Following a bipartisan briefing for the fiscal leaders of the Maryland General Assembly, Governor Larry Hogan announced major items in the administration’s fiscal year 2018 budget, which was officially submitted on Wednesday, January 18. The governor’s FY 2018 budget responsibly holds the line on spending without raising taxes, cutting services, or raiding special funds. The budget leaves $1 billion in reserves and continues – for the third straight year – to fund K-12 education at an all-time record level. The administration’s proposed budget is 100 percent structurally-balanced and immediately addresses current revenue volatility the state has experienced, while positioning the state to remedy future revenue shortfalls by spending less in General Funds in FY 2018 than in FY 2017. “The budget we are announcing today decreases general fund spending in real dollars. It doesn’t just slow the rate of growth, but it actually spends less than last year’s budget, while still fully funding our priorities, including record funding in K-12 education for the third year in a row,” said Governor Hogan. “We are able to accomplish this with no new taxes, no cuts to services, and without raiding dedicated special funds, and once again, this budget is 100 percent structurally balanced.” “It is clear that we must come together, roll up our sleeves, and have a rational discussion about reining in uncontrollable spending and debt in Annapolis and finally learning to live within our means,” the governor continued. By planning ahead, the FY 2018 budget further establishes the fiscal restraint Governor Hogan pledged to return to Annapolis, while continuing to make strategic investments to attract new businesses and create jobs. This budget prioritizes funding for all levels of education and protects the network of services for vulnerable Marylanders. The FY 2018 operating budget totals $17.1 billion, including a $6.4 billion investment in K-12 education, fully funding education aid. It also makes responsible investments in higher education, while holding tuition increases in the University System of Maryland, at Morgan State University, and at St. Mary’s College to two percent. Community colleges are fully funded at $256 million, which includes an additional $4 million above the formula funding – a new record high level. To address the growing heroin and opioid crisis threatening Maryland and the nation, the governor’s budget contains $1.3 billion for mental health and substance use disorder services, along with an additional $4 million in funding to bolster the state’s work to help those struggling with heroin and opioid addiction. The FY 2018 budget either meets or exceeds all of the recommendations of the legislature’s Spending Affordability Committee. This budget is 100 percent structurally balanced – double the recommended 50 percent level – and leaves a fund balance of $144 million, which is more than recommended. The administration’s FY 2018 capital budget again limits borrowing to $995 million, which is necessary in order to keep the state’s debt service payments from rising out of control. “After years and years of running up the credit cards, the result is devastating. Next year, the state will be forced to spend more on debt service payments than we will be able to spend on school construction, which is completely unacceptable,” said Governor Hogan. “With the actions our administration has taken over the last two years, and those that we are taking this year, the state will save nearly $700 million in debt service payments – but we need to do more.” Despite the administration’s continued fiscal restraint and responsible budgeting, legislatively mandated spending accounts for 83 percent of every dollar spent and forces spending to grow at a rate faster than current revenue projections. These forced spending increases are a major contributing factor to the structural gap the state is facing. “Every Marylander understands that if you are consistently forced to spend more than you take in year after year, eventually you will have a serious problem,” said Governor Hogan. “Our administration is once again introducing legislation to control these forced spending increases that exceed revenues.” The governor’s “Common Sense Spending Act of 2017″ would limit the growth of mandated spending in FY 2019 by giving the state flexibility to limit mandates that grow faster than the state’s revenues, while preserving funding for critical areas like education and debt service payments. The governor also unveiled the the “Fiscal Responsibility Act of 2017,” which will address revenue volatility by ending the practice of using temporary revenue spikes to fund known recurring future expenses. Below are highlights of the FY 2018 Budget, which holds the line on spending while prioritizing prudent investments in areas including education, economic development, public safety, the environment, and health care: Investing in Education:
Jobs and Expanding Opportunities for Businesses:
Tourism and the Arts:
Building for the Future – Transportation & Infrastructure:
Treatment, Safety, and Correctional Services:
Protecting the Environment:
Health Care and Public Safety Net:
|
- MD Governor's Office