O?Malley?s welcome: $1.2B in red

Gov.-elect Martin O?Malley will have one year to fix a projected $1.2 billion budget deficit as he starts his term in January, according to estimates from the state?s nonpartisan budget analysts.

During a briefing for state lawmakers, Warren Deschenaux, the Legislature?s chief fiscal analyst, said the state has seen continued small gains in jobs and personal income, but revenues created by the real estate and construction industry have leveled off. He said state tax collections have been “weak” in the first half of the current fiscal year that began in July, and said declines in sales tax revenues turned out to be leading indicators of the 2000 recession.