The Board of Revenue Estimates voted to increase the revenue projections for the current and upcoming fiscal years by $1.6 billion.
The Board – comprised of Comptroller Peter Franchot, Treasurer Dereck Davis and State Budget Secretary David Brinkley – increased the state’s tax revenue projection for the current fiscal year to $22.5 billion, an $867 million increase from the December estimates, and increased the official revenue forecast for Fiscal Year 2023 by $737 million to $23.6 billion. According to Maryland Matters, these “new estimates are likely to impact the General Assembly’s budget deliberations; the Senate Budget and Taxation Committee could vote on a budget plan Friday afternoon.”
From the Comptroller’s press release:
The increase is largely attributable to individual and corporate income tax collections from tax year 2021, as well as higher sales tax receipts.
Today’s revision follows the Board’s actions last September and December when revenue projections for Fiscal Years 2022 and 2023 climbed sharply. Combined with a $2.5 billion general fund balance from Fiscal Year 2021, the state has approximately $7.5 billion in excess revenue in a two-year span.
In the Comptroller’s press release, he also renewed his call for the legislature to pass $2,000 emergency stimulus checks for low-wage earners and Earned Income Tax Credit recipients, as well as dedicate $500 million in aid for small businesses and $500 million for the state’s childcare providers.
In response to the growing surplus and the Board of Revenue Estimates’ vote, “Maryland’s top political leaders announced Thursday afternoon that they will work together to suspend the state’s gas tax for 30 days,” reported Maryland Matters. Senate President Bill Ferguson and House Speaker Adrienne A. Jones issued a joint statement where they vocalized their support of the plan to suspend the 37-cent-per-gallon tax on gasoline for 30 days.
Governor Hogan issued a press release where he spoke on the surplus and his support for the suspension of the gas tax:
“Today’s incredible revenue estimates increase our already record surplus and reinforce the fact that Maryland continues to have one of the strongest recoveries in America. This report further proves that we have a once-in-a-generation opportunity to advance substantial tax relief for our families, small businesses, and retirees. People across the country are being squeezed by surging inflation on everything from gas to groceries—Marylanders, especially our retirees, deserve and need this relief.”
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