Union tells state to cut contracts, not services
AFSCME says Maryland could save $200 million
Members of the American Federation of State, County and Municipal Employees planned to carry that message at a rally on Monday evening on Lawyers Mall, across from the State House.
Union leaders planned to unveil a report that found that Maryland could save $200 million in its general fund by cutting from the $9.9 billion in services contracted by the state for items such as management consulting, information technology services and food and custodial services.
Such services "make up 9 percent of the total state budget (even after excluding medical and community services provider payments), yet are not subject to the same level of scrutiny as personnel costs and other categories of spending," the report said.
The report also calls for a 10 percent cut to "ineffective or lower-priority tax expenditures" and incentive programs. The state could save $45 million by eliminating certain tax credits, such as job creation and biotechnology credits, the report recommends.
The report calls for continuing a tax on millionaires, which Gov. Martin O'Malley's fiscal 2011 budget allows to sunset, and for enacting a combined reporting law that would collect $270 million in taxes from corporations that currently shift profits to out-of-state entities.
Another $1.5 million could come from redirecting to the general fund savings from furloughs of 2,300 employees at non-budgeted agencies such as the Maryland Transportation Authority and Environmental Services, the report said.