SPECIAL SESSION UPDATE – DAY
#2
After morning floor debate, the Senate took final action
on the three budget-related bills (review of all three bills below).
· The budget
reconciliation bill passed 33-13 (The 12 Republican senators were joined by Senator
Brian Frosh in opposition.)
· The
revenue bill passed 27-19 (All
Republicans plus Sens. John Astle, Jim Brochin, Roy Dyson, Jim Mathias, Anthony
Muse, Norman Stone and Bobby Zirkin opposed. Sen. Kathy Klausmeier was absent
today.)
· The bond
bill passed without opposition (46-0).
Upon passage, the bills moved to the House of
Delegates. The House Appropriations and Ways & Means committees moved the
bills to the full House for second reader debate.
The House debate followed a similar script to the Senate
debate, in terms of amendments offered and rejected. But there was an attempt
by some Democrats who had supported the revenue deal in March, but now wanted to
introduce a new approach --- scrap the income tax plan in SB 1302 and replace it
with a penny increase in the sales tax. This effort was soundly defeated on a
voice vote and the revenue bill remained unchanged and on track.
It remains to be seen, however, if the fracture in
taxing approaches puts in jeopardy the ability to pass the revenue bill on third
reader tomorrow. The bill in March earned 81 House votes, and needs 71 in order to pass third reader
tomorrow.
By the time the House adjourned tonight, they had
rejected all 16 amendments offered during the second reader debate and provided
preliminary approval of the budget plan --- still in the form as approved in the
Senate.
LOOKING AHEAD TO DAY
#3
The House is planning to return to session at 10 am on
Wednesday, and will take final votes on all three bills. Another round of
amendments are expected before the final vote will be taken, so it remains to be
seen if any change is made that would require the Senate to take further
action. The Senate has preliminary plans to return Wednesday afternoon, if for
nothing else, then to adjourn the special session.
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.
REVIEW OF BUDGET-RELATED
BILLS
Below is a refresher of the three budget-related bills
and a summary of the provisions of the total budget package.
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 with more than $100K per year and families (joint tax
filers) with more than $150K per year in net taxable Maryland income. The
higher tax rates apply only to income in excess of the thresholds. The
Department of Legislative Services reports this impacts 14% of Maryland
taxpayers.
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
federal adjusted gross income brackets as follows:
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.
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