Both House Speaker Mike Busch and Senate President Mike Miller advised Gov. Martin O'Malley against a special session. Although there is no broad agreement among Democrats about how to address the budget problems of the State, O'Malley has decided to take a risk and call the special session. Delegate Saqib Ali sent me a link to a nice article in the Baltimore Sun summarizing the current state of play and the Governor's tax proposal:
O'Malley today did not take a stance on a slots referendum, but said he is "inclined that way" to break the stalemate between the House and Senate.
Seeking to erase the budget deficit and increase spending in some areas, O'Malley wants to raise the state sales tax rate from 5 percent to 6 percent and broaden that levy to cover more services. He would cut the property tax by 3 cents per $100 in assessed value, double the cigarette tax to $2 a pack, and increase the car titling tax.
He has also proposed overhauling the income tax structure to charge lower- and middle-income Marylanders less but top earners much more, raising the corporate income tax rate from 7 percent to 8 percent, tying gas tax increases to the cost of construction materials, legalizing slot machine gambling, and closing what he calls corporate tax "loopholes."This is going to be a tough special session with a lot of wrangling among Democrats. I say among Democrats because the Republican goal appears to be to sabotage the Democrats on the decision of GOP legislators to oppose slots in a special session after having supported it in the past and expressing a willingness to consider it in the regular session. Of course, one wonders if the Democrats will really need any help due to sharp disagreements within the party over slots, tax increases, and spending priorities.
