Posted on 11/15/24
| News Source: FOX45
When Governor Larry Hogan left office, he left his successor with a $5 billion dollar budget surplus.
"We are proud to be leaving the state of Maryland’s budget and its economy in the best shape it’s ever been in and I believe that this is a shining example that we have changed Maryland for the better," he said.
His hope was the state's $3 billion-dollar rainy day fund and $2.5 billion-dollar structural surplus wouldn't go to waste.
"It would be a mistake for the legislature to use its newly expanded budgetary power to return to the old habits of raiding the rainy-day fund or recklessly spending down the surplus," he said.
"That is the largest gap in gap that we have seen in the last 20 years. It is more significant than the Great Recession. So, this is a significant challenge," David Romans said.
David Romans with the Department of Legislative Services pointed to the economy as well as Medicaid costs and education funding under the Kirwan plan.
He says there's also growing demand for the state’s childcare subsidy program which increased by $270 million in the fiscal 25 budget.
"There's big things like his environmental agenda which is going to cost a billion dollars a year extra, but then there's small things like the Department of Service and Civic Innovation. This is tens of millions of dollars a year, but this is going to go on in perpetuity. This is an agency probably going to expand and spend more money. That's why this structural deficit is really on the shoulders of Governor Moore," David Williams said.
Taxpayer advocate David Williams says the state didn't prepare for this looming shortfall but should've seen it coming.
"Governor Hogan left the state in a really good financial situation and that has been squandered. Part of the problem is the federal government isn't sending as much money to Maryland. Billions of dollars were sent to Maryland as part of Covid relief, but the state should've known that and been prepared for the money to be cut off," he said. "Governor Moore should've recognized this money was no longer coming into the state and been more fiscally responsible when he proposed his budget."
A spokesperson for Governor Wes Moore's office tells FOX45 "The budgetary challenges that Maryland faces are as tough as they’ve ever been, and while the challenges have been years in the making, Governor Moore is committed to continuing to work in collaboration with the dedicated leaders of the state legislature, including Senate President Ferguson and Speaker Jones to fix them. The Moore-Miller Administration has a high bar for increasing the tax burden on Maryland families, and the governor knows the next leg of the mission to address our fiscal challenges will be harder than the last. We will continue the work of prioritizing our expenses and reviewing our revenue model to determine how it aligns with our objectives. Marylanders have come to expect fiscal responsibility from the Moore-Miller Administration and the governor will continue to move forward into the next session with that at the top of his mind."