Sun: O'Malley considers steeper cuts, furloughs

Facing a looming budget shortfall, Gov. Martin O'Malley (D-Baltimore) announced he would be considering steeper cuts to funding for health care and education and is considering a furlough program, according to The Baltimore Sun.

Last month, the Board of Revenue Estimates reported the state's general fund revenues were at roughly $14 billion - $432 million less than original estimates.

To combat the deficit, O'Malley announced he would be asking state agencies to identify cuts of up to five percent in the current year's budget. The governor plans to present these cuts to the Board of Public Works on October 15. 

O'Malley said the nation's economic outlook and the result of November's slots referendum would influence the decision to make more cuts.

"Until we see some signs of rebound on the horizon, this is going to be a constant exercise in cutting," said O'Malley.

State House Minority Leader Tony O'Donnell (R-Calvert County) blamed O'Malley for the state's fiscal woes. O'Donnell told the Sun that "spending increases on the heels of historic tax increases" caused the problem.

The governor's spokesperson, Rick Abbruzzese, shot back.

"Did Tony O'Donnell predict the banking crisis? Did he predict Lehman Bros. would file for bankruptcy?" Abbruzzese asked in the Sun.

The state's financial situation has trickled down to the city and county level as well. Baltimore Mayor Sheila Dixon (D) said yesterday she was considering layoffs to tighten the budget.