Maryland Facing Looming Budget Shortfall

By FOX45
Posted on 12/23/24 | News Source: FOX45

Baltimore, MD - Dec. 22, 2024 - Maryland is predicting a nearly $3 billion dollar budget shortfall for budget year 2026.

Governor Larry Hogan left office with a $5 billion dollar budget surplus.

"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.

Hogan hoped the state's $3 billion-dollar rainy day fund and $2.5 billion-dollar structural surplus wouldn't go to waste.

Now, some say it has, pointing to a multi-million-dollar downward swing.

"Governor Hogan left the state in good financial shape, actually a surplus. The numbers are getting worse and worse for the state of Maryland, and this has happened on Governor Moore's watch, and this has to be addressed," David Williams said.

Republicans are calling to eliminate the universal mandate for pre-k under the states multi-billion-dollar blueprint education plan, but Governor Moore says it's here to stay.

"This is not a surprise. They knew about the education funding. In fact, Governor Hogan vetoed the Kirwin commission, because he said it was going to be too expensive," Williams said.

The federal government and the incoming Trump administration is also top of mind.

"The only was to assure you fix the structural deficit is with spending. If you raise taxes that is not going to solve the budgetary problems in Maryland," he said. "They say they don't want to do it, but when the legislature comes back in January, we'll see what's on the table and anything that raises taxes should be off the table."