Maryland Governor to Lay Off 700 Workers, Freeze Salaries

Maryland’s Democratic Governor Martin O’Malley unveiled a budget proposal today that seeks to eliminate a $2 billion shortfall next year by laying off 700 state workers, eliminating another 1,000 vacant positions and paring back spending.

Under O’Malley’s $14.4 billion spending plan, state workers would get no salary increases next year.

Community colleges and other state-funded entities would not receive expected funding increases. An education initiative that compensates counties would be scaled back. And state payments to nursing homes, doctors and dentists would be frozen at current-year levels.

On the other hand, O’Malley’s is proposing a fourth straight year without tuition increases at Maryland public universities.

O’Malley is counting on $350 million from a federal stimulus package pending in Congress.