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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DC’s Deepening Local Fiscal Crisis Spells Trouble for Maryland

Washington, DC's deepening local fiscal crisis may spell trouble for Maryland, which faces mounting challenges — federal funding cuts, slowing state revenues, and growing local burdens create uncertainty for policymakers and new financial pressures for counties. Washington, DC’s latest revenue forecast signals deepening economic challenges that could soon play out in Maryland. The District sharply lowered its projections, citing federal job losses, weaker income tax growth, and slowing consumer spending. Unlike past downturns, these declines…

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Federal Budget Threats Could Deepen State Budget Woes, Squeeze Counties

Congress holds Maryland’s fiscal future in its hands as budget talks drag into spring. Proposed cuts to healthcare, education, and infrastructure, combined with a looming shutdown in March, add new strain to an already fragile budget. As previously reported on Conduit Street, Governor Wes Moore’s plan includes $2 billion in spending reductions, revenue enhancements, cost shifts to local governments, fund transfers, and a lower Rainy Day Fund balance. However, Senate President Bill Ferguson warned that federal…

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Senate President Ferguson Warns of Deeper Cuts as Federal Policies Squeeze Maryland’s Budget

Federal policy shifts are adding new strain to Maryland’s already precarious fiscal outlook, forcing General Assembly leaders to consider deeper budget cuts beyond the $2 billion in reductions, cost shifts, and fund transfers already on the table. As previously reported on Conduit Street, Governor Wes Moore’s plan includes $2 billion in spending reductions, revenue enhancements, cost shifts to local governments, fund transfers, and a lower Rainy Day Fund balance. However, Senate President Bill Ferguson warned…

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