By John Wagner
Washington Post Staff Writer
Saturday, March 15, 2008
The Maryland Senate yesterday approved a $31.2 billion budget for the coming fiscal year after scaling back several high-profile initiatives, including a new fund to clean up the Chesapeake Bay and a two-year-old program that provides grants for stem cell research.
The cutbacks reflected continuing challenges in balancing the state's $15 billion general fund, the largest segment of the budget, when a sluggish economy is producing lower-than-anticipated tax collections.
Debate in the Democratic-led chamber was sharply limited yesterday, a move that angered Republicans, several of whom argued that senators should have made deeper cuts to what Sen. Ulysses Currie (D-Prince George's), chairman of the Budget and Taxation Committee, said was already a "frugal" budget.
"Have we gone far enough?" asked Senate Minority Leader David R. Brinkley (R-Frederick). "I don't think so."
Seven of the chamber's 14 Republicans voted against the budget. All 31 Democrats who were present yesterday voted to approve it.
The budget now moves to the House of Delegates, where members the Appropriations Committee yesterday approved larger reductions than the Senate, with the goal of providing a bigger cushion in case economic woes worsen.
The budget approved by the Senate leaves $158 million in unallocated general funds in addition to a "rainy day" fund of nearly $740 million; the Democrat-led House is aiming to leave an additional $249 million.
Under the Senate plan, the general-fund budget would grow by 4 percent during the fiscal year that starts in July.
In many areas, senators allowed the budget to increase in the coming year but by somewhat less than Gov. Martin O'Malley (D) proposed in January.
State funding for higher education, for example, would rise by 4 percent on a per-student basis. O'Malley had proposed 4.7 percent.
State aid to public schools would increase by 3.5 percent. That is less than would have been mandated under a 2002 school funding measure known as the Thornton law. Lawmakers revised a formula in the law during a special session last fall called by O'Malley to address the state's long-term finances.
The Senate budget includes first-time funding for a geographic component of the Thornton law that provides additional money for jurisdictions, including Montgomery and Prince George's counties, where the cost of education is considered to be higher. Unlike other parts of Thornton, that portion of the formula is discretionary.
A move in the House committee to cut nearly $76 million from the geographic component was soundly defeated yesterday.
Since the special session, at which lawmakers raised taxes by $1.4 billion a year, the state's economy has been more sluggish than expected, prompting analysts to revise downward projected revenue by $333 million for the current fiscal year and the upcoming one.
"Economic times have changed and are still changing," Del. Norman H. Conway (D-Wicomico), chairman of the House Appropriations Committee, said as his panel debated cuts to the budget yesterday.
Among the casualties in both chambers is a Chesapeake Bay fund created during the special session. As envisioned, at least $50 million would be added to the fund each year. The Senate cut that amount to $25 million for the next two years. The House committee agreed to the cut only for next year.
The Senate budget also cuts O'Malley's proposed spending on stem cell grants in the coming year from $23 million to $5 million. The House panel voted to restore some of the money, recommending spending $15 million, after defeating a Republican-sponsored amendment to delete all funding.
The House panel is also seeking to divert $165 million, a significantly higher figure than the Senate, from a fund intended for post-employment benefits for state retirees.
Tempers flared on the Senate floor yesterday when Senate President Thomas V. Mike Miller Jr. (D-Calvert) called for a final vote on the budget before any debate had occurred. The chamber had debated proposed amendments at length Wednesday, but several Republicans were planning to offer thoughts yesterday on the overall budget.
"Have a press conference outside if you want," Miller said in response to initial complaints.
"It's unfortunate that you're stifling debate on something this important," said Sen. Allan H. Kittleman (R-Howard), the minority whip.
Miller wound up allowing senators extended time to explain their votes, a procedure that is usually limited to two minutes per senator once votes have been cast.
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