Thu January 17, 2013
MD Budget Bracing for Federal Cuts
Governor Martin O’Malley says his $37 billion spending plan for the next fiscal year would boost jobs and protect the state from the financial uncertainty of deep spending cuts being considered in Washington.
The Maryland Democrat plans to increase the state’s from 5 percent to 6 percent of the state’s $16 billion general fund.
This will result in a $153 million increase in the fund bringing it to $921 million.
All told this would leave the state with about a$1.1 billion in cash reserves to make any adjustments to any federal cuts.
There is also 3 percent cost-of-living adjustment for state employees with no furloughs.
The governor’s capital budget plan will also create 43-thousand new jobs.
It includes $336 million for school construction that would produce 19-hundred jobs while transportation projects are expected to create over 16-thousand jobs.