A special ‘08 session forecast in Maryland

The Maryland General Assembly may need a special session in the summer of 2008 to deal with projected budget deficits, Senate President Thomas V. Mike Miller Jr. warned last week.

Not so fast, said other legislative leaders who think it is too soon to be talking about such a strong measure.

Mr. Miller, Southern Maryland Democrat, said that while Gov. Martin O’Malley’s proposed budget for the 2008 fiscal year meets recommended guidelines, the next year will present bigger challenges without additional funding sources.

“The following year, all hell is going to break loose,” Mr. Miller said.

The Senate president supports legalizing slot-machine gambling to boost state revenues, but other legislative leaders have signaled a slots bill doesn’t have much chance of passing this year. Mr. Miller said he would support other means of raising money, including increasing the sales tax.

House Speaker Michael E. Busch, Anne Arundel Democrat, is among those who think Mr. Miller was jumping the gun in talking about a special session more than a year away.

“I don’t know how he could project that,” Mr. Busch said.

He pointed out that special sessions can be ordered only by the governor to address immediate emergencies that can’t be taken care of during the General Assembly’s annual 90-day session.

Mr. Busch said Mr. O’Malley, a fellow Democrat, has proposed “a conservative budget” for the fiscal year beginning in July that meets funding requirements by balancing the state budget.

“Hopefully, the leadership of Annapolis will deal with that in the next two years,” Mr. Busch said. “I think we’re off to a positive start.”

Delegate Sheila E. Hixson, Montgomery Democrat and leader of the tax-writing Ways and Means Committee, also said it was too soon to be alarmed about Maryland’s tax structure, which her committee began discussing last week.

“We’re coming up with ideas,” she said, adding that lawmakers would be ready to consider new taxes if needed this term.

Mr. O’Malley’s budget includes $967 million taken from the state’s rainy-day fund.

By law, Maryland must have a balanced budget. However, the projected gap over the next four years is about $5.8 billion.

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