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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Funding the Classroom Gap: A #MACoCon Conversation With School Construction Chief Alex Donahue

At the MACo Winter Conference, county leaders heard directly from Maryland's top school construction official as they confront a familiar challenge: school construction costs continue to rise faster than available capital, even as aging facilities, safety upgrades, and modern learning standards drive demand. MACo Executive Director Michael Sanderson moderated a candid, interview-style conversation with Alex Donahue, Executive Director of the Interagency Commission on School Construction (IAC), during “From Policy to Progress: A Conversation About What’s…

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Mandated Spending Takes a Larger Share of the State Budget

Maryland’s fiscal 2026 budget leaves little room to maneuver. The Department of Legislative Services’ annual report on mandated appropriations and entitlements shows that mandated and entitlement spending is consuming a growing share of available dollars, reducing the space for discretionary spending. For fiscal 2026, mandates and entitlements total $28.5 billion, accounting for 58.4% of State-sourced spending in the allowance. That share marks the highest level in the ten years covered by the report. The growth…

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#MACoCon Recap: The State of Maryland’s Economy

Maryland’s economy is growing slightly, but mounting uncertainty around affordability, labor, and federal policy is reshaping what that growth really means for counties and communities. At MACo’s Winter Conference, economist Dr. Daraius Irani delivered a sobering but practical economic outlook during “Troubling Trends: The State of Maryland’s Economy,” offering county leaders a clear-eyed assessment of the forces shaping budgets and long-term planning decisions across the state. Amid growing uncertainty, Dr. Irani opened with a national…

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Roadmap for Maryland Recordation and Transfer Taxes Compliance

The Maryland State Bar Association has developed a revised guide to the multiple facets of Maryland's system of recordation and transfer taxes, as an aid to practitioners in real estate and land records. The 2025 revision updates documents last prepared in 2002, and covers both State and county-level tax systems, and the varying administration across the state. Maryland levies both State and county taxes on real estate transactions, both those that effect a sale (the…

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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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