New editions of the State Legislative Tracker and The Policy Tracker available now!

Maryland state budget and finances

From Ballotpedia
(Redirected from Maryland state budget)
Jump to: navigation, search

Maryland budget and finances
Policypedia Budget Policy-logo-no background.png
General information
Budget calendar:
Annual
Fiscal year:
2015
State credit rating:
AAA (as of 2014)
Current governor:
Larry Hogan
Financial figures
Total spending (state and federal funds):
$37.3 billion (estimated for 2014)
Per capita spending:
$6,247.57 (estimated for 2014)
Total state tax collections:
$18.1 billion (2013)
Per capita tax collections:
$3,050.85 (2013)
State debt:
$94.2 billion (as of 2014)
Per capita state debt:
$16,010 (as of 2014)
State budgets and finances
AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

Horizontal-Policypedia logo-color.png
Total state expendituresState debtTax policy in Maryland
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.
Between fiscal years 2013 and 2014, total government spending in Maryland increased by approximately $2.2 billion, from $35.1 billion in fiscal year 2013 to an estimated $37.3 billion in 2014. This represents a 6.3 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Maryland a credit rating of AAA, the highest available score.[1][2][3]
In fiscal year 2014, total estimated spending in Maryland amounted to $37.3 billion. Maryland generated 42.5 percent of its total state-based tax collections from individual income taxes in 2013.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

In Maryland in fiscal year 2014, total estimated spending equaled $37.3 billion. Estimated per capita spending totaled $6,248.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
Maryland $27,479 $9,859 $37,338 5,976,407 $6,247.57
Delaware $7,253 $1,903 $9,156 935,614 $9,786.09
New Jersey $39,574 $13,566 $53,140 8,938,175 $5,945.29
New York $92,915 $41,171 $134,086 19,746,227 $6,790.46
Pennsylvania $62,391 $23,810 $86,201 12,787,209 $6,741.19
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in Maryland can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[3]

In Maryland in fiscal year 2013, higher education accounted for 14.5 percent of total state spending, a greater share than in any neighboring state.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
Maryland 19.2% 14.5% 3.8% 21% 4% 10% 27.5%
Delaware 24.3% 4.6% 0.3% 17.2% 3% 8.7% 42%
New Jersey 24.9% 7.9% 0.9% 20.4% 3.1% 10% 32.8%
New York 19.3% 7.6% 3% 29.1% 2.5% 6.4% 32.1%
Pennsylvania 14.9% 2.1% 1.5% 26.9% 2.6% 7.5% 44.6%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2012, the share of the Maryland state budget spent on Medicaid increased from 19.5 percent to 21 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percentages)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 19.2% 14.5% 3.8% 21% 4% 10% 27.5%
2012 19.5% 14.5% 3.7% 21.5% 4.3% 9.9% 26.5%
2011 21.0% 14.5% 3.6% 22.2% 4.3% 9.4% 24.9%
2010 21.0% 14.4% 3.1% 20.4% 4.7% 4.6% 31.8%
2009 20.3% 14.7% 2.4% 19.5% 4.4% 10.7% 27.9%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.[9]

In Pennsylvania in 2013, total state tax collections amounted to $18.1 billion. Per capita tax collections equaled $3,051.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
Maryland $750,927 $7,347,048 $805,292 $7,693,324 $952,092 $569,508 $18,118,191 5,938,737 $3,050.85
Delaware N/A $487,202 $1,259,277 $1,130,501 $309,644 $159,692 $3,346,316 925,240 $3,616.70
New Jersey $4,620 $12,198,133 $1,516,432 $12,108,615 $2,282,055 $967,026 $29,076,881 8,911,502 $3,262.85
New York N/A $23,217,491 $1,952,367 $40,230,379 $4,920,605 $3,346,329 $73,667,171 19,695,680 $3,740.27
Pennsylvania $55,537 $17,106,300 $2,585,202 $10,777,334 $2,208,163 $1,233,090 $33,965,626 12,781,296 $2,657.45
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
Maryland tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In Maryland, property taxes accounted for 4.1 percent of total state tax collections, a greater share than in any neighboring state.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
Maryland 4.14% 40.55% 4.44% 42.46% 5.25% 3.14%
Delaware N/A 14.56% 37.63% 33.78% 9.25% 4.77%
New Jersey 0.02% 41.95% 5.22% 41.64% 7.85% 3.33%
New York N/A 31.52% 2.65% 54.61% 6.68% 4.54%
Pennsylvania 0.16% 50.36% 7.61% 31.73% 6.50% 3.63%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historic Maryland budget and finance information

