Moore Budget is a Disaster for Maryland
Governor is returning Maryland to the bad old days of Martin O’Malley accounting gimmicks
Maryland Governor Wes Moore may be trying to put lipstick on a pig by suggesting that his 2% cut in real spending is a great leap forward.
The devil, of course, is in the details. And it’s when you start to look at Moore’s overall budget priorities, Moore’s claims of fiscal responsibility fall apart.
The details were provided by Bryan Sears in Maryland Matters:
Structural Deficit: As Sears writes: “By next year, the state’s projected structural budget deficit grows to $1 billion. In fiscal 2027, the last year of Moore’s term, it grows to $1.3 billion. A year later, it more than doubles to $3 billion — about 12% of the general fund revenues projected for that year.” If this sounds familiar to you, it should: the structural deficit created by Governor Martin O’Malley and his Democratic collaborators is what Governor Larry Hogan had to fix when he entered office in 2015.
Transfers: $500 million that is supposed to be sent to the Rainy Day Fund is instead being spent. Plus, $150 million is being taken from the Rainy Day Fund to cover shortfalls. Another $240 million from dedicated funds is being reprogrammed into general fund spending. These are the same accounting gimmicks the O’Malley Administration used to “balance” the budget. As O’Malley’s gimmicks showed us, this is not sustainable.
Education Cuts: While Moore is crowing about fully funding the reckless and unsustainable Blueprint for Education, he is also cutting $86 million in higher education spending.
Pension Underfunding: $50 million that is supposed to cover the state’s liabilities for retirement for state employees isn’t happening.
Bloating State Government: Moore intends to grow the number of state government employees by six percent. All while trying to fill the existing vacancies Moore has pledged to fill. This will of course increase salary, benefits, and retirement burdens on the state both now and into the future,
Tax Hike: Surprise! A small business tax credit is being repealed, which will raise taxes on small business owners.
Wes Moore and state Democrats want to pretend that this budget is responsible and a benefit to taxpayers. What Moore is doing is merely returning Maryland to the bad old days of Martin O’Malley accounting gimmicks and the robbing of Peter to Paul. We have seen this movie, and it ends in the fiscal hell of continuously unsustainable state spending and historic increases in taxes on working people.