House Appropriations Committee Rejects AOT Cost Shift, Budget Moves to House Floor

The House Appropriations Committee rejected a proposed assisted outpatient treatment (AOT) cost shift and advanced the Budget Bill (SB 282) and Budget Reconciliation and Financing Act (SB 284) to the House floor. The Senate retained the AOT provision, which would have required counties to reimburse the Maryland Department of Health for escalating shares of program costs, starting at 25% and rising to 100%. The House removed that provision, avoiding a significant new State-mandated, locally funded…

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Senate Advances Budget: Blocks Some Cost Shifts, But Fiscal Pressures Remain for Counties

The Maryland Senate has passed the Budget Bill (SB 282) and the Budget Reconciliation and Financing Act (SB 284), advancing both measures to the House of Delegates. The Senate plan largely mirrors Governor Moore's overall spending level, maintaining a roughly $70.8 billion budget while closing a projected $1.5 billion structural gap through fund transfers, targeted reductions, and financing adjustments. The plan leaves approximately $2.2 billion in the Rainy Day Fund, about 8% of general fund…

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State Revenue Forecast Improves for Now, Softens Ahead

Maryland’s latest revenue forecast boosts revenues for the current fiscal year by $355.7 million but lowers projections for fiscal 2027 by $108.0 million as budget pressures continue to build. The Maryland Board of Revenue Estimates (BRE) released its March update today, revising the State’s revenue projections as lawmakers continue to navigate a challenging fiscal environment. The latest forecast increases expected revenues for the current fiscal year by $355.7 million, while projections for fiscal 2027 decline…

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Comptroller Lierman Names Erica Roach as Chief Deputy

Maryland Comptroller Brooke Lierman has appointed Erica Roach as Chief Deputy Comptroller. Roach will assume the role following the departure of current Chief Deputy Comptroller Andrew Schaufele. Roach currently serves as Assistant Deputy Comptroller for Revenue Operations at the Comptroller’s Office, where she oversees executive functions tied to statewide revenue collection, taxpayer assistance, and operational performance supporting more than $27 billion in annual state revenue. As Chief Deputy Comptroller, Roach will work closely with the…

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MACo: State Budget Plan Pressures Counties Toward Higher Taxes or Service Cuts

On March 4, Legislative Director Kevin Kinnally testified before the Budget and Taxation Committee in support of HB 392 - Budget Reconciliation and Financing Act of 2026 with amendments. The BRFA shifts tens of millions of dollars in new, ongoing obligations onto county governments while limiting formula-driven State support. Taken together, these provisions place growing pressure on county budgets amid economic uncertainty, federal funding instability, and limited local revenue flexibility. Speaking on behalf of county…

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Conduit Street Podcast: The Governor’s Budget and the County Bottom Line

In this week’s episode of the Conduit Street Podcast, our familiar hosts Kevin Kinnally and Michael Sanderson take the microphone to walk us through Governor Wes Moore’s proposed FY27 budget and the accompanying Budget Reconciliation and Financing Act – or as Michael likes to call it, “Big BRFA.”   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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DLS Fiscal Briefing Warns of Mounting Cost Shifts and Budget Gaps

This week, the Department of Legislative Services (DLS) presented its annual fiscal briefing to the General Assembly’s budget committees. The briefing outlined the governor’s proposed fiscal 2027 operating and capital budgets, State aid to local governments, and Maryland’s broader economic and revenue outlook. As previously reported on Conduit Street, Governor Wes Moore’s $70.8 billion fiscal 2027 budget closes a projected $1.5 billion shortfall through fund transfers, capped formulas, and cost shifts rather than long-term structural…

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Governor Moore’s Fiscal 2027 Budget: Navigating County Effects

This week, Governor Wes Moore introduced a $70.8 billion fiscal 2027 spending plan that, according to the administration, expands funding for housing, education, and public safety while closing a projected $1.5 billion shortfall without increasing taxes or fees. The governor's budget increases aid flowing through county governments, but it does not resolve the underlying pressures counties face or meaningfully realign State funding with county responsibilities. Education funding continues to grow, and transportation aid remains temporarily…

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2026 Issue Preview: Current Issues in Public Benefits Programs

Federal SNAP changes adopted in 2025 shift new costs and responsibilities to states, reshaping how Maryland administers benefits and budgets for one of its largest public assistance programs. With the 2026 Legislative Session approaching, MACo is profiling major issues, including public benefit programs such as supplemental nutrition, that are likely to garner significant attention. The federal budget reconciliation legislation enacted in July 2025, the One Big Beautiful Bill Act (OBBBA) or HR 1, makes sweeping…

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Read more about the article 2026 Issue Preview: Budget Math Gets Harder
Source: DLS
2026 Issue Preview: Budget Math Gets Harder

With the 2026 Legislative Session on the horizon, MACo is profiling significant issues likely to command attention in Annapolis. At the center sits the State budget, where slowing revenues, rising obligations, and shrinking flexibility will drive many of the toughest decisions facing counties and the General Assembly. The 2026 legislative session opens with a challenging budget picture. The Department of Legislative Services lays it out plainly in the annual Issue Papers. Revenue growth slows. Spending…

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