Posted on 04/01/25
| News Source: WBAL
Annapolis, MD - April 1, 2025 - The Senate on Tuesday passed a state spending plan that includes $1.6 billion in new taxes and fees and $2 billion in cuts.
“This was a herculean moment to get through an unprecedented time,” said Senate President Bill Ferguson, D-District 46.
The Senate’s state budget package passed along party lines as Democrats put so-called ‘Trump triggers” into the bill to handle any potential executive orders and funding freezes.
Senate Budget and Taxation Committee Vice Chairman Jim Rosapepe, D-District 21, called it “Trump recession triggers,” speaking to the potential for when “more federal budget cuts come and the economy slows down and our fiscal problems grow.”
Senate Republicans said the state relies to heavily on the federal government.
“I think the anger we just saw right there is more of the reflection of the recognition that this state over-relies on the federal government, and changes are being made at the federal government because people want to see a change,” said Senate Minority Leader Steve Hershey, R-District 36.
To balance the budget, lawmakers included in the budget plan:
– A 3% sales tax on information technology services
– Tax increases on the wealthy, including a capital gains levy
– Combined reporting for corporations
– A new tax on vending machine sales
– A tax increase on cannabis sales and sports betting
A conference committee will have to hammer out differences between the House and Senate versions. While the two bills are nearly identical, there are some funding differences that need to be ironed out.
“The Senate version is better than the House version, and I think that has to be acknowledged. The willingness to take a different look at the budget in the Senate versus the House,” said Sen. Johnny Mautz, R-District 37, whose district encompasses portions of the Eastern Shore.
| DOCUMENT: Report comparing House, Senate versions of budget (PDF)
Differences between the two bills involve funding for police training, lottery revenue distribution, a vehicle excise tax increase, a rental vehicle excise tax, a fee increase for vehicle emissions testing and a $5-per-tire purchase fee.
“We balanced the budget this year, and we still kept the hope of what will be the future,” said Senate Budget and Taxation Committee Chairman Guy Guzzone, D-District 13.
“This was a tough budget,” said Baltimore County Sen. Shelly Hettleman, D-District 11.
A finalized budget package is expected to reach the governor’s desk on Friday.