BPW approves $345M in budget cuts

The Board of Public Works approved over $345 million in additional budget cuts at Wednesday's meeting, according to the governor's office.

The reductions, which impact the fiscal year 2009 state budget, included over $297 million in general funds and $50 million in special and federal funds.

The announcement comes after Gov. Martin O'Malley (D-Baltimore) began asking state agencies to identify cuts of up to 5 percent. The Board of Public Works also approved the elimination of 880 state positions, 830 of which were vacant.

"The cuts we are making today are not easy," O'Malley said in a statement. "Eighty-percent of Maryland's state budget is dedicated to public safety, public education and public health. Yet, as our national economy has faltered, states across our country, like families across our nation, are now faced with the hard decisions necessary to balance our state budget in very difficult economic times"

The governor began calling for steep cuts over the summer when a report from the Board of Revenue Estimates showed the state's general fund revenues at roughly $14 billion - $432 million less than original estimates.

O'Malley is expected to propose even more cuts in the future and is considering a furlough program. In addition, the governor has thrown his support behind November's controversial slot referendum to help eliminate the structural deficit.