Mr. Hogan could, theoretically, paper over it in the same way that governors in Maryland have been doing for a decade or more. But that would be a terrible idea. The gimmicks the states leaders have employed — for example, diverting transfer tax money from Program Open Space to the general fund and then backfilling Program Open Space with the proceeds of bond sales — have left the state in a precarious position. We are close to our self-imposed debt limit, and debt service is ballooning. Unless the state raises its property taxes — which no one wants — it will have to devote more and more of its operating budget to paying off bonds. Making up for years of under-funding for the states pension system and meeting the states obligations to set aside money for retiree health benefits are further squeezing out resources that could otherwise go to priorities like education, health care and cleaning up the Chesapeake Bay. Mr. Hogan... wants to make an honest reckoning of Marylands ongoing revenues and expenses. [A]ddressing that problem isnt something the governor can do on his own. Though he has tremendous authority over the budget, he needs to get the General Assemblys approval to monkey with the formulas for things like K-12 education, Medicaid and support for community colleges. Thats not an easy task for any governor, but it could prove even more difficult for a Republican executive faced with a Democratic General Assembly. But it is a reckoning that is long overdue — a point, incidentally, that Lt. Gov. Anthony G. Brown made in his endorsement interview with The Sun this fall. Marylanders made clear in this election that they do not want the state to try to tax its way out of the problem, and the continued fiscal belt-tightening in Washington means Marylands economy is unlikely to grow its way out. That means tackling the spending side,
Posted on: Mon, 15 Dec 2014 16:00:00 +0000
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