Fiscal Reality Check: State Projects $1.4B Shortfall, With Deficits Climbing Toward $4B
Maryland’s budget picture has darkened. The Department of Legislative Services (DLS) informed lawmakers this week that the State now faces a $1.4 billion shortfall in fiscal 2027, nearly five times larger than the projection made in the spring. The updated forecast from DLS, presented to the Spending Affordability Committee, indicates that slower revenue growth, higher baseline costs, and statutory transfers to the Rainy Day Fund have significantly altered Maryland’s fiscal trajectory. From Surplus to Shortfall…