SPECIAL SESSION UPDATE – DAY #1
Governor O’Malley called the General Assembly back for a special session to complete the unfinished budget work from the regular session. The governor and the presiding officers reached agreement on a series of three bills that would be heard and moved as a part of the budget package to balance the state’s budget, avoid the Doomsday Budget cuts, and protect vital state priorities and services.
The three bills were cross-filed in the House and Senate, and were accompanied by a summary of the provisions of the total budget package. The three bills include the following:
This is the reconciliation bill that implements fund transfers, the pension sharing arrangement that phases in a shift of employer normal costs over four years, and allows for the full funding of the Geographic Cost of Education Index, which includes $128 million in state aid for education.
The revenue bill includes a tax increase that is targeted to individuals earning $100k+ per year and families (joint tax filers) earning $150k+ per year. The governor’s office projects this to impact 16% of Marylanders.
o 100k/150k from 4.75% to 5.00%
o 125k/175k from 4.75% to 5.25%
o 150k/225k from 5.00% to 5.50%
o 250k/300k from 5.00% to 5.75%
o 500k+ from 5.50% to 5.75%
Revenue package also changes personal exemptions for the same brackets.
o 100k/150k Current exemption allowance of $2,400 to $1,600
o 125k/175k Current of $1,800 to $800
o 150k+/200k+ Personal exemptions eliminated
This bond bill adds $15 million for school construction bonds. While it was part of the budget bill that passed the General Assembly, an Attorney General’s ruling advised to pass a clean bill during the special session so there would not be any issues with the delay of implementation of the entire budget. This is viewed as a non-controversial part of the budget package and no amendments were offered during Senate floor debate tonight.
As of Monday Night, the Senate has given preliminary approval of all three bills and rejected all proposed amendments.
LOOKING AHEAD TO DAY #2
The bills will be up for a third and final reading on Tuesday morning. Assuming they receive the 24 votes necessary for passage from the upper chamber, the Senate version of the bills will move to the House of Delegates. Since the bills are expected to be identical to the bills heard in the House committees today, committee action should be swift and will position all three bills to be on second reader in the House mid-day on Tuesday.
We expect a flurry of amendments in the House on Tuesday afternoon and will keep you updated as the legislation moves and if it is amended. We continue to advocate for YES votes on all three pieces of legislation, as part of a budget deal that protects school funding and moves Maryland forward. You can share an email with your legislators, or call their offices through the MSEA Legislative Hotline at 866-268-MSEA.
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