LEONARDTOWN, Md. – In an address at the Maryland Association of Counties on Dec. 12, 2024, Maryland Gov. Wes Moore announced that the state is facing a budget deficit of $2.7 billion for the upcoming 2025 fiscal year.
“We in this state face a historic budget crisis, the likes of one we have not seen in decades,” Moore said. “We inherited loaded budgets, sluggish growth, and a structural deficit. … From 2017 to 2022, the national economy grew by 11%. … Maryland’s economy grew by 3%.” He added that during that same time frame, Maryland’s spending budget increased by 70%.
This is by no means new information; financial analysts have predicted this budget deficit since 2017, and it has been the subject of significant debate in both chambers of the Maryland legislature for several years. However, no consensus has been reached on how to confront the looming budget deficit.
In March, Maryland House leaders tried and failed to pass legislation that involved $1.3 billion in revenue generated from tax, fee, and toll increases, as well as the legalization of online gambling, due to opposition in the Maryland Senate. Moore attempted to provide some relief through budget adjustments, but the revenue generated from those adjustments was allocated to fund the state’s Medicaid program rather than being used to alleviate the general debt.
In response to the failure of previous actions, Moore announced an executive order designed to combat Maryland’s sluggish economy. The order comprises three primary parts:
- Streamlining the Permitting Process: Moore called the current process “arbitrary, miserly, and foolish.” A Permitting Review Council, made up of state departments including Agriculture, Commerce, and Environment, will be formed to improve interdepartmental communication, establish eligibility criteria, and coordinate project plans.
- Funding Growth Sectors: Targeted funding will be provided to workforce sectors in which Maryland has significant growth potential, including information technology, aerospace and defense, and life sciences. Moore cited successful similar efforts have been made with success in Massachusetts and Kentucky, with Biomedical Technology and E/V Batteries respectively.
- Improved Coordination with Local Governments: The state aims to enhance collaboration with local governments to better address shared economic challenges.
The executive order was officially issued on Dec. 20, and the complete order can be found here.
While the executive order marks a breakthrough in what was previously a legislative stalemate, it contains no “quick fixes,” Moore admitted during his address.
“We rank consistently low on measurements of affordability and wages, population size, and employment,” Moore said. “The fiscal challenges we are facing, which are almost a decade in the making, cannot be solved in less than two years. … Now is a time when we’ve got to make tough choices.”
The budget deficit will likely continue to grow in the coming years as predicted. The question now is whether Maryland’s economic growth will increase enough to balance it out.
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Total ineptitude
Where has all the gambling money gone?
Gambling revenue: voluntary tax for the ignorant.
Didn’t have that problem when hogan was governor
Hogan created the mess- did you not read the article??
I’m not sure you read the article, Moore had a 5 Billion surplus when he left office…. You blame him, lol. Moore has turned this state into the East Coast equivalence to California…. That’s what our Democratic have done to this state… Shame on you Moore!!!
do you believe everything you read????
Maybe Gov. SpendMoore could sell his Bronze Star and contribute that to the deficit. Oh that’s right, he didn’t actually receive one, like he ‘accidently’ said he did. Never mind, just spend Moore!
Okay former governor Hogan. Lets hear from you. Apparently you did all this. It couldn’t have been the tax and spend democrats that got us here (sarcasm).
Hogan left office with a 5 billion surplus and now we’re almost 2.5 billion in the hole? Doesn’t smell right to me.
Why did we have an excess under Hogan and now a deficit? Crazy!
Wes Moore needs to go! No reason why MD is this expensive to live yet he keeps making things worse!
Fat chance you will get rid of him. Maryland has gone so liberal
With tax and spend, first comes the spending, then come the taxes. Wes Moore’s excessive spending has caught up with him and now he lacks a federal administration to bail him out.
They already raised taxes on annual car registration fees making Maryland the most exprnsive in the surrounding 5 states. A regressive tax. Maybe the Government should stop spending like greedy politicians instead of driving residents into adjoining states. What is their compensation packages compared to local workers doing 3 gigs to get by?
Hmmm… isn’t this the same guy who took over as governor with a ‘surplus’?…then released $69M to fund stuff like:
– $3.8 million in start-up funding for a new Climate Catalytic Capital Fund
– $3.8 million for the installation of renewable energy generating equipment in multi-family housing that houses low- to moderate-income people.
