Governor O'Malley Presents Budget Plan to UMBC Students

Press Release

Governor O'Malley Presents Budget Plan to UMBC Students

Presents Entire Plan to Students; Discusses Higher Education Funding

Governor O'Malley today presented his comprehensive solution to address the State's looming $1.7 billion structural deficit to students at University of Maryland, Baltimore County.

The Governor was joined by Maryland Higher Education Secretary James E. Lyons and University System of Maryland Chancellor William E. "Brit" Kirwan as he spoke to students from UMBC's Student Government Association, Graduate Student Government Association, Honors Society, and Public Policy and Public Affairs programs at the Albin O. Kuhn Library Gallery at the UMBC campus.

"I am honored to be here at UMBC today to meet with student leaders to discuss our proposed solution to tackle our State's $1.7 billion budget deficit," said Governor O'Malley. "Not only is our solution comprehensive and reasonable, but it also makes critical investments in higher education. I look forward to working together with the students of UMBC and the students across Maryland to address the challenges and opportunities we face and to begin making progress again for the people of Maryland."

"Governor O'Malley's plan to create the first-ever dedicated funding source for higher education is historic," said William E. Kirwan, Chancellor of the University System of Maryland. "It is a vitally important step in enabling higher education to address our state's workforce and other needs in the years ahead."

During his presentation, Governor O'Malley outlined his budget solution proposal, which includes the need to invest in our State's critical transportation and intellectual infrastructure. The Governor has proposed a 1 percent increase in the State's corporate income tax which would be invested in the State's Transportation Trust Fund and be used to make college education more affordable for Maryland families. During the period between 2003 and 2005, college tuition in Maryland rose by 40%.

"Investing in higher education is an important step to meet the current workforce demands," said Maryland Higher Education Commission Secretary James E. Lyons. "Over the past several years, tuition and fee increases have outpaced annual family median income growth, making it harder and harder for middle class and low-income families to afford college. Governor O'Malley's proposal makes college an option again."

"As the details of this plan have been released, it is has become increasingly clear that Governor O'Malley is proposing a comprehensive plan that places Maryland on strong fiscal ground for years to come," stated Baltimore County Executive Jim Smith.

Governor O'Malley outlined plans to reform Maryland's income tax structure to make it fairer for working families and outlined the need to close corporate tax loopholes so that all businesses pay their fair share. Governor O'Malley's proposal includes plans to reduce the State property tax for homeowners and expand the sales tax, while keeping Maryland competitive with surrounding states. Under the Governor's proposed reforms to the State's income tax, reductions in the state property tax and sales tax proposals, the Maryland Department of Budget and Management estimates that 83 percent of Marylanders will pay less.

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