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The American Recovery and Reinvestment Act contains targeted efforts to:
- Transform our economy with science and technology
- Lower health care costs and ensure broader coverage
- Invest in education for the 21st century
- Modernize & repair roads, bridges, transit and waterways
- Provide tax cuts for 95% of Americans and American businesses
- Strengthen the safety net for workers and families
- Ensure accountability
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Impact on Maryland
- Maryland will receive roughly $3.75 billion disbursed over a period of three fiscal years - the money will not flow through the state budget nor does it provide sufficient flexibility to erase our operating budget shortfall.
- The Recovery Act will allow us to make significant investments in our infrastructure. Funding for capital projects includes approximately $600 million for highways, fixed guideway modernization, clean water, drinking water and affordable housing.
- These projects will put Marylanders back to work and upgrade our infrastructure. The White House estimates the Recovery Act will create or save 66,000 jobs in Maryland.
- Maryland's close proximity to Washington D.C. means government spending has a particularly strong effect on our state's economy. Investments in NIH, for instance, will fund more biomedical research while creating employment opportunities in Maryland.
- The Recovery Act should help the State avoid large scale layoffs of state employees, preserve funding for our services and safety nets, fund education and provide tax credits for working families.
- The largest investments in Maryland's portion of the Recovery Act are over $1 billion in Medicaid funding and over $1billion in education funding.
- The State will continue to aggressively comb the budget and procurement process for savings and opportunities to make government more efficient and effective. It is also important to continue to examine every fiscal relationship with local governments and contractors to make sure Maryland tax dollars are being used in a fair and effective manner.
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 Maryland's FY09 & FY10
Budget Update The current FY09 budget shortfall is approximately $340 million and March revenue estimates are likely to show additional declines.
FY10 revenue estimates may also be significantly lower. The FY10 budget already assumes $350 million in stimulus funds and allows for a fund balance of only $46 million. The Maryland Department of Legislative Services has indicated that we need a fund balance of at least 5 times that amount, so an additional $200 million in savings for FY10 must be identified.
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Send your questions, feedback
and ideas directly to Delegate Clagett at:
Talk to Galen@yahoo.com
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