Paying off debt and legalizing marijuana are among the solutions a new report from the Maryland Public Policy Institute recommends for the state to fix its budget gap and address long-running financial problems.
The budget is a huge area of disagreement for Gov. Larry Hogan, a Republican, and Democratic leaders in the General Assembly. Together, they must figure out how to overcome a structural deficit exceeding $500 million.
Both sides have already deflected blame. When Hogan announced his $17.1 billion budget last week, his proposal included using money from the state’s Rainy Day fund and cuts to services. The debate will undoubtedly continue as both sides reconcile with where to make cuts.
Maryland has an unsustainable budget model because growth in mandated expenditures has exceeded revenue growth for several years, the Maryland Public Policy Institute found in its report. In addition, the state has accumulated $17.21 billion in debt, 30 percent higher than the U.S. state average.
Click here to read the rest of the article written by Holden Willen over at the Washington Business Journal
