The biggest surprise in the mid-term elections on November 3rd was the election of a Republican governor, real estate developer Larry Hogan. Daraius Irani, chief economist of Towson University’s Regional Economic Studies Institute, pointed out that the economy in Maryland is struggling. “Traditionally the state has relied on the public sector to fuel the economy, but belt-tightening by the federal government makes that a dubious proposition, Irani said. Instead the state has to find ways to improve the business climate.”
The first priority of the new governor is getting Maryland’s financial house in order. The state will face a $400 million deficit this year and the next two years, totaling $1.2 billion. The debt service will “… triple from two years ago — to $268 million. By 2019-2020, debt service will hit $559 million per year.” Raising property taxes is not an option. “Other big spending-growth areas also will be difficult, if not impossible, to cut.
Governor-elect Hogan has a big job ahead of him.
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