FOR IMMEDIATE RELEASE

Franchot Urges Comprehensive Spending Reform; Blue Ribbon Panel to Conduct Top-To-Bottom Review

--Chief Fiscal Officer Argues Against Raising Debt Ceiling--

Annapolis, MD (September 8, 2008) - In a letter to the Governor and legislative leaders today, Comptroller Peter Franchot called for a comprehensive review of state spending as Maryland continues to face a lingering budget shortfall. With families feeling the effects of record tax and utility rate hikes, increased gas and food prices and falling home values, Franchot urged the state to tighten its own belt by establishing a Blue-ribbon Panel on Spending Reform to conduct a top-to-bottom review of expenditures and ensure taxpayers are getting the most for their dollar. Franchot, a member of the state's Capital Debt Affordability Committee, also expressed his opposition to raising Maryland's debt ceiling as a way to increase government spending.

"Last year, the insiders in Annapolis said that the largest tax increase in state history and a constitutional amendment to legalize slots would fix Maryland's structural deficit," said Franchot. "But that was just another fiscal fairy tale, and here we are one year later forced to face reality. Neither the largest tax increase in Maryland history nor slots will solve our structural budget problems. Like millions of working families struggling to make ends meet, Maryland needs to tighten its belt and get serious about spending. We need to take a comprehensive look at state spending, our purchasing of goods and services, achieve greater economies of scale and increase efficiencies."

Franchot's announcement comes as the State's Capital Debt Affordability Committee meets in Annapolis to discuss authorizing an increase in Maryland's debt ceiling. The committee meets annually to review Maryland's near-term capital needs, assess the state's current economic and fiscal circumstances, and establish how much debt can be carried.

"As a State, we are operating in the most perilous economic and fiscal environment that I've seen in more than 20 years," continued Franchot. "We've nearly doubled the state budget over the past decade, and can't afford to ask for an increase in the spending limit on Maryland's credit card. We have to tighten our belt and get serious about bringing spending under control."

Tomorrow, the State's Board of Revenue Estimates, which Franchot chairs, will meet to update Maryland's revenue projections for Fiscal Years 2009 and 2010, followed by testimony from a panel of experts representing a cross section of Maryland businesses on the state of the economy.

###

CONTACT: Joseph Shapiro, 410-260-7305 (office), 443-871-2244 (cell)