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Montgomery County emerged from the 2010 General Assembly largely unscathed, lawmakers said Tuesday morning, moments after the midnight end of the session.

"This is not a year where you're going to have big slam-bang victories," House Majority Leader Kumar P. Barve said. "This is a year where you're going to protect your position and build for the future, and I think we did that."

Lawmakers started the 90-day session wrestling with a dire fiscal situation as the lingering recession depleted sources of state revenue.

"It's been a tough year to have happy things happen," said Melanie Wenger, director of the county's Office of Intergovernmental Relations.

And while there was pain enough to go around, Montgomery was able to relieve some of it through increases in state aid.

The state's fiscal 2011 budget will send the county a 10.4 percent increase in aid, or about $72 million.

That jump is the result of a fall in taxable income and a drop in real estate values, said Sen. Richard S. Madaleno Jr., a member of the Budget and Taxation Committee.

"People in Montgomery County haven't suddenly become poor, but if you were making $1.5 million two years ago and $800,000 this year, you're not standing in a bread line but you're paying a lot less in income tax," said Madaleno (D-Dist. 18) of Kensington.

One of the biggest issues for Montgomery lawmakers was the maintenance-of-effort penalty that the state Board of Education imposed on the county. State law requires that county school spending, on a per-pupil basis, at least equal the previous year's spending. The recession forced the county to fall below that level this year, prompting the penalty.

The legislature overturned that penalty, in legislation Gov. Martin O'Malley (D) signed Tuesday.

"We got the abatement for the fine on maintenance of effort, and that was a big victory. The maintenance-of-effort law that we wrote for the future is one that will protect Montgomery County and other jurisdictions," said Barve (D-Dist. 17) of Gaithersburg.

Del. Brian J. Feldman, chairman of the county's House delegation, said the other chief issue for the county was to prevent any shift in teacher pension costs. The state now pays for teacher retirement. The Senate proposed phasing in a 50-50 split in costs between the state and counties.

"We were able at least in the House to prevent that from happening," said Feldman (D-Dist. 15) of Potomac.

Instead, the legislature is going to study the issue.

Sen. Rona Kramer (D-Dist. 14) of Olney called that the "biggest coup" for Montgomery lawmakers.

"It would certainly be a battle to keep it from coming back at us," she said.

Feldman also said the county stands to benefit from the state's technology spending. The budget negotiations ended with $2 million of O'Malley's proposed $12.4 million for stem cell research going toward the biotech industry.

"When there are dollars thrown toward the technology sector, Montgomery County tends to disproportionately benefit," Feldman said.

The legislature also provided a boost to the county's economic development efforts, granting Montgomery the authority to make investments in the companies it lures into the county.

Seconds after confetti filled the air in the House of Delegates, Speaker Michael E. Busch praised the General Assembly for managing the budget in "the toughest recession this country and this state has seen since the Great Depression." He said lawmakers made cuts, maintained the AAA bond rating and continued programs to build schools and protect the environment.

"And, as Maryland comes out of the recessionary period, I think we're going to be well-positioned to lead the nation," said Busch (D-Dist. 30) of Annapolis.

Although the fiscal 2011 spending plan includes no tax increases this year, Republicans were certain that the Democratic majority will pass them in the next session, after the election.

"We're still facing a $1.5 billion deficit or more in the future," Senate Minority Leader Allan H. Kittleman said. "The last time we had a $1.5 billion deficit, we had the biggest tax increase in the history of Maryland. And unless we have a change in the balance of power in Annapolis, we're going to have that same thing happen again."

Staff Writer Sean R. Sedam contributed to this report.

The 2010 legislative session: What passed, what didn't

The Maryland General Assembly considered 2,700 pieces of legislation during its 90-day session, which ended Monday. Many of the bills that passed were not finalized until the legislature's frenetic final few days. On Tuesday, Gov. Martin O'Malley signed into law some 170 pieces of legislation. Below is a summary of key issues from the 2010 session:

What passed

Budget — A $32 billion budget for fiscal 2011 relies on spending cuts, one-time transfers and an infusion of federal stimulus money. It cuts about $120 million from the spending plan introduced by O'Malley (D), which bridged a $1.9 billion revenue gap.

Cell phone ban — The legislation makes it illegal to drive while using a cell phone without a hands-free device. Under the bill, the violation is a secondary offense, meaning drivers could be cited only if stopped for another offense, such as speeding. First-time offenders could face $40 fines.

Foreclosure — Legislation designed to forestall the foreclosure process requires mediation between the borrower and the mortgage lender when the borrower requests it and includes a $50 filing fee. Borrowers moving to foreclose must include a $300 filing fee.

Sex offenders — The legislature passed several bills designed to tighten penalties on sexual predators, including a mandatory 15-year sentence for serious offenses against children. Other bills eliminate time off prison sentences for good behavior and impose lifetime supervision for violent and repeat sex offenders, reconstitute the state's Sexual Offender Advisory Board and bring the state into compliance with federal guidelines governing who must register as a sex offender.

