Photo credit: abcnews.go.com
ANNAPOLIS, Md. — As Maryland approaches the conclusion of its legislative session, lawmakers are grappling with a complicated budget situation exacerbated by the Trump administration’s efforts to reduce federal workforce and funding, a significant concern for a state heavily dependent on federal jobs and contracts.
In response to a significant $3.3 billion deficit, Governor Wes Moore and state legislators have implemented budget cuts and increased taxes and fees across various sectors. Senate President Bill Ferguson, a Democrat from Baltimore, emphasized that the revenue-raising strategies were specifically designed to target those who have benefitted the most economically in recent years and to address service users statewide.
However, Republican lawmakers have criticized these tax hikes, arguing that the real issue lies in the state’s spending habits and pointing out that the deficit existed prior to Trump’s return to the presidency in January. Senator Justin Ready, serving as the Senate minority whip, remarked that no other state in the region faces such fiscal challenges.
The budget adjustments aim to generate approximately $1.6 billion in new revenues, alongside $2 billion in cuts, while maintaining a healthy rainy day fund of about $2.1 billion and a fund balance exceeding $300 million. With the Democratic majority in the General Assembly, many legislative priorities are either finalized or close to completion.
Ferguson noted, “While a few items remain unresolved, overwhelmingly, key issues we prioritized at the start of this session, including budget reforms, energy initiatives, and strategies to mitigate uncertainties posed by federal policies, are reaching their conclusion.”
Below are key highlights of the legislation that has been passed:
Lawmakers have addressed a significant budget shortfall through a combination of spending cuts and tax increases.
A bipartisan group of negotiators from both chambers settled budget discrepancies late Friday, although a final vote is needed on Monday to seal the deal.
The new budget plan introduces a 3% tax specifically on information technology services, alongside two additional tax brackets for high-income earners—those making over $500,000 and over $1 million a year. Those with income exceeding $350,000 will now incur a 2% tax on capital gains, in addition to heightened taxes on recreational cannabis and sports betting. Altogether, the proposed budget is projected to be around $67 billion.
Additionally, the Maryland Department of Health has been allocated $25 million for an abortion grant program aimed at offsetting costs for uninsured individuals seeking services, funded partly through the Affordable Care Act’s insurer fees.
Legislators have also taken action to make a program providing subsidies for young adults seeking affordable health insurance permanent.
Furthermore, individuals aged 18 to 25 who have been convicted of a crime and have served 20 years or more in prison will have the opportunity to petition for a reduction in their sentence, provided they do not fall under life without parole or sex offense categories. This does not extend to cases involving the murder of first responders.
Further legislation will allow a greater number of residents to expunge their criminal records upon fulfilling their sentences, including an automatic shielding of records for roughly 175,000 individuals pardoned for minor cannabis-related offenses last year.
A new commission will be inspired to explore the potential for reparations for slavery and address the ongoing consequences of racial discrimination.
Lastly, lawmakers passed measures aimed at limiting future liabilities for claims of sexual abuse by establishing settlement caps—ranging from $890,000 to $400,000 for cases at state institutions and from $1.5 million down to $700,000 for private ones. Additionally, changes to the 2023 Child Victims Act will allow claimants to receive only a single payment, rather than separate payments for each instance of abuse.
Source
abcnews.go.com