MR. CHAIRMAN, LADIES AND GENTLEMEN OF THE HOUSE APPROPRIATIONS COMMITTEE, I AM DELIGHTED TO PRESENT HJ 16 AND HJ 17, WHICH DEAL WITH SOME OF THE MAJOR FISCAL ISSUES THAT I BELIEVE FACE US IN THE MARYLAND GENERAL ASSEMBLY, ESPECIALLY DURING THIS SESSION. I INTEND TO GO THROUGH WITH YOU SOME OF THESE DOCUMENTS WHICH SUBSTANTIATE THE NEED FOR US TO REFLECT ON THE ASPECTS OF SPENDING AFFORDABILITY. WITH ME IS DEL. ELLEN R. SAUERBREY (WHO WILL REFRESH SOME OF OUR MINDS AND GIVE HISTORICAL PERSPECTIVE TO OTHERS REGARDING SPENDING AFFORDABILITY), AND DEL. ROBERT FLANAGAN (WHO WILL ADD COMMENTS AND PRESENT HJ 16).
AS A MEMBER OF THE SPENDING AFFORDABILITY COMMITTEE, I AM CONCERNED THAT EVEN THOUGH THE BOARD OF REVENUE ESTIMATES RECOMMENDED AN INCREASE IN SPENDING OF 5.4%, THE COMMITTEE SOUGHT AND APPROVED A 6.9% INCREASE OVER AND ABOVE SPENDING AUTHORIZED AT THE 1999 SESSION. THEN THE GOVERNOR’S BUDGET, AS SUBMITTED. REQUIRED A 7.4% INCREASE OVER CURRENT LEVELS OF FUNDING WHICH WOULD NECESSITATE THIS COMMITTEE TO CUT ALMOST $70 MILLION.
DURING THE MANY HOURS OF BUDGET BRIEFINGS, WE NOTED THAT THERE WERE CONSTANT REFERRALS TO EXEMPTIONS FROM SPENDING AFFORDABiLITY BECAUSE "THIS WOULD BE FUNDED OUT OF TANF FUNDS" OR "THIS WILL BE FUNDED OUT OF THE CIGARETTE RESTITUTION FUND AND THEREFORE NOT COUNTED UNDER THE SPENDING AFFORDABILITY GUIDELINES."
WELL, I HAD ASKED THE DEPARTMENT OF LEGISLATIVE SERVICES TO PUT TOGETHER A LIST OF SOME OF THESE EXCEPTIONS, AND THE RESULTS OF THEIR ANALYSIS IS SOMEWHAT SHOCKING. IN THE DOCUMENT DATED FEBRUARY 24, 2000 IN THE ATTACHED HANDOUT, SOME OF THE ITEMS WHICH WOULD BE COUNTED TOWARD SPENDING AFFORDABILITY, IF FUNDED FROM GENERAL FUNDS, IS $246.7 MILLION COMPRISING THE $100 MILLION MEDICAID DEFICIENCY, TOBACCO AND CANCER CONTROL, AND EDUCATION PROGRAMS.
AS YOU CAN SEE, THERE IS ALSO THE REALLOCATION OF SURPLUS TANF BLOCK GRANT FUNDS WHICH REPLACE GENERAL FUNDS TN BOTH FISCAL 2000 AND 2001- THE COMBINED EFFECT BEING $52.3 MILLION. AN ESTIMATED UNDER FUNDING EXPLAINED IN EXHIBIT 2 SHOWS FOUR ITEMS TOTALING $45.2 MILLION AS A POSSIBLE SHORTFALL. COMBINING THE OPERATING SPENDING IN THE RESTITUTION FUND, THE TANF SUBSTITUTION, AND THE UNDERFUNDED ITEMS TOTAL $344.2 MILLION. OF THIS AMOUNT $244.6 IS EITHER "BASE BUDGET" SPENDING OR COMMITMENTS ASSOCIATED WITH THE TOBACCO TAX LEGISLATION. IF THIS ADDITIONAL $224.6 MILLION WAS INCLUDED, THE SPENDING AFFORDABILITY INCREASE WOULD BE 9.4%.
ADDING THE REMAINING $119.6 MILLION THAT COULD BE CONSIDERED PROGRAM ENHANCEMENTS AND INITIATIVES FUNDED FROM THE CIGARETTE RESTITUTION FUND WOULD REQUIRE A 10.4 PERCENT INCREASE IN SPENDING AFFORDABILITY TERMS.
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