Gov. Martin O?Malley told legislators today that Maryland is now facing a $1.7 billion next year due to falling revenue estimates as he began unveiling his plans to plug the hole and add new programs as well.
According to lawmakers at a breakfast meeting, O?Malley is suggesting a 20 percent hike in the sales tax, higher income taxes on the top 17 percent of households – making more than $150,000 a year – and doubling the tobacco tax to $2 a pack. The governor would cut taxes for lower income levels, provide additional credits for low wage earners and also cut the small state property tax.
He also backs slot machine gambling as a way to raise revenues.
O?Malley envisions no gas tax hike, but prefers to raise the titling tax on vehicle purchases to 6 percent. He also was not backing the so-called Green Fund, creating a new tax on development to help fund Chesapeake Bay restoration.
The plans were part of a swift PowerPoint presentation that did not include many specifics, legislators said, but was more a broad outline of his approach.
“It?s sort of a consensus proposal,” said Senate Majority Leader Ed Kasemeyer, D-Baltimore County. “It left room for us to maneuver.”
“The room was filled with a spirit of cooperation and goodwill,” said Kasemeyer, who is the new vice chairman of the budget committee. Committee Chairman Ulysses Currie, D-Prince George?s, was taken away by ambulance after fainting at the end of the meeting in the governor?s residence.
The small meeting included only Democratic leaders and chairmen of the fiscal committees. There were no Republicans, who do not favor any tax increases.
“We?re very pleased,” said House Appropriations Committee Chairman Norman Conway, D-Wicomico. “We?re glad to have the proposal. It puts everything in play.”
Ways and Means Committee Chairman Sheila Hixson, a Montgomery County Democrat, called it “a very rational approach. He did leave it open for all of us to have a voice.”
“The devil is in the details,” said House Speaker Pro-Tem Adrienne Jones, D-Baltimore County, and there weren?t many to be had.
“It?s not a lot of hard numbers,” said Sen. James Ed DeGrange, D-Anne Arundel, a budget subcommittee chairman. “I don?t think there a lot of new ideas. But nothing is easy.”
O?Malley would like to have a special session of the General Assembly by November. House Speaker Michael Busch continues to oppose that idea, but Del. Talmadge Branch, D-Balto. City, the deputy majority leader, called a special session “a good possibility.”
