House Breaks with Senate, Wants to Defend Transportation and Highway User Revenues

As the State budget plan advances through its initial decision-making, a major difference has emerged – as the House of Delegates is advancing a plan to fund, rather than cut, both Highway User Revenues for local governments, and other projects and services poised for cuts by the Administration’s announced plan. They expect to advance multiple revenue sources to constitute a transportation funding solution this year, in advance of many cuts that would otherwise trigger next year.

Friday’s highest profile development in the annual fiscal plan saw the House of Delegates launch a more aggressive response to looming transportation cuts, rejecting proposed cuts to local Highway User Revenues and other reductions, by advancing multiple revenue measures targeted to transportation.

In even-numbered years, the Maryland Senate acts first on the budget and reconciliation bill, both of which passed the Senate floor with bipartisan support this week. The FY 2025 fiscal plan as passed by the budget accommodated two waves of bad news for the general fund, but still resolved these stresses and maintained the targets set by the Spending Affordability Committee prior to the session. The House Appropriations Committee, as scheduled, is making its recommendations today (Friday, March 15) and has announced it plans to depart from the Senate’s approach to one major area of contention: what to do about a looming shortfall in transportation funding.

MACo and county leaders had raised transportation reductions among its central concerns at the BRFA bill hearing: MACo BRFA Comments Highlight HUR, Community Colleges, Disparity Grants, Local Health. These cuts would strip Highway User Revenues dramatically for FY 2026 and beyond, a dramatic canceling of recently hard-fought gains, service reductions highlighted at an early session briefing.

Conduit Street coverage on the proposed transportation budget cuts:
MACo to General Assembly: Resist Deep Transportation Cuts, Advance Sustainable Solution
State Offering Plan to Stave Off FY25 Transportation Cuts
Conduit Street Podcast: Transportation Cuts, an “On the Ground” View
A County Q&A on the Proposed Transportation Cuts

On Friday, House leaders voiced their plan to address the transportation shortfall with new resources – intending to stave off the dramatic service losses that would arrive next year (following the one-time funding transfer proposed by the Governor for Fy 2025 only).

The Baltimore Banner carried details of the House revenue package, unveiled on Friday. Read the full Banner coverage online.

Baltimore City Mayor Brandon Scott and multiple City leaders held an event on the streets of Baltimore Thursday, highlighting the urgency of legislative action to stave off the Highway User Revenue cuts. The City stands to lose literally hundreds of millions of dollars in funds under the Senate-passed plan, incorporated in the Budget Reconciliation and Financing Act, SB 362.

Read the Baltimore Sun‘s full coverage online.

Baltimore County Olszewski (MACo President, but here speaking for Baltimore County) issued a broad statement on the urgency of transportation funding:

Michael Sanderson

Executive Director Maryland Association of Counties