A series of revenue-generating plans include new fees for electric vehicles, higher taxes on businesses, a sales tax on used car trade-ins, a new 75-cent fee on ride-share trips, and increased out-of-town tolls. etc. are included. Measures such as state impetus.
Overall, the package would raise $525 million a year for landmark education programs that lawmakers passed without attached sustainable funding, and an additional $675 million a year for transportation projects. Both are priorities for the Democratic Party, which is in crisis due to economic stagnation. As it stands, the funding needed for educational programs is projected to be exhausted within two years.
And Gov. Wes Moore's ambitious goals, such as ending child poverty, require the state to pay for them.
“We are no longer a stopgap,” House Speaker Adrian A. “We cannot rely on solutions or short-term approaches.” .
She and other House leaders positioned themselves as a wing of the Democratic Party willing to take on tough issues to uphold the party's shared values.
“At this point, we know what the solution is, and it's finally time to say the answer is revenue,” she said.
The maneuver instantly ignited a smoldering election-year political battle among the typically united Democrats who have held majorities in both chambers of the Maryland General Assembly for generations.
“I don't think there's much room for compromise. And frankly, this is what we've been saying for months,” Senate President Bill Ferguson (D-Baltimore City) said after the proposal was announced. I mentioned it right after.
Democratic senators are moving forward with their own plans to raise fees for out-of-state drivers and impose annual fees of up to $150 on electric vehicle owners who don't pay the gas tax that normally funds transportation projects, but Congress said Mr. Moore. (D) currently resists across-the-board revenue increases.
Moore has argued that there is a “very high bar” for imposing tax increases, given Maryland's high cost of living and his desire to rebuild the economy first.
House leaders say they don't have time to wait.
“We face a high bar. We face a Transportation Trust Fund shortfall that is not sustainable. So we believe we have achieved a high bar,” said House Appropriations Ben Burns. said the Committee Chairman (Democratic Party, Prince George).
Moore's transportation secretary, Paul J. Wiedefeld, said in an interview that the proposed influx of transportation dollars would allow the government to “recover what we had to cut,” and if it can't, the state said they can't compete for federal transportation dollars. Prove that you have the funds to maintain your existing system.
“This positions us for some of these huge projects, especially Red Line,” he said.
senate leadership, But I want to First, build an argument to support the tax increase to the people.
“That difference of opinion will show up in the results,” Ferguson said. “Marylanders are concerned about inflation and daily budget costs, and we have to pay close attention to that in this political environment.”
The tax story is already providing fodder for Republican Larry Hogan's Senate campaign. Former governor twice this week sent out emails pleading for support using “insane” tax debate to help secure second term victory in deep blue state that elected Joe Biden by 33 percentage points The same pocket problem strategy was deployed. 2020.
Marylanders are struggling with rising prices and inflation, and the last thing we want is an increase in taxes and fees.
When I was governor, I showed you how to balance the budget while reducing the burden on taxpayers. I urge Maryland's leaders to abandon this tax campaign and get back on track.
— Governor Larry Hogan (@GovLarryHogan) March 15, 2024
Because the Maryland General Assembly is required by the state constitution to pass a balanced budget before the state adjourns on April 8, House Democrats are using the budget process to push for revenue increases, which could lead to a deal with the Senate. will force tax negotiations.
The tax battle in Annapolis is less about whether to raise taxes and more about when to raise taxes.
Lower gas tax revenues and rising construction costs have left a $3.3 billion hole in the state's transportation budget, forcing Moore to cut projects and scale back services across the state. He has pledged to build the Red Line transportation project in Baltimore, replacing the aging American Legion Bridge over the Potomac River.
At the same time, Democrats need billions of dollars in annual revenue to continue their flagship education programs. The initiative, known as Maryland's Blueprint for the Future, would send hundreds of millions of dollars a year to schools in high-poverty areas to provide a variety of comprehensive services. It also aims to raise teacher salaries across the state, provide preschool education starting at age 3, and pay for tutoring and apprenticeships.
Final passage of Maryland's Senate version of the $63 billion state budget is expected on Friday. It is closing the budget gap by reviewing savings and adopting some of the spending cuts proposed by Moore in his spending plan. That includes millions of dollars in cuts to community colleges, private four-year universities, state park maintenance and municipal road construction projects.
“My hope is that we get through this year and continue to work on options for the next few years,” Senate Budget Chairman Guy Gazzzone (D-Howard) told reporters earlier this week. He said Democratic leaders are all interested in passing legislation on education, transportation and climate change, but first they need a sustained public push.
“When you're asking the public to give up their hard-earned money for something, you better do a good job of convincing everyone that what we're doing is that important.” said Mr. Guzzone. “And for me, a lot of this is a process and we have to take it seriously as a group. I mean, the governor, the House, the Senate, we have to work together because we Believe these things. ”
The size of the tax package is comparable to one passed by Democrats during a 2007 special session called by then-Gov. Martin O'Malley (Democrat). This ultimately led to a $1.4 billion tax increase and a referendum on ballot quotas.
Republicans have stepped up their opposition to tax increases, with the Maryland Republican Party sending out weekly emails, including last week's, proposing applying sales tax to currently exempt services. He accused Democrats of proposing “the largest tax increase in state history.” The sales tax proposal has not moved forward, but Republicans have scheduled a rally on Friday related to internet gaming, arguing it would cost casino workers their jobs.
House Democrats say it's a choice between keeping the state's education system intact or breaking its promise to ensure all children have equal access to a high-quality education.
“We're basically picking winners and losers when it comes to the education of our children based on their zip code,” said House Ways and Means Chairwoman Vanessa Atterbeary (D-Howard). “As a mother and as a Member of Parliament, I cannot back away from that promise. Neither can Madam Speaker. Neither can all my colleagues.”
Katie Shepherd contributed to this report.