O'Malley's Budget: How Does It Affect You?

Like many states, Maryland has certainly seen its share of tough times the past few years. There have been lots of layoffs. State workers are forced to take furlough days. Year after year, government officials are faced with multimillion-dollar budget deficits.

Last week, Gov. Martin O’Malley (D) unveiled a $14 billion operating budget for fiscal year 2013 that caps income tax deductions and rolls back income tax exemptions for Maryland’s highest earners.

Under the budget plan, the state would cap deductions for Maryland residents who earn more than $100,000 and reduce exemptions for single people earning more than $100,000 and couples earning more than $150,000.

To get through the recession, O’Malley said, “There are difficult things we need to ask of one another in these difficult times, and this is one of them.”

Also in the proposed budget, the state will take on 50 percent of retired teacher Social Security costs and allocate $373 million toward school construction throughout the state.

Capital News Service reporter Dave Nyczepir contributed to this report.