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ANNAPOLIS – When a family hits hard times, it cuts obvious excess spending by eating out less, shopping smarter, and abstaining from luxuries.

But when hard times keep coming and reducing the excess isn’t enough, families can be forced to cut back on essentials, dip into savings or make more money to pay the bills.

This is the situation the state of Maryland finds itself in.

“We’re essentially broke. We’re broke,” said Maryland Comptroller Peter Franchot.

Now somewhere in what’s left, the Board of Public Works must identify ways the state can get by with less.

“We don’t have enough revenue to pay for what we’re doing,” said Maryland’s top budget analyst Warren Deschenaux. “So job one is either to do less or raise more.”

Raising more means raising taxes, something politicians are loathe to do, especially during a recession. Money also won’t likely come from the rainy day fund, which amounts to 5 percent of the state’s revenue, because that fund helps Maryland keep its coveted AAA bond rating, saving the state interest when it borrows money.

Instead, Maryland has chosen to do less, a decision that could mean more cuts to local government aid, an increase in university tuition rates, and other painful alternatives.



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