Choices & Challenges: State and Federal Budget Outlook
Budget Deal, But Work Remains
- Congress passed budget, easing sequestration by about 1/3 over next two years
- Deal extends some sequestration cuts, mainly Medicare provider payments, for 2 years to 2023
- Non-defense discretionary spending is still forecast to drop to lowest level on record (since 1963) as a share of GDP
- Unemployment is still high, including in Maryland, and there are still 3 workers for every 1 job opening nationwide
- Yet Congress let emergency long-term UI expire
- 22,900 MDers lost UI benefits on December 28th
- About 1,000 more lose their UI benefit every week
- Congress has yet to pass a Farm Bill, which may mean higher food prices, particularly on milk
- Nation will hit debt ceiling again in late Feb./early March
- Last year Maryland created $100 million fund to protect
against federal cuts - Distributed $9 million to Head Start, substance abuse prevention/treatment and seniors in September
- Prolonged government shutdown in October likely cost a substantial portion of remaining fund balance
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