– $10 million to support paid family and medical leave
– $46.5 million to support cannabis reform
This is to name some, not all. Don’t know about y’all, but I keep back some funds to be able to pay for what ‘I know is coming’. Learn to plan ahead, governor…if you want a second term.
“Cannabis reform”, so Wes Less could personally profit from it.
Democratic leadership will ruin our State.
The changes we need is in State government. We need a strong republican to run this state. One who will make cuts stop giving money to the people who would not rather be in this country.
Hogan created the mess – it was projected under his watch. He made sure the next governor would have to clean up his mess. Some of y’all don’t follow Maryland budgets and it shows. These shortfalls were projected under Hogan. You can’t blame Wes Moore for trying to fix a Republican mess.
So why don’t we try to cut some of that 70% spending growth?
Because that would make sense. And one of the political parties has no interest in making any sense.
We’re broke because of a Spendaholic mostly democratic legislature. If they have it they will spend it.
Yall always blame democrats but Hogan and his ilk created this mess. Hogan did nothing – he lit the match knowing it was going to burn.
Just have to raise taxes. Maryland is already tax hell. This is an opportunity to force more Marylanders to leave the state.
Your NSA guy cost trillions of dollars and he a dark web terrorist and your state seem to get extra fast of for holidays while other federal employee worked next once your welcome Paul Alan fietek system Inc
Government Blood Suckers.
There was no deficit until this idiot took over funding his pet projects
The deficit was projected under Hogan.
Funny how every time the Democrats take control Maryland is in the red, but when the Republicans take control we are in the black. Hogan left us in good shape fiscally so what happened?
Who is lying Wes?
https://www.cbsnews.com/amp/baltimore/news/full-speech-gov-larry-hogan-delivers-final-state-of-the-state-address/
What an idiot he just made Christmas Eve an official holiday for all the state employees and now he does something like that it just seems like when the democrats take over and keep control like they have in Maryland it’s always in a financial bind and they just keep taking from the people that are and have been hard working citizens
Why are we spending so much? What does the average person so when we realize we can’t afford to spend so much? Spend less! I see super expensive schools being rebuilt after tear downs all over from the state budget. Why? Renovate is cheaper then tear down if needed.
How did Hogan balance the budget and leave a little extra in the kitty? Where did that go and why can’t this Governor operate within the budget?
I thought under Hogan we had growth and a balanced budget and even a surplus. What happened?
I would like the governor or our comptroller to explain where our surplus has gone that was there when he took over. There was a huge surplus under Gov Hogan .
End handouts. We the workers and small business owners cannot keep propping up the ner-do- wells who have zero intentions of ever contributing to society. End it.
Gov. Moore, you “inherited” a surplus from the prior gubernatorial administration. It’s not Hogan’s fault you’ve learned that you can’t spend your way into prosperity.
Md is a tax state and the corporate world knows it no . They lost their jobs by 16 percent
As long as the tax paying Marylanders keep moving out and they keep replacing them with illegals that are a drain on the economy, we will suffer a budget deficit.
You all voted for this. Don’t be surprised.
Oh no, I do not vote for murderers and tyrants.
Yep sure enough
like another poster said, where is all the tax revenue from gambling and marijuana sales?????? Thanks Waste Moore. I hate to be the bearer of bad news but I see personal property tax and rain tax coming.
70% spending increase.
I am not a smart man, but I understand economics. Don’t be surprised with a huge leap in the deficit when you hugely increase spending. Now taxpayers get the shaft with your poor budget management.
These politicians who do not understand basic economics really should not be in office.
With 39% of households in Maryland earning over $150K (myself included). It might be a good idea to also propose a modest tax increase.
It also might be a good idea to refuse payments to the federal government so we don’t have to support all the red state deadbeats. I don’t know how that could be done but if we got together with all the other northern blue states, we may be able to economically choke some sense into red state voters.
Cut Taxes!
A good place to start cutting frivolous spending in Maryland is to cut all the taxpayer money we pay for elective abortions and to subsidize abortion businesses. The abortion industry is a multi-billion dollar industry that specializes in killing children. Abortion is not healthcare and you dont plan your family by killing living family members. Abortion is a violent act of homicide that disproportionately kills Black children as it was intended to do. We should not be forced to pay for this genocide. Defund Planned Parenthood now!