ANNAPOLIS — Maryland Republicans presented two proposals that would cut an additional $1 billion from Gov. Martin O’Malley’s 2011 budget plan by targeting local aid and education and limiting long-term spending to curb Maryland’s rolling deficit.
State Sens. David S. Brinkley, R-Carroll County, and E.J. Pipkin, R-Caroline County, proposed a plan that would save about $450 million by passing half of teacher pension costs on to local governments.
“Local aid is breaking the back of the state’s finances,” Brinkley said at a joint hearing before House and Senate budget committees on Tuesday.
Brinkley said much of the state’s budget is being determined “on autopilot” because of a number of archaic mandates, or forumulaic funding requirements, that need to be reassessed. Education, pension and Medicaid mandates were at the top of his list of formulas needing revision.
The plan would eliminate two education formulas — one that provides more state funding to jurisdictions where the cost of education is considered more expensive, and another that requires the state to substantially inflate education funding each year.
Senate Republicans’ proposal also would increase employee retirement contributions from 5 percent to 7 percent, eliminate 500 positions in the state’s executive branch and kill grants for stem cell research.
“If you aren’t prepared to make these reductions, then tell the public where you will raise taxes,” Brinkley said.
Republicans in both houses demanded that lawmakers address the state’s structural deficit without resorting to higher taxes.
“We cannot compete with our low-taxing neighbors,” said Minority Whip Christopher B. Shank, R-Washington County. “Our citizens and businesses are voting with their feet.”
Shank cited studies ranking Maryland in the top 10 states in the nation in terms of declining population, and estimated that Maryland has lost $1 billion in potential taxes — which is being collected by other states — because of “this mass exodus.”
House Republicans suggested cutting roughly $825 million from O’Malley’s 2011 budget plan by changing education funding formulas, laying off 500 state workers and eliminating the Chesapeake Bay 2010 fund, among other proposals.
The House plan would cut the University System of Maryland budget by axing 1,000 positions, cutting in half employees’ travel budgets, and taking away free tuition for employees — instead giving them a 50 percent discount– for a total of $52 million in savings.
“Marylanders are crying out for leadership,” said House Minority Leader Anthony J. O’Donnell, R-Calvert. “We’ve kicked the can down the road for way too long.”
