Ehrlich, O'Malley Get Testy on Taxes and Spending Records

Left unmentioned was that legislative analysts are forecasting more trouble down the road. By fiscal 2009, the state will face a nearly $1.3 billion shortfall in revenue needed to pay for existing programs, analysts say.

O'Malley, who took office in late 1999, also faced budget shortfalls that forced painful cuts, including the closure of fire stations and libraries earlier in his tenure. He took credit yesterday for stabilizing his city's budget, modest property tax cuts and recent budget surpluses.

O'Malley aides suggested that the tax increases during the mayor's tenure have been more modest than Ehrlich suggests.

Baltimore's income tax has risen from 2.54 to 3.05 percent -- up about 20 percent. But the rate remains lower than those in six Maryland counties, including Montgomery and Prince George's.

Increases in the city's water and sewer rates have been driven largely by $900 million in facility upgrades required by a 2002 consent decree that ended a federal lawsuit that sought to reduce sewage overflows in Baltimore. The average family's annual water and sewer fees in Baltimore are about $760, up from $400 when O'Malley took office, according to City Hall.

During O'Malley's tenure, the city imposed the same telecom tax on cellphones that it does on land lines, a move that other jurisdictions have taken.

Ehrlich aides took issue yesterday with O'Malley lumping fee increases in the tally of Ehrlich's tax increases. As a matter of policy, the governor has sought to rely more heavily on fees that are earmarked for particular spending initiatives than on broad-based taxes.

The tally included one measure O'Malley has supported, the Chesapeake Bay restoration fee, initiated in 2004. The $2.50-a-month "flush tax," a surcharge on sewer and septic users, is earmarked for upgrades at sewage treatment plants, with the goal of reducing nitrogen pollution in the bay.

Under Ehrlich, motor vehicle fees have also been increased to help pay for road projects. The upshot is that most drivers pay an average of $128 every other year to register their car, up from $81. Truck and sport-utility vehicle owners pay $180 every two years, up from $108.

In 2003, Ehrlich agreed to a budget deal that would balance the budget by raising the state property tax rate nearly 5 cents. The Board of Public Works, on which Ehrlich sits, endorsed the increase. For the owner of a $400,000 home, that translated into $192 a year in added property taxes.

In the latter part of his term, Ehrlich made several attempts to roll back part of the increase -- eventually persuading his colleagues on the board to knock 2 cents off the rate this year.

Appearing at the New Carrollton Metro station, O'Malley also announced yesterday that, upon taking office, he would appoint a panel of legislators and transportation experts to develop a 10-year plan for funding initiatives.

Ehrlich's transportation secretary, Robert L. Flanagan, chided O'Malley after the announcement.

"All Mayor O'Malley could come up with is a plan to make a plan?" Flanagan asked.