Maryland House Passes 'Prudent' $13.7 Billion Spending Plan
Sunday, April 12, 2009
The House of Delegates signed off on a compromise spending plan for the coming year and the Senate approved a bill designed to help keep the Preakness Stakes in Maryland as lawmakers weighed dozens of bills yesterday in advance of tomorrow's scheduled adjournment.
The House voted 106 to 30 for a $13.7 billion general fund budget that freezes state spending at most agencies and cuts aid to local government but increases funding for several priorities, including a planned tuition freeze at public universities.
Del. Norman H. Conway (D-Wicomico), chairman of the House Appropriations Committee, said the plan, hammered out in recent days with Senate negotiators, is "fiscally prudent and socially responsible" and includes "some massive reductions" in spending.
Republican delegates protested that the state was relying too heavily on federal stimulus money to balance the budget and could face large shortfalls when the aid from Congress runs out in two years.
"We're spending a whole lot of money we don't have," said Del. Warren E. Miller (R-Howard).
The House also voted 120 to 14 to approve a separate state capital budget that includes $260 million for public school construction.
The Senate is expected to take up both budget plans early tomorrow on what is expected to be a very busy final legislative day.
Before the operating budget arrived on the House floor, negotiators from the two chambers reversed a decision made a day earlier to deny Marylanders a state tax break when purchasing a new car.
A provision included in the federal stimulus package by Congress provides a federal break in the titling tax and leaves it to states to decide whether to offer an accompanying benefit. For a $20,000 car, the federal savings is about $350, while the state break would be $96.
On Friday, budget negotiators decided against offering the break to save the state about $10 million in a difficult budget year. But after hearing concerns from U.S. Sen. Barbara A. Mikulski (D-Md.) and others, the lawmakers changed their minds yesterday morning.
The Senate, meanwhile, voted 32 to 14 for an emergency bill that authorizes the state to exercise eminent domain over Pimlico Race Course in Baltimore and all rights associated with the Preakness and the race trophy, the Woodlawn Vase. The state also would have authority to issue bonds to finance their purchase.
The bill, sponsored by Gov. Martin O'Malley (D), would give the state the same authority over two other facilities owned by Magna Entertainment: the Laurel Park racetrack and the Bowie Race Course training center. Magna's assets are being sold in federal bankruptcy proceedings.