Friday Five
Nov. 14, 2025 | This week's latest on Maryland business and government
1 — Lawmakers cautioned on use of reserves to solve nearly $1.5 billion deficit
Maryland budget analysts are warning state lawmakers not to rely on the state’s reserve funds to close a nearly $1.5 billion deficit projected for fiscal 2027. They caution that using the rainy day fund may provide short-term relief but would undermine the state’s financial stability and threaten its credit rating. The deficit is part of a broader structural imbalance expected to grow in the coming years. Analysts argue that tapping reserves would delay, not solve, the underlying budget challenges, and they urge lawmakers to pursue more sustainable long-term solutions that would strengthen the state’s fiscal outlook.
Proposed: State law requires a minimum balance of 5 percent of general fund revenues be in the rainy day fund, which is meant as a bulwark against a severe economic downturn. Currently, the fund has $2.3 billion, about 8 percent of general fund revenues. By drawing down the fund could trim the projected deficit to a more manageable $500 million, but runs the risk of impacting state bond ratings.
2 — Government reopens after 43 days: Trump signs bill ending record shutdown
After a record‐setting 43-day shutdown, President Trump signed a spending package that reopened the federal government and funds most agencies through January. The legislation passed the House and Senate after a stalemate over health-care costs and procedural obstacles, ending widespread disruptions such as delayed nutrition programs, unpaid federal workers and flight delays. Although the bill restores funding, many lawmakers and analysts say it fails to address the rising cost of health care and broader systemic issues. Some lawmakers plan to pursue further legislation to extend health insurance subsidies and force debates on costs.
Back pay guaranteed: Provisions of the spending package mandate the Trump administration to provide back pay to all federal workers, including those furloughed during the shutdown.
3 — A minimum wage of $25 an hour in Maryland could be put to a vote in 2026
A campaign is underway to place a constitutional amendment on Maryland’s 2026 ballot that would raise the state minimum wage to $25 an hour with no exceptions, positioning Maryland to have the highest statewide minimum wage in the nation. Supporters argue that Maryland’s current minimum of $15 falls far short of what a worker needs to afford basic living expenses in the state, particularly in high‑cost counties. The initiative requires gathering at least 74,641 valid signatures (3 percent of the 2022 gubernatorial electorate) by July 2026 and must then be referred by the legislature before appearing on the ballot.
A flawed approach: Implementing a minimum wage to this degree could lead to job losses, hurt small businesses and make Maryland significantly more expensive relative to all its neighboring states.
4 — A critical part of the economy isn’t hiring, bosses explain why
Many small businesses are scaling back or holding steady in response to economic pressures including inflation, tariffs, the recent government shutdown and low consumer confidence. Business owners across the country are reducing staff or taking on extra work themselves as sales decline and discretionary spending slows. Trade policies and new tariffs have added costs for companies, limiting expansion and hiring plans. Surveys and job reports show that small businesses are more vulnerable than larger firms, shedding jobs while larger companies continue to add them, reflecting broader economic uncertainty. Despite these challenges, some retailers are faring well due to affluent clientele and strong consumer demand, though even they remain cautious about new hires or expansion.
Recent numbers: Small and midsize businesses — defined as those with fewer than 500 employees — shed 31,000 jobs in October, the payroll processor ADP reported Wednesday, while larger companies added 73,000. That represented a net gain of 42,000 jobs after two months of declines.
5 — Governor’s slate looking for a few Moore Democratic legislators to back his agenda
Governor Moore has launched a political initiative called the “Leave No One Behind” slate aimed at endorsing and financially supporting Democratic candidates who will advance his agenda in the legislature. This effort may include backing primary challengers to incumbent Democratic lawmakers who have opposed or failed to support key parts of his policy platform. Moore’s announcement comes after a number of his priorities — such as a nuclear power bill, changes to the K‑12 education reform (known as the Blueprint for Maryland’s Future), and a homes and jobs proposal — either stalled or were scaled back in the legislature.
Election 2026: Moore is also seeking to mobilize his campaign infrastructure for the 2026 election cycle, signaling a shift toward a more assertive role in shaping the Democratic legislative slate and contest outcomes.
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The Maryland Chamber of Commerce is the state’s leading business advocacy organization — committed to working with our alliance of partners on critical public policy issues. With a focus on economic development and grassroots advocacy, we impact policies that directly affect Maryland business.
