HEADLINES : Maryland
General Assembly raises income tax on top 14 percent
It took three carefully scripted days, but Maryland's ruling Democrats finally put in place the budget deal that eluded them in the waning hours of the state's regular session last month.
The revenue package approved by the House on Wednesday will raise income tax rates on 14 percent of Maryland taxpayers while shifting some teacher pension costs to counties.
The adjournment of this week's special session effectively ended the first budget impasse the state had seen in two decades. The new taxes will stave off more than $500 million in spending cuts, much of it in the form of aid to local governments, that would have taken effect July 1.
Gov. Martin O'Malley, a Democrat, said he was "very appreciative" that the General Assembly approved the new revenue measures.