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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Gov’s Proposed Income Tax Overhaul: County-by-County Effects

BRE-BRFA-Proposal-AnalysisAs previously reported on Conduit Street, Governor Wes Moore's fiscal 2026 spending plan represents one of the most significant income tax overhauls in years, with far-reaching effects on local budgets, economic growth, and service funding. The latest Bureau of Revenue Estimates (BRE) analysis details the governor’s proposed income tax overhaul and its significant impact on county budgets. The analysis includes the county-by-county effects, highlighting how the proposal will impact local revenues, taxpayer liabilities, and fiscal planning across…

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MACo Supports Adjusted Tax Rate Deadline to Safeguard Local Budget Processes

On January 21, Legislative Director Kevin Kinnally testified before the Ways and Means Committee in support of HB 101, Property Tax—Deadline to Set County and Municipal Corporation Tax Rates—Alterations with Amendments. This bill moves the deadline for counties and municipalities to set property tax rates from July 1 to June 1. Counties seek amendments to minimize disruptions to local budget timelines and processes. Counties depend on property tax revenue to fund critical services such as education, public safety, and…

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Eroding State Support: Counties Shoulder More, Get Less

Maryland relies on county governments to deliver essential community services, including education, emergency services, transportation, and public health programs. However, a new report underscores a growing challenge: As State support shrinks, counties have limited options to meet rising costs. According to the Department of Legislative Services, the share of State revenues allocated to local governments has steadily declined over the past decade, dropping from 42 percent in fiscal 2013-2014 to just 32 percent in fiscal…

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MACo Advocates for Equity-Driven Local Tax Flexibility

On January 15, Legislative Director Kevin Kinnally testified before the Budget and Taxation Committee in support of SB 70 - County Income Tax - Rate and Income Brackets - Alterations. This bill empowers counties to implement fair and balanced tax policies while safeguarding vital services. This bill advances MACo's Legislative Initiative to broaden local revenue options, empowering counties to respond to unique fiscal conditions and community-driven priorities. In 2021, the General Assembly authorized counties to…

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Governor’s Fiscal 2026 Budget: Navigating County Effects

Governor Wes Moore’s fiscal 2026 spending plan blends fiscal responsibility with targeted investments in education, public safety, and workforce development, alongside substantial tax reforms and funding shifts. It presents opportunities and challenges for counties, pairing increased funding for critical services with new cost burdens and funding uncertainties. The governor's $65.3 billion proposed budget reduces the structural deficit, maintains reserves for economic challenges, and balances targeted investments with cost-cutting measures to address immediate and long-term priorities.…

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Conduit Street Podcast: 2025 General Assembly Forecast

What’s ahead for Maryland in the 2025 legislative session? In this special episode of the Conduit Street Podcast, we’re bringing you a recording of a must-hear panel from the 2024 MACo Winter Conference.   Tune in to the Conduit Street Podcast weekly, wherever you get your podcasts! Subscribe to the Conduit Street Blog and stay in the know!

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Your Go-To Guide for Submitting Testimony to the 2025 General Assembly

The House and the Senate are using a hybrid system this session, accepting virtual and in-person oral testimony. Still, both houses have stressed that witnesses are strongly encouraged to be in person as not all virtual witnesses will be called for testimony. This post is an easy index for everything you need to submit testimony in 2025. Of Note: This year, the Senate's sign-up window is now two (2) business days before the hearings instead…

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Counties Confront Fiscal Challenges Amid Sluggish Revenue Growth

As counties across Maryland navigate turbulent fiscal waters, the latest revenue outlook reveals a mixed bag of challenges and opportunities. While property tax revenues anchor local budgets with predictable growth, other significant sources tell a more complex story. As previously reported on Conduit Street, Maryland faces considerable budget challenges that could drive spending cuts, tax increases, or other remedies to resolve significant structural deficits projected through fiscal 2029. Maryland faces a $2.9 billion deficit in fiscal…

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Mayor Scott Outlines Baltimore City’s 2025 Legislative Priorities

Today, Baltimore City Mayor Brandon Scott announced his legislative priorities for the 2025 Maryland General Assembly session, focusing on public safety, transportation, housing, and health. “As we look towards this year’s legislative session, Baltimore is poised to build on the progress we’re making and take even greater steps towards building our City’s renaissance," said Mayor Scott. "Whether it be our advocacy for a share of local sales tax, to crack down on illegal dumping, or…

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