The Senate Budget and Taxation Committee completed its work on a $63.1 billion budget last Friday approving budget decisions of its subcommittees and those before the full committee. Debate on the spending plan will begin tomorrow to be finalized this week and sent over to the House Appropriations Committee for consideration.
The spending plan makes adjustments to the budget to address the revenue write-down that was also announced last week. Last Thursday, The Board of Revenue Estimates revealed a $120 million tax revenue write down for 2024 and $134.9 million write down for 2025. Senate President Bill Ferguson has made it clear that these write downs do not require a raise in taxes.
“We had news about a small write-down from the projections that we had received in December,” Ferguson told reporters. “The overall message is that revenue is still increasing in the state of Maryland. It is not increasing at the pace as our economy is growing, which is something that we’re going to have to tackle in the years ahead. But right now, the state of the economy in Maryland and the state of the budget is still strong.”
“What I know is we don’t need taxes right now in this budget to balance it and to invest in our priorities,” he said.
The Senate Budget and Taxation Committee used larger than expected capital gains taxes to offset the revenue write down. Additionally, the committee plans to cover a $236 million miscalculation in Medicaid expenses by allowing governor Moore to utilize the state’s rainy day fund.
Below are documents summarizing the Senate actions on the budget.
2024 – Report of the Senate Budget and Taxation Committee Report on SB 360 and SB 362
2024 – Report of the Senate Budget and Taxation Committee to the Maryland Senate
2024 – Senate Budget and Taxation Committee Reprint – Senate Bill 360
2024 – Senate Budget and Taxation Committee Reprint – Senate Bill 362
