PRESS RELEASE
Office Of The Governor
FOR IMMEDIATE RELEASE:
TUESDAY, July 19, 2005
Governor Ehrlich Announces More Than $1 Billion Surplus
Governor Robert L. Ehrlich, Jr., today announced that the State’s FY 2005 surplus will exceed $1 billion when officially announced in mid-August. This surplus is a
result of prudent fiscal management and a robust economy and follows the recent announcement by Comptroller William D. Schaefer of strong FY 2005 revenues.
This is a remarkable turn around from the projected general fund deficit of $738M forecasted in December 2003.
“This is good news for the State of Maryland and its taxpayers,” said Governor Ehrlich. “This gives Maryland the opportunity to provide more efficient delivery of
critical services today and save for the future needs of tomorrow.”
Governor Ehrlich noted that despite the surplus, challenges lie ahead and a cautious approach to budgeting is needed to ensure the critical needs of Maryland’s citizens,
most notably education and healthcare. For the third consecutive year, funding for K-12 public education will increase by a record amount, totaling more than $425
million in FY 2007.
“Due to prudent fiscal stewardship, my Administration was able to turn things around for the better without raising the sales or income tax,” said Governor Ehrlich.
“Despite the tough choices that had to be made to get to this point, Maryland’s FY 2007 budget still has no need for a tax increase.”
Due in part to the FY 2006 strategic budgeting process performed by all State departments, the State has $521M in the Rainy Day Fund as of June 30, 2005. The State is
expected to have approximately $500M surplus in FY 2006. In addition, the Rainy Day Fund is expected to have a balance in excess of $750M at the end of FY 2006.
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