Courtesy of the Comptroller’s Office
Maryland’s economic outlook took a significant hit this week as the Board of Revenue Estimates reduced revenue projections by $280 million. The revised forecast is below the December 2024 projections.
While this size of decline is typically within the norm, state officials are bracing for significant economic impact that comes amid potential federal actions regarding the budget and employment.
The projections include a decline in revenue from corporate and personal income tax, where revenue from personal income tax is expected to decline by around $143 million and corporate income tax revenue by nearly $22 million. Revenues from personal income tax are also expected to decline by $200 million in FY 26.
Initial projections estimated the growth of personal income tax collections at 4.1%. However, the latest estimate has decreased further to just 2.4% as a result of recent and future federal action.
In a statement, Senate Budget & Taxation Chair Guy Guzzone warned that the projections do not yet account for potential additional federal actions. House Appropriations Chair Ben Barnes echoed Guzzone, stating that additional budget cuts and revenue increases are required.
Maryland Matters — Board cuts $280 million from revenue forecast, warns of more fiscal harm from fed uncertainty
