Gov. Martin O'Malley is outlining a budget plan that includes about $311 million in new revenue.
“To create jobs, a modern economy requires modern investments, and that’s why our proposed budget for FY 2013 invests in job creation and its key ingredients: education, innovation and rebuilding our State’s infrastructure,” said Governor O’Malley.
The Maryland governor said Wednesday that about $182 million will come from capping income tax deductions and phasing out exemptions for high-income earners.
O'Malley says two out of 10 state residents will pay more taxes. He says a family with an income of $150,000 a year will get about $191 less back.
About $19 million will come from aligning the state's cigarette tax with other tobacco products.
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O'Malley said one of the tough decisions in his budget was shifting more of the cost of teacher retirements from the state to the local level. His plan calls for local governments to pay for 50 percent of the combined cost of social security and teacher's retirement contributions. Currently, local governments are only responsible for social security payments.
O'Malley also says the state's capital budget is robust. He estimates it will create about 51,000 jobs in the construction sector.