2012 legislative sessions in Maryland and Virginia each end leaving jurisdictions in fiscal limbo

2012 legislative sessions in Maryland and Virginia each end leaving jurisdictions in fiscal limbo

The long session for the 2012 Virginia General Assembly, which concluded March 10, has been in Special Session ever since, working to sort out budget differences between the House and Senate, Democrats and Republicans. A sticking point, which may or may not get resolved, is the question of light rail funding to Dulles Airport. The Conference Committee between Senate and House includes $150 million in state funding for Dulles, and that much again or more committed from affected Northern Virginia localities, including Fairfax and maybe Loudoun.

The Virginia Special Session, which has been recessed, returns next Tuesday, April 17, to see if the budget can be concluded, spanning two years with $85 billion of funding.

In Maryland, the future of the states budget remains unclear days after the regular legislative session concluded this week in Annapolis. As with Virginia, Marylanders failed to pass a revenue plan before members adjourned the regular session Monday night, leaving the state and local governments to confront hundreds of millions of dollars in shortfalls that will require deep cuts in government spending.

The impasses in Maryland arose over disagreement between the House and the Senate on how to reach revenue goals that might offset those cuts. The House only wanted to raise taxes on higher-income people, whereas the Senate wanted everybody to contribute. But the really big issue was gambling, and whether to authorize new casinos in Prince George’s County.

Also falling victim to the legislators impasse was Gov. OMalleys effort to rebuild Marylands Transportation Trust Fund, which went nowhere when the legislature rejected an increase in gasoline taxes to pay for it.

If a budget compromise in Maryland isnt worked out before the fiscal year begins July 1, the $500 million in spending cuts needed to balance the state budget will fall very heavily on K-12 education and push up state college tuition by 10 percent or more.

OMalley is expected to announce shortly whether he is calling the legislature back into Special Session, which if he does will likely play out in May. Maryland dealers who sidestepped industry-specific tax increases during the regular session will have to gear up again for any Special Session that comes about.

Stay tuned.