Special session could cause tax hike

ANNAPOLIS, Md. - Not long after finding themselves unable to reach a spending plan agreement, the state General Assembly is back at it again on Monday.

Lawmakers are expected to work towards approving a budget deal hashed out by Governor Martin O'Malley and house and senate leaders starting at 10 a.m. on Monday.

The two major items on the agenda are increasing the income tax for workers and families earning six figures, and shifting teacher pensions from the state to counties.

This new spending plan leads to higher taxes for 16% of Maryland residents.

According to O'Malley, the tax hikes are necessary to avoid cuts to education and other critical services.

He says a budget agreement would prevent more than $500 million in cuts to education.

The special session is expected to last three days and costs $30,000 per day.

Another special session is expected later this summer to focus on table games.

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