End of Session 2008 Report

We in the legislature continued our legacy of fiscal responsibility and balanced our state budget with:

Over $1.1 billion in cuts from the state’s general fund and nearly $1.5 billion in cuts from the budget overall. With these cuts, Maryland remains a low-spending state on a per capita basis.

A more progressive income tax structure that results in no increase in the rate paid by 95% of Marylanders, and a tax cut for 72% of filers in the form of an increased standard exemption.

A regionally competitive sales tax – the cost of which is offset for most residents by the increased standard exemption in the income tax. Maryland’s sales tax is 6%. By comparison, shoppers in New Jersey and parts of Pennsylvania pay 7%, and shoppers in West Virginia and parts of Pennsylvania pay 6%.

A corporate income tax that among the lowest in the region. Maryland’s corporate income tax is 8.25%. By comparison, businesses in Pennsylvania pay 9.99%, D.C. 9.975%, New Jersey 9%, West Virginia 8.75%, and Delaware 8.7%.

A repeal of the "tech tax," which will ensure our tech and business sector continues to thrive and grow. The repeal also cuts $700 million to the budget over 5 years, further demonstrating fiscal responsibility.

A fully funded K – 12 public education system, including an accelerated phase-in of the Geographic Cost of Education Index. This is the first year the GCEI has been funded.

Nearly three-quarters of a billion dollars invested in public school construction and renovation, to ensure Maryland’s students are learning in the best possible school facilities.

A third consecutive year without a tuition increase at the University System of Maryland and Morgan State University.

100,000 Marylanders with increased access to healthcare.

An innovative public-private partnership to close the Medicare Part D "donut hole" and help 30,000 Maryland seniors struggling with rising drug prices.

A long-term energy policy designed to promote conservation and bring stability to the state’s energy market, and nearly $2 billion in rate relief for consumers in the BGE service area.

Enhanced protections for home buyers and Marylanders facing foreclosure – legislation widely expected to become a national model in solving the mortgage crisis.

A renewed commitment to transportation, including $350 million of annual investment in mass transit and highways, enough for system preservation and new projects.

Significant investment in Chesapeake Bay restoration, including a stronger Critical Areas law designed to protect against development along the Bay’s shoreline.

Passage of Maryland’s own Family Leave Act, allowing workers to take time off to care for sick or injured family members.

More transparency in government, by creating a website that will e ase access for citizens as to how their tax dollars are being spent.

Increased mental health services to our veterans returning from the Iraq and Afghanistan.