Md., Va., make Business Week list of worst state budget problems
By Kathleen Miller
Examiner Staff Writer 10/10/08
Marylanders and Virginians alike should be afraid to bring home this report card: Both states made Business Week’s list of “States with the Worst Budget Shortfalls: Twenty States that Can’t Pay for Themselves.”
Maryland, with a $1.1 billion deficit, equal to about 7.2 percent of its total budget, is ranked the 10th worst state budget shortfall in the country. Virginia and it’s $1.2 billion gap, about 7.1 percent of its total budget, is right behind at 11th.
Business Week editors say they used data from a Center on Budget and Policy Priorities study released at the end of September. According to the magazine, the potential cost for all 31 states facing both major and minor shortfalls could be as much as $53.4 billion.
“Well, we certainly have a budget problem,” said Shaun Adamec, spokesman for Maryland Gov. Martin O’Malley. “It is not the first time that this governor has faced a deficit. The difference is ... this one is directly related to the national economic downturn. As that list illustrates, we are not alone; every state in some way is experiencing some budget problems.”
Business Week noted that Maryland legislators approved a $1.35 billion tax increase, the largest in the state’s history, in late 2007, and made $277 million in cuts as well. O’Malley plans to unveil at least $250 million more in spending cuts next Wednesday. Virginia Gov. Tim Kaine announced 570 layoffs Thursday, cutting 800 vacant positions and taking $400 million from the rainy day fund to deal with the state’s $2.5 billion budget shortfall.
Still, neither state has appealed to the federal government for help yet, as California Gov. Arnold Schwarzenegger did when he asked for $7 billion in aid to cover that state’s shortfall.
Adamec said it’s too soon to rule anything out, though.
“It’s not something right now that it looks like we’d need,” he explained, “but the governor has also made clear that who knows what can happen if the national economy doesn’t turn around.”
5 Comments
Reader Comments:
POSTED Oct 10, 2008
Leni: "I wish Ms. Miller had included where at Business Week one could find the entire list. I'd like to see if Alaska is on it. If its not, I guess Gov. Palin is doint a better job than so many of her snickering critics would like you to know."POSTED Oct 10, 2008
ExaminerReader: "OMG You mean someone did not drink the commonwealth kool-aid and free peanuts? Forbes loves the snacks it says Virginia is the best place to live a work. Thanks for a true piece If you look around in NOVA people are not out as much as they use to be spending like drunken IT workers All hail Tim Kaine and the Democrats They won last November while lying to Virginia voters"POSTED Oct 10, 2008
sane jane: "The link to the list is easily googled (http://images.businessweek.com/ss/08/10/1003_budget_shortfall/index.htm), although you're unlikely to ever find Alaaska on a list of budget shortfalls, regardless of who's Governor. You might have heard, they've got a slight abundance of natural resources in the state. And a sparse population. And a full suckle on the federal teat, to boot. Doesn't quite make Palin the stuff of gubernatorial legend, though."POSTED Oct 11, 2008
Interested: "Sane Jane: I certainly hope your comment does not reflect badly on Clinton’s presidency where he enjoyed an unprecedented budget abundance that is generally recognized as a direct result of the technology bubble and of not consequence of Clintons management. Interested."POSTED Oct 12, 2008
ExpatriotExtroidinaire: "Pretty sad and predictable to see you people playing the devisive tactics game when there is a puzzle in front of you to fix together, i see VA is just as i left it. Fight it out kids."