Fiscal year 2015

DocumentIcon.jpg See budget bill: SB 0170

Governor Martin O'Malley announced his fiscal year 2015 budget proposal on January 15, 2014. Under the governor's proposal, total state spending for fiscal year 2015 would have equaled approximately $39.2 billion, including $16.4 billion in general fund expenditures.[10]

On May 15, 2014, O'Malley signed into law the fiscal year 2015 budget. The enacted budget totaled roughly $39 billion, up 3 percent over fiscal year 2014. The budget left $879 million in reserves.[10]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Maryland had a state debt of approximately $94.2 billion. Its state debt per capita was $16,010. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[11]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
Maryland $94,211,004,000 $16,010 20
Delaware $15,991,093,000 $17,437 17
New Jersey $213,933,875,000 $24,134 6
New York $387,465,667,000 $19,799 10
Pennsylvania $184,903,767,000 $14,487 24
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: Maryland public pensions and Maryland public employee salaries

As of 2012, the state's public pension system had an unfunded liability of approximately $20.6 billion and was 64.37 percent funded. According to the Pew Center on the States "Widening Gap Update," a report on public pensions in all 50 states, Maryland failed to pay its full annual pension contribution from 2005 to 2010. According to the report, most experts agree that a fiscally sustainable system should be at least 80 percent funded.[12]

Maryland’s cost to fund the pensions for some 105,000 current and retired educators soared to nearly $1 billion annually in 2012.[13]

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[14][15]

The table below lists the Standard and Poor's credit ratings for Maryland and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[16]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Maryland AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA
Delaware AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA AAA
New Jersey A+ AA- AA- AA- AA AA AA AA AA AA AA-
New York AA AA AA AA AA AA AA AA AA AA AA
Pennsylvania AA AA AA AA AA AA AA AA AA AA AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[17]

The table below notes what share of Maryland’s general revenues came from the federal government in 2012. That year, Maryland received approximately $10 billion in federal aid, 30.2 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[17]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
Maryland $10,030,264 30.16% 33
Delaware $1,814,112 24.68% 46
New Jersey $13,412,759 26.25% 42
New York $48,698,785 32.78% 27
Pennsylvania $20,440,103 30.60% 32
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

Maryland received $5.8 billion in federal funding between February 2009 and June 2013.[18]

According to Federal Fund Information for States, Maryland received approximately $470 million from the federal government under H.R. 1586, a $26 billion plan to give states money for Medicaid and education that President Barack Obama signed into law on August 10, 2010.[19] When the funds were first announced, Gov. Martin O'Malley said $178 million of those funds would go toward education.[20]

Budget process

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[21][22]

  1. Budget instructions are sent to state agencies in June of the year preceding the start of the new fiscal year.
  2. State agencies submit their budget requests to the governor in late August.
  3. Agency hearings are held from October through November.
  4. Public hearings are held from January through March.
  5. The governor submits his or her proposed budget to the state legislature on the third Wednesday in January.
  6. The legislature typically adopts a budget in April. A simple majority is required to pass a budget. The fiscal year begins July 1.

Maryland is one of 44 states in which the governor has line item veto authority.[22]

The governor is legally required to submit a balanced budget proposal. Likewise, the legislature is legally required to adopt a balanced budget.[22]

Agencies, offices and committees

The following standing committees in the Maryland General Assembly deal with budget and finance matters:[23]

  1. Appropriations Committee, Maryland House of Delegates
  2. Ways & Means Committee, Maryland House of Delegates
  3. Budget & Taxation Committee, Maryland State Senate
  4. Finance Committee, Maryland State Senate

Maryland's Office of Legislative Audits (OLA) publishes its audit reports online.[24] OLA is part of the Maryland General Assembly’s Department of Legislative Services and operates under the authority of the State Government Article, Sections 2-1217 through 2-1227 of the Annotated Code of Maryland.[25]

