Maryland Lawmakers Punt on the Budget but Produce Some Sensible Legislation

TO NO ONE'S surprise, the budget dominated this year's Maryland General Assembly session, limiting both the scope and expense of legislation. Despite these constraints, or maybe because of them, the Assembly, which adjourned Monday, made some useful law. Yet the budget remains a time bomb. Gov. Martin O'Malley (D) and lawmakers have technically balanced the budget, but they did so with creative accounting and federal aid. Already, a budget gap exceeding $1 billion is forecast for fiscal 2011; with state elections looming in November 2010, it's hard to see how lawmakers will be in a better position to craft a sustainable budget.

When Mr. O'Malley first proposed his budget, which included hundreds of layoffs and a reduction in state aid to schools, it seemed as if there would be at least a modicum of belt-tightening. The final product slows spending but offers little in the way of sacrifice; layoffs were averted, as were drastic cuts to state aid. To close a nearly $3 billion shortfall for budgets totaling more than $29 billion for fiscal 2009 and 2010, the state leaned on transfers from state funds that will have to be repaid to close 33 percent of the gap and stimulus dollars to shore up another 48 percent; spending reductions closed only 17 percent of the shortfall. That would be fine if the downturn were temporary and revenue was ready to rise. But budget analysts say that the state would have to have 5 percent growth in fiscal 2010, and 10 percent growth in fiscal 2011 to sustain current spending patterns. Such growth is highly unlikely.

In light of Maryland's fiscal fix, some of Mr. O'Malley's priorities are questionable. Can the state really afford to freeze tuition at public universities for the fourth year in a row? Should funding for stem cell research be kept largely intact when federal dollars are on the way? These choices seem more tailored to the campaign trail than responsible budgeting.

Look past the budget, though, and Mr. O'Malley had a productive session. The governor seemed to be more active than usual in advocating legislation, and his lobbying paid off. A new law to keep guns out of the hands of domestic-violence suspects will save lives, as will legislation that authorizes speed cameras. Mr. O'Malley came up short in his crusade to end the death penalty, but the compromise that resulted -- a higher burden of proof to pursue a death sentence -- is a step forward. Lawmakers approved restraints on how law enforcement can conduct covert surveillance, an appropriate response to the state's wayward spying on lawful political activists. To comply with a federal law that requires stricter identification standards, the Assembly passed compromise legislation that would take away driver's licenses from illegal immigrants by 2015.

As happens every year, some worthy bills died. Notably, one that would have authorized public financing for legislative elections fell victim to a slew of unfriendly amendments. The bill, which would level the playing field between incumbents and challengers, should be a priority next session.