O'Malley Disputes Report On Debt In Maryland | WAMU 88.5 - American University Radio

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O'Malley Disputes Report On Debt In Maryland

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A report in the Washington Post said because of bond issues and borrowing O'Malley has pushed for during his time as governor, the state will have to raise property taxes next year or enact severe spending cuts.

O'Malley likened the story to the character of Cassandra in Greek mythology, who offered predictions no one believed. He defended his use of bonds to pay for things like land purchases and Chesapeake Bay clean-up.

"It is true that our budget, like the budgets of all 50 states, relies on debt. It is true that we have shifted in the course of this recession some things that can be bonded as a temporary way to get to the other side of this recession," O'Malley says.

Maryland is one of eight states to have a AAA bond rating. O'Malley says that -- as well as the fact Maryland must pay off the bonds in 15 years instead of the usual 30 that most other states do-- will prevent any long-term debt problems.

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