House Republicans began pressuring their Democratic colleagues in Annapolis yesterday to provide tax relief this year FTC and to make it harder to raise taxes in the future.
More than 30 of the 41-member GOP caucus gathered to announce a plan to cut Gov. Parris N. Glendening's budget by more than $330 million to make good on their campaign pledge to slash state income tax revenues by 6 percent.
The tax cut, which would take effect next Jan. 1, would save virtually any Maryland family of four $220 regardless of income. The GOP proposal would eliminate the 2 percent tax on the first $1,000 of taxable income and increase the personal exemption each taxpayer may claim from $1,200 to $2,200.
The GOP announcement was hardly unexpected. Tax cut promises were made during last fall's campaigns, and the bills to carry them out have already been introduced.
The question is whether the Democrats who control the General Assembly will go for a tax cut this year and, if so, how big it would be.
Speaker Casper R. Taylor Jr. of Allegany County, the Democratic leader of the House of Delegates, has already put a 3 percent tax cut proposal on the table.
But Governor Glendening has said he wants to stash millions of dollars away this year to be used for tax relief later when the state's finances are in better shape.
Senate President Thomas V. Mike Miller Jr. has also taken a go-slow approach. Some senators have talked about putting the money aside this year, but earmarking it for tax relief in a future year.
The Republican plan is modeled after the four-year, 24 percent tax cut plan pushed last year by Republican gubernatorial candidate Ellen R. Sauerbrey, although GOP delegates said they are pushing now only for a one-year, 6 percent cut.
The Republicans also are pushing a bill that would require a 60 percent "supermajority" vote to approve any increase in income or sales taxes or any broadening of the sales tax base.
To finance their tax cut, the Republicans would depend largely on giving back to taxpayers nearly half of the $250 million that Mr. Glendening wants to set aside for a financial rainy day or to offset any cuts the Congress may pass through to the states.
Their plan also would eliminate all funds for the proposed Camden Yards football stadium; reduce from $30 million to $5 million the "Sunny Day Fund" used to attract businesses to Maryland; abolish an $8 million program to schools with high percentages of students who live in poverty; and eliminate nearly 80 percent of another program aimed at keeping high school students from dropping out.
The Republicans would stop $20 million in crime-prevention grants that Mr. Glendening wants to give to Montgomery and Prince George's counties and Baltimore.
"This is a blatant payback by the governor to the three jurisdictions that elected him," said Del. Robert L. Flanagan, a Howard County Republican. "There is no justification in singling those jurisdictions out."
Speaker Taylor called the Republican plan "anti-business" and was particularly critical of the proposed raid on the Sunny Day Fund, which he called a key tool Maryland can use in competing with other states to attract jobs.
But Mr. Flanagan characterized the fund as "welfare to business" and said Republicans were opposed to such programs.
Mr. Taylor said he also would oppose any attempt to impose a supermajority voting requirement on tax issues.
On tax relief, the speaker said only that he has been working with the governor on a four-year budget strategy to "deal with the issue of the income tax burden."
Mr. Glendening said that he had not had a chance to review the Republican plan, but that if there were constructive proposals for lasting budget reductions, he would consider them.
Frederick W. Puddester, his deputy chief of staff for budget matters, complained that the majority of the GOP cuts were one-time-only reductions, not permanent cuts on which long-term tax relief should be based.
Using the money already set aside to help build a football stadium, for example, would be a reduction that would not be repeatable.
Mr. Puddester noted that the Republicans left unspecified the programs that would be eliminated by at least $30 million of their proposed cuts, and other savings would result from actions that would be phased in over several years, not one.
He said a $17 million Republican salary reduction for 1,200 jobs that Mr. Glendening wants to eliminate through attrition during the coming year assumes that all 1,200 would depart on the first day.