Maryland is projected to maintain a budget deficit of around $1.4 billion for the fiscal year 2027, based on budget forecasts released on Wednesday.
An estimate from the Maryland State Legislative Service (DLS) indicates that the state is facing a structural deficit of $753 million in 2025, $259 million in 2026, and nearly $1.2 billion in 2027. Initially, the Legislature had anticipated a $321 million surplus at the start of fiscal year 2027. Following the budget process, this year’s Congress has concluded, as reported by The Daily Record.
Senate Minority Leader Stephen S. Hershey Jr., a Republican, attributed the expected fiscal issues to “reckless spending, failed leadership, and political maneuvering,” according to a report from The Washington Post. Hershey also suggested that Democratic Governor Wes Moore, who may have presidential ambitions in 2028, is overly focused on national agendas rather than handling state budget issues.
“Instead of tackling the sizable budget deficit, the governor seems more invested in national politics and redistricting instead of confronting the issue at hand,” Hershey stated. He noted that this situation is a direct result of one-party governance, where accountability wanes, and fiscal responsibilities take a backseat to ambition.
Democrats dominate state politics, controlling the governor’s office and all statewide positions, along with supermajorities in both chambers of the Maryland General Assembly, holding over 70% of the seats.
Moore’s office did not respond when the Daily Caller News Foundation sought comments.
The recent budget projections came after a budget deal reached in April, which included $1.6 billion in new taxes while also reducing government expenditures. This information was reported by The Baltimore Banner.
“The fiscal outlook is significantly worse,” noted David Romance, fiscal and policy analysis coordinator at DLS, indicating that the figures are 27% higher than expected at the end of the session. He remarked that, compared to the previously anticipated surplus, the state is now facing a $1.5 billion deficit.
Romance asserted that Maryland’s general fund revenue has suffered due to President Trump’s comprehensive tax and spending bill. He explained that the legislation was predicted to boost general fund revenue by $300 million annually, but instead, it had an adverse effect of approximately $71 million for the fiscal year 2027, resulting in a $371 million swing.
Maryland Senate President Bill Ferguson, a Democrat, emphasized that the General Assembly should focus on reducing costs for families, maintaining fiscal health by addressing the $1.4 billion structural deficit, and fulfilling the constitutional requirement to pass a balanced budget in the next Congress.
In August, Moore suggested mid-decade redistricting to change congressional maps, particularly to challenge Rep. Andy Harris, the sole Republican in the state’s congressional delegation. Recently, more prominent Democrats have begun to push state lawmakers to back Moore’s redistricting efforts. However, Ferguson has publicly opposed the initiative, stating in an op-ed that the risks could be catastrophic for Democrats.
Ferguson voiced concerns about the legal and political implications of mid-cycle redistricting in a letter to the Maryland State Senate, asserting that the challenges posed by such action could undermine the existing credibility of the maps.
