Protesters greeted Gov. Martin O’Malley (D) in Takoma Park last night with picket signs against slots, bear hunts and a District development project. And these people were Democrats.

omalley_budget01.JPG

“Tough crowd,” the governor quipped.

The crowd — more than 100 Montgomery County Democrats — filed into a school lunch room to hear O’Malley’s proposals to close a $1.7 billion budget deficit.

The governor’s game plan included less spending, reformed income taxes, and lower property taxes. He’d also hit up smokers for an extra buck per pack, and shoppers for an extra point in sales tax.

But it was O’Malley’s proposal to approve slot-machine gambling that drew hisses from the audience. According to state estimates, gambling grannies could plunk $425 million of their grandchildren’s inheritance into Maryland’s coffers. Six million of those bucks would be spent treating gambling addictions, the governor added.

“I’m not in favor of casinos, and I’m ambivalent to being wedded to gambling as a source of revenue,” O’Malley responded to his critics. “But I must get comfortable with the idea of compromise.”

O’Malley’s proposed sales tax increase also took some heat for hitting lower-income residents the most. The proposal would raise the state’s sales tax from 5 percent to 6 percent.

“I know it’s regressive,” O’Malley admitted. However, he said groceries and non-prescription drugs would not be taxed, and the state would hold tax-free shopping holidays before the beginning of the school year.

But the one thing that audience members had in their crosshairs was the Intercounty Connector, a $2.4 billion highway project that would swing from Rockville to Laurel in Prince George’s County.

“We can’t stop funding the schools or the police, but we can stop a huge capital project that hasn’t even started yet,” Takoma Park resident Bob Guldin (below) told O’Malley.

[youtube]6aul9fsA9TU[/youtube]

Greg Smith, also of Takoma Park, felt the governor was “blowing a golden opportunity to fight global warming.”

“Fulfill your campaign promise and step back from the ICC,” Smith said.

Despite objections, O’Malley remained committed to building the toll road. “One of the problems is that it should have been built sooner,” he said.

The evening’s last item of discussion drew the most cheers, jeers and picket signs. And the issue wasn’t even within Maryland’s borders.

A residential project proposed for the District’s Takoma neighborhood was catching flack from Maryland residents, who worried that an influx of people would tax bus and rail service at the Takoma Metro station. They also complained that the proposed 85 townhomes, to be built on WMATA property, would clog sidewalks (below).

[youtube]Yll09_OMoMw[/youtube]

O’Malley said he would ask WMATA for a two-week extension on the project, and he would discuss the matter with District Mayor Adrien Fenty.

Updated Oct 25, 2007, at 12:22 p.m.