Read more about the article Fiscal Reality Check: State Projects $1.4B Shortfall, With Deficits Climbing Toward $4B
Source: DLS
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…

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Central Committees Nominate Howard Anderson To Fill District 38A Delegate Vacancy

The Republican Central Committee of Somerset County announced the nomination to fill the District 38A House of Delegates vacancy following the passing of Delegate Charles Otto, with the Tri-County Republican Committee forwarding Howard “Kevin” Anderson for appointment. According to a Republican Central Committee of Somerset County Facebook post: Congratulations to Howard Kevin Anderson for his selection by the tri-county 38A District from an impressive pool of candidates as the nominee to fill the vacant Delegate…

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Governor Moore Moves Forward with Redistricting Advisory Commission

Maryland will formally study mid-cycle redistricting, with Governor Wes Moore announcing a new advisory commission to review the current congressional map, gather public input, and recommend next steps as other states redraw their lines ahead of the 2026 elections. Governor Wes Moore announced a new Governor’s Redistricting Advisory Commission to review Maryland’s congressional map and recommend potential changes. The panel will conduct public hearings, gather input from residents across the state, and deliver recommendations to…

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MACo Adopts 2026 Legislative Initiatives

In the 2026 General Assembly Session, MACo will prioritize restoring Highway User Revenues to support safe, reliable local infrastructure, expanding local housing tools, rebalancing the State–local partnership for school construction, and protecting county budget security. This week, the MACo Legislative Committee adopted the Association’s Legislative Initiatives for the 2026 Maryland General Assembly Session. While the Committee will take positions on hundreds of bills, these four issues represent counties’ top priorities for the year. RESTORE HIGHWAY…

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Shutdown Countdown: State Leaders Outline Risks and Response

Maryland leaders outlined on Tuesday both the serious risks of a federal shutdown and the steps they are taking to manage its impact on workers, revenues, and local communities. Without a last-minute deal in Washington, the federal government will close at midnight. Update — October 1, 2025: The federal government officially shut down after Congress failed to reach a last-minute agreement. As the closure begins, the impacts described in Tuesday’s Joint Federal Action Oversight Committee…

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Read more about the article Maryland’s FY25 Surplus Sets Stage for Deficit Years Ahead
Source: Department of Legislative Services
Maryland’s FY25 Surplus Sets Stage for Deficit Years Ahead

Maryland closed fiscal 2025 with a $521 million surplus — a short-term win that masks deep volatility and looming deficits with significant consequences for both State and county budgets. Maryland closed fiscal 2025 with general fund revenues $521 million above estimates, according to the Department of Legislative Services (DLS) presentation this week to the House Appropriations Committee. However, the details reveal both the volatility of Maryland's revenue base and the risks that lie ahead for State and…

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Montgomery Council Expands Childcare Property Tax Credit

The Montgomery County Council approved legislation to expand property tax credits for childcare providers, using new MACo-backed authority from the 2025 General Assembly to increase support for this essential sector. Bill 21-25, sponsored by Council President Kate Stewart, increases the maximum property tax credit from $3,000 to $10,000 and extends eligibility to include large family childcare homes. The measure aims to alleviate financial pressures on providers while promoting new investment in childcare capacity. “At a…

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Deep Dive: Counties Now Forced to Pay for a Process They Don’t Control — and Never Did

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. In Maryland, county governments do not prosecute, convict, or exonerate anyone. They play no role in determining wrongful incarceration settlements. Yet a new law forces them to pay the bill anyway. The 2025 Budget Reconciliation and Financing Act (BRFA) requires counties to cover…

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Medicaid, SNAP, SALT: Joint Committee Reviews Billions in Federal Budget Risks to Maryland

Facing potential cost shifts in the billions, Maryland lawmakers met this week to assess how sweeping federal budget proposals and policy changes could upend the State’s finances -- with ripple effects likely to reach counties through increased service demands, reduced federal support, and added pressure on local budgets. The Maryland General Assembly's Joint Committee on Federal Relations convened its first interim meeting this week to assess the mounting federal fiscal and policy challenges, including the…

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Conduit Street Podcast: Inside the Committee Room With Delegate Marc Korman

On the latest episode of the Conduit Street Podcast, Kevin Kinnally and Michael Sanderson are joined by Chair of the House Environment and Transportation Committee, Delegate Marc Korman, for a deep dive into the inner workings of legislative committees in the Maryland General Assembly — how they function, why they matter, and what changes when one takes on the role of chair.     Tune in to the Conduit Street Podcast weekly, wherever you get…

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