John Matthews
WMAL.com
ANNAPOLIS — (WMAL) We keep hearing that the recession has been over for years, but for many people, it doesn’t feel like things have gotten much better.
It’s not just your imagination.
Maryland has just written down its expected revenue by about $800 million dollars for the next two years, blaming a drop in capital gains tax revenue and lower income tax revenue from taxpayers for the adjustment.
The Free State is not alone – Just across the Potomac, Virginia lawmakers will have to deal with a $1.2 billion spending gap when they return to Richmond in January.
Maryland Comptroller Peter Franchot tells WMAL that recovery from the Great Recession is continuing – the unemployment rate is falling, for example – but jobs are not paying what they used to.
“We have less tax revenue coming in, even though the economy is kind of looking okay,” says Franchot. “It’s the reason why Marylanders don’t feel that the recovery has really reached them, even though the data shows that employment is up,” he adds.
Franchot says lawmakers will have to find ways to tighten spending reins as they consider the state budget, and put aside any thoughts of significant tax relief.
“I served in the legislature for 20 years, and I can remember we were on a crusade to spend every possible bent dime we could find,” said Franchot. “And when we couldn’t find any bent dimes, we raised taxes. That was just the mantra of the legislature,” he added.
But after nearly a decade of recession and continuing recovery, Franchot says that practice has to stop. His hope – as idealistic as it may sound – is for Republican Governor Larry Hogan and the Democratic legislature to work together on a sensible spending plan.
“This is crazy that Democrats and Republicans are throwing insults at each other, criticizing each other, blaming each other. Boy, that is completely unproductive.”
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