Maryland state budget (2011-2012)

Note: This article was last updated in 2012. Click here for more recent information on state budgets and finances.

In February 2012, a mortgage fraud settlement between banks and states was announced. Maryland Attorney General Doug Gansler said that he planned to make roughly 10 percent of his state's $62.5 million payment available for the governor and lawmakers to use as they chose.

The state faced a roughly $1.1 billion gap between expected revenues and planned spending. The state faced cumulative annual budget gaps of more than $7.2 billion over the succeeding four years. The state had a triple-A bond rating, but Moody's Investors Service placed Maryland on its credit watch list for a potential credit downgrade

Maryland was set to receive $9 billion in federal assistance in fiscal year 2012.

The Department of Legislative Services predicted that the state's expenditures would total $15.6 billion in fiscal year 2012, while state revenue would reach $14 billion if the nation continued on a moderate economic rebound. Board of Revenue estimates, however, announced two months prior on September 17, 2010, predicted that the fiscal year 2012 general fund level would be $13.6 billion -- approximately $50 million more than members had assumed in March 2010. To close the gap, the Department of Legislative Services indicated that Gov. Martin O'Malley would have to make cuts in government services, the state payroll, or other areas.

The state's summary of operating budget appropriations can be accessed here.

The state's fiscal year 2012 Tax Expenditure Report can be accessed here.

Governor's proposed budget

Facing a $1.35 billion budget gap, Gov. Martin O'Malley proposed a budget for fiscal year 2012. O'Malley's proposed budget included $949 million in proposed spending cuts, $225 million in transfers from other state funds and using $143 million of previously unbudgeted funds. His proposal drew $264 million from the Medicaid budget, $104 million from reform of the state employee retirement system, $55 million from higher education and $52 million from local governments.

O'Malley's budget included $7 billion to bring health care coverage to more than 900,000 low-income, disabled, ill children and adults. It also provides $18 million for prescription drug assistance to Maryland seniors. Other health care provisions included $3 million for Maryland Access Point, which improves access to long term support and services for seniors and people with disabilities.

O'Malley's budget plan included $45.4 million for police assistance and $20.3 million in local law enforcement grants that targeted domestic violence, substance abuse, and gun trafficking. The budget also increased spending for evidence based services for juvenile offenders by 18 percent to $5.6 million.

Several fee increases under the O'Malley budget included doubling the title of a car purchase from $50 to $100, doubling the cost of a personalized license plate from $25 to $50, and doubling the charge for tax filing from $20 to $40.

Budget highlights included:

• $446 million cut from state agencies
• $94 million cut from education aid funds
• $132 million cut from state retirement and health benefits
• 3.4 percent cut in funding for the Department of Labor, Licensing and Regulation's Division of Financial Regulation
• $15 million for the Maryland Economic Development Assistance Fund to help stimulate business growth and economic development, which is a 25 percent increase
• $80.1 million, or a 25.3 percent increase, to support unemployment insurance
• $12.4 million for stem cell research
• $8 million for biotechnology tax credits, and $3.8 million for the Maryland Biotechnology Center;
• $10 million in sustainable communities tax credits to promote urban redevelopment and create job
• $250 million for public school construction
• $8.2 million for major tourist and cultural attractions
• $5.8 million for the One Maryland Broadband Network, which connects three existing broadband networks across Maryland