Tens of thousands of Maryland state government employees will get a 4.5% boost in their pay as the state’s financial picture continues to be strong — at least for now.
Recently, state officials announced that they finished the last budget year with nearly $2 billion left over in a surplus, and lawmakers had required that a certain portion of any surplus be set aside for raises for many state workers
And new financial outlook projections were issued on Thursday, showing the state can expect to take in more money than expected for the current budget year in progress. That gave Gov. Larry Hogan the confidence to release the portion of the surplus that was dedicated for employee raises and expand the raises to all state workers.
Hogan, a Republican who is finishing his second term, said the financial outlook and worker pay raises are examples of a turnaround of state finances that he engineered over his eight years in office.
“After once again holding the line and bringing fiscal responsibility to Annapolis, we are able to take additional steps to honor our firefighters, law enforcement officers, nurses, and state employees for the meaningful work they do to change Maryland for the better,” Hogan said in a statement Thursday.
But AFSCME Maryland Council 3, the largest union for state workers, said it was their advocacy efforts that pushed lawmakers and the governor to act.
“Let’s be clear — this is a direct result of the work our union and members across the state have done with the leadership of the House and Senate,” AFSCME Maryland President Patrick Moran said in a statement. Moran said that lack of pay increases over time has meant that workers’ wages are falling behind inflation.
“This wage increase is a reflection of what happens when we join together to demand what we deserve, and this is just a first step to continue to fight for better pay and respect,” Moran said in a statement.
Also on Thursday, economists predicted that for the current budget year in progress, the state will take in about $1.2 billion more than previously estimated.
For the last few years, the state has seen an influx of federal aid and more money coming in from various taxes. For example, as inflation has boosted the cost of goods, consumers are paying more in sales taxes. Taxes on capital gains also have been stronger than expected.
State Comptroller Peter Franchot, the state’s chief tax collector, warned Thursday that the state should be cautious because the influx of money is not likely to last long.
“Amidst all these good vibes and another uptick in revenues, let me be very clear: The party’s over,” Franchot said at a meeting of the state’s top financial officials as they approved the updated forecasts.
Many Marylanders are struggling with inflation and the state should brace for “the next economic challenge,” Franchot said. The Democratic comptroller, who will leave office in January, advised officials to keep all of the extra money in the bank and to avoid increased spending going forward.
State Treasurer Dereck Davis, a Democrat, said that while it’s important to have “a strong cushion to balance difficult times,” government officials also have a responsibility to use public money for public good. Targeted, one-time expenses could help address some of the state’s myriad challenges, he said.
Davis said he’d advise the next governor and set of lawmakers who will be elected this fall to “continue to do what Maryland has always done: Be socially responsible, but be fiscally prudent.”
The third member of the financial panel, Hogan Budget Secretary David Brinkley, suggested the next set of government leaders should “avoid getting sidetracked into passing expensive legislation” and instead consider using some of the extra money for “relief” for Maryland taxpayers.
pamela.wood@thebaltimorebanner.com
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