O'Malley's plans need more revenue

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ANNAPOLIS -- Gov. Martin O'Malley called for more spending on public schools, health care and the environment yesterday in his first State of the State address, but acknowledged that Maryland will need new sources of revenue to make his plan work.

"We will never be able to multiply bread and fishes to cover the multitude of needs without new revenue," said Mr. O'Malley, a Democrat. "It's a big, big challenge that we have for our future."

The governor is asking for a 2.5 percent increase in the state budget. Among the proposed spending increases are $192 million more for higher education, a record $400 million for public-school construction and $10 million more for stem-cell research.

However, Mr. O'Malley already faces a four-year, $4 billion structural deficit, which he deferred for his first year through a $1.2 billion transfer from state reserve funds.

Republicans lawmakers said Mr. O'Malley's plan, which does not include spending cuts, only delays tax increases and a budget battle.

"Next year the taxes are going to come," said Senate Minority Leader David R. Brinkley, Frederick Republican.

House Minority Leader Anthony J. O'Donnell, Southern Maryland Republican, said Mr. O'Malley was "wasting another year" and told him to "quit beating around the bush."

Democrats have expressed the same concerns. Senate President Thomas V. Mike Miller Jr. of Prince George's County recently said the General Assembly likely will need to hold a special session next year to resolve budget problems.

Mr. O'Malley called for a freeze on college tuition, cleaning up the Chesapeake Bay, tougher car-emission standards and a new agency to coordinate state technology.

He also touted StateStat -- the statewide version of the government-management program he instituted as mayor of Baltimore that he expects to increase government efficiency and save money.