ANNAPOLIS, MD (October 23, 2007) - Governor Martin O'Malley today released a Cost of Delay budget to reflect more than $1.7 billion in cuts that will have to be made to balance the Fiscal Year 2009 budget if the General Assembly is unable to reach a consensus during the upcoming special session. Standing with Lieutenant Governor Anthony Brown and members of the Cabinet, O'Malley outlined more than $850 million in cuts that impact local jurisdictions and an additional $800 million in cuts to state agencies and programs.

"We believe we have a responsibility to be straight with Maryland families by honestly presenting the choices we face. So today we are releasing the outline of our FY 2009 budget - closing the $1.7 deficit we've inherited entirely through cuts - if we are unable to reach consensus during the upcoming special session," said Governor Martin O'Malley. "This is not an academic exercise. This is the Cost of Delay Budget. Over the last four years, the people of Maryland saw very clearly how easy it is for their government to bicker and accomplish nothing. But now is the time for us to come together in Annapolis, solve this structural deficit for the people we serve, and move our State forward."

During today's announcement, Governor O'Malley outlined specific cuts in local aid, including cuts in public education by freezing Thornton, delaying the Geographic Cost of Education Index, freezing teacher pensions, and cutting library, disparity, utility and local health grants.

The Governor also outlined cuts that would need to be made in police aid, Program Open Space, and more than $160 million in reduced investments in higher education - including the University System of Maryland, community colleges and private colleges and universities.

"Over the last few weeks, we have offered what we believe is a better solution. And we've called the General Assembly back for a special session - because this is a crisis that reaches that level… that requires our immediate and undivided attention," O'Malley stated. "The cost of delay is simply too great for Maryland's families and local jurisdictions."

"We need immediate action from the General Assembly to address Maryland's $1.7 billion structural deficit in order to maintain our quality of life," said Lt. Governor Brown. "Governor O'Malley has put forward a comprehensive and long-term solution to Maryland's budget deficit and now it is time for the General Assembly to come together, find consensus, and act."

Governor O'Malley has outlined plans to close Maryland's structural deficit by reforming Maryland's income tax structure to make it fairer for working families, closing corporate tax loopholes so that all businesses pay their fair share, reducing the State property tax and reducing spending growth by more than a billion dollars. The Governor has also proposed expanding the sales tax. Under the Governor's proposed reforms to the State's income tax, reductions in the state property tax and sales tax proposals, the Maryland Department of Budget and Management estimates that 83 percent of Marylanders will pay less overall.

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