Hogan Orders State Budget Freeze Amid COVID-19 Crisis

Governor Larry Hogan today announced that he is ordering a state spending and hiring freeze amid the COVID-19 epidemic. Exceptions will include spending for COVID-19 response efforts and payroll for state employees.

“The state is immediately instituting a budget freeze on all state spending across all state government agencies,” Hogan said. Governor Hogan also announced that the Department of Budget and Management will make recommendations for budget cuts across all state agencies.

As previously reported on Conduit Street, Comptroller Peter Franchot today revealed that Maryland’s general operating revenues are projected to fall by $2.8 billion in the current fiscal year, which ends on June 30.

According to the governor, the State will be tapping into and spending much, perhaps all, of the Rainy Day Fund balance. “Responding to this crisis will likely create a multi-year budget issue which will require further substantial budget reduction actions,” Hogan said.

Hogan also said that he is reluctant to sign any legislation that will add to the state budget. “It is very unlikely that any bills that require increased spending will be signed into law.”

Stay tuned to Conduit Street for more information.

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