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Shortfalls drive state budget gap into $1
billion range
BY ALYSON KLEIN
Capital News Service
Maryland is spending about
$200 million more than it anticipated at this time in a number
of key areas, particularly mental hygiene and Medicaid, legislative
analysts told lawmakers on Oct. 14.
That's covered by an unexpected wind-fall of $330 million
from the federal government and $200 million in cuts made
by the Board of Public Works this summer, but that won't be
the case when the state begins to write its new budget in
January.
If spending in those programs remains the same, they could
push the state's expected budget deficit to $1 billion for
the next fiscal yearÑthe previous $800 million, plus
the $200 million in new expenses that will no longer be covered
by the one-time fixes.
The briefing by the legislative Office of Policy Analysis
was the first of two sessions designed to help lawmakers determine
how much the current budget of $22.4 billion can increase
during the next fiscal year.
"As we look forward, the federal money won't be there, but
these deficiencies will," said Warren Deschenaux, director
of the Office of Policy Analysis.
During the next session, lawmakers will have to decide how
much of that amount can be budgeted, given that Medicaid and
the state children's health program are now $97 million more
for 2003, mental health is nearly $63 million more, and child
care subsidies are nearly $10 million more.
"It is not unexpected, we have been looking at this for quite
a while," said Delegate Anne Healey (D-Prince George's). "It
is always a problem when there is a downturn in the economy,
we need more unemployment benefits, health care costs increase
and people need more services."
Damage from Hurricane Isabel further complicated matters,
although estimates are not in yet for Maryland's total cost.
"There were already deficiencies, and then there was the
hurricane," Deschenaux said.
Despite the shortfalls, Deschenaux said it is unlikely the
governor will decide to revise this year's budget.
"We shouldn't need to do anything dramatic this year," he
said.
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