(Annapolis) Armed with a series of poster boards, the
House Appropriations Chairman Maggie McIntosh proclaimed, “We have closed the structural
deficit.” It was a victory lap of sort for legislative leaders who had to endure
complaints of “business as unusual” from the states Chief Executive.
The structural deficit came from a series of issues. They
included overspending, mandates on programmatic activities, an under-funded
pension fund and an economic climate where people were tightening their belts.
These issues partly laid the ground work for a Republican Governor to win in
Maryland in 2014. With one party controlling the Executive branch and another
controlling the legislative controls the “kumba-ya moment” which seem to begin
this process went “south” quickly.
When last we left
the Maryland Governor Larry Hogan and the Legislative Leaders (Sen. Thomas V. “Mike”
Miller and Speaker Michael Bush) following the 2015 session was in the review
mirror with both sides claiming victory. Underneath the pleasantries was an animosity
about being up staged.
The Governor provided two supplemental budgets. He was
pissed they never got a hearing on either side of the aisle. He went against
the wishes of his partners in the legislature by deriding the savings they
found. Instead of taking the extra money and use to shore of education funding, he used it to firm up the State
Pension program.
The legislative Leaders did do the heavy lifting by
cutting and trimming programs to get to a balance budget. They took aim at the
Governor Hogan’s cuts to education. They restored the cuts but, also found
money to fund the Geographic Index -GCEI (this is part of the Thornton Funding
plan which gave large jurisdictions more money).
In the waning days of the 2015 Session the Legislature
heard the governor wasn’t going to put in money for GCEI. They in turn put in a
measure which said if you don’t fund GCEI this year, going forward it would
become a mandate. The irony here is that Democratic and Republican governors
have used discretion in funding this program (some have even decided not to
fund it in lean years). So as of July 1, 2015 this becomes a mandate.
Spinning the Debate
“Halloween is over,” said Senator Richard Madeleno of
Montgomery County as he stood shoulder to shoulder with fellow Democrats
crowing there success. The mantra from the legislature has been to add the
extra money they found to improve school systems. Despite these calls, the
Governor has been reluctant to acquiesce to the request.
“Who do you stand for?” President Miller asked rhetorically.
In response, Doug Mayer the Deputy Communications for the Governor, had his own
questions. “As both Senate President Miller and Speaker
Busch know, Maryland is still facing a nearly $1 billion cumulative deficit
over the next five years. On top of that, there is a $20 billion hole in the
teacher and state employee pension system that the General Assembly has
repeatedly failed to address.”
Going into
the 2016 Session the wars of Budget will continue to be fought. The Hogan
Administration often touts its “funding of
education at record levels” (because of formulas adjusting for an
increase in the number of students – each year will be more than the previous
year.). The Democrats crow their ability to make tough choices, find savings,
and apply them to areas like education.
These are interesting times for both sides. Are
we out of the woods finically? The State Treasurer and the Comptroller will
suggest we aren’t. By the way they weren’t spared from being chided by
Legislative leaders. Speaker Busch asked, “The Comptroller and the Treasurer to
step up to the plate.”
