Governor Larry Hogan proposed a $17.1 billion budget Tuesday that he says is balanced, reins in spending and provides full funding for education.
In a news conference at the State House, the governor outlined broad details of the budget that will be released Wednesday.
According to The Baltimore Business Journal,
Repeating comments he made last week at a General Assembly kickoff event, Hogan said investment into the state’s Rainy Day fund will help make up for lower-than-expected revenue.
“Because of the fiscal restraint we have instituted over the past two years, while many other states are facing crippling budget shortfalls, we are in much, much better shape than we would have been,” Hogan said.
Funding formulas enacted by the legislature in the past are accounting for a $519 million increase in mandated spending, the Republican governor said. Despite that, he said his budget provides a record $6.4 billion for education without increasing taxes, including $334 for school construction. Total spending will be down from last year.
The administration’s capital budget limits borrowing to $995 million, which Hogan said will be necessary to keep the state’s debt service payments from rising out of control. Next year, he said, the state will be forced to spend more on debt service payments than on school construction.
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