Speaker Still Resists Special Session

Governor Confers With Busch, Miller on Plan to Close Gap

Gov. Martin O'Malley (D) stepped up his sales pitch yesterday for a wide-ranging revenue package to close Maryland's looming $1.5 billion budget shortfall but appeared to make little headway in convincing House Speaker Michael E. Busch (D-Anne Arundel) about the urgency of the task.

O'Malley shared the outlines of his plan in back-to-back closed-door meetings in Annapolis with Busch and Senate President Thomas V. Mike Miller Jr. (D-Calvert), with the aim of building enough consensus to call a special session for early November. The governor is scheduled to meet with a group of legislators over breakfast this morning.

According to those who saw it yesterday, O'Malley's plan includes a 1-cent increase in the sales tax, higher income taxes on upper-end earners, a doubling of the cigarette tax, the closure of some corporate loopholes, and revenue from the legalization of slot-machine gambling. O'Malley would also cut the state property tax and expand a tax credit for lower-income workers.

Busch told reporters that he considered O'Malley's package "an aggressive plan" but reiterated his desire to consider it in January, when the General Assembly begins it annual 90-day session.

"I've been opposed to a special session," Busch said. "I don't think it's a good idea."

Busch said lawmakers would be in a better position to evaluate the plan once they see how it affects the entire fiscal 2009 budget, which O'Malley is scheduled to present in mid-January. The budget is balanced through the end of fiscal 2008 in June.

Miller said in an interview that he would like more spending cuts and fewer tax increases but was prepared to push the plan through the Senate in a special session.

"It's going to be a pill the size of a horse, but if I don't choke on it and die, it's going to go down," Miller said. "It would be totally irresponsible not to call a special session at this point."

Miller pointed to figures released last week showing sluggish sales tax collections, which could exacerbate the state's budget woes.

Busch said O'Malley, who was accompanied by two aides, offered limited specifics about the components of his plan, including a slots proposal. Busch said O'Malley also said he is committed to a separate transportation package, the expansion of subsidized health care and a new "green fund" to reduce pollution in the Chesapeake Bay.

O'Malley remained largely mum with reporters yesterday. "We're making progress," he said after the meeting with Busch.

"Progress continues," he said as he left Miller's office and was whisked into an elevator by the state troopers assigned to guard him.