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Rank: 17 (Previous Rank: 10)
Budget gap (as a % of the total budget): 8.80%
Total gap: $1.3 billion
Gap before budget was approved: $808 million
Additional midyear gap: $513 million

Maryland enacted a $1.35 billion tax increase in late 2007, which (along with $277 million in budget cuts passed by the General Assembly) is designed to help address the state's deficit. However, a continuing economic weakness has led to an additional $270 million gap, which is likely to be addressed by further spending cuts. The governor this week issued an executive order requiring 67,000 state employees to take up to five days of unpaid leave and said next year's projected budget gap could require additional layoffs, the Baltimore Sun reported on Dec. 17.