Here come the state and local tax increases...looks like Marty and Shelia will squeeze blood from the taxpayers

I'd like to point out that Kevin and I brought this up over 2 years ago that the state and local governments needed to make big time cuts to get spending back to around 2002 levels as tax revenues are going to fall off the cliff without housing bubble injections.

Mayor Dixon warns city may consider layoffs(hat tip Baltimore Sun)

Mayor Sheila Dixon said yesterday that she would consider layoffs as one way to shore up the city's budget, which she said "does not look good." She said that agency heads are reviewing all capital projects to see if any can be postponed so belt-tightening won't "impact people's livelihood." The city expects a dip in revenue from its recordation and transfer taxes because of the slumping housing market and fewer dividends from investments.

Now we find out what Shelia is made of. The cheerleader realtors in the city are going to have to get out the pom poms and offer to wash your car and do your house chores if you think this is not going to crash the city even more. Shelia does not care about those in Canton, Fed Hill, or Fells. Your just supposed to pay your crazy taxes that are double the county and let her and the cronies on the council spend money on social engineering and handout in East and West Baltimore. Those of you in the city deserve what you get.

The council is not going to layoff that many people. Why? They are the biggest voters. So what's next? Let's tax the people that actually make money, the new settlers in the neighborhoods near the waterfront. Hell I would not even be surprised if they pass a realtor tax, a special fee for those who make money as used house salesman(women) in the city.

Expect income, real estate, and fees(think like 50 bucks for a visit to city hall or to call 311 next) to go up dramatically. What's next the introduction of a 50 cent drink tax on all beer and liquor per drink to help make up for the shortfall like Pittsburgh? (This should go over well considering the only reason most people come downtown is to eat dinner and entertainment.)

As more and more people leave the 350k mortgaged rowhomes in Canton that are only really worth 185k (and those above the park forget about it) maybe the city will finally realize that it needs to come up with a real tax plan similar to the way San Francisco and Boston did during the 1970's.

Now for the State; if Mike Miller and Martin O'Malley are not working on cuts now we might be the next state after California asking the Treasury for a bailout.


State weighs cuts in critical needs

Amid a gloomy economy that has severely eroded tax collections, Gov. Martin O'Malley is considering steep cuts to public education and health care programs and might ask state employees to take a six-day unpaid leave.

The spending reductions under consideration total $397 million in a state general fund budget of $14billion, according to a memo obtained yesterday by The Baltimore Sun. Budget Secretary T. Eloise Foster, who compiled the list, said in the memo that the cuts "will certainly impact services and programs," compared with previous budget-cutting that eliminated "non-contentious items."

The governor learned last month that the state faces a $432 million revenue shortfall that could rise to nearly $1 billion in the next fiscal year. It is a dilemma facing many states, as the foreclosure crisis and credit crunch shrinks the U.S. economy and ripples across the globe.

O'Malley needs to cut only about $250 million immediately, because he can tap into a relatively small pool of surplus funds. But he said he might make more trims as the economy continues to slide.

Well if you a school teacher, a state employee, or in public safety I'd say you are going to be lucky to get pay freezes for the next 3 years. Either that are major layoffs. Could be worse I suppose we could be like a lot of cities in California that had to declare bankruptcy



Politicians need to put aside the blame and work this out.

House minority leader Del. Anthony J. O'Donnell said the budget needs to be pared but argued that O'Malley should have predicted and been better prepared for the economic downturn. O'Donnell and other Republicans are calling for a statewide spending freeze.

"Unfortunately, the governor is responsible for creating the problem," said O'Donnell, of St. Mary's and Calvert counties, "through irresponsible spending increases on the heels of historic tax increases at a time when the economy was turning south."

O'Malley spokesman Rick Abbruzzese dismissed the minority leader's criticism. "Did Tony O'Donnell predict the banking crisis? Did he predict Lehman Bros. would file for bankruptcy? Did he predict the federal government would have to step in with a $700 billion bailout for Wall Street … while a Republican president was at the helm of our national government?"

Guys come on grow up and cut the budget. I do not want to pay higher taxes. We have local governments that are going to fall off the cliff and the federal government that is going to let the Bush taxcuts expire. Maybe it's time to look at pay freezes and cut the contractors? How about cut the trips overseas? Maybe it's time for a reorg and figure out who is actually working and who is just sitting around collecting a paycheck?

Here is a list of potential cuts. (Thanks Baltimore Sun)

One thing I do not see here. How about pay cuts for the MD board of regents? Maryland already has the highest tuition of state institutions in the country. One of the reasons is the overpriced fluff and middle management. These guys think they are special and entitled. (Sounds like our Wall Street elite) Sorry the money should go to the programs not these guys. Times are tough and the 200k do nothing jobs are over. The explosion of the credit bubble will prick the education bubble finally I hope and make college affordable again as student loans increase and salaries decrease.



I've cut my budget by 15% over the past year putting the difference into savings. What have the rest of you been doing?