Dear Friends:

I just wanted to give you a quick update regarding the State Budget that we received from the Maryland House of Delegates this week. As the Budget came over, it only contained $6 million in cuts out of a $14 billion Budget. It also represented an additional $1 billion in spending to backfill the loss of federal monies which the O'Malley administration relied upon last year. I voted against the Budget for several reasons, as it continues to push the hard decisions down the road for future generations.

One of the most onerous aspects of the Budget was an additional $300 million assessment on our hospitals and nursing homes. This continued practice puts our community hospitals at risk and continues to force health care costs higher for average families and employers. In addition to this huge tax, several fees were increased, including the Vehicle Titling Tax from $50 to $100, the Vanity Plate Fee doubled from $25 to $50, Land Recording Fees doubled from $20 to $40, Birth Certificate Fees doubled from $12 to $24, and finally, a 2% premium tax on the Injured Workers Insurance Fund. It is no wonder the Maryland recovery from the ongoing recession is lagging behind other states as we continue to increase the costs of doing business and maintaining families here in Maryland.

At this writing, the Senate has just passed an increase in the alcohol sales tax from 6% to 9%. Amazingly, the first year's revenue from this tax increase will go to Baltimore City and Prince George's Counties and not to the advocates who were persuaded to support this tax in the first place. They have ended up with a paltry $5 million a year for disabled adults and mental health programs.

I am sad to say that this year's Budget is just a continuation of business as usual in Maryland's tax and spend philosophy.

Thank you for following these developments throughout the 2011 Legislative Session and I will try to get you a full summary of the Legislative Session in a couple of weeks.

With every good wish, I remain

Very truly yours,

Barry Glassman
Senator