Governor Martin O'Malley this afternoon delivered his State of the State address, in which he praised the election of Barack Obama and Maryland's achievements in education and public safety, and urging the state to fight through its current economic trials.

Some excerpts from the prepared version of the speech follow. Read the full prepared speech (.pdf file) at the governor's Web site.

In our short time together, I would like to talk with you about our hard-won progress, the serious economic challenges at hand, and the choices and actions we must take today in order to stand up for the families of our State in these tough economic times,... And finally, I want to talk with you about how, together, we will emerge from this recession with the real hope of a better future for all of Maryland's children.

Thanks to the tough decisions we've made together over these last two years, the state of our State is once again strong enough to overcome the very challenging times at hand. And with the inspired leadership of our new President, Barack Obama, we finally have a federal partner who shares our commitment to progress.

Even as we face the most serious national economic crisis in recent history, our unemployment rate is 19% lower than the national rate (the 15th lowest in the nation). We remain one of only seven states to earn a Triple A bond rating. And we continue to draw upon clear competitive advantages in key Maryland business sectors like life-sciences, bio-technology, information technology, aerospace and healthcare....

Maryland Gov. Martin O'Malley (D) last night confirmed his plans to propose another round of mid-year budget cuts next month, suggesting the reductions could total about $200 million.

Appearing on Maryland Public Television, O'Malley offered few specifics but strongly hinted that employee furloughs would be part of the mix.

"Furlough days could well be a part of that," O'Malley told host Jeff Salkin on the debut of a regularly scheduled "Ask the Governor" program.

O'Malley considered but postponed the consideration of furloughs two months ago, the last time he came to the Board of Public Works with a round of mid-year budget cuts. At the time, O'Malley said another round of cuts would likely be needed in December.

Maryland is facing a budget shortfall of more than $1 billion next fiscal year, which begins in July. Cuts proposed next month are intended primarily to keep the current year's budget in balance but could help narrow next year's gap as well.

Like other states across the country, Maryland is experiencing a sharp dropoff in anticipated tax collections in the sluggish economy. Collections of the sales tax and personal income tax, the largest sources of Maryland's general fund have both been significantly affected.

Live, from Maryland Public Television: Gov. Martin O'Malley.

O'Malley (D) today announed that he will soon start a monthly live program called "Ask the Governor: Special Edition of Direct Connection." The 30-minute program will start at 7:30 p.m. on Nov. 24. Beginning in December, it will run the third Wednesday of each month.

Questions can be submitted through O'Malley's weekly online newsletter, One Maryland or to directconnection@mpt.org. Live calls will be taken during the program at 1-800-926-0629.

The program will hosted by MPT's Jeff Salkin and will continue in future administrations.

Montgomery Council officials expressed bewilderment yesterday over an initial allocation of school construction funding included in Gov. Martin O'Malley's proposed capital budget for next year: about $20 million.

That was more than any other Maryland jurisdiction received but still a far cry from the $55 million that County Executive Isiah Leggett (D) and Montgomery lawmakers are expecting next year in exchange for some delegation members' support of O'Malley's agenda in November's special session.

Leggett was sure enough of the figure that he alluded to it in his State of the County address last month, saying he anticipated Montgomery receiving "as much as $55 million" in school construction money from Annapolis.

The process for divvying up school construction dollars in Maryland is convoluted and far from done. On Wednesday, O'Malley (D) proposed spending $333 million next year, but he spelled out where only $225 million of that should be spent. The remaining $108 million still needs to be allocated -- a fact O'Malley noted in an interview yesterday.

"We're not done," he said after an event in Baltimore County at which he promoted his $333 million proposal. "We're only midway through the process."

Asked about the $55 million figure cited by Montgomery officials, O'Malley said: "That's their goal, and I'm going to do my best to get to it."

Leggett said yesterday that the initial $20 million included in O'Malley's plan "would not be consistent with what we expect."

"I'll have to talk with the governor to find out what that means," Leggett said. "We made a very strong case for that. He understands that."

Leggett spokesman Patrick Lacefield said the county had expected more than $20 million in the first round in order to meet the $55 million mark by the end of the process.

-- John Wagner and Ann E. Marimow

Every 90-day session of the Maryland General Assembly sees its share of winners and losers. That is certainly true of the recently concluded one, during which Gov. Martin O'Malley (D) arrived in Annapolis, replacing Robert L. Ehrlich Jr. (R). Here is a look at how some players and issues fared. Add some of your own, if you feel so inclined.

Winners

The O'Malley family: First lady and Baltimore District Court Judge Catherine Curran O'Malley has a longer commute to work -- but much, much bigger digs. The O'Malleys traded their relatively cozy four-bedroom, two-and-a-half-bath Tudor in northeast Baltimore (they put it on the market last week) for a 54-room Georgian-style mansion in the heart of Annapolis. The family's two teenage girls and two younger boys now have more room to roam, three cooks at their disposal and a big-screen TV on which to play video games. Perhaps the biggest winner of all: Scout, the family's terrier, who has a far bigger yard and unsuspecting tourists to bark at all day.

House Majority Whip Talmadge Branch (D-Baltimore): Granted, it is easier to deliver votes in a mostly Democratic chamber, but the House's new head counter produced bigger numbers than expected on several high-profile bills, including measures to double the tobacco tax, grant in-state tuition to illegal immigrants and require a living wage from state contractors.

Corrections Secretary Gary Maynard: The Iowa import emerged as the real rock star in O'Malley's Cabinet when he carried out a secret plan to export inmates from the House of Correction in Jessup and close the antiquated, 129-year-old maximum security prison.

Dels. Murray D. Levy (D-Charles) and John L. Bohanan Jr. (D-St. Mary's): The dynamic duo from Southern Maryland are now considered go-to guys on the budget. The two appropriators merited a joint profile in the Gazette newspaper and an accompanying front-page photograph that spawned a lively caption contest run out of the speaker's office. Look for their clout to increase further as decisions are made to close a looming $1.5 billion budget gap next year.

Sen. Nancy Jacobs (R-Harford): She demonstrated that having an "R" behind your name doesn't necessarily make you irrelevant in post-Ehrlich Annapolis. Jacobs was a key player on legislation both to impose tougher penalties on sex offenders and to give state's attorneys more tools to prosecute gangs.

Losers

Maryland's uninsured: The largest expansion of subsidized health care in years soared through the House of Delegates before crashing in the Senate, where leaders questioned the wisdom of moving ahead, given the looming budget deficit.

Local school budgets: O'Malley disappointed Washington area lawmakers when he decided not to include funding for the index in next year's budget. The long-promised initiative would reward jurisdictions where the cost of education is more expensive. O'Malley tried to make good by introducing a bill that would require the funding in the future. But that fell victim to budget concerns in the legislature.

Del. Joseph F. Vallario Jr. (D-Prince George's): No stranger to controversies, the House Judiciary Committee chairman fueled one late this session when he referenced a 17th-century English jurist who instructed juries to be suspicious of women's claims of rape. Vallario said he was trying to provide his colleagues with a history lesson, but he outraged women's advocates who found his remarks insensitive.

Smokers: The days of lighting up at Maryland bars are numbered. A statewide ban intended to protect patrons and workers from the dangers of secondhand smoke takes effect in February. The issue had shaped up as the session's cliffhanger, but in the end, the floor votes were not even close.

Thomas L. Bromwell: The former senator from Baltimore County showed that it is not necessary to be in office to bring disrepute to the chamber. Transcripts were released by the FBI of conversations in which Bromwell boasted of Comcast being indebted to him for legislation he pushed. Bromwell is expected to face trial on public corruption charges this year.

-- John Wagner