OLA reports to the General Assembly’s Joint Audit Committee and is responsible for the following tasks:

  • Performing fiscal compliance audits of state agencies to evaluate fiscal operations and determine compliance with laws and regulations
  • Conducting performance audits to evaluate whether a state agency or program is operating in an economic, efficient and effective manner
  • Conducting performance audits of the financial management practices of local school systems
  • Operating a fraud hotline for reporting fraud, waste, and abuse of state resources
  • Monitoring the financial reporting practices and financial condition of local governments in Maryland
  • Conducting special reviews and investigations requested by the Joint Audit Committee

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[26] According to the report, Maryland received a grade of B- and a numerical score of 82.5, indicating that Maryland was an "advancing" state in terms of transparency regarding state spending.[26]

Budget and finance ballot measures

Voting on
state and local
government budgets,
spending and finance
State finance.jpg
Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
See also: Spending and finance on the ballot and List of Maryland ballot measures

Ballotpedia has tracked the following ballot measures relating to state and local budget and financial matters in Maryland.

  1. Maryland Appropriations Budget, Amendment 2 (1916)
  2. Maryland Authority of the Deputy Treasurer, Amendment 1 (1966)
  3. Maryland Budget Appropriations, Amendment 2 (1952)
  4. Maryland Chesapeake and Atlantic Coastal Bays Fund Amendment (2016)
  5. Maryland County Requirements to Contract Debts, Amendment 15 (1960)
  6. Maryland Debts by the Mayor of Baltimore, Amendment 1 (1934)
  7. Maryland Disbursement of State Monies, Question 2 (1974)
  8. Maryland Exceptions to Debt Requirements, Question 4 (1982)
  9. Maryland Funding for Clerks of Court, Question 4 (1986)
  10. Maryland Loans for Baltimore Property Improvements, Question 12 (1972)
  11. Maryland Mandate for Budget Allocations, Question 6 (1978)
  12. Maryland Procedure for Creating Debt in Baltimore, Amendment 4 (1966)
  13. Maryland Prohibit Withdrawal of Money from the Treasury, Amendment 1 (1843)
  14. Maryland Reduce Budget Bill, Question 10 (1972)
  15. Maryland Requirements for a Balanced Budget, Question 3 (1974)
  16. Maryland Signing of State Bonds, Amendment 1 (1950)
  17. Maryland State Loans, Amendment 2 (1840)
  18. Maryland State Treasurer Duties, Amendment 3 (1960)
  19. Maryland Submission of the Budget, Amendment 4 (1956)
  20. Maryland Tax for State Debt, Question 9 (1972)
  21. Maryland Transportation Fund Amendment, Question 1 (2014)
  22. Maryland Treasurer Authority to Meet Temporary Deficiencies, Question 8 (1978)
  23. Maryland Treasurer Short Term Notes, Question 2 (1982)
  24. Maryland Treasury Department Deputies, Amendment 1 (1930)

Recent news

This section displays the most recent stories in a Google news search for the terms "Maryland budget."

Some of the stories below may not be relevant to this page due to the nature of Google's news search engine.

Maryland state budget and finances - Google News Feed

  • Loading...

Contact information

Maryland Department of Budget and Management
45 Calvert Street
Annapolis, Maryland 21401
Telephone: 410-260-7041

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. 10.0 10.1 National Association of State Budget Officers, "Summaries of Fiscal Year 2015 Proposed and Enacted Budgets," July 11, 2014
  11. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  12. Pew Center on the States, "Widening Gap Update," accessed November 27, 2013
  13. The Washington Post, "Governor O’Malley’s budget raises taxes on Maryland’s high-earners," January 17, 2012
  14. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  15. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  16. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  17. 17.0 17.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  18. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  19. Federal Fund Information for States “ARRA FMAP Extension & Education Jobs Fund Totals,” August 11, 2010
  20. DelmarvaNow.com, "Maryland to receive $450 million from jobs bill," August 12, 2010
  21. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  22. 22.0 22.1 22.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  23. General Assembly of Maryland, "Committee List," accessed March 19, 2015
  24. Maryland Office of Legislative Audits, "Audit Reports," accessed August 20, 2013
  25. Maryland Office of Legislative Audits, "Home page," accessed October 24, 2009
  26. 26.0 26.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014