Governor Submits Preliminary Supplemental Budget, Many Issues Still Linger

Governor Hogan submitted his second supplemental budget yesterday providing funds to cover the first year cost of his tax relief proposals and other Administration priorities, but nothing to restore funding for General Assembly priorities identified in the House and Senate budget plans. As reported by the Baltimore Sun,

The $45 million supplemental budget sets the stage for what could be tough negotiations between Hogan and lawmakers over budget priorities during the last week and a half of this year’s legislative session.

“There’s nothing to address the legislature’s priorities. It does address some of his priorities,” said Warren Deschenaux, the legislature’s chief budget analyst. Deschenaux said the supplemental will be taken up in a House-Senate budget conference committee.

Budget Secretary David Brinkley reiterated the Administration’s call for tax relief and said that the supplemental budget accounted for priorities not included in the budget as introduced.

Hogan’s budget allocates $5.2 million for tax exemptions for military pensions and first responders’ retirement pay. A Senate committee last week turned down Hogan’s call for an income tax exemption for retired first responders and severely cut back his proposal to end taxation on military pensions.

The governor also includes $7.4 million in the budget to account for passage of a bill exempting small businesses from the personal property tax as of July 1. The Senate committee has deferred that tax break.

Among other items, the supplemental budget also includes $2 million in funds for substance abuse treatment for individuals with heroin addiction, $5 million to fund a grant program to partially reimburse businesses that make contributions to nonpublic schools, and $6.8 million to fund 2 new trooper classes for the Maryland State Police.

More detail on the supplemental budget can be found in the links below

Supplemental Budget #2
Department of Legislative Services Analysis of Supplemental Budget No. 2

For more information on the proposed FY 2016 budget and the House and Senate budget plans, see our previous posts on Conduit Street.