Maryland Loses AAA Bond Rating as Economic Pressures Mount

Maryland’s long-standing reputation for top-tier financial stability took a hit this week as Moody’s Investors Service downgraded the state’s bond rating from AAA to Aa1. The action marks the first time Maryland has fallen from the highest credit rating tier in over three decades. This shift could significantly affect Maryland's borrowing costs and financial outlook, and signals growing concern over the state’s long-term fiscal stability. With higher interest rates likely for future bond sales, the…

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County Emergency Managers to Congress: Protect FEMA, Restore BRIC

Counties face growing threats — from extreme weather to infrastructure failure — and rely on strong federal partnerships to keep communities safe. This week, the MACo County Emergency Managers Affiliate sent two letters to Maryland’s congressional delegation, urging continued support for FEMA and the restoration of proactive federal mitigation funding. FEMA’s Role Must Remain Intact One letter affirms strong support for maintaining FEMA’s core mission, structure, and national leadership role in disaster preparedness and response.…

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MACo Welcomes Proposals for 2026 Legislative Initiatives

MACo welcomes proposals for legislative priorities for the 2026 legislative session. Each year, MACo selects up to four priorities to advance through the General Assembly. These initiatives reflect county needs and promote practical, statewide solutions. In recent years, MACo initiatives have focused on infrastructure investment, modernizing local revenue structures, public safety recruitment, and emergency response capacity (view MACo’s 2025 Initiatives for examples). MACo will soon send a formal request for submissions to counties. In the…

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Deep Dive: The Disparity Grant’s Patchwork Fix Isn’t Enough

This article is part of MACo’s Policy Deep Dive series, where expert policy analysts explore and explain the top county policy issues of the day. Read all of MACo’s Policy Deep Dives.  Counties at or near the maximum local income tax rate face some of the toughest budget pressures in Maryland — from rising education mandates to aging infrastructure and limited flexibility to raise new revenues. The State created the Disparity Grant to help these…

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Major Issues & More – 90 Day Report Reviews the 2025 Legislative Session

The Maryland Department of Legislative Services’ annual synopsis of the General Assembly’s time in Annapolis provides an update on taxes, education, energy, transportation, environmental, and health issues addressed in bills that passed – and didn’t pass – in the 2025 Session. As the Maryland Department of Legislative Services describes, the 90 Day Report is divided into 12 parts, each discussing a significant policy area. Each part contains a discussion of the majority of bills passed in…

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2025 Session: Recap and Wrap-Ups

Catch up on all of the latest outcomes of the 2025 Maryland General Assembly session with wrap-ups on important county-related bills in each policy area. Maryland’s 447th legislative session was defined by one of the most challenging budget environments in over a decade — with a $3.3 billion shortfall driving proposals for aggressive cost shifts, spending cuts, and tax changes. Despite these unprecedented fiscal pressures, counties worked together through MACo to protect essential services, limit…

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Unfunded and Unwise: SDAT Cost Shift Reopens Old Warnings

Buried in the House Budget Reconciliation and Financing Act (BRFA) is a costly proposal that threatens to upend the relationship between state and local government. The plan? Shift 90% of the cost of funding the State Department of Assessments and Taxation (SDAT) onto counties — to the tune of $21.2 million annually. Counties call this what it is: an unfunded mandate that sacrifices good policy for short-term savings. More information here: 1/ #Maryland’s property assessment…

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House Advances Budget Plan: Counties Block Some Cost Shifts but Face New Burdens

House committees have advanced a budget plan that prevents some cost shifts but still imposes new burdens on counties. As the plan moves to the Senate, counties will continue advocating for sustainable funding and revenue flexibility, with significant decisions still ahead. Budget Framework Agreement: Setting the Stage for the BRFA The Speaker of the House, President of the Senate, and the governor announced a budget framework Thursday, outlining a plan to address the State’s $3.3…

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State Slashes Revenue Projections by $280M Amid Federal Retrenchment

The latest report from the Board of Revenue Estimates (BRE) paints a stark picture for Maryland’s fiscal outlook, with declining tax revenues and looming federal cutbacks casting a long shadow over the state’s economy. The March revenue revision slashes projections by $280 million over fiscal 2025 and fiscal 2026, primarily driven by weakening personal income tax collections and the growing impact of federal job reductions. The BRE, which includes Comptroller Brooke Lierman, Treasurer Dereck Davis,…

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