From the Desk of the Comptroller

This year, we have all lived through some of the most remarkable times in American history. Our political system became truly inclusive as we witnessed both African-American and women candidates break through barriers as never before and voter registration numbers skyrocketed to record levels. And while millions of Americans were inspired and moved to participate and engage in the political process; just as many, if not more, have felt the sting of this historic economic crunch. During campaigns, sides are taken, issues are debated and rhetoric can heat up. However, once the campaigns and elections are over, it is time to come together as a nation and deal with the challenges we face.

The same holds true for us here in Maryland. With the political season behind us and the 2009 session of the General Assembly rapidly approaching, I believe it is absolutely essential for all of us to roll up our sleeves and work together to address the growing challenges stemming from the economic recession. Now that all the political dust has settled, the sobering reality before Marylanders is that according to the legislature's own analysts, we are still facing a budget deficit of at least $1 billion in the next fiscal year.

As the state's chief fiscal officer, I know all too well that those numbers can, and most likely will get worse before they get better. With revenues continuing to come in below expectations, one only has to look to the news to see why this is happening. Everyday we hear more about an economy that is reeling from the collapse of the nation's housing market, a severe credit freeze and the loss of trillions of dollars of American wealth in the stock market. The time is long past for dealing with this in a comprehensive manner. Last month, the governor took an important step in the right direction by submitting nearly $300 million in budget cuts to the Board of Public Works for approval. These were not easy choices but they were necessary and I supported them.

Along with those efforts, my office has been committed to being a part of the solution. For the past two years, my staff has worked collaboratively with the Department of Budget & Management on a Tax Fairness Initiative which utilizes cost-efficient technology to ensure we collect taxes from those who wrongfully choose not to pay their fair share. Over the next four years, this initiative will recover $200 million in unpaid taxes as it is implemented and will continue to generate $80 - 100 million annually thereafter.

This revenue would not come from new taxes or from raising current taxes; it would simply come from enhanced enforcement of our existing tax laws through improved data collection and warehousing. I appreciate the strong support this project has enjoyed from both the Legislature and the Governor, and I am confident that we will be able to move forward and begin implementation by the end of the winter.

With Maryland's lawmakers getting ready to make their way back to Annapolis for this upcoming session, I look forward to being a constructive partner in putting our state back on track towards sounder fiscal footing. While the choices that lie before us are not easy, we have an opportunity to come together in a renewed spirit of cooperation and collaboration to bridge the past divides and forge a new direction for the future of our great state.

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