Gov. Martin O'Malley, at podium, delivers his annual State of the State address to a joint session of the Maryland General Assembly, Tuesday, Feb. 2, 2010, in Annapolis, Md. (AP Photo/Rob Carr)
A panel of Maryland lawmakers has made progress on working out differences in a package of budget legislation passed by the House and Senate.
Senate negotiators on Saturday accepted a proposal by House conferees on new income tax rate increases.
The higher rates will only affect single filers who make more than $100,000 a year and joint filers who make more than $150,000.
The conferees are planning to meet again Saturday night to try to hash out more details.
Lawmakers are still negotiating some reductions to income tax exemptions. The Senate conferees would like to reduce them from $3,200 to $3,000 for people who make less than $100,000 for three years. House conferees have proposed keeping the exemption the same for people who earn $100,000 or less a year.