As operating budget deficits increase and the structural shortfall is projected to grow to $2.7 billion by fiscal year 2029, the Chairs of House and Senate budget and revenue committees look to new and increased revenue streams to make ends meet.
As reported by the Daily Record,
Senate Budget and Taxation Committee Chair Guy Guzzone said lawmakers will have to balance the budget while upholding their commitment to the Blueprint for Maryland’s Future, a plan to reform public education systems that comes with a nearly $40 billion price tag spread out over a decade.
One revenue option on the table is iGaming and online lottery. iGaming could eventually bring in more than $900 million annually, according to a recent legislative report, though the state wouldn’t begin seeing revenue for some time after passing legislation. The next step would be for voters to approve iGaming in a referendum in November.
State Del. Vanessa Atterbeary, who chairs the Ways and Means Committee that will play a vital role in the legislature’s approach to balancing the budget, said that lawmakers should seriously consider moving forward with iGaming this session.
Atterbeary said her committee will also be discussing a “laundry list” of possible fee changes, though they would be “small increments” in cutting into the deficit.
“Major (increments) would mean cuts somewhere, and then also, in my opinion, iGaming and iLottery to get significant revenues,” she said in a phone interview.
Tax increases will be on the table, too, she said. Lawmakers are expected to propose income tax increases for those in a certain tax bracket, changes to combined reporting for corporations and a threshold for an inheritance tax.
Atterbeary said it remains to be seen what the appetite will be for such proposals.
House Appropriations Committee Chair Ben Barnes commented on the severity of the transportation cuts announced by the Administration.
“These cuts are harsh,” Barnes said. “We need to avoid them, now and in the future.”
The governor’s proposal totals $3.3 billion in cuts and includes slashing 8% of all agency operating budgets under the Department of Transportation; cutting funding for regular maintenance by nearly one-third; and delaying all construction projects that haven’t gone out for bidding by Jan. 1.
Barnes said the cuts would be “catastrophic” to many Marylanders.
A recent meeting of the Spending Affordability Committee provided more detail on the State’s revenue and expenditure picture and set recommendations for spending guidelines for the Governor’s proposed fiscal year 2025 budget. The Governor is required to introduce his budget before the General Assembly by January 17, 2024.
