ANNAPOLIS, Md. (AP) - Maryland Gov. Larry Hogan's administration will bring tens of millions of dollars in mid-year budget cuts to a state board next week.
David Brinkley, Hogan's budget chief, said Thursday the actions are being taken to start addressing an estimated $742 million shortfall in the next fiscal year.
A total of $86.2 million in total savings will be brought to the Board of Public Works. Of the total savings, $67.2 million will be budget reductions.
About $22 million will come from the health department. Part of that will result from decreased average length of hospital stays, saving an estimated $10 million. Brinkley says about $5 million will be saved from renegotiating large state contract renewals. Another $5 million will come from the Cigarette Restitution Fund to offset Medicaid costs.