He says any additional money should go into the state’s rainy day fund.
Frederick, Md (KM) Maryland Comptroller Peter Franchot talked about revenues during a visit on Tuesday to downtown Frederick. Speaking with WFMD News, Franchot said the state ended up with a $500-million surplus when fiscal year 2018 ended on June 30th, and added over $1-billion in cash revenues to the general fund.
Franchot says the tendency among politicians is to spend that money, but he urges caution. “I’m in favor of putting it in the rainy day fund. But nobody agrees with me on that so they’ll probably spend every last thin dime of it. And I’m just suggesting Frederick not be bashful because they are a great part of our state and they deserve some of the money if it’s being handed out in Annapolis shortly,” he said.
Putting additional money in the rainy day fund will help cushion the State of Maryland if the economy takes a turn for the worst. “There’s an uncertainly to the national and international economy,” he said “Yes, it’s going pretty well now, but tomorrow it could be down in the dumps,” says Franchot.
Franchot says the federal tax cut has changed the economic situation in the US. “This federal tax is shooting all sorts of cash into an overcharge economy right now,” he says. “I’m not against the economy that’s going on right now. I’m just saying we need to be cautious because there’s so much debt, so much potential for interest rates being raise. And it may just be too good to be true.”
Maryland suffered during the Great Recession in 2009, he says.
Part of Franchot’s trip to Frederick included a stop at the Frederick County Chamber of Commerce, where he met local political leaders, including County Executive Jan Gardner and the new President and CEO of the Chamber, Rick Weldon. He also visited McCutcheon’s Apple Products, where purchased peanut butter and apple butter. The company also received a proclamation from the Comptroller for its 80th year in business.
By Kevin McManus