Next Year's State Budget Gap Grows to Nearly $2 Billion

Falling personal income tax revenue will leave Maryland with a budget gap near $2 billion to fill for the fiscal year that begins next summer, state finance officials say.

And $700 million in cuts made in recent weeks won't go far enough to plug growing holes in the state's current $13.4 billion spending plan.

Gov. Martin O'Malley will seek another $290 to $300 million in cuts in coming months, T. Eloise Foster, his budget chief said Thursday as the Board of Revenue released its latest version of budget doom-and-gloom.

In a statement, O'Malley said his administration will "act responsibly, working with stakeholders and local partners, to make the tough decisions necessary to bring the state's budget into balance."

There was no immediate word on where he may seek additional cuts. While speaking to reporters on Wednesday, O'Malley would not rule out the possibility Maryland may need to lay off employees, but noted that his administration had worked hard so far to avoid that route.

The state has eliminated 3,200 positions over the last two years, and in cuts approved last month, imposed furloughs of up to 10 days on some 70,000 state workers.