Supplemental Budget Overview

In March 2009 estimated Maryland revenues for the current fiscal year (FY 2009) and the fiscal year beginning July 1, 2009 (FY 2010) were reduced by a combined $1.2 billion.  Governor O’Malley has proposed a combination of actions that will erase the deficit created by the revenue write-down while using federal stimulus dollars to fully fund Maryland’s No. 1 ranked public schools and maintain the safety net for Maryland families. $2.3 billion of the $3.9. billion in stimulus funds that will come to Maryland over the next 27 months go directly to dedicated purposes (Special Education, Workforce Retraining, Roads, Bridges, Rail, Waste Water and Drinking Water, Weatherization, Energy) and therefore do not, as such, provide any State budget relief.

The Governor’s budget balancing strategy:

• Recognizes the availability of $1.1 billion of federal stimulus dollars to support Medicaid and education costs over fiscal years '09 and '10.
• Anticipates almost $500 million of spending reductions and other budget balancing actions;
• Fully funds Maryland’s education formulae including 100% funding of the Geographic Cost of Education Index for the first time.
• Provides an additional $91 million to adequately fund safety net programs which provide low-income families with assistance paying their health care and heating bills.
• Increases funding for community colleges by 3.1% to keep pace with rising enrollment and minimize the need for higher tuition rates.
• Preserves 700 filled State jobs.

 

FISCAL OUTLOOK	FY 2009	FY 2010
Closing Fund Balance - Budget as Submitted	424	46
Stimulus - Fiscal Stabilization Savings (Medicaid & Education)	440	606
Stimulus - Fiscal Stabilization Fund - Discretionary		80
Revenue Writedown	-445	-716
Slots Writedown		-50
Change in Fund Balance Available from Prior Year		-424
Projected Balance After March 2008 Revenue Writedown	-21	-1,144
General Fund Relief
Savings from Budget Reductions/Use of Cash Resources		500
Restorations/Investments - Supplemental No. 1
Medicaid Deficiency	-50
DHR Energy Assistance Deficiency	-21
Mental Health Services - Shortfall	-10	-10
Adequately Fund Agencies	-18	-50
Fully Fund All Education Mandates Including GCEI	-38	-151
Restore Planned Cuts to Community Colleges	-8	-8
Community College Growth 3.1% (includes BCCC)		-7
No Layoffs		-30
FY 2009 Closing Balance	274 >	274
Projected FY 2010 Closing Balance		60