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Board Approves Plan with $206 Million in Cuts to MD Budget

January 8th, 2015 by WCBC Radio

A Maryland board has approved a plan to address about $410 million of a budget shortfall for the current fiscal year to better position the state to tackle a deficit in the next fiscal year.  The Board of Public Works voted 3-0 Wednesday for the plan.  It includes about $206 million in cuts. Another $108 million will come from spending transfers. There also are some savings from early retirement offerings and cutting vacant positions.  The cuts include a 2-percent reduction across state agencies. There are about $18 million in reductions to higher education.  There are no layoffs.  The adjustments were made to address a drop in revenue projections. Maryland faces a shortfall of about $1.2 billion this fiscal year and the next, which begins July 1. O'Malley told the Board of Public works that it gets more difficult to make spending cuts later in the budget year, and notes the cuts don't harm services that most people feel are important. Comptroller Peter Franchot who has been a frequent critic of Governor O’Malley’s fiscal approach, offered full support for this final proposal…





  

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