Governor O’Malley released his FY 2011 budget this week. Unfortunately, in our Union’s estimation, he plugged a nearly $2 billion shortfall with cuts and budget maneuvers and no new revenues. The proposed $13.2 billion budget is balanced with $1 billion worth of cuts, $900 million worth of fund balance transfers and an assumption that the federal government will be forthcoming with an additional $389 million in Medicaid assistance.

The proposed cuts include $375 million to state agencies and $330 million to local aid. The budget also includes the elimination of 200 positions, 44 of which are filled. Fortunately, only 4 of the 44 filled positions are AFSCME bargaining unit employees. Remaining state employees will receive no pay increases and 10 furlough days that will be realized on a sliding scale based on salary. Also for the first time since taking office, the Governor will be unable to ensure the tuition freeze for the University of Maryland System. Therefore, it’s likely that the Board of Regents will raise tuition 3% next year. The budget now goes to the legislature for review and action. However, the legislature may only cut the Governor’s budget.

Prior to the introduction of the Governor’s budget, AFSCME members descended upon Annapolis and delivered more than 3000 postcards from state employees to the Governor, the Speaker of the House and Senate President, calling on them support progressive revenue enhancements instead of cuts to state services. The menu of revenue options AFSCME’s supporting include repealing the sunset on the millionaires’ tax; closing corporate tax loopholes that allow large corporations to avoid paying taxes in Maryland; increasing the gas and alcohol tax; expanding the sales tax to more services; and taxing internet purchases.