State Budget Wrap-up

Maryland Budget & Tax Policy Institute

April 15, 2009

The numbers…

Total: $32.3 Billion (3.5% increase)

General funds: $13.8 Billion (3.3% DECREASE)

Federal funds $9.3 billion (21% increase)

Where does it go?

How was it balanced?

• Federal Stimulus payments:  $2.5 billion in fiscal year 2009 and 2010
• Fund transfers & balances: $1.8 billion over 2 years
• Cuts: $840 million ($529 million in general funds)

The biggest losers (legislative action)

• Aid to local government  -113 million
• Biggest hits to local transportation funds
• Medicaid -84 million
• Many of the reductions are actually fund switches
• Private colleges -14 million
• UM and other public colleges -9.5 million

Increases that won’t happen:

• Employee compensation
• Most Medicaid providers
• Most group homes
• Local aid formulas

The future looks murky

General revenues declining – increased reliance on federal funds – continued use of 1-time sources.

Maryland Budget & Tax Policy Institute

www.marylandpolicy.org

a project of Maryland Nonprofits

Reference

• Budget Glossary
• Maryland Budget Process