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LEAGUE OF WOMEN VOTERS of Montgomery County, Maryland 12216 Parklawn Drive, Suite 101 |
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RSC (2012-6) Budget and Taxation
The General Assembly passed SB 150, the budget bill, and SB 151, the capital budget, but, because time ran out, failed to pass SB 152 the Budget Reconciliation and Financing Act or SB 523, the State and Local Revenue and Financing Act of 2012. As a result, SB 150, the so-called “Doomsday Budget” reduces state expenditures by $436.3 million because of the failure of SB 152 and SB 523 which were the vehicles for revenue raising and cost shifting. Although public education received $5.8 billion including $892 million in teacher retirement costs, the Geographic Cost of Education Index, the per pupil foundation grant, the disparity grant and supplemental disparity grant, and local law enforcement grants were either eliminated or reduced due to the failure of SB152. Because of the failure of SB 523, a long list of programs were eliminated or reduced including state aid for state universities and colleges, aid to community colleges, the 2% cost of living adjustment for state employees and 500 state employee positions. The proposed transfer of the employer share of school pension from the state to county school boards was part of SB 152 and therefore was not authorized either. If called into special session by the governor, before July 1, the General Assembly can make revisions to the budget and can address the need for additional revenues. Currently, news reports indicate that the governor is willing to call a special session if there is agreement between the two houses on budget matters.
SB 151, the capital budget authorizes $1.12 billion in new State debt. $332.6 million is allocated to public school construction, $60.6 million to Project Open Space, $38 million to the Chesapeake Bay 2010 Trust Fund, $17.5 million to the Rental Housing Program. The University of Maryland, Baltimore receives $4.7 million for the design of a new Health Research Facility and University of Maryland at College Park $5 million to design and construct a new Bioengineering Building.
Of the 30 some tax related bills reported on this Session, only two passed. HB 764/SB 739 Tax Credit Evaluation Act which would set up a process by which all current tax credits would be reviewed over a period of years for their continued efficacy. HB 592 Tax Credit for Businesses That Create New Jobs – Enhanced Credit – Extension which continues a tax credit program designed to help create more jobs in Maryland.
Barbara Hankins
