Gov. Larry Hogan tore into Maryland lawmakers Wednesday, declaring he would not release $245 million in “fenced-off” money that members of the General Assembly directed toward school construction, rape kit testing and the Baltimore Symphony Orchestra, among other items.
Hogan called the strategy lawmakers use of “fencing off” money to steer toward their budget priorities “a shell-game gimmick.”
Under Maryland law, the governor submits his spending priorities to lawmakers, who cannot add money to the budget but can shift money in the budget to reflect their spending priorities.
Saying that there is “not really excess money available piled up behind a so-called magical fenced-off area,” Hogan announced that his administration would not be spending any of the fenced-off money.
Hogan added, “However, we will not allow critical public safety and health needs to go unmet.” His budget office would work with state agencies to fund “critical public safety and health programs,” he said.
The governor made his announcement during Wednesday’s Board of Public Works meeting.
State Treasurer Nancy Kopp — who, like Hogan, has a seat on the board — expressed disappointment with the governor’s decision.
She noted that some of the fenced off money, $2.5 million, was intended to ensure that rape kits didn’t go untested.
“It’s not the governor’s budget. It’s not the Legislature’s budget. It’s the state budget,” Kopp told the governor. “And I, for one, am sorry to hear you’re not going to be funding these very good programs.”
Hogan said he was acting out of concern for the state’s fiscal outlook. According to the state’s budget secretary, he said, “our revenue numbers — while still generally positive — are not growing as fast as mandated spending.”
Hogan expressed concern over the state’s structural deficit, estimated at $961 million. He also criticized lawmakers for cutting $90 million from the state’s rainy day fund and $50 million from the state pension fund.
Reaction from House and Senate leadership came soon after the Wednesday announcement. Senate President Mike Miller issued a statement saying that many of the items singled out by lawmakers had been included because of input from constituents, and that other projects were included in the governor’s own proposed budget.
Hogan, Miller stated, was “allowed to change his mind.” He urged the governor to do so “and decide that priorities including school construction, rape kit testing, youth jobs, funds to our HBCU’s [historically black colleges and universities] and other projects are worth funding.”
House Speaker Adrienne Jones sharply criticized the governor’s action, saying that the fenced-off programming items “are the people’s priorities; voted on by Democratic and Republican legislators.”
Delores Kelley, the chair of the Senate Finance Committee, called Hogan’s decision “a grave mistake.” The money for school construction was needed to improve conditions and ease overcrowding, said Kelley, who also lamented the loss of funding for a youth employment program.
“When you think of kids who need jobs, it’s tough,” she said.
State Sen. Nancy King, who chairs the Budget and Taxation Committee, said in a statement that the budget passed by lawmakers funded critical needs “without increasing the structural deficit,” and she urged the governor to reconsider “and fully fund these critical items.”
In a statement released after the meeting, Hogan’s communications director, Michael Ricci, stated, “As always, we are open to working in a collaborative way with the legislature on our budget.”
