1 / 24

Maryland’s Budget The Smell of Gunsmoke

Maryland’s Budget The Smell of Gunsmoke. Neil Bergsman Maryland Budget and Tax Policy Institute April 18, 2011. Economic Context. Good Corporation profits at record levels. Bad Economic growth has resumed, but not enough to fuel a broad, sustainable recovery. Ugly Jobs are not coming back.

rossa
Download Presentation

Maryland’s Budget The Smell of Gunsmoke

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Maryland’s BudgetThe Smell of Gunsmoke Neil Bergsman Maryland Budget and Tax Policy Institute April 18, 2011

  2. Economic Context

  3. GoodCorporation profits at record levels

  4. BadEconomic growth has resumed, but not enough to fuel a broad, sustainable recovery

  5. UglyJobs are not coming back

  6. Threats to the economy Federal spending cuts State and local spending cuts Not just Maryland Middle East Japan

  7. The Big Picture Budget outcomes

  8. Good • Budget is balanced through June 30, 2012 • General fund balance $50 million • Rainy day fund $681 million

  9. Bad • The budget incorporates over $1 billion in cuts from current-service levels • Teacher and employee benefits • School systems • Healthcare providers • Local governments

  10. Ugly • The budget leaves a billion-dollar long term problem for upcoming years

  11. Getting more specific A quick tour of the budget

  12. K-12 Education • Legislature restored $58 million of $94 million education cut • Per-pupil funding frozen • Part of alcohol tax dollars fund school construction and offsets formula-driven cuts for 4 low-income school systems

  13. Medicaid • No changes to eligibility or covered services • Most provider rates frozen or cut back 1% • Including waiver services like adult day care • Hospital and nursing home assessments • Concerns about access to care

  14. Health • Local health • Level funded • 55% of pre-recession levels • Addiction treatment • Budget is $6 million below ‘09 actual expenses • Developmental disability services • $15 million for waiting list in alcohol tax • Mental health • $15 million in supplemental budget for community services

  15. Children’s programs • Child care received supplemental budget funding, but a waiting list remains in place

  16. Safety Net • Temporary cash assistance • Caseload growth continues • $127 m projected shortfall • Federal funding remains uncertain • $500,000 “Cash flow” cut to Rental Allowance Program • Temporary Disability Assistance (TDAP)funding intact • Grant amount is $185/month

  17. Department on Aging • Funding essentially flat. • Waiting lists for most services • 17,000 on waiting list for home and community care waiver

  18. Pension reformselected provisions

  19. Retiree Rx Changesselected provisions

  20. Alcohol Tax • Separate legislation passed after budget • 3% special sales tax added to 6% regular sales tax • Beer, wine, and liquor • $85 million • 15 m for developmental disabilities • 22 m for 4 local school systems • 47 m for school construction

  21. Meanwhile, in Washington The biggest threats to senior programs over the next year could be at the federal level Social security Medicare Medicaid Grant funds for local services

  22. Coming Attractions Summer 2011 Executive budget process starts back up Fall 2011 Special session for Congressional districting January 2012 Regular Session Showdown Time?

  23. QUESTIONS? www.marylandpolicy.org

  24. Sources • ACLU of Maryland • Loraine Sheehan Alcohol Tax Coalition • Maryland Department of Legislative Services • US Bureau of Economic Analysis • US Bureau of Labor Statistics

More Related