Maryland Senate President Bill Ferguson has presented a stark menu of potential $1 billion in budget cuts as lawmakers grapple with the state’s fiscal challenges. Confronted with a $3 billion structural deficit and lower-than-expected revenues.
Ferguson laid out ten possible cuts, each around $100 million, that include reducing Medicaid coverage, cutting food assistance to nearly 37,000 people, and reducing unemployment benefits. In addition, public safety could also be affected, with as many as 1,500 prisoners being released and possibly the closure of state psychiatric hospitals. Ferguson warned that these reductions are not suggestions but real decisions under consideration. As the legislative session enters its final weeks, state leaders continue to weigh these tough decisions, balancing fiscal responsibility with the need to protect essential services for Maryland residents.
Though Governor Wes Moore’s budget plan offers $2 billion in reductions along with a tax modernization proposal that would lower taxes on 60% of Marylanders while raising them on high-income earners, legislators are considering other steps. Among the proposals is HB1554 (SB 1045) a 2.5% sales tax on business-to-business services such as consulting, lobbying, and technology services. Business leaders have warned of the effect on the state’s business climate, but Ferguson offered a potential compromise “…a broader base and a lower rate, which I think is a more efficient tax approach”.
Ferguson rolls out ‘scary’ list of cuts, favors broadening business sales tax list
