By Elaine McNeil
•
April 9, 2025
The Budget Deficit In a recent debate on closing Maryland’s budget deficit, Minority Leader Jason Buckel, a Republican delegate from Allegany County, made an important point: “The man upstairs has only been there for two, three years. I don’t blame him for our economic failures of the last 10,” referring to Democratic Gov. Wes Moore, who was elected in 2022. Ahead of the 2026 gubernatorial elections, Buckel’s comments highlight a key reality that many of his Republican colleagues seldom admit: It isn’t right to blame Gov. Moore for a budget deficit that has been brewing for years. Now projected at $3.3 billion, Maryland’s structural deficit is a problem that started long before Moore took office. In fact, it was first projected in 2017, during the tenure of former GOP Gov. Larry Hogan. This isn’t an opinion — it’s a fact that Buckel and other lawmakers, including Republican Del. Jefferson Ghrist, have bravely acknowledged. During that same debate, Ghrist remarked that the Department of Legislative Services had warned about this deficit throughout Hogan’s administration, yet he did little to address it. Ghrist pointed out that during Maryland’s “good years,” when the state received a flood of federal covid-19 relief dollars, spending spiraled without regard for long-term fiscal health. Hogan used these one-time federal funds to support ongoing programs, which masked the true state of Maryland’s finances and created an illusion of fiscal stability. Hogan continues to take credit for the “surplus” Maryland had in 2022 — even though experts repeatedly note it was caused by the influx of federal dollars during the pandemic. As Ghrist correctly observed, the lack of fiscal restraint and slow growth during the Hogan years laid the groundwork for the $3.3 billion structural deficit the state faces today. Indeed, Maryland’s economy has been stagnant since 2017, especially in comparison to its neighboring states, well before Moore took office. Compounding these challenges are President Donald Trump’s reckless layoffs and trade wars with our allies. Thousands of federal workers who live in Maryland are losing their jobs, which will cost the state hundreds of millions of dollars in lost revenue. Trump’s tariffs will also put an enormous strain on local businesses, including Eastern Shore farmers, who are now subject to up to 15% retaliatory tariffs on chicken, wheat, soybeans, corn, fruits, and vegetables. FY2026 Budget Considering this grim reality, Maryland’s lawmakers are making difficult, but necessary, decisions to shore up the state’s finances. Gov. Moore and state legislative leaders recently agreed to a budget that prioritizes expanding Maryland’s economy without raising taxes on most residents. In fact, 94% of Marylanders should see either a tax cut or no change at all to their income tax bill under the proposed agreement. Lawmakers also plan to cut government spending by the largest amount in 16 years, while at the same time making targeted investments in emerging industries, such as quantum computing and aerospace defense, so the state is less dependent on federal jobs. While the richest Marylanders might see their income taxes go up, it’s reasonable to ask someone making over $750,000 a year to pay $1,800 more to support law enforcement, strengthen our schools, and grow our economy. As for the proposed tax on data and IT services, these products aren’t subject to Maryland’s sales tax under current law. Maryland leaders want to modernize our tax code by levying a 3% sales tax on these products. Because they don’t raise income taxes on the majority of Marylanders and because state leaders are also cutting spending by billions, these ideas are fair. They’re also necessary after Gov. Hogan chose to kick the can down the road instead of addressing Maryland’s long-predicted deficit and now that Trump’s policies will lay off thousands of Marylanders and his tariffs will hurt our state. By making responsible choices now, Maryland leaders are putting the state on a path to long-term economic stability. Their decisions will help Maryland thrive, create jobs, and invest in the vital services that every resident relies on — without burdening hardworking families. I’m confident Maryland will emerge stronger, more resilient, and ready to lead in the industries of tomorrow. Elaine McNeil is chair of the Queen Anne’s Democratic Central Committee.