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Gov Moore warns Maryland’s economy hasn’t kept pace with his ambition

August 20th, 2023 by WCBC Radio

Democratic Gov. Wes Moore told county and city officials at the Maryland Association of Counties summer conference to expect to tighten their fiscal belts. “As the old adage goes, When the state catches a cold, local jurisdictions catch the flu,’” Moore said Saturday at his first counties conference “ So it won’t be a surprise when I tell you that we’re facing budget shortfalls.” Gov Moore received much applause in spite of his message of troubling news, emphasized partnership between the statewide executive branch and local governments. He said the state “doesn’t just welcome partnership, we need it." In urging restraint in spending as Maryland approaches 2024, the governor said: “This will be a season of discipline, and our choices must reflect that.” He did not suggest budget cuts or tax increases.

MD State’s annual budget for fiscal 2024 is projected to end with a fund balance of $367 million and ongoing revenues that exceed ongoing spending by $150 million. Tthe state could see a $418 million structural deficit for fiscal 2025, and a $1.8 billion deficit in fiscal 2028. Moore acknowledged that the fiscal surplus stemming from federal COVID relief the state experienced under the last few years of the Hogan administration would not last forever.