Maryland Budget Grows by $1 Billion

This week the House of Delegates debated and voted on the State’s budget. Despite a $1.6 billion deficit still looming, the House Appropriations Committee only reduced the Governor’s budget by $6.5 million and the total budget grows by over $1 billion. Members of the House Republican Caucus, including Delegate Jeannie Haddaway-Riccio voted against the budget and raised concerns about spending levels and tax and fee increases that are included in this year’s budget bills.



The taxes and fees include:

-Vehicle Titling Tax doubled from $50 to $100

-Vanity Plate Fee doubled from $25 to $50

-Land Recording Fees doubled from $20 to $40

-Birth Certificate Fees doubled from $12 to $24

-Increase in Hospital Assessments adding 2.5% to rates

-Increase in Nursing Home Tax from 4% to 5.5%

-Parole Supervision Fee doubled from $25 to $50

-2% Premium Tax on the Injured Worker Insurance Fund (IWIF)

-Payroll Garnishment Fee for State Employees

The budget also relies heavily on bonding projects that the State has traditionally paid for with cash which could result in an increase in the property tax in the near future.  Over $191 million of operating budget expenses are replaced with debt.

For more information on the Maryland’s debt increase, see the Washington Post.

Haddaway Opposes Gas Tax Increase

In this fiscal climate, you would think that taxes would be the furthest thing from legislators minds. Unfortunately, it is quite the opposite. Legislators are seeking to increase the gas tax,
the income tax and the alcohol tax through an initiative they call "Maryland First" and the Governor has even proposed an assessment on hospitals and nursing homes.


Many of you have asked about my position on these issues. Please know that I am strongly opposed to raising any taxes. With that in mind, last week I helped present the Republican Caucus alternative budget which clearly demonstrates that we can solve Maryland's fiscal problems without raising taxes but by slowing government spending instead. I am also encouraging my constituents to visit a new web site - http://www.stopthegastax.com/ - to get more information and to make your voice be heard.

As a small business owner and as your representative, I truly understand how devastating these tax increases would be for our citizens. With that in mind, I will continue to fight these proposals and will continue to keep you updated.

Haddaway, House GOP Present Alternate Budget

Last night, Republicans in the Maryland House of Delegates presented a budget plan to the House Appropriations Committee.  Delegate Tony O’Donnell, the House Minority Leader, and Delegate Jeannie Haddaway-Riccio, the House Minority Whip, presented the plan which slows spending, eliminates the state’s structural deficit and allows for a gradual repeal of the sales tax and corporate income tax increases from 2007.

By contrast, last week a group of Democratic Senators introduced their ‘Maryland First’ initiative which would increase Maryland taxes by $827 million.

“There are two options on the table this year for resolving the state’s budget problems,” House Minority Whip Jeannie Haddaway-Riccio said. “One option is to increase taxes. We prefer the fiscally responsible option which is to stop spending. Maryland’s citizens and small businesses cannot afford a hike in taxes right now - especially the gas tax and the income tax. My constituents have made it clear they want real leadership not credit card government. In my mind, there is no better way to stimulate the economy than to allow Maryland taxpayers to keep more of their hard-earned money.”

Visit the following link for the full plan:

http://marylandhousegop.files.wordpress.com/2011/03/house-republican-caucus-fiscal-vision-for-maryland-2012.pdf