Saving money by greening the budget
As intense debate got underway in Maryland on the state’s projected budget shortfall, Environment Maryland teamed up with other environmental organizations to research budget solutions. “Greening the Budget: How to Protect the Environment and Ease Maryland’s Budget Deficit” was released on August 9.
The study found that ending subsidies for environmentally damaging activities, closing tax loopholes, and ending expenditures that encourage sprawling development could help protect Maryland’s environment while increasing state revenues by as much as $706 million.
Maryland’s general fund expenses are projected to outstrip revenues by $1.5 billion next year. The challenge for the state is to close the budget shortfall while maintaining existing environmental protections and implementing newly adopted programs. The following policies would achieve those objectives:
Create a green fund
Pollution from agriculture and suburban development render more than one-third of the Chesapeake Bay uninhabitable for fish each summer. A fee on new pavement and other impervious surfaces could help address this problem.
Increase fees on air pollution
Almost 90 percent of Marylanders live in counties where ozone and particulate matter pollution exceed federal health standards. Cuts to the enforcement budget of the Maryland Department of the Environment could be reversed by bringing air pollution fees in line with those of other states.
Close the open space funding loophole
Maryland’s open space protection programs are funded by a 1 percent transfer tax paid whenever real estate changes ownership. However, wealthy corporate interests often dodge this tax by transferring ownership of property through subsidiaries.
Stop the Intercounty Connector
The proposed 18-mile freeway through Montgomery and Prince George’s counties will degrade water and air quality, destroy open space and add to global warming at a cost of $3 billion.
Increase fees on solid waste
Marylanders send more than 7 million tons of waste to landfills and incinerators each year. The state does not charge a fee to help cover the cost of permitting and monitoring waste disposal facilities.
End the coal mining tax credit
Maryland currently grants a $3 per ton tax credit for coal mined in Maryland, despite the air, water and global warming pollution caused by mining and burning coal.
Establish a wetlands development fee
Wetlands protect water quality and provide valuable habitat for diverse species of plants and animals. Landowners who want to alter or build on wetlands pay minimal fees for work permits.
There will only be one opportunity during this four-year legislative cycle to restructure the tax code. The state must not miss the chance to close harmful loopholes and create sustainable funding for Bay cleanup and other essential programs.
