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Gov. Martin O'Malley unveiled a $13.2 billion budget that closes a $1.9 billion gap with cuts, layoffs, furloughs, transfers, borrowing and a federal government infusion on the order of $389 million.

O'Malley (D) will present the General Assembly today with his spending plan, which he called fiscally sound.

"If you're not fiscally responsible, everything comes collapsing down in a house of cards," he said in a briefing for cabinet members, lobbyists and members of the media.

O'Malley proposes eliminating more than 200 state government positions, 44 of which are filled. By removing pay increases and ordering 10 furlough days for state employees, the budget saves $146 million.

"We heard much bigger numbers, and as a result of that we pushed back and ended up with much lower numbers," said Patrick Moran, director of the American Federation of State, County and Municipal Employees, the union that represents most state employees.

Of the cuts, $375 million will be to state agency budgets and $330 million to local aid. The budget reduces Medicaid payments to hospitals by $123 million and trims $22 million from state assistance to private colleges.

O'Malley met with legislative leaders at a Government House luncheon to share his plans for the fiscal 2011 budget.

"There are significant cuts that a number of our partners are not going to agree with," said Senate President Thomas V. Mike Miller Jr. (D-Dist. 27) of Chesapeake Beach after the confab.

House Speaker Michael E. Busch blamed the state's fiscal problems on the national recession.

"I don't think anybody here believes we're here because the state of Maryland has been mismanaged," said Busch (D-Dist. 30) of Annapolis. "It's because of the federal government's recession. There are 48 or 50 governors who are waking up today and all have the same problem. It didn't miraculously just happen in Maryland. And I guarantee 48 of those other states would like to change places with the state of Maryland because we're in much better shape than they are."

O'Malley's budget anticipates Congress will pass the health reform legislation and provide Maryland with $389 million in Medicaid assistance.

House Minority Leader Anthony J. O'Donnell (R-Dist. 29C) of Lusby called that method of budgeting unwise.

"We've got to stop taking their money from them and do the spending reductions that we need to do," he said. Republicans got a separate briefing from the governor.

Miller and Busch have said the legislature will not pass any tax increases in 2010, an election year. Senate Minority Leader Allan H. Kittleman (R-Dist. 9) of West Friendship raised the specter of future tax increases.

"They're going to borrow and beg and steal from fund balances to do whatever they can to get through this year, and you and I and all the citizens of Maryland are going to get socked next year," he said.