ANNAPOLIS, MD – Governor Larry Hogan today applauded the end-of-year budget closeout report showing that Maryland finished the fiscal year with $295 million in the estimated fund balance. $84 million of the total comes from state agency reversions, which is $54 million more than estimated. This is the state’s largest over-attainment in reversions since FY 2003 and reflects more careful management of budgets in state government. Additionally, the state benefited from $214 million in higher-than-anticipated revenues, the largest contribution coming from the personal income tax.
“These are great numbers and even better news for Maryland taxpayers,” Governor Hogan said. “I am particularly proud of the fact that more than $80 million is from agencies returning unused dollars back to the state, highlighting the hard work our administration is undertaking to rein in spending and manage government responsibly. Our growing revenues mean Marylanders are making more money, and that means Maryland businesses are making more money. All this points to a growing economy that puts us on a positive path moving forward.”
Despite the $295 million closeout, Governor Hogan cautioned that these funds should not be seen as a windfall and must be invested prudently.
“Even with this encouraging news, the budget passed by the General Assembly forces the state to confront a $1.7 billion structural deficit over the next four years, and unless we continue to push for more budget accountability, it will only grow,” Governor Hogan said. “This money should be used to further stabilize the state’s finances, address our pension obligations, or be put back into the pockets of taxpayers.”
