Maryland isn’t bringing in enough money to cover costs, projections show

BALTIMORE – Maryland faces tough budget decisions as the state navigates how to deal with billions of dollars in budget shortfalls.​
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​“The overarching conclusion from this meeting is that there is a huge gap between the state’s ongoing spending commitments and current revenues,” he said. ​David Romans, fiscal policy analyst.​
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​Simply put: the state spends more money than it brings in.
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​Some of the biggest issues include an increase in Medicaid spending and the blueprint for Maryland’s future.​
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​“The general meeting has made a number of commitments in recent years. Particularly the K-12 improvements known as the Blueprint, which are still being rolled out and are driving much of the cost growth,” Romans said. ​
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​During the last legislative session, the state increased transportation costs and taxes on tobacco to balance the budget.
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​Kali Schumitz of the Maryland Center on Economic Policy led a plan aimed at raising taxes on Maryland’s wealthiest residents.​
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The plan fell through, despite the group warning that tough economic decisions were coming.​
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​“We hope that the situation they are facing in talking about the commission yesterday is a wake-up call and that the Legislature is ready for a serious conversation about revenues,” Schumitz said. “I don’t think any Marylander can afford to absorb these types of service cuts.”​
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​Senator Justin Ready has opposed tax and rate increases, highlighting how spending in Annapolis is unsustainable. ​
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​“It was a choice that the General Assembly and the governor made. “I think we really need to get serious and examine everything we do in government to make sure the dollars we get from the people go further,” he said. Senator ready.​
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​To solve the problem, there are really only two things the state can do: reduce funding for current programs, or increase taxes and fees.
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​Governor Wes Moore said last session that he doesn’t want to raise taxes and fees unless it’s absolutely necessary. ​
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​The governor’s office released a statement saying, “Marylanders have come to expect budgetary responsibility from the Moore-Miller administration and the governor will move into the next session with that in mind.”