ANNAPOLIS – Maryland Gov. Martin O’Malley said Wednesday that $1 billion may have to be cut from Maryland highway and transit projects over the next six years, on top of the $1 billion in construction already cut in September because of the dip in transportation revenues.
But O’Malley is hoping that the federal stimulus package for the states being discussed by President-elect Barack Obama and the incoming Congress will make up for some of lost revenue from the taxes on gasoline and vehicle titling.
The amount of the potential federal aid is still up in the air, but transportation officials already are lining up an expedited procurement process for road re-paving, bridge painting, harbor dredging and bus purchases to quickly use the money, Maryland Secretary of Transportation John Porcari told the Board of Public Works Wednesday.
“We will be doing a lot of system preservation projects,” Porcari said.
Porcari expects that any construction money flowing from Washington would have to be used in 120 to 180 days to put people back to work more quickly.
In some cases, that would mean bypassing the usual vote on construction projects by the board made of the governor, comptroller and state treasurer, and seeking “retroactive approval” later.
O’Malley said he also hoped some of the federal stimulus package could be funneled to the counties for their own road projects.
Grim outlook
A look at Maryland’s budget situation:
Budget shortfall:
- This fiscal year: $415 million
- Next fiscal year: $2 billion
Furloughs ordered Tuesday:
- Two to five days for state employees, depending on salary
- Affect 67,000 of 80,000 employees
Other likely budget cuts:
- Expansion of health care to the uninsured will likely be delayed.
- Money for a $20 million fund to clean up the Chesapeake Bay will take further hits.
- Reductions in the planned Geographic Cost of Education Index, which helps areas in the state where education costs more, likely will be needed.
- Cuts in transportation and transit projects
Budget cuts already made:
- Eliminated more than 1,500 state jobs
- $1 billion in construction spending cuts
- O’Malley estimates he has reduced state spending by $2.2 billion since January 2007.
