Better Choices, Better Results
Governor O’Malley’s Fiscally Responsible Budget – January 15, 2014
This Year’s Budget Closes the Revenue Shortfall with No Tax or Fee Increases
- $760 Million in Cuts: This year’s budget includes $760 million in spending cuts and includes no tax or fee increases.
- Closing the Gap: The budget includes $621 million in balancing actions, closes the revenue shortfall, ensures there is $795 million in the Rainy Day Fund. The budget secures cash reserves of $879 million.
The O’Malley-Brown Record of Fiscal Responsibility and Shrinking Government
- A History of Cuts: The O’Malley-Brown Administration has cut spending by a total of $9.4 billion over the last 8 years.
- $1.7 Billion Structural Deficit Significantly Reduced: This budget cuts the $1.7 billion structural deficit inherited in 2007 by $125 million and keeps spending growth below the 4% recommendation.
- Executive Branch Positions at Historical Low: We’ve abolished 6,001 state positions since 2007, and reduced our executive branch to 1973 levels on a per capita basis.
- Maryland’s AAA Bond Rating: Maryland is one of only 7 states to maintain an AAA rating from all three ratings agencies throughout the Recession.
- Lowest Budget Growth as Governor: Under Gov. O’Malley, general fund budget growth has been held to its lowest level in a generation – 2.2% (compared to 7.5% under the preceding governor).
Governor O’Malley’s Commitment to Maryland Families, Workers and Students
- Future Job Growth: This budget supports 48,000 jobs, including over 7,000 jobs for our public schools; 2,500 jobs for our thriving tourism industry; and over 16,000 jobs for transportation projects that will connect Maryland businesses and employees.
- Investing in Innovation: This budget funds the Biotech Tax Credit ($12 million) and the Cyber Tax Credit ($4 million); and the R&D Tax Credit ($9 million).
- Public Schools: Gov. O’Malley is investing a record $6.12 billion in K-12 education; $4.3 million in pre-kindergarten opportunities; and $275 million in school construction.
- Higher Education: Since 2007-08, Maryland has done more than any other state in the nation to hold down the cost of college. This year, the University System of Maryland’s tuition increase is capped at 3%, including a freeze at Morgan State University and St. Mary’s College.
- Public Safety: Maryland has driven down violent crime to 30-year lows. This year’s budget includes a $20.3 million investment in Maryland’s correctional facilities, including 100 additional correctional officers.
- Sustainability & The Bay: Gov. O’Malley is investing $42.4 million in the Bay 2010 Trust Fund, bringing total funding during the Administration to $160 million.
- Healthcare: Gov. O’Malley is leading the way on affordable healthcare, including providing health insurance for over 1 million people at a cost of $8.9 billion while also investing $30 million in a medical center in Prince George’s County and $13.25 million – a record for the Administration – for cancer research through Academic Health Centers.