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Maryland Comptroller William Donald Schaefer, center, with Del. John Bohanan (D. California), left, St. Mary's Commissioner Larry Jarboe (R. Golden Beach), standing, and Senator Roy Dyson (D. St. Mary's, Calvert, Charles), right.
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Comptroller Schaefer Reports Maryland On Pace to Have $1.7 Billion in Extra Funds for FY 07 Budget
Latest Revenue Estimates Forecast Continued Growth

ANNAPOLIS, MD (September 28, 2005)— Maryland Comptroller William Donald Schaefer (D.) today
announced that lawmakers are on pace to have an extra $1.7 billion when planning the state’s 2007 fiscal year budget, according to the latest revenue estimates.
“All the information we have points to continued growth for the state’s economy,” said Comptroller Schaefer. “We should be encouraged by the estimates, but plan responsibly for the future, giving back money to some very important programs while being cautious not to over-extend ourselves.”
The Comptroller’s suggested programs to solidify include:
• Restoring $7 million in healthcare funding for pregnant legal immigrant mothers and their children,
• Restoring $42 million for nursing home funding for low-income elderly,
• Increasing funding to reduce the waiting list for developmental disability services,
• Restoring $31.7 million to state employee prescription costs, and
• Providing cost of living allowances (COLA) for state employees.
The more than $1.717 billion in possible surplus stems from $603 million in FY 2005 revenue not
yet designated for spending in FY 2006, as well as $503 million in surplus revenue over FY 2006 and $611 million in FY 2007, as forecast in estimates released Sept. 15, from the Comptroller’s Bureau of
Revenue Estimates.
Fiscal year 2006 revenues, according to the estimates, are expected to grow 5.0 percent, a rate
significantly less than the growth seen over FY 2005 (13.2 percent). In FY 2007, revenue is expected to grow 4.4 percent.
State law requires the governor to appropriate all surplus funds that exceed $10 million into the
Revenue Stabilization Account, also known as the “Rainy Day” fund. The fund was created in 1986 to supplement state revenues during rough or uncertain economic times.
“Fiscal year 2005 was a great year for the state’s economy, and in some cases we saw unprecedented growth,” said Comptroller Schaefer. “As I’ve said all along, though, we have to plan
responsibly. A surplus today can easily turn into a deficit tomorrow. Restoring some of the budgetary cuts most in need, now, is smart and will save the state money in the long-run.”
The current revenue estimates are based on analysis from before Hurricanes Katrina and Rita, but
it is expected that Maryland’s economy will suffer only minor effects from the storms overall. High
gasoline and heating fuel prices are among the indirect risks to the state’s continued growth; however, lower than previously anticipated mortgage rates are expected to boost several revenue sources.