Posted on 05/09/2016 12:33:05 PM PDT by Tolerance Sucks Rocks
Ancient Rome declined because it had a Senate; now what's going to happen to us, with both a Senate and a House?" — Will Rogers
Most Marylanders are wondering the same thing. This year, the liberal majority in the Senate and House launched a fiscal attack on Gov. Larry Hogan's efforts to balance the budget, reduce the deficit and cut taxes. Their goal: to handcuff Hogan and prevent him from doing the job we elected him to do.
Fencing and mandated spending are the manacles Senate President Mike Miller and House Speaker Mike Busch are using. Here's how they work.
Constitutionally, the legislature can only cut, not add, funds in the governor's budget. But fencing funds redirects them for a purpose (possibly one the governor may not desire) by cutting them if they are not spent as the legislature wishes. Mandating allows the legislature to require the expenditure of funds in future budgets.
So far, fencing has had minimal success. Hogan can spend fenced funds if he wishes. If he doesn't, they are cut, and our structural deficit is reduced. Since Hogan wants to reduce the deficit, threatening him with cuts isn't effective. Last year $83 million in additional education funding was fenced. Busch and Miller thought they could turn up the political heat and get Hogan to spend the funds. They were wrong; Hogan used them to reduce the deficit, just as he said he would.
But mandated spending is a more potent weapon. A legislative spending mandate requires Hogan to fund an item in future budgets, whether there is money in the treasury to pay for it or not. This undermines Hogan's ability to balance future budgets, and cut taxes, by driving up the deficit.
Politically, this is what Busch and Miller want. Spending mandates allow them to please their political base with the promise of increased future spending, and reduce Hogan's ability to deliver tax cuts to his base. Additionally, mandates force the governor to negotiate with them over what mandates will be fully funded, reduced or cut when there isn't enough money in the treasury to pay for all of them.
Simply put, when the governor introduces a budget that fully funds mandated spending, he's in control. Busch and Miller don't have much leverage over the budget process unless there is a shortfall; so it's to their political advantage to create one through spending increase mandates.
That's what happened this year. Using the efficiencies created by his cuts and an improving economy, Hogan submitted a balanced budget that fully funded all mandated spending. Busch and Miller responded by using their majorities in the House and Senate to fence $90 million, and passed 25 bills that mandated spending increases totaling $974.3 million over the next four years. Since Busch and Miller have veto-proof majorities in the Senate and House, Hogan is stuck with these mandates, and the deficit increases that accompany them. Instead of an easily manageable $8 million deficit, Hogan must now deal with a $170 million deficit when he runs for re-election in 2018 — more, if Busch and Miller push through additional spending mandates next year.
It's disappointing the Senate and House failed to pass tax cuts that would've saved Maryland families $100 million a year, but had no problem mandating spending increases that will consume twice that amount next year alone. Unfortunately, tax cuts really aren't part of the liberal Senate and House agenda. They want to spend more. Mandated spending increases, and the deficits they create, give them excuses not to cut taxes, and more power in the budget process.
The budget battles are far from over. Hogan has other cards to play, and really hasn't taken his case to the people yet. With a 66 percent approval rating and a bully pulpit to preach from, Senate and House liberals might find that trying to handcuff Hogan is like trying to handcuff Houdini.
Herb McMillan is an airline captain and represents Annapolis in the Maryland House of Delegates. Contact him at herb.mcmillan@house.state.md.us. Data provided by the Maryland Department of Legislative Services.
Maryland “Freak State” PING!
Deviant Maryland Democrats Derail Hogan’s budget plans.
Dems mandate deficit spending
Governor Hogan has done very well despite RAT control of the state legislature. I hope he can find a way to work against this atrocity.
Ditto!
Sure hope he learns how to fight these partisan hacks. Look what they did to Ehrlich.
Wasn’t he once a Nazi captive?
I know. Somebody in the room has be be a smart a$$, why not me?
I used to live in Annapolis, and Herb was one of my delegates. I know him personally, as his daughter and my daughter used to play on the same lacrosse team. He is a top, top man.
I think he is also a USNA grad.
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