I am writing to express my concern for the funding of the Kirwan Commission, which is to be addressed in the 2020 legislative session. Let me be clear: my comments are not on the tenets of the recommendations. The question is the billions the plan would cost at full phase-in (“As Hogan digs in his heels against Kirwan school funding, the Maryland legislature needs to lead,” Aug. 19).
Let us start by examining the current status of the state’s finances. For the next budget cycle, we face a shortfall of over $900 million. Spending over the next four years is then set to increase by 5.1% while revenues are projected to grow by only 3.2%. This will increase the deficit to $1.5 billion by fiscal year 2024, excluding Kirwan. We are running this deficit despite the additional $300 million per year the state now collects in income tax which was the result of inaction by the state legislature to address changes to federal income tax law change.
Our projected deficit is even more concerning since we are a full 10 years into a market expansion. A Wall Street Journal article from earlier this year highlighted that many states are now running surpluses, allowing them to solidify their finances and distribute money back to taxpayers while also increasing spending on education and other priorities. Another article from the Wall Street Journal warns that states which have not improved their finances “…raise the risk they won’t be prepared when another downturn hits, making them susceptible to big spending cuts."
The state is considering methods to increase revenue. These methods include sports betting, which is estimated to produce $20 million-$30 million, and the legalization of marijuana, which could add $100 million-$200 million but take several years to materialize. Even with these methods, which are not guaranteed to be successful, where will the state get the remaining $700 million or more?
We all agree we want the best possible schools, but are we only repeating the mistakes of the Thornton education plan by attempting to increase spending without a dedicated funding source? It is possible that, with a higher measure of fiscal constraint by the legislature, the funds might already be available? Can we avoid taxing our residents even more? In addition to potential state tax increases, many counties have also raised taxes – including Baltimore, Anne Arundel and Washington. How much more can we ask of Marylanders?
Finally, if we could find an additional $1 billion, should it all go to education? We are facing very serious challenges with opioid addiction, crime, infrastructure, and a shortage of volunteer fire and EMS responders. Had the legislature demonstrated some fiscal restraint in the past, we might be debating the merits of Kirwan. Unfortunately, we must instead focus on affordability.
Andrew A. Serafini, Hagerstown
The writer, a Republican, represents District 2 (Washington County) in the Maryland Senate.
Add your voice: Respond to this piece or other Sun content by submitting your own letter.