Dear Marylanders,

 

This is Governor Martin O’Malley. I wanted to take a minute to say thank you to all of you who took the time to submit suggestions as we continue to change and reform our state government in the face of these really difficult times.  Thank you for your commitment, thank you for your ideas, and thank you for your sincerity. 

Over the last few weeks, we have received thousands of suggestions from individuals, from businesses, and families like yours, and I invite you to take a look at the suggestions that your fellow Marylanders have submitted.  We agree with many of them and we’ve forwarded each suggestion to the appropriate state agency for review, for consideration, and for incorporation into the next round of budget cuts.  And I’ve asked state agencies to respond to all suggestions, one way or another, within the next few weeks. 

Among the thousands of suggestions that many of you recommended, one of them was that we do a better job conserving energy in state buildings.  We think so, too.  That’s why we’ve launched an initiative called EmPOWER Maryland that sets ambitious energy conservation goals.  We’re also purchasing Energy Star products where available, we’re setting tough, higher green energy conservation standards for new state buildings, and we’ve initiated no fewer than 27 energy performance projects across the state to further reduce utility costs in our state buildings.

Many of you also wrote to us suggesting we curtail take home car privileges for state employees.  We couldn’t agree more.  And while there is still more to do, already we have cut in half the state take-home vehicle fleet, and we’ve implemented a bi-weekly commute charge for most state employees who do continue to have take-home vehicles to reimburse the state for the maintenance costs.

Several of you also suggested that we institute a tax amnesty holiday to allow individuals or corporations or businesses to pay back state taxes that they owe without the burden of additional penalties.  And that’s what we’re doing.  Beginning in September through October 30th, the state of Maryland will allow citizens to pay back taxes free of penalties and with one half of the interest due.  The last such holiday in 2001 actually collected nearly $40 million in revenue that otherwise we would not have seen.  To find out more about this amnesty program visit Maryland.gov, or click the icon at the top of this page to go there. 

Thousands of you wrote in with good suggestions in a variety of areas.  Some big, some small. State agencies are reviewing all of them and preparing responses to all of them.  In the meantime, I’d like to invite you to continue to be a part of the online discussion forum, about how we can change and reform our state government to move Maryland forward in these difficult times. 

Thanks very much.

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FY2010 Round 2 Reductions

  • $21 M from reductions in Medicaid payments to hospitals, managed care organizations, community & other health care providers
  • $36 M of higher education savings related to USM, Morgan, St. Mary’s, and aid to private colleges
  • $12 M in reductions to Cigarette Restitution Fund programs, with savings redirected to Medicaid
  • $30 M in additional fund balance transfers and reversions

More Efficient Government

  • Achieve State employee and retiree Rx program savings by promoting utilization of low cost drugs, reducing waste, and encouraging more appropriate use of pharmaceuticals ($8.4 M)
  • Close units at several Health and Mental Hygiene Facilities ($7.2 M)
  • Consolidate Correctional Facilities ($4.7 M)
  • Deny Medicaid claims for unnecessary emergency room care ($3 M)
  • enhance audits of out of state hospital claims ($2.5 M).
  • Achieve savings from agency internal reorganizations and consolidations ($1.3 M)
Office of Governor

How other states are dealing

NGA: The Fiscal Survey of States

California

  • Recently agreed to $15 billion dollars in cuts to face the state’s $26.3 billion budget hole.
  • Cuts to K-12 education of more than $6 billion dollars over two years, following $11.6 billion dollars in prior year cuts.
  • More than 27,000 teachers have been laid off with the potential for 25,000 more next year.
  • Cuts of nearly $3 billion dollars from the University of California and California State University systems.
  • Borrowed more than $4.7 billion dollars from California’s local governments.
  • Three mandatory furlough days per month for all state employees.

South Carolina

  • Layoffs of more than 1,500 South Carolina state employees.
  • Cut higher education by nearly $100 million dollars.
  • Decreased K-12 education spending by $95 per student.
  • Unemployment at 12.1% in June 2009.

Florida

  • Faced a $5.7 billion dollars in budget cuts.
  • Raised tuition at all Florida public universities by 15% in one year and cut over 350 faculty and staff.
  • Cut K-12 education by over $465 million.
  • Eliminated more than 90 positions at the FL Department of Law Enforcement.