O'Malley Rejects $30 Million Fee Hike

Governor Martin O'Malley has rejected a proposed a $30 million a year increase in fees for motorists.

The Motor Vehicle Administration had proposed higher fees for about three dozen services including driver's license and title certificate renewals. A hearing before a legislative review committee on the issue had been tentatively scheduled for next week.

The new fee schedule was posted on MVA's Web site weeks ago and notices had gone out in driver's license renewal notices, but aides say O'Malley never seriously contemplated allowing them.

Department of Transportation spokesman Jack Cahalan says MVA officials were already working on cutting more than $30 million from their $180 million budget, since they knew O'Malley might reject the fee hikes.

In a separate move, legislative leaders have asked their staffs to examine how deeply state services would have to be cut if taxes aren't raised to meet the state's one and a half billion dollar budget shortfall.

(Copyright 2007 by The Associated Press. All Rights Reserved.)