Like many states, Maryland is grappling with sizeable budget deficits that are forcing state lawmakers to make tough decisions. After a year in which General Fund revenues fell, Gov. Robert L. Ehrlich inherits an ominous legacy from his predecessor—a $550 million shortfall in the current fiscal year and a $1.2 billion deficit for fiscal year (FY) 2004. In addition, the new governor will have to decide whether to honor popular but pricey spending commitments made as Parris Glendening left the State House—including a $100 million raise for state employees and Glendening’s Smart Growth initiative.

To read the full report, please download the PDF version.