Maryland League Of Women Voters Speaks Out On Special Session And Budget Issues
The League of Women Voters of Maryland (LWVMD) has been closely following the continuing saga of recommendations by Governor O'Malley re adjustments to the tax structure, and other methods of dealing with Maryland's looming budget deficit of $1.7 billion. The Governor's announcement of a special session requires that the League speak out!
Regarding a special session:
- Proposed legislation should be made available to the public sufficiently in advance of a special session to provide for review and study by the public. Citizens need adequate time to study and analyze proposed legislation, and to communicate with their representatives in the General Assembly.
- All proceedings of the special session should be accessible to the public.
- Recognizing the implications of proposals for increased taxes, etc. to individuals and organizations, representatives of the public and others will want to observe the sessions. Accommodations should be made for this surge in public interest.
- For those who cannot be in Annapolis during the session, additional methods should be employed, including the Maryland General Assembly website, and live broadcasting of all hearings and sessions via that site. In addition, the League suggests that fees charged by the state for up-to-the-minute service provided by the Legislative Information Services be waived for the special session.
- The length of the special session must be adequate to allow communication between elected officials and their constituents, and the public must have access to amendments that may appear overnight, or just prior to a vote.
- Participation in the legislative process of our state, as observers and as educators is basic to the League. We will continue this service during any special session.
Regarding methods to solve the budget crisis, two major considerations drive the League's concerns:
1. The budget problem is severe, now perceived as needing $1.7 billion in new funding just to carry current programs, and as much as $3 billion to address unmet needs in health care, transportation, environmental protection, housing, education, and programs for children and families.
2. With no specific legislation drafted, just general recommendations, the full impact of the proposals on individuals, the economy, and the state budget won't be known until more details are released, including full fiscal analyses.
A brief list of possible revenue enhancers and the LWVMD Board's position follow:
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Reform the income tax - LWVMD strongly supports this option, but believes it does not go far enough. Under the Governor's plan, typical married filers making less than $250,000, and singles earning less than $185,000 will see their income taxes reduced.
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We support the increase in the Earned Income Tax Credit (EITC) and the lower rate on taxable earnings up to $15,000 for singles, and $22,000 for couples, plus any other proposals that will make the income tax more progressive.
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Increase the sales tax by 1 cent, to 6 cents on the dollar.- although generally considered a regressive tax, the League will support it because of the severity of the deficit, with some caveats :it excludes food and medicines, includes an increase in the earned income tax credit (EITC), a $50 rebate for low income individuals and families, sales tax free days, and any other measures to reduce the impact on low-income families. Expanding the sales tax to some services, increasing the corporate income tax from 7% to 8%, and several other options are also being explored.
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State-sponsored slot machines are strongly opposed because of incompatibility with social policy, equity/fairness principles, and the many hidden costs associated with gambling.
The League looks forward to vigorous debate on these important issues.
