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And county leaders in the State House said that could change before the General Assembly completes work on the governor's fiscal 2011 spending plan.

On Tuesday, Gov. Martin O'Malley (D) unveiled a $13.2 billion budget that closes a $1.9 billion gap with cuts, transfers, borrowing and a federal government infusion on the order of $389 million in anticipated Medicaid assistance.

Prince George's County would receive just more than $1 billion in state aid, a reduction of $27.1 million or a cut of 2.5 percent.

Aid to most other counties increases. Montgomery County climbs $73.7 million to $768 million, a jump of 10.6 percent, according to budget documents.

"Prince George's County, believe me, is not going to be short-changed this year. The governor derives a lot of support from Prince George's County," Senate President Thomas V. Mike Miller Jr. said.

Part of O'Malley's budget balancing plan is to use more than $300 million in a reserve fund the comptroller's office maintains to pay mid-year tax refunds. The local jurisdictions will have to repay that money, and that repayment isn't included in the budget's aid calculations.

Miller (D-Dist. 27) of Chesapeake Beach said he expected the state budget to include assistance for the Prince George's County hospital system and for growth around Andrews Air Force Base because of the Base Re-alignment and Closure process.

"And also as a inner city mayor, the governor's going to recognize and appreciate the challenges of an urban environment such as Prince George's County, and I'm certain adjustments will be made," Miller said.

Sen. Ulysses Currie, who chairs the Budget and Taxation Committee, attributed the county's cuts in aid to reductions in enrollment and the loss of a disparity grant. The grant was keyed to county wealth, and as residents' wealth improved, the grant disappeared, he said.

"Is it fair?" asked Currie (D-Dist. 25) of Forestville. "I would not use the word, ‘fair.'"

The changes are formula driven, he said.

Del. Melony Griffith, who serves on the Appropriations Committee, said the governor's budget is a proposal now, not the final document.

"I am confident the budget will make sense for all Maryland and Prince George's County will be well-reflected at the end of the day," said Griffith (D-Dist. 25) of Upper Marlboro.

O'Malley's budget has more than $1 billion in cuts, 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 press.

The governor proposes to eliminate 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'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 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 House Speaker Michael E. Busch (D-Dist. 30) of Annapolis 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.