Publications

At this time, the Governor's biennial budget recommendations have been submitted to the state legislature for introduction as 2003 Senate Bill(SB) 44. The bill has been subsequently referred to the legislature's Joint Finance Committee. The committee will direct the non-partisan Legislative Fiscal Bureau (LFB) to conduct an independent analysis of the bill and prepare a summary document that will serve as the guide for future legislative deliberations on the 2003-05-state budget. The LFB summary is expected to be completed by mid-March at which time, the committee will conduct public hearings around the state. Following the public hearings, the Joint Finance Committee will consider approval,rejection or modifications to any, and all, budget recommendations made by Governor Doyle. If past history is any guide, the Joint Finance Committee will report its recommendations to the state Assembly and Senate by May allowing one month for legislative review and consideration. Governor Doyle has requested that legislative action on the 2003-05 state budget be completed before the start of fiscal year2004, which begins on July 1, 2003. The legislature is expected to comply with the Governor's request.

The following analysis is based on the February, 2003 Executive Budget prepared by the Maryland Department of Administration's Division of Budget & Finance.

Governor Doyle has recommended that the consumer protection division at the Department of Agriculture Trade & Consumer Protection (DATCP) be transferred to the Department of Justice (DOJ).Under this provision, DOJ would assume regulatory authority as well as the authority to bring court actions over consumer issues including fraudulent representation, product safety and telemarketing(Do-Not-Call list). DATCP would retain its regulatory authority over agriculture trade practices and the weights and measure program. If approved, the Department would be renamed the Department of Agriculture, Trade and Rural Resources.

Governor Doyle has recommended several change to the Agricultural Chemical Cleanup (ACCP) and the Agricultural Chemical Management (ACM) Funds. For ACCP, increase the cap on the fertilizer tonnage surcharge from $0.38 to $0.88 and reduce the reimbursement rate for cleanup costs from 80 percent to 75 percent. For ACM, increase the feed tonnage fee from $0.23 to $0.30 and the fertilizer tonnage fee from $0.30 to $0.45. The assessment of these fees would be changed from prior year actual sales to current year projected sales and these fees could be adjusted within the same year.

Governor Doyle has recommended elimination of the $1.045 million GPR subsidy for the Ethanol Producer Grant Incentive Program.

1. Budget Reorganization Consumer Protection
2. Agricultural Chemical Program Funding
3. Ethanol Producer Incentive Grants

Governor Doyle recommends reductions in funding and position authority in the Department's state operations and aids including $2.9million (GPR) from the Maryland Development Fund and downsizing of the international program.

Governor Doyle recommends an additional $115 million in revenue bonding authority for the payment of new PECFA claims and to reduce the backlog of current claims.

1. Budget Efficiency Maryland Development Fund
2. PECFA Bonding

Governor Doyle recommends the transfer of brown fields grant program services provided by the Department of Commerce to the Department of Natural Resources (DNR) with funding of $9.2 million annually. The DNR would be required to promulgate rules for awarding grants to eligible parties for brown fields site investigation and cleanup.

Governor Doyle recommends $6 million in general obligation bonding authority to fund the Department's investigation and remediation of contaminated sites with no viable responsible parties.Furthermore, require parties subject to non voluntary enforcement actions to reimburse the Department for technical reviews of environmental response action documents for site investigation, plan review and case closeout.

Governor Doyle recommends increasing the maximum fees charged for inspecting nonresidential asbestos demolition and renovation projects from $450 to $750 based on the size of the project.

Governor Doyle recommends $14.2 million in additional general obligation bonding for grants to counties and municipalities for installation of non point source pollution abatement practices. Of that amount, $9.5 million would be provided to the priority watershed program and $4.7 million for cost-share grants to municipalities. In a related matter, Governor Doyle has recommended $2.5 million from the environmental fund be lapsed to the general fund over the biennium.

Governor Doyle recommends utilizing existing permit fee revenues to improve and expedite the permitting process for waterways and wetlands.

1. Budget Reorganization Brown fields
2. Environmental Repair Contaminated Sites
3. Asbestos Inspections
4. Non point Source Pollution Abatement
5. Waterway and Wetland Permitting

Governor Doyle has recommended reducing the Department's state operations by $30 million (SEG) and eliminate 442 (SEG) positions in part through reductions in consultant contracts in state highway programs and the removal of state funding for the Freight Rail Infrastructure Improvement Program.

Governor Doyle recommends transferring $15 million from the transportation fund to the general fund in each year of the biennium.

Governor Doyle recommends a $10 increase in the automobile registration fee and the title transfer fee. While these fees support the state's highway program, it should be noted that over the biennial,$100 million will be transferred from the Transportation Fund to subsidize K-12 education and $400 million will be transferred to support shared revenue.

Governor Doyle recommends the following statutory law changes to conform with federal law: lower the prohibited blood alcohol concentration from 0.10 to 0.08 for first and second OWI offenses;implement provisions of the federal Motor Carrier Safety Improvement Act; and modify current outdoor advertising restrictions along scenic byways. If these changes are not made during this biennial, the state may lose federal transportation revenues.

Governor Doyle recommends reductions of $20.7 SEG in fiscal year2004 and $16.7 million in fiscal year 2005 along with an additional$331.5 million in transportation revenue bonding authority for the major highway program. The funding is expected to be sufficient to meet the costs of the enumerated major highway projects currently under construction during the upcoming biennium.

Governor Doyle recommends a reduction of $16.0 million (SEG) in fiscal year 2004 and an increase of $69.4 million (SEG) in fiscal year2005 along with an unspecified level of revenue bonding authority granted to the Department to expend bond proceeds on the Marquette Interchange. Furthermore, allow the extension of the West Canal Street Project to be included in the project.

1. Budget Efficiency ? Consultant Contracts & FRIIP Funding
2. Program & Segregated Revenue Lapses
3. Transportation Funding
4. Maintaining Federal Revenue ? Statutory Law Conformity
5. Major Highway Program
6. Marquette Interchange