Voter registration for 16-year-olds — The bill, passed late Monday, allows 16-year-olds to register to vote when they get their driver's license. They would not be eligible to vote until the first general or special election after they turn 18.

Stormwater — Last week, the Joint Committee on Administrative, Executive and Legislative Review resolved the session's biggest environmental issue, approving a controversial set of stormwater management regulations that will free some development projects from the new stricter standards for handling the runoff that pollutes the Chesapeake Bay.

False Claims — State health officials say the Maryland False Health Claims Act, which creates civil penalties for people who make false health insurance claims, will enable the state to recoup about $20 million in Medicaid costs in fiscal 2011.

Slots — A bill that seeks to attract a purchaser for the state-owned Rocky Gap Lodge and Resort would give the bidder on a slot machine license there 35.5 percent of the gaming revenues for five years if they agree to buy the troubled property. License holders at four other slots sites would continue to get a 33 percent revenue cut.

Insurance — Thousands of vehicle owners could face higher monthly insurance premiums, thanks to a bill that raises the minimum coverage limits from $20,000 for an individual and $40,000 for multiple people to $30,000 and $60,000, respectively. It's the first time the liability limits have been changed since Maryland made auto insurance mandatory in 1972.

Traffic court — In what some are hailing as the sleeper bill of the session, drivers who are cited for a moving offense must now request a court date, rather than being automatically awarded one. Supporters said it would save millions of dollars statewide in reduced police overtime costs, keep more officers on the street and lead to greater court efficiency.

Workforce — The emergency legislation provides a $5,000 tax credit to businesses that hire jobless workers and reforms the state's unemployment insurance laws, allowing Maryland to accept $126.8 million in federal stimulus aid to shore up the unemployment insurance trust fund.

Gangs — A bill that seeks to make it easier to prosecute gang members and provides tougher sentences also adds new crimes, such as witness intimidation, to the Gang Prosecution Act of 2007. Another bill, pushed by House Speaker Michael E. Busch (D-Dist. 30) of Annapolis, requires school officials to report to law enforcement crimes that could be gang-related.

Race to the Top — The legislation reforms the state's teacher tenure rules and makes Maryland eligible for $250 million in aid under the federal Race to the Top program.

Maintenance of Effort — The bill waives the $23.4 million penalty assessed to the Montgomery County school system by the state school board for failing to comply with a requirement that school systems' per pupil spending be at the same level or higher from year-to-year.

Winery — Passed late Monday, the Maryland Winery Modernization Act, makes uniform rules governing wine tastings at farmers' markets, vineyard tours and other wine-related tourism.

Shift breaks — Legislation requires retail businesses to offer 15-minute breaks to employees if they work four to six consecutive hours and 30 minutes if they work more than six hours.

Child support — The legislature revised the guidelines for determining child support payments.

What didn't pass

Taxes — An extension of the millionaire's tax enacted during the 2007 General Assembly was proposed by lawmakers, but not by O'Malley, and the higher tax rate was allowed to sunset. Proposals to increase taxes on alcohol, with revenues going to a variety of programs, from services for the developmentally disabled to drug abuse treatment, also failed.

Combined reporting — A bill to change an accounting method that some believe will net the state $270 million from corporations that shift profits to entities in states with lower tax rates failed to win support. A commission studying the change, however, must report its findings in 2010 instead of 2011.

BOAST — The Building Opportunities for All Students and Teachers in Maryland Tax Credit, which sought to bolster struggling private Catholic and Jewish schools, was endorsed by O'Malley, but was killed late Monday night by a House of Delegates subcommittee amid concerns about its church-state implications. The original bill included a 75 percent tax credit on donations up to $200,000 but was amended by the House Ways and Means Committee to replace the tax credits with a grant program.

Texting ban — A bill that aimed to prohibit motorists from reading text messages while driving failed in the session's final hours.

Open government — The legislature failed to act on several open government bills designed to increase access to General Assembly proceedings. The House opted to refer the bills to an interim study in order to consider their technological implications. This year, the House tested software that would allow streaming video Webcasts of committee hearings during the 2011 session.

Medical marijuana — The Senate on Saturday approved a bill allowing physicians to prescribe medical marijuana to long term patients, but the House opted not to move the bill out of committee. Delegates say they support the bill in concept but decided to form a work group of legislators from the House Judiciary and Health and Government Operations committees to study how best to implement a program.

Gay marriage — Measures to legalize same-sex marriage and to hold a statewide referendum on a constitutional amendment barring same-sex marriage each failed to win passage.

Ignition interlock — The No. 1 priority for Mothers Against Drunk Driving this year came to a screeching halt on Sine Die. House and Senate lawmakers could not reach an agreement that would have required anyone convicted of drunken driving to prove their sobriety before starting their car by blowing into a breathalyzer device.

Compiled by Staff Writers Sean R. Sedam, Alan Brody and Douglas Tallman