $5 million

Jobs & Economic Development

• $70 million for business development programs, including $20 million to support small or minority business entrepreneurs
• $16 million for the Maryland Arts Council, an increase of $1.2 million or 8% over FY 2007
• $6 million in capital funding for the Neighborhood Business Redevelopment Program
• $4 million for Rural Broadband Assistance funding to extend DSL service to 26 Eastern Shore communities, attracting industry and employment opportunities to the region
• $2 million for the Sunny Day Fund to capitalize on extraordinary economic development opportunities
• $1 million for the new no-interest business loan program for disabled veterans and military reservists
• $5 million for technology transfer/development and for incubator programs
• $5 million in capital funding for the East Baltimore Biotechnology Park

Transportation

• $1 billion for highway projects
• $323 million for Public Transit projects
• $124 million for improvements to the Port of Baltimore
• $119 million for airport projects