The state officially reduced its estimates for state revenues by nearly $800 million across the current and upcoming fiscal years.
At the September 21 meeting of the Board of Revenue Estimates, the three-member body approved a revised fiscal estimate that is $800 million lower than expected. The Board estimates that Maryland will collect $365 million less than expected in the current fiscal year and $417 million less next fiscal year. In addition to the $250 million shortfall from last fiscal year ending June 30, the state has received over $1 billion less than anticipated over three years.
Board Executive Secretary Andrew Schaufele reported that the weak collections largely reflect a slow recovery and sluggish gains in income despite improving employment.
Such projections have great potential to deepen the partisan chasm between Governor Hogan and the Maryland General Assembly, as Hogan continues to prioritize elimination of spending mandates in state law, and legislators insinuate that the Governor has neglected to assume responsibility. The General Assembly and Governor will have to accommodate for the projected $417 million shortfall in budget deliberations this upcoming session.