Board of Public Works
Annapolis, Maryland
November 18, 2009
Thank you all for joining us,… Today, this Board will vote on a new round of budget actions totaling $363 million.
In just the last four months, as we continue to manage this national recession, we have taken more than $1 billion in budget actions to balance the state budget and we have done so in a fiscally responsible way that should maintain our Triple A Bond rating and protect our core priorities of public education, public safety and jobs.
With today’s actions, our state government general fund spending is $500 million less than it was just three years ago. Because of the actions we have taken to manage the recession we have reduced planned spending in Maryland by $4.6 billion over the last three years and eliminated 3,300 state government positions.
These have not been easy decisions, but they have been necessary decisions to balance our State’s budget, and get our state through this recession more quickly and stronger than other States.
Yet even as we manage our state budget, we are working hard to expand opportunity for our families and create jobs. Just last week, I had the opportunity to announce a 10 Point Strategy for strengthening Small and Family-Owned Businesses in Maryland to help more us forward toward our goals for creating and protecting jobs and expanding opportunity.
Nationally, some economists now project we’ll finally start gaining jobs again in early 2010. And here in Maryland we continue to see positive signs that we’re in better position than other states to transition from recession to recovery to prosperity:
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Our unemployment rate – stable since May – remains nearly 27% below the national average;
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We’ve seen the lowest number of new unemployment claims since September 2008;
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We continue to be one of seven states to earn a Triple A Bond Rating, certified by all 3 bond agencies.
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And we face down this crisis with the benefit of the #1 best public school system in America, so says Education Week magazine.
Choosing Fiscal Responsibility
None of this happened by chance, it happened by choice. The tough choices we continue to make together to strengthen the connections which create jobs and drive progress,…
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Choices which have earned us a #1, best-in-the-nation ranking in the ways we’re choosing to target, track, and invest our federal recovery and reinvestment resources;
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Choices which led the Pew Center to conclude in a November study that we are one of 17 states least like California in terms of our fiscal choices and economic situation.
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Choices we continue to make together as One Maryland to reform our government so that it works on behalf of our shared priorities.
Today’s budget actions are intended to further our efforts at reforming government. They include:
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$11 million in savings from efforts to ensure that only people who are eligible for Medicaid receive Medicaid services, and by scaling back unnecessary services;
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$3 million in savings from suspending non-essential vehicle purchases and reducing travel;
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$3 million in savings from streamlining operations and consolidating functions across our government; and
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$500,000 in savings from negotiating lower prices with venders;
Approximately 6 of every 10 dollars in budget actions for FY2010 have come from reform of our state agencies.
As we take these actions today, we continue to prepare for our projected FY2011 shortfalls:
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We are continuing to protect our Rainy Day Fund – and thus our Triple A Bond Rating – by maintaining 5% of General Fund Revenues.
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And we are one of only 8 states in America which have chosen to save more than half of our federal fiscal stabilization funds for FY2011 priorities.
Without further ado, let’s begin our PowerPoint,…
