The financial problem Marylands incoming governor already described as a crisis worsened Monday, as officials announced the states budget shortfall is even larger than previously thought. Over the next 18 months, state revenue is expected to fall nearly $1.2 billion short of Marylands expenses. The new numbers suggest the state must trim more than $420 million before the fiscal year ends in June, and an additional nearly $750 million out of the first budget Gov.-elect Larry Hogan will submit next year. Hogan, a Republican who takes office Jan. 21, said Mondays new numbers were no surprise. He cautioned residents to prepare for what may be painful budget cuts next year. I ask that Marylanders understand that these latest downward numbers mean the upcoming budget choices will be even harder and more difficult than expected, he said in a statement. Hogan was elected on a platform of curbing state spending. Comptroller Peter A. Franchot said it was time to end the states reliance on federal jobs — which employ about 300,000 people in Maryland — and federal contracts to buoy the states economy. Rather than building a diversified state economy, weve effectively put all of our eggs in one federal basket, and were seeing the immediate and direct economic impact of that approach, said Franchot, a Democrat. We need to accept that this has become our new normal, and it requires a new economic model.
Posted on: Tue, 16 Dec 2014 14:30:00 +0000
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