Moore pushes for tax reforms and deeper cuts, blaming Trump as Maryland faces fiscal crisis

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Moore pushes for tax reforms and deeper cuts, blaming Trump as Maryland faces fiscal crisis

ANNAPOLIS, Md.  — Gov. Wes Moore told a Maryland House of Delegates joint committee session that more needs to be done to balance the state’s budget, blaming President Donald Trump’s administration for exacerbating the state’s budget problems.

On Thursday afternoon, the governor spoke to a packed committee room of state lawmakers and the general public at the Maryland Department of Legislative Services’ (MDLS) joint hearing auditorium. A line of participants formed in the hall outside the doors, waiting to be allowed inside.

Balancing the state budget for a third year in a row would be hard during normal times, and these are not normal times,” Gov. Moore said. “The world has changed significantly in just six weeks, and our final state budget needs to reflect that harsh reality.”

A House staffer who was not authorized to speak with the media told Spotlight on Maryland that 103 people had signed up to testify about the governor’s proposed budget.

Multiple lawmakers stated that they received a 69-page budget document from MLDS and the governor’s office overnight Wednesday. The booklet detailed a variety of budget cuts, reallocations, and tax code changes.

One proposed budget amendment would reduce the state’s video lottery proceeds for the Blueprint for Maryland’s Future from 6% to 5%. The saved revenue would be reallocated to the state’s strapped general fund in fiscal years 2026 and 2027, according to the amendment.

Another recommendation was to postpone the Blueprint’s expansion of statewide prekindergarten and to reduce the plan’s mandated per-pupil funding for fiscal 2027 from $19,950 to $17,211.

The proposals also proposed repealing the state’s tax-free weeklong back-to-school shopping holiday, which was established in 2010.

Another proposal was to repeal the $1,000 personal income tax exemption for residents 65 and older. According to MDLS, this revision could boost general fund revenue by $30 million.

The suggested changes also included the reinstatement of the state’s “snack tax,” which was repealed by the Maryland General Assembly in 1996. According to state archives, the snack tax was first implemented during the state’s first special session in 1991 to help balance the budget deficit.

Del. Matt Morgan, R-St. Mary’s County, has told Spotlight on Maryland that he will vote against the proposed changes to the Budget Reconciliation and Financing Act (BRFA).

The breaking point is right now,” Del. Morgan said. “People are going to move out of the state. They’ve been transitioning out already.”

“The problem is Maryland is just spending too much. We are one of the only states in the region dealing with this,” Del. Morgan added.

Meanwhile, Del. Caylin Young, D-Baltimore City, told Spotlight on Maryland following the governor’s hearing that he believes the state must continue to fund critical social and welfare programs.

“We’re a state that will take care of its citizens,” Del. Young stated. “We also need to make sure that they have the services and other tools they need to be successful in our society.”

During a news conference, the Republican caucus rejected the governor’s budget amendments, citing a spending problem rather than a tax revenue issue.

House Minority Leader Del. Jason Buckel, R-Allegany County, believes the governor’s proposed income tax bracket changes will burden almost all taxpayers.

I think the governor has tried to be clever but is disingenuous that there are broad base tax cuts [for the middle class],” Del. Buckel said.

During the joint committee hearing, Gov. Moore discussed the potential impact on the state of widespread federal worker layoffs. During his campaign, President Donald Trump promised to reduce the federal government, with recent reports indicating a reduction of up to 60% in the federal workforce.

“What I saw in Washington concerned me as governor but disturbed me as a Marylander,” Moore told reporters.

After the hearing, Spotlight on Maryland asked the governor how the state would fund a possible swell of unemployment insurance claims. The governor pointed to his administration’s launch of an online resource portal launched two weeks ago.

This is a time when the state is going to have to get creative and make sure we are taking care of our people,” Moore said.

The Trump administration has not indicated that it will provide additional federal funding to states to help offset an increase in unemployment insurance claims. This unexpected expense could exacerbate the state’s projected $3 billion deficit.

The Maryland Board of Revenue Estimates also plans to release revenue projections on March 9, potentially upending state budget negotiations.

Spotlight on Maryland asked Del. Young, who attended the governor’s budget hearing, if there was room for more budget cuts rather than tax and fee increases.

“I’m not prepared to answer that today,” Del. Young stated.

During the hearing, four Republican lawmakers briefly questioned Governor Moore. None of the Democratic elected officials questioned the proposed amendments.

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