Gov. O'Malley says tax increases will take a 'balanced approach'

Maryland Gov. Martin O’Malley says state lawmakers must consider tax increases to help plug a projected budget shortfall that is expected to exceed $1 billion for fiscal 2013. “We need to be open to a balanced approach, including, if necessary, looking at revenues,” O’Malley said Monday on WTOP radio. He offered no specifics but he noted that the General Assembly rejected his proposal last year to index the state’s 23.5-cent-per-gallon gasoline tax to inflation.

The state Senate’s Budget and Taxation Committee recently reviewed a swath of potential new taxes that would apply to consumer services, such as accounting and landscaping, as well as snack food and prescription drugs.