As the state legislature continues to struggle with how to close a significant budget gap, a group of state senators are suggesting that the gap cannot be closed by budget cuts alone. These state senators are to be commended for moving beyond the current conventional wisdom that the only way to balance the budget is to slash funding for essential services like public education. The only reasonable solution is a fair balance of both spending cuts and revenue increases.
PRESS RELEASE
February 22, 2011
Six Senators Propose $800 million Investment-Focused Changes to Budget
“Maryland First” budget restores school, health, road, and transit funds; protects pension fund; closes tax loopholes; makes income tax more progressive; boosts alcohol, cigarette, gas revenue
Responding to Governor Martin O'Malley's invitation to propose alternatives to his budget cuts, six Maryland state senators today released a "Maryland First" budget proposal to boost state investment in public education, health, transit, local roads, and other public services.
“We can continue our progress, and make Maryland a world class competitor in the 21st Century, by increasing public savings and investment through a comprehensive package of revenue measures which create incentives for progress and are fair to average families,” said the six Senators -- Delores Kelley (D-10), Karen Montgomery (D-14), Jim Rosapepe (D-21), Jamie Raskin (D-20), Brian Frosh (D-16), and Paul Pinsky (D-22).
Their "Maryland First" plan, designed to keep Maryland 1st in public education and become 1st in the nation in health care, transit, and quality local roads and public services, could be funded by a "comprehensive package of revenue measures which create incentives for progress and are fair to average families," the senators said. They note that revenue measures already on the table – millionaires’ tax, closing the “combined reporting” loophole, administrative changes and alcohol, tobacco, and gas taxes – could raise more than $800 million for state investment.
Their full statement is below:
Maryland First: A “Second Word” on the 2012 State Budget
Even in these tough times, Maryland is in better economic and fiscal condition than most other states. The reason? Over recent decades, we have invested wisely in the drivers of the 21st century economy -- education, inclusion, innovation, and high quality public services. And we've done it in a fiscally-responsible way, paying our bills and earning a Triple A bond rating.
To protect our economic success, create jobs, and continue our progress, we need to accelerate our investment in public education, public transportation, and public health. Such a 21st century strategy requires renewed public vision and commitment.
Given the collapse in state revenue caused by the international financial crisis, that means saving more now to produce more in the future. We support a 2012 budget that builds on Governor O'Malley's proposals, which he calls “the first word” on this year’s budget. A summary of our budget proposal, which we offer as a “second word,” is attached. Its key elements are to:
• restore state investment in our local schools to keep Maryland Number 1 in America.
• restore and expand our investment in public health, including mental health, disabilities, and rehabilitation programs.
• protect Maryland's ability to attract and retain outstanding public servants who provide high quality public services.
• repair and rehabilitate local roads, particularly in older communities.
• reduce traffic jams and promote smart growth by expanding mass transit, particularly in the dense Baltimore/Washington corridor.
We can continue our progress, and make Maryland a world class competitor in the 21st Century, by increasing public savings and investment through a comprehensive package of revenue measures which create incentives for progress and are fair to average families. Specifically, we believe Maryland’s investment in public education, public health, public transit, and local roads can be increased with revenue measurements such as the following:
• raising the gasoline tax for the first time in nineteen years as President Miller has proposed, as long as the proceeds are focused on boosting public transit and repairing local roads in established communities.
• raising the alcohol tax by 10 cents a drink for the first time in decades.
• raising the cigarette tax by $1 per pack.
• closing the unfair and wasteful "combined reporting" loophole used by big out-of-state corporations to dodge taxes paid by our local small businesses.
• making the State income tax more progressive, recapturing a small slice of the Bush tax cut for the Marylanders making more than $1 million per year.
• improving tax administration to assure that all Marylanders pay their fair share.
Together, these revenue measures would raise more than $800 million in each of the coming years. They would help balance the budget; reduce projected future deficits; protect our school children, our state employees, our environment, and our health; and improve our public transit system and local roads.
Statement of Senators Delores Kelley, Karen Montgomery, Jim Rosapepe, Jamie Raskin, Brian Frosh, and Paul Pinsky.
No comments:
Post a Comment