Tensions were high as state lawmakers scrambled at the eleventh hour to pass an operating budget, and many officials are analyzing why the last day of the state General Assembly ended with cutting millions of dollars to education, public health and the environment.
As Monday night wore on, the state House and Senate successfully fulfilled their constitutional duty: passing an operating budget to fund the state’s basic functions. Sen. Roger Manno (D-Montgomery) said efforts to avoid large cuts were derailed because of the stark differences between the chambers’ budgetary priorities.
The budget measure that passed featured a sweeping $512 million in across-the-board cuts, prompting several lawmakers to urge Gov. Martin O’Malley to call lawmakers back in for a special session to remedy what they called a “doomsday” budget.
However, O’Malley said he is critical of how the night played out.
“We’re left with a budget that could lead to increases in college costs, massive cuts to local jurisdictions, so it’s extremely unfortunate,” said Raquel Guillory, O’Malley’s spokeswoman.
Although O’Malley has not yet decided if he will authorize a special legislative session, she said O’Malley is wary of the tension between House Speaker Michael Busch (D-Anne Arundel) and Senate President Mike Miller (D-Calvert and Prince George’s).
“Until Miller and Busch can reach a consensus, there’s no need in bringing back an entire legislature for another replay of Monday,” Guillory said.
This year, the Senate was tasked with creating the budget, and they divided the cuts and expenses into three different bills.
To avoid the $512 million in cuts, both the Senate and the House needed to pass two bills: a package setting guidelines about where state funds can go – called the Budget Reconciliation and Financing Act of 2012 – and a measure to generate revenue through new taxes, called the State and Local Revenue and Financing Act of 2012.
They failed to pass the measures. Thus, the state was forced to pass a balanced budget featuring severe cuts to many programs on Sine Die, which is the last day to pass bills. Manno said the Senate’s approach to the budget made difficult decisions but was the most responsible way to tackle the state’s deficit.
“The Senate spent 10 weeks building a budget almost from scratch,” Manno said. “The House came in very late and was unwilling to compromise and had a completely different view of what that budget should look like.”
Some officials said while the General Assembly fulfilled its constitutional obligations by passing a budget, its cuts to public health, the environment and about $63 million to higher education is devastating to the state. The University System of Maryland will face about $50 million in cuts if revenue-generating bills are not passed in a special legislative session, according to system Chancellor Brit Kirwan.
“I think Maryland has, during this national financial crisis, distinguished itself in the way it has managed its budget and invested in its priorities: education, and most especially higher education,” he said. “Unlike most other states, we’ve been able to keep tuition affordable.”
Kirwan added that while the system will prepare for the worst, he expects lawmakers to reconvene for a special session to eliminate the current reductions. If this pans out, the system will see $5.3 million in cuts.
Many lawmakers and state officials have urged O’Malley to call for a special session to address their concerns about the budget. According to Joseph Shapiro, state Comptroller Peter Franchot’s spokesman, O’Malley should redraft a responsible budget.
Shapiro added that Franchot believes the budget should not include an increased gas tax – which failed to make it to a vote on the floor but could come up again in a special session. It would come at a time when the economy and rising gas prices were not conducive to added expenses, Shapiro said.
Additionally, Shapiro said Franchot opposes the idea of authorizing table games in the state – which might be voted on in the special session – saying it is “the wrong way to bring in revenue for the state.”
However, others, such as Sen. Ed Reilly (R-Anne Arundel), said the cuts are necessary and the term “doomsday” budget is unwarranted.
“I think the term is inaccurate; I would call it the ‘sustainable budget,’ which means that there were no significant new taxes,” he said. “We’re sustaining our revenue and expenses from last year.”
Reilly added that revenue measures did not pass because the chambers could not reconcile the differences in their budget priorities, and that a special session is not needed because the General Assembly passed a budget as the state constitution requires.
“The Democratic leadership failed to bring people together and seek compromise,” he said. “We are only required to pass one bill per year by state constitution, and that’s a balanced budget bill that funds education; we’ve done that.”
Del. Anne Kaiser (D-Montgomery) said the looming budget cuts need to be addressed and expects the governor to call the legislators back for further discussion in the next few weeks.
“I do expect us to return and make those other changes,” she said, adding that it’s a necessary step “to ensure that we invest in things we know that matter.”
bach@umdbk.com
