Maryland FY2013 Budget Prioritizes Jobs, Education, Health and Public Safety
1. Department of Budget & Management T. Eloise Foster, Secretary Martin O’Malley, Governor Anthony G. Brown, Lt. Governor January 18, 2012
2. Jobs, Jobs, Jobs In 2011, Maryland created 8x as many private sector Jobs as Virginia, and 2.5x as many total jobs. 98.5 % Private Sector Job Growth 30.28 % Private Sector Job Growth 26,300 3,300
3. 84% of FY 2013 General Fund Dollars Allocated to Education, Health, and Public Safety 37% Elementary & Secondary Education 16% Other 26% Health 11% Public Safety 10% Higher Education
11. Impact of National Recession on Maryland Revenues Since Dec 2007 Board of Estimates Forecast, State Revenues Have Underperformed by More than $14 Billion
12. Steady Diet of Cuts Cumulative Reductions During O’Malley-Brown Administration of $7.5 Billion (Including $800 Million in Total Funds Reductions in FY2013)
16. General Fund Spending Growth FY 2007 to FY 2013 Under Governor O’Malley, General Fund spending on K-12 education has increased by almost $1 billion – or 22% – while General Fund spending on everything else increased by less than $400 million – or 4%
35. ~52,000 Jobs Supported by State Capital Investment and Leveraged Dollars FY 2013 Capital Budget Jobs Impact Jobs Supported by State Investments Jobs Supported by Leveraged Funds Jobs Supported by State Funds & Leveraged Funds Public School Construction Program 4,603 7,046 11,649 Rental Housing Works Initiative 102 1,053 1,155 Bay Restoration Fund 952 952 Bay Restoration Fund Revenue Enhancement 781 781 Transportation Capital Budget 19,311 19,311 CIP and Other Capital Spending 11,382 6,548 17,930 Total Jobs 37,131 14,647 51,778
Maryland’s Strongest Job Creation Performance Since 2005: 26,700 new jobs created An Improving Unemployment Rate: November saw the s harpest 1-Month Improvement in the Unemployment Rate since January 1984 – to 6.9%, 20% below the national unemployment rate Outpacing the Nation in the Jobs Recovery: Maryland has r ecovered 43% of the jobs lost as a result of the recession – compared with a recovery rate of 28% nationally. (Additional Regional rankings to be added)
On Position Abolitions: Please note that not all of the positions abolished are general funds. For example, 20 of the positions are from MDOT. The $3 million in savings displayed on this slide is General Funds only and doesn’t account for the savings from the portion of the 149 abolitions that are non-General Funds.
Modest Caps on Income Tax Deductions for Higher Earners Capped at 90% for incomes above $100k Capped at 80% for income above $200k Phase-Out Exemptions for High Earners Exemptions reduced from $2,400 to $1,200 per person for singles $100-$125k and couples $150-175k; Exemptions eliminated for singles above $125k and couples above $175k Almost 80% of income tax payers will pay the same as they do now and 20% will pay more. Average high earner will pay an additional $437 in State/local taxes. Most taxpayers will be able to deduct a portion of this amount from federal taxes reducing the average taxes paid to $327 in State/local/federal taxes. As a result of these new income tax changes and the progressive changes made in 2007: More than 80% of Maryland income tax payers will pay less income tax than under the tax policies in place prior to the O’Malley-Brown Administration;
$27 M of State funds (which leverage $20 M of matching federal dollars) for an unprecedented investment in the system of supports and services for individuals with developmental disabilities in Maryland including: $6.5 M for the first year of a three-year $28.5 M general fund commitment to support a full, ongoing set of services for individuals at high risk. At least 300 additional individuals will be receiving ongoing services by the end of the three-year period $8.9 M to increase provider rates $6.2 M to support 608 new community placements for transitioning youth $2.6 M to strengthen and expand resource coordination $0.8 M to serve 25 individuals involved with the court $0.8 M from the Waiting List Equity Fund to provide community placements for 40 people $1 M for housing initiative for developmentally disabled & mentally ill $500k for enhanced community forensic program with Mental Hygiene Administration