FOR IMMEDIATE RELEASE

Comptroller Franchot Statement on Latest Revenue Estimates

ANNAPOLIS, MD (September 9, 2008) - Comptroller Peter Franchot issues the following statement regarding the newest revenue estimates released this morning by the Board of Revenue Estimates:

"These sobering numbers simply confirm that the national recession has taken a painful and far-reaching toll on our State's economy, and that Maryland's working families are simply being stretched to their limits, if not beyond their means. The sales tax receipts, in particular, offer a rather reliable window into the condition of the Maryland economy - and frankly, it is not a pretty picture.

Far too many Marylanders are dealing with a "perfect storm" of higher taxes, declining home values, stagnant wages, unsettling career prospects and reduced discretionary income at a time when the costs of food, energy and gasoline are on the rise. As a result, people are putting fewer dollars back into the Maryland economy. Unfortunately, we also know that far too many of our neighbors are saving less, tapping into retirement funds and - worst of all - putting basic living expenses on their credit cards simply to stay afloat.

Today, the Maryland economy remains in a weakened and highly vulnerable condition, and Maryland's fiscal policymakers are, once again, faced with a rising structural budget deficit, despite promises made last fall that this problem had been solved. As Maryland's Comptroller and Chief Fiscal Officer, I offer my unconditional assistance, and that of my entire office, to the Governor and legislature as they address these challenges.

In doing so, however, I would respectfully urge my colleagues to put aside the piecemeal approach of the past and, instead, take this opportunity to conduct a comprehensive and critical examination of both State spending and state revenue. We need to get serious about the financial mess we find ourselves in, and can no longer afford quick fixes and gimmicks. And we certainly can't afford to gamble with Maryland's fiscal future."

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Contact: Joe Shapiro, 410-260-7305, office, 443-871-2244, cell