Maryland agencies are being asked to prepare for tighter spending as state leaders confront a projected multibillion-dollar structural deficit heading into the 2027 General Assembly session.
The Department of Budget and Management has directed executive branch agencies and state universities to develop fiscal 2028 budget requests reflecting reductions of approximately 3%. Two dozen Cabinet-level agencies have also been asked to outline what reductions of up to 10% in general fund spending would look like, including potential impacts on staffing, programs, operations, and services. Budget Secretary Jake Weissmann characterized the 10% exercise as a planning tool intended to give policymakers a clearer picture of the choices available as they work to close the gap.
The state’s fiscal outlook is expected to be a major focus of the upcoming legislative session. The Department of Legislative Services projected a roughly $2.6 billion structural deficit for fiscal 2028, with larger gaps expected in the following years. Blueprint for Maryland’s Future costs are also expected to place increasing pressure on the general fund as dedicated revenues fall short of anticipated spending needs.
While Maryland closed fiscal 2026 with stronger-than-expected results, policymakers have emphasized that the state continues to face longer-term structural challenges. Legislative leaders have indicated that spending reductions, slower growth in existing programs, and potential revenue measures could all be part of the discussion. The next significant indicator will come from the Board of Revenue Estimates, which is scheduled to meet on September 24 and will provide an updated look at the state’s revenue outlook as budget development continues.
The scope of any eventual reductions remains uncertain. The 10% scenarios submitted by agencies are not final budget decisions, and budget officials have said not every proposed reduction will ultimately be adopted. Governor Wes Moore’s administration is expected to continue evaluating agency proposals before submitting its fiscal 2028 budget to the General Assembly in January.
