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Md. House Speaker: Layoffs Are Off the Table

House Speaker Michael E. Busch (D-Anne Arundel) said today that state employee layoffs and tax increases are off the table as Maryland leaders scramble to fill another $500 million hole in the state budget. But he and others cautioned that some tough choices are ahead.

The new shortfall is reflected in revised revenue estimates issued today by a state panel. Given the deepening recession, the Board of Revenue Estimates is now predicting more than $1.1 billion less in tax collections over two years than it projected in December. Some unallocated revenue will keep the state from having to cut the full amount. We previewed the new estimates today.

Gov. Martin O'Malley (D) huddled with his budget advisers and senior staff and pledged to work with legislative leaders to balance the state's $14 billion general fund budget, which he said "has already seen a lot of deep cuts."

"There's nothing left that isn't important," O'Malley said. "That's unfortunately the situation that we're in."

Senate President Thomas V. Mike Miller Jr. (D-Calvert) said lawmakers should revisit O'Malley's proposal to freeze university tuition for a fourth year. He also said state employees could face additional furloughs.

"A lot of decisions the governor has made are going to have to be revisited," Miller said.

O'Malley said he is hopeful layoffs could be avoided. But Busch said they should not even be considered. "We're going to do everything we can to keep people in the workforce," Busch said.

By Anne Bartlett  |  March 11, 2009; 5:23 PM ET
Categories:  General Assembly , John Wagner  
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Comments

Excuse me?

Since when are state worker's immune from layoffs?

Fire 'em 1,000 a day at a time until you hear a complaint from the public for a lack of necessary service.

Posted by: mdpilot | March 11, 2009 7:18 PM | Report abuse

hey MD Pilot,

I'm guessing you are clueless when it comes to Economic.....

Laying Off Workers Saves Money???? NOT!!!!

All it will do is add to REDUCING REVENUE GENERATION....

Every Dollar Saved by laying off a single employee.. DOES NOT EVEN COME CLOSE TO THE AMOUNT OF REVENUE LOST..

Think about how much money a single Dollar Bill generates for the State of Maryland..

Just in Sale Tax alone.. a single dollar spent 20 times @ a 5% tax rate... will in fact generate it face value in revenue... How many times do you think a single dollar gets spent???

Now you want to cut 1,000 jobs... lets use an average of $30,000 per yer per job... That is 30 Million Dollars saved... but if you kept that 30 Million in the system..

It will Generate many times its face value...

What needs to happen in Government..

That need to stop Projection Spending... as is evidenced by this article... Projections have already changed in less than 3 months...

Of course Projections are never going away... So how do you combat the problem.. Stop the 100% Projection Spending... only budget 80% of projects.... and if you have a surplus... SAVE IT!!!! or reduce taxes so as to let the people have more money to spend and this will generate more revenue....

Posted by: talontbo | March 11, 2009 8:03 PM | Report abuse

If state employees are going to have to take MORE furlough days then ALL employees should have to take them.

At the University of Maryland employees who are in the country on an H1B visa do not have to take furlough days.

This is not fair.

Posted by: confused1 | March 13, 2009 9:11 AM | Report abuse

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