Spending Plan Funds Construction But Defers Pr. George's, Montgomery Initiative
By John Wagner
Washington Post Staff Writer
Friday, January 19, 2007
Maryland Gov. Martin O'Malley yesterday proposed freezing tuition at public universities and spending a record amount on public school construction next year but recommended that the state hold off on a plan that could send tens of millions of additional education dollars to Prince George's and Montgomery counties.
The highlights of the new governor's first budget proposal were shared with lawmakers and the media the day before O'Malley (D) is to submit a $30 billion spending plan to the General Assembly that contains few new initiatives and draws nearly $1 billion from a state reserve fund to achieve balance.
With deficits projected in future years, O'Malley repeatedly called his proposal "conservative" during an afternoon news conference and stressed that overall state spending would grow by only about 2.5 percent next year, a smaller figure than in nine of the past 10 years. Spending grew by 12 percent in the last budget of Gov. Robert L. Ehrlich Jr. (R).
"In short, we are funding our priorities," O'Malley said, "but not everything we want to do is going to be possible this year."
O'Malley, who was sworn in Wednesday, also confirmed that his fiscal 2007-08 budget will contain no tax increases. That will leave more difficult choices for the following year, he said, when legislative analysts project a $1.3 billion budget gap.
Although some lawmakers have advocated tackling that problem sooner, Del. Norman H. Conway, chairman of the House Appropriations Committee, said that O'Malley is taking a prudent course by giving himself a year to scour the budget for savings.
"I'm very pleased with the approach he's taking," said Conway (D-Wicomico). "He's being very deliberative."
O'Malley inherited a shortfall of about $400 million in next year's budget, which he and aides closed through a variety of spending cuts.
One cut that attracted some attention yesterday was the deferral of a planned $53 million budget transfer earmarked for the intercounty connector, a long-delayed highway project that would run through Montgomery and Prince George's counties.
O'Malley aides said the deferral should have no impact on the $2.4 billion project, however, because transportation officials do not yet need the cash for early stages of the project, which include buying property in the 18-mile highway's path and doing advanced engineering work.
"The project is moving ahead full speed," said John D. Porcari, O'Malley's nominee for transportation secretary. "There's no change in the commitment to the ICC. . . . This is simply a financial adjustment common for a large project."
The deferral caught Montgomery officials off guard yesterday, but County Executive Isiah Leggett (D) said he was convinced that the decision "doesn't change anything" about the overall status of the project.
The largest disappointment for Washington area lawmakers appeared to be O'Malley's decision to hold back $94.7 million for the Geographic Cost of Education Index, a part of the landmark 2002 Thornton education plan that Ehrlich never funded.
The initiative is designed to steer additional money to jurisdictions where the cost of providing education is considered to be higher. O'Malley said yesterday that he remains committed to the plan and would support legislation making the spending mandatory starting in fiscal 2009.
Prince George's schools chief John E. Deasy said he had included almost $30 million in anticipated funding from the geographic index in his budget for the coming year and said he expects his local delegation to fight for the money.
"We are a long way from budget adoption," Deasy said. "I have great faith that our legislators will represent the best interests of Prince George's County."
Sen. Jamin B. Raskin (D-Montgomery) said his county would be looking for the additional funding "sooner rather than later."
O'Malley also took flak on the issue yesterday from House Minority Leader Anthony J. O'Donnell (R-Calvert). "We make a lot of promises during the campaign season and should not be so quick to back away from them," O'Donnell said.
O'Malley stressed during the news conference that his budget would increase overall state education aid to the counties by $680 million next year, much of which is mandated by the Thornton plan.
O'Malley is also proposing to spend a record $400 million on school construction, compared with $323 million this year. During a budget crunch early in Ehrlich's term, the state spent as little as $117 million one year.
O'Malley's budget will also allow tuition to be frozen for the second straight year at University System of Maryland institutions and Morgan State University.
During his news conference, he mentioned several other relatively modest initiatives, such as a $10 million increase in support for stem cell research and a $5 million increase in drug treatment funding.
O'Malley is transferring $967 million from a state "rainy-day fund" to balance the budget. The fund swelled in recent years as a strong economy bolstered tax collections.
His proposal would leave $674 million in the fund, as recommended by state guidelines.
O'Malley started his first full day in office -- also his 44th birthday -- at 8 a.m., convening a meeting of his Cabinet at the State House.
The 21-member group included the seven secretaries O'Malley has nominated and interim department heads. Most of Ehrlich's Cabinet secretaries submitted their resignations before noon Wednesday, when O'Malley was sworn in.
Staff writers Daniel de Vise, Nelson Hernandez, Ann E. Marimow, Katherine Shaver and Ovetta Wiggins contributed to this report.
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