MARYLAND BUDGET & TAX POLICY INSTITUTE

STATEMENT IN SUPPORT OF SENATE BILL 692

STATE BUDGET – MODIFICATIONS – REPORTING

February 27, 2008

The Maryland Budget and Tax Policy Institute supports Senate Bill 692, State Budget – Modifications – Reporting.  The bill will improve the transparency and credibility of the state budget process with minimal cost or disruption.

 

Senate Bill 692 requires the state budget books to list budget or policy actions which result in reductions in service levels in 11 specified agencies.  The bill sets a threshold of $50,000 of expenditure or 5% of units of service for an action to be required to be included on the list.

 

Maryland has the strongest executive budget process of any state in the nation.  In its action on the budget, the legislature generally may not add to the amounts proposed by the Governor.  This makes it very important for the legislature and the public to have complete and readily interpretable information regarding the policy effects of the proposed budget.  It is generally in the interest of a Governor to publicize increases to programs and expansions of services.  Often, however, Governors do not find it convenient to highlight the reductions they make in balancing the budget.  This bill simply requires a listing of significant reductions to some key service areas.

 

The Maryland Budget and Tax Policy Institute agrees with the fiscal estimate provided by the Department of Legislative Services.  It would not require significant additional expense for the Department of Budget and Management to comply with this bill.  Because the requirement is limited to 11 specific state agencies and there is a reasonable threshold for a reduction’s inclusion in the report, the requirements should be quite manageable.

 

The Maryland Budget and Tax Policy Institute respectfully requests the Budget and Taxation Committee make a favorable report on Senate Bill 692.

 

Contact:  Neil L. Bergsman, Director

410-727-6367 x17

nbergsman@mdnonprofit.org