Governor O'Malley, Board of Public Works Cut Over $345 Million from FY09 Budget
Board Eliminates over 800 State Positions; Begins to Address FY 10 Budget Challenges due to National Economy
ANNAPOLIS, MD (October 15, 2008) – Governor O’Malley and the Board of Public Works today approved over $345 million in budget reductions to balance the FY09 budget, including over $297 million in general funds, and over $50 million in special and federal funds. The Board also approved the elimination of 830 state positions, bringing the total number of positions eliminated under the O’Malley-Brown Administration to more the 1,500.
Following the national economic downturn and the Board of Revenue Estimates projections last month projecting a revenue shortfall of $432 million for FY09, Governor O’Malley directed the Department of Budget and Management to cut spending in all state agencies up to 5%.
“The cuts we are making today are not easy,” said Governor O’Malley. “Eighty-percent of Maryland’s State budget is dedicated to public safety, public education and public health. Yet, as our national economy has faltered, states across our country, like families across our nation, are now faced with the hard decisions necessary to balance our state budget in very difficult economic times. Over the last few weeks, we have asked our State agencies to identify cuts of up to five percent in their budgets, and we will continue to work with them to reduce spending and find efficiencies as we work to address these budget challenges brought about by our national economy.”
With today’s action, in the first half of the O’Malley-Brown Administration, spending has been reduced by more than $2.2 billion and more than 1,500 state positions eliminated. Budget growth has been limited to less than four percent annually for both FY08 and FY09 budgets; each falling below the General Assembly’s spending affordability guidelines.
For a complete list of budget reductions by State agency, visit
http://www.governor.maryland.gov/documents/BPWdetail081014.pdf.
