Employee Pension System Could Help Fill MD Budget Gap

Mar 7, 2014

Governor Martin O'Malley
Credit official photo

ANNAPOLIS, Md. (AP) - More money set aside to reinvest in Maryland's state employee pension system could be tapped to help fill a budget hole.

The Senate Budget and Taxation Committee is scheduled to make decisions on Gov. Martin O'Malley's budget proposal Friday.

Senators will be looking to fill a bigger budget gap than initially expected. That's because revenue estimates were revised downward Thursday by $238 million for the next 15 months.

About $300 million set aside for the pension system is one of the largest items on a recommendations list budget analysts presented after the revision was announced.

Gov. Martin O'Malley's budget plan already taps about $100 million meant to fund pension costs in future years. It would not affect payments now. Treasurer Nancy Kopp and Comptroller Peter Franchot have criticized the move.