Bob the Elephant

In today's Gazette, Laslo Boyd writes about the structural deficit that we face in Maryland and it's impact on the Governor's race. As the column makes crystal clear -- Governor Martin O'Malley makes the tough choices to address the deficit, Bob Ehrlich just makes more empty promises.

Ehrlich's Fantasy Land

"The pattern for quite a number of years has been for the governor and General Assembly to pass, as required by the Maryland Constitution, a balanced budget for the following year, but with the realization that there was a built-in deficit facing the state in the subsequent year. The approved budget always has included a surplus, but never enough to fully cover the out-year shortfall. This situation is the very essence of a structural deficit.

Bob Ehrlich, in his four years as governor, made no serious attempt to come to grips with it. In 2007, Martin O'Malley and the General Assembly did try to end the ongoing structural deficit of the state during a special session where they cut spending, increased taxes and looked to anticipated lottery revenues in about equal proportions. Then the most serious national economic downturn since the Great Depression hit, and the balancing act of the special session was wiped out. Talk about no good deed going unpunished.

On the other hand, if O'Malley and the General Assembly hadn't acted in 2007, the projected deficit would be at least double what it is now, and Maryland would be looking more like California, Arizona or Michigan."

On Ehrlinomichs

"To fully appreciate the coming challenge, you need to factor in as well Ehrlich's stated goal of increasing the deficit before he deals with it. In a campaign stunningly short of specifics on any of his short list of policy proposals, the one strikingly clear position is Ehrlich's repeated wish to roll back the 1 percent increase in the state sales tax from the 2007 special session. That 1 percent generates approximately $650 million. Ehrlich asserts that cutting the tax will stimulate the economy and result in more state revenues, but even the most ardent free marketer would be hard-pressed to argue that the hoped-for new economic activity will produce anything close to the lost revenues."

That's right, Bob Ehrlich's fiscally irresponsible plan will increase the state's budget deficit by $2.4 billion over four years. But that hasn't stopped him from making promises he can't keep. Eight years ago, Bob Ehrlich told us he would save us money. But he increased state spending by 33% in four years - more than any governor in Maryland history and more than governors Glendenning and Schaefer.

More proposals without details

"But wait, there's more. Ehrlich, in what sounds like a bit of pandering to state employees with whom his relationship hasn't been all that good either, has expressed his disapproval of furlough days as a way to save state dollars. If he were to take that budget device off the table, he would need to find another $108 million in cuts somewhere in the state budget.

It's hard to know where all that money will come from. One place, for sure, is public higher education, where the former governor is on record as supporting significantly higher tuition. Another will be in every imaginable fee that exists, plus others that may have to be invented. And, in reality, despite his staunch anti-tax rhetoric, he did end up raising the state property tax last time around. But don't expect to hear any details on this issue before November."

It's a familiar story, because we've heard it all before... In 2002, Bob Ehrlich told us he wouldn't raise our taxes. But he raised the state's property tax by 58% and raised more than $3 billion in taxes and fees on Maryland families. In 2002, Bob Ehrlich told us he would save us money. But he increased state spending by 33% in four years - more than any governor in Maryland history and more than governors Glendenning and Schaefer. In 2002, Bob Ehrlich told us he cared about our kids. But he cut spending for school construction creating a crisis in our schools, and he failed to fully-fund Thornton. We've heard a lot of promises from Bob Ehrlich over the years, but he always comes back home to his fiscally irresponsible, special interest agenda. So it shouldn't come as any surprise that Bob Ehrlich is again making fiscally irresponsible promises that he just can't keep.