Friday, March 25, 2011

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.