Friday Five
March 13, 2026 | This week's latest on Maryland business and government
1 — Tale of two budget years adds $250 million to revenue projections
Maryland’s revenue outlook improved by a net $250 million across fiscal years 2026 and 2027, according to updated projections from the state’s Board of Revenue Estimates, with a $355.7 million increase expected this year partially offset by a $108.1 million decline next year. The change reflects stronger-than-expected personal income tax collections and one-time estate tax revenue, while sales tax forecasts and expected revenue from the state’s new IT and data services tax were revised downward.
But wait: Despite this modest improvement, officials caution that uncertainty around federal policy and future economic conditions could still affect Maryland’s budget outlook.
2 — ‘Kicking the can down the road:’ Will Maryland leaders address billion-dollar deficits?
Governor Moore is promoting a balanced state budget without new taxes this year, though critics argue the plan relies on tax increases enacted previously and does little to address Maryland’s looming structural deficits. State projections show a shortfall approaching $3 billion by fiscal year 2028 and roughly $4 billion by 2030, prompting economists and lawmakers to warn that difficult decisions on spending cuts, tax increases, or program reforms may be unavoidable. Concerns are also growing that rising costs, large spending commitments and resident out-migration could further strain the state’s long-term fiscal position.
Quoted: “Maryland state government really needs to look at sort of what it does, what its mission is. One of the challenges that it faces is its revenues aren’t growing as fast as expenditures,” Dr. Daraius Irani, vice president of business and public engagement at Towson University, said. “Collectively, we really have done a poor job of managing Maryland’s finances writ large… I really think that Maryland needs to use this crisis to focus.”
3 — Halfway through, House and Senate still trying to coalesce on energy policy
More than halfway through Maryland’s legislative session, lawmakers are still working to assemble a unified energy policy package aimed at addressing rising utility bills and long-term energy needs. House, Senate and Moore administration proposals differ on issues such as utility regulation, energy efficiency programs and how to lower costs for ratepayers, while dozens of additional bills have been introduced. Leaders say they are negotiating toward a single proposal, but key details and the final scope of the package remain uncertain.
Moore's proposal: Governor Moore has proposed pulling about $725 million from the Strategic Energy Investment Fund (SEIF) this year: Nearly $300 million to help balance the state’s budget and another $100 million to give residential ratepayers a bill credit averaging just $40. The rest would be spent on programs mostly related to climate change and solar energy.
4 — Maryland Senate Democrats roll out economic ‘growth agenda’ amid budget shortfall
Senate President Bill Ferguson and upper house Democrats have introduced a package of economic development bills aimed at strengthening Maryland’s innovation economy, expanding workforce training and making it easier for businesses to start and grow in the state. The “growth agenda” focuses on emerging industries such as artificial intelligence, biotechnology, aerospace and advanced manufacturing while proposing initiatives to support startups, streamline permitting and connect small businesses with greater resources.
Feasibility: These proposals come as Maryland faces a projected budget shortfall, prompting debate over how much the state can invest in new programs and whether broader economic policy changes are needed to improve competitiveness.
5 — Maryland hired consulting firm to find waste as Moore argues state doesn’t need IG
Maryland hired Boston Consulting Group as part of Governor Moore’s Government Modernization Initiative to identify waste and cost savings across state agencies, with a contract that could pay the firm up to $15 million if it helps generate $75 million in savings. State officials say about $29 million in savings have been identified so far, including through contract renegotiations, fleet reductions and IT changes, while the firm has already received roughly $5.6 million in payments. The effort comes as Moore argues Maryland does not need a statewide inspector general, pointing instead to internal oversight mechanisms.
Our take: Maryland businesses support efforts to identify inefficiencies and reduce unnecessary costs, as streamlined government operations can help improve the state’s overall economic competitiveness.
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