Maryland, My Maryland

The local digital rag, the BayNet announces Maryland Faces Massive Budget Deficit: Governor Moore Announces Executive Order To Increase Economic Growth

In an address at the Maryland Association of Counties on Dec. 12, 2024, Maryland Gov. Wes Moore announced that the state is facing a budget deficit of $2.7 billion for the upcoming 2025 fiscal year.

“We in this state face a historic budget crisis, the likes of one we have not seen in decades,” Moore said. “We inherited loaded budgets, sluggish growth, and a structural deficit. … From 2017 to 2022, the national economy grew by 11%. … Maryland’s economy grew by 3%.” He added that during that same time frame, Maryland’s spending budget increased by 70%.

This is by no means new information; financial analysts have predicted this budget deficit since 2017, and it has been the subject of significant debate in both chambers of the Maryland legislature for several years. However, no consensus has been reached on how to confront the looming budget deficit.

When you get down to it, there are only 2 ways to shrink a deficit. Increase revenues (by raising taxes somewhere), or by cutting spending.

Curiously, far from inheriting the deficit, the Governor inherited a surplus of $5 Billion from the previous Republican Governor, Larry Hogan. Just one of the reasons my criticism of Larry has been muted. He's not the best Republican, but he's the best Republican Maryland elected in a long time.