Layoffs Seen As Md. Curbs State Spending: Schaefer Warns Of Further Cuts STATE SPENDD
ANNAPOLIS. Nov. 27ÛÓMaryland Gov. William Donald Schaefer today raised the possibility of layoffs of state workers as the legislature's top budget officers voted to adopt the strictest limit on state spending since the recession of the early 1980s.</br></br>Schaefer already has pared nearly $180 million from the current yearÛªs planned spending and may have to cut another $100 million to prevent a deficit. Today, he said: ÛÏIf the economic trend continues, we may have to give thought to furloughs and layoffs. We may also look at some early retirements.Û</br></br>His statements came shortly after a nervous Spending Affordability Committee voted for a tough spending limit. The joint committee of legislative budget leaders said state spending should not expand more than 5.1 percent in the budget Schaefer submits to the legislature in January. (Over the last five years, the panelÛªs recommended growth rates have ranged from 7 to almost 9 percent.) Other than a higher gasoline tax, the panel said, additional taxes should be ÛÏa last resort." ÛÏThe message is: This isn't the time to think about expansion of state government; itÛªs a time for contraction,Û said Sen. Laurence Levitan (D-Montgomery), chairman of the Budget and Taxation Committee.</br></br>Schaefer, who has often feuded with lawmakers over spending limits, responded that he will try to live within the guidelines. ÛÏThere will be anguish and cries,Û the governor said. ÛÏSome programs that are needed just wonÛªt be there."</br></br>Virtually all of MarylandÛªs suburban counties are taking steps now to cut spending as the economy slows and tax revenue stagnates. Until today, however, Schaefer has staunchly opposed layoffs among the 70,000 state workers. Charles