2022 End of Session Wrap-Up: State Operating Budget

The segments below provide a brief overview of MACo’s work on State budget policy in the 2022 General Assembly.

County governments receive support through multiple state operating budget programs, and shifts in the State’s budget can affect county governments. MACo seeks county budget security by maintaining current state funding levels, new funding programs, and enhancements in areas of growth and need.

The unique circumstances surrounding the 444th legislative session, including necessary health and safety measures, posed a challenge for lawmakers and advocates alike. Yet, despite the unusual circumstances, MACo’s advocacy still led to more positive outcomes for its members.

Follow these links for more coverage on our Conduit Street blog and Legislative Database.

State Operating Budget

The Maryland General Assembly passed a $61 billion budget that includes investments in health care services and public education, critical funding for cybersecurity, assistance for vulnerable residents, and accounts for tax cuts for Maryland retirees, small businesses, and low-income families.

The total operating growth in State spending is 10.5 percent, and the budget expands funding for core State services and initiatives, including public education, higher education, State employee compensation, and legislative priorities. The budget meets the guidelines established by the Spending Affordability Committee in 2021.

The budget does not shift any costs to county governments. It fully funds all state-mandated spending formulas, including increases for community colleges, local public safety priorities, and local health departments. The budget also fully funds county disparity grants — including holding harmless jurisdictions that experienced decline despite maintaining income tax rates.

The budget also reflects significant investments in fiscal 2022 and 2023 for rate increases for health and human services providers, child care providers, assistance for economically vulnerable households, crime prevention, and cybersecurity. The budget also provides additional support for infrastructure through capital investments.

Ongoing general fund revenues exceed ongoing expenditures by more than $310 million in fiscal 2023. The budget preserves $2.6 billion in cash resources — including $2.4 billion in the Rainy Day Fund (10 percent of general fund revenues) and $211 million in the General Fund.