Wednesday, May 16, 2012

SPECIAL SESSION UPDATE – DAY #3 (SINE DIE ALL OVER AGAIN)


SPECIAL SESSION UPDATE – DAY #3 (SINE DIE ALL OVER AGAIN)

This time when the General Assembly adjourned, the work to fully fund our schools, and protect critical services and investments had been done.  The third and final day of a scripted and predictable special session concluded with approval from the House of Delegates on the three bills that constituted the budget agreement to avoid the Doomsday Budget cuts.

After another round of debate, the House took final action on the budget bills (review of all three bills below). The budget reconciliation bill passed 86-51* (1 Republican voted YES, and 10 Democrats voted NO.  Four legislators are absent).
The revenue bill passed 77-60* (All Republicans who were present opposed this and were joined by 18 Democrats).
The bond bill passed with some Republican votes, 99-37*.

*We will share official roll call votes in a future update

The bills were identical to legislation approved a day earlier in the Senate, so no further action was required from the upper chamber before the legislation was deemed approved by the General Assembly and moved to the governor.  The Senate convened for a pro-forma session to simply adjourn from the special session.

Upon Sine Die, MSEA issued the following statement:

Statement from MSEA President Clara Floyd on a Successful Special Session
Keeping our schools and state on the path of success requires making hard choices and putting our children first. Thank you to Governor O'Malley and the legislators who stood up, stopped the doomsday budget, and protected Maryland's great schools, vital services, and excellent quality of life.


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

SB 1301/HB 1801:             Budget Reconciliation and Financing Act of 2012
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. 

SB 1302/HB 1802:             State and Local Revenue and Financing Act of 2012
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
               
SB 1303/HB 1803:             Creation of a State Debt – Qualified Zone Academy Bonds
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.  

No comments: