RSS Feeds

Md. fiscal officials oppose tapping pension funds

Wednesday - 2/26/2014, 3:20pm  ET

Associated Press

ANNAPOLIS, Md. (AP) -- Two Maryland fiscal officials are urging state lawmakers to reject Gov. Martin O'Malley's proposal to use some money intended to shore up pension liabilities to fill a budget hole.

Comptroller Peter Franchot and Treasurer Nancy Kopp testified against the proposal Wednesday afternoon before a Senate committee.

O'Malley is proposing to cap money used for future pension liabilities at $200 million a year, instead of $300 million. T. Eloise Foster, O'Malley's budget secretary, says the change will only postpone getting the state to 80 percent of pension funding from 2024 to 2025.

But Franchot says the idea threatens the state's reputation in the eyes of the financial community. Kopp says she believes it's the wrong choice.

Maryland lawmakers will be working on O'Malley's budget proposal for much of the legislative session.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.