After a week of negotiations, the Maryland Senate and House of Delegates have enacted a $31.2 billion state budget for fiscal 2009, trimming almost $500 million from Gov. Martin O?Malley?s spending plans but leaving at least partial funding for new initiatives on health care and the Chesapeake Bay.
The total approved budget is about 4.5 percent higher than this year?s. The plan leaves almost $1 billion in cash reserves, money set aside in case revenues decline further in the economic downturn. This is $162 million more than the surplus O?Malley originally planned.
“Our spending will have to be closely managed,” said Senate Budget Committee Chairman Ulysses Currie.
The budget passed both chambers with only some Republicans opposing it.
“Many of us believe the state is spending too much money, and this [budget] even includes more spending” while constituents are struggling with higher gasoline, energy and food costs, House GOP leader Tony O?Donnell said.
The budget provides as much as $19 million for stem cell research, an amount that was a sticking point in the negotiations and only $4 million less than O?Malley requested.
Public K-12 schools get a 3.6 percent increase in state aid to $5.3 billion, including some funding for the Geographic Cost of Education Index. But the aid is slightly lower than school systems expected a year ago due to reductions to the inflation allowance in the Thornton funding formula passed during November?s special session.
As the governor requested, higher education gets a 9 percent increase, enough to keep tuition flat for the third straight year. But room, board and other charges are expected to rise at some state colleges and universities.
The House and Senate halved the amount they had passed in November for the new Chesapeake Bay 2010 Trust Fund, cutting it to $25 million. But there is still an increase of $58 million in the Bay Restoration Fund to upgrade sewer systems and remove nutrients, financed by the annual $30 flush tax on residences.
Some money is set aside to begin extending health insurance to the uninsured and $15 million to help small businesses offer health coverage. There is also a new $3 million program to help veterans get mental health services, and $16 million to expand access to oral health services.
There is $5 million more for parole and probation agents to supervise violent offenders as part of O?Malley?s anti-crime agenda.
