Governor Hogan's budget is a lesson in living within our means!
A Fiscally Responsible State Budget - Your Tax Dollars
The General Assembly passed Governor Hogan's FY 2018 Budget largely intact, with few changes made to his initial proposal.
General Fund spending grew by only .5% and the budget leaves over $950 million in reserve to guard against potential revenue shortfalls.
Hogan's budget contained no tax increases while being structurally balanced and protecting important priorities such as record funding for K-12 and higher education, environmental programs & public safety.
When Governor Hogan submitted his budget, he also submitted two pieces of legislation with the goal of ending Maryland's chronic cycle of revenue shortfalls and structural deficit:
The Fiscal Responsibility Act of 2017 ensures that Maryland is better-prepared to deal with the challenges that may come along. The bill eliminates the practice of using occasional, temporary revenue spikes to fund known recurring future expenses. During years with a revenue surplus, excess income will automatically be moved into the state's rainy day fund - this extra revenue will be available to use for years to come when revenues fall short. The Governor's proposal was incorporated into HB 503 -- Income Tax Revenue Estimate Cap and Revenue Stabilization Account, which passed the House and Senate and was signed by the Governor on March 31st.
The Common Sense Spending Act of 2017 - addresses mandated spending, which accounts for 83% of Maryland's own source of revenues, and ensures that future budgets prioritize key expenditures like education and health care, while giving leaders the flexibility to trim excessive cost increases that exceed revenues. This would force fiscal discipline on our elected officials. Unfortunately, the General Assembly did not pass this initiative.
Have a peaceful Good Friday!
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