Despite a record tax increase last year the State of Maryland still faces a $1 B shortfall, which will probably increase as time passes. The reason is, according to "What's happened is the economy," said Del. Murray D. Levy (D-Charles), a leading voice on the House Appropriations Committee. "We were not prepared, and are not prepared, for the economy." For more see this article in the Washington Post.
That is one of the problems with relying on property and sales taxes to fund a growing number of things. MD did cut some spending, but not enough. They already have a high state and local income tax. I guess they need to cut another $1 B in spending. Of course the economy has been in a downturn for about 9 months now, so maybe some better preparation would have helped.