Press Release - Office of the Governor

Governor O'Malley Signs Legislation to Secure Maryland's Future; Closes $1.7 Billion Structural Deficit 

Plan Makes Tax Structure More Progressive and Fair for Maryland Families;
Protects Investments in Public Education, Expands Health Care for Thousands;
Dedicates Funding for Higher Education, Transportation and Environment;
Allows Voters to Decide on Slots to Capture Revenue, Preserve Horse-Related Agriculture

ANNAPOLIS, MD (November 19, 2007) – Governor Martin O’Malley today signed sweeping legislation to close Maryland’s $1.7 billion structural deficit, reform Maryland’s tax structure to make it more progressive and fair for working families, protect critical investments in public education, higher education, transportation and the environment, and expand health care for thousands of Marylanders and small businesses.

“During the past three weeks, working with the General Assembly, we achieved more than anyone thought possible – and more than many governments achieve in four years,” said Governor Martin O’Malley.  “We passed a fair, long-term solution to the inherited $1.7 billion structural deficit, and got Maryland back to the business of making progress.  I am grateful for the steadfast leadership and courage of Senate President Miller and House Speaker Busch for coming together in the spirit of compromise to help us secure Maryland’s future and make our tax system more progressive and fair for Maryland’s families.” 

Joined by Senate President Thomas V. Mike Miller Jr., House Speaker Michael E. Busch, and Lieutenant Governor Anthony G. Brown just three weeks after calling a Special Session, Governor O’Malley also signed regulatory legislation that would allow Maryland to capture an additional $700 million in slots revenue should voters approve the referendum passed by the House and Senate in November 2008.

“Solving our State’s structural deficit and this Special Session was one of Governor O'Malley's biggest challenges to date, and his leadership passed the test,” said Senate President Thomas V. Mike Miller Jr.  “The Governor established the priorities for this session, and because of that we were able to come together to solve the structural deficit in a fiscally responsible way for all Maryland families.”

“I want to commend the House, the Senate and the O’Malley-Brown Administration for having the courage and the fortitude to come together and put forward a long-term, viable solution to Maryland's deficit that protects working families, invests in our quality of life and keeps Maryland's businesses competitive,” said House Speaker Michael E. Busch.

During the three week special session of the Maryland General Assembly, state lawmakers came together to pass legislation to:

• Protect our investment in education and help keep college tuition affordable;
• Make our tax system more progressive and fairer by providing an income tax cut for middle class families – to offset the penny sales tax increase – and close corporate loopholes;
• Cut spending growth by $550 million – on top of $280 million cut earlier this year;  
• Expand access to healthcare coverage for 100,000 more Marylanders and make healthcare more affordable for small businesses;
• Create the Chesapeake Bay 2010 Trust Fund to help restore the health of the Bay;
• Invest in Maryland’s critical infrastructure and transportation needs – to reduce traffic and protect our quality of life;
• And settle the slots issue – that has gridlocked our government for years – by voting to let the people of Maryland decide in a referendum.

“This is a proud day for Maryland's future,” stated Lieutenant Governor Anthony Brown.  “Thanks to Governor O’Malley’s visionary and forward-looking leadership, and the hard work of so many of my former colleagues in the Maryland General Assembly, our State is again on the path of progress.”

During today’s bill signing, Governor O’Malley signed six pieces of legislation:

• HB 1 – Budget Reconciliation Act
• SB 2 – Tax Reform Act of 2007
• SB 3 – Maryland Education Trust Fund - Video Lottery Terminals
• HB 4 – Video Lottery Terminals - Authorization and Limitations
• HB 5 – Transportation And State Investment Act
• SB 6 – Working Families and Small Business Health Coverage Act

[ Brief descriptions of each bill can be found here ]

Audio segments:
Governor Martin O'Malley - Senate President Michael Miller - House Speaker Michael Busch