Senate President Bill Ferguson (D-Baltimore) has opposed broad-based tax proposals, but billions in projected budget shortfalls have opened the door to some kind of changes in revenue policy, he said. File photo by Bryan P. Sears.
“Everything is on the table” when it comes to combating a budget gap that analysts are describing as “huge,” the Maryland Senate leader said.
Maryland faces a projected deficit of $2.7 billion for fiscal year 2026, which budget analysts predict will grow to nearly $6 billion over five years. Senate President Bill Ferguson (D-Baltimore) said the state has “important decisions ahead to protect the state” from what he called “serious uncertainty at the federal level” while balancing the state budget.
Ferguson’s statement opens the door to a discussion about some sort of tax increase.
“Everything is on the table,” Ferguson said in a statement. “Where we can, we will make cuts and adjustments to existing programs that are not delivering results. We will also consider changing revenue policies as long as these changes keep our state competitive with the surrounding region. We must be purposeful and purposeful in our approach. Marylanders deserve nothing less.”
Ferguson’s statement, released late Friday night, came three days after members of the Joint Spending Affordability Committee were informed of potential budget issues.
David Romans, a budget analyst for the Department of Legislative Services, told the committee last week that “the overarching conclusion from today’s meeting is that there is a huge gap between the state’s ongoing spending commitments and current revenues.”
Maryland faces a combined structural and cash deficit of more than $1 billion this year. Analysts say this deficit will more than double to $2.7 billion in the 2026 budget year, which lawmakers will take into account in the upcoming General Assembly, and in the 2027 budget year.
By fiscal year 2028, the state will have exhausted the money set aside to cover the costs of education reform and will need money from the general fund. The structural deficit will grow to almost $4.7 billion in 2028, then to $5.2 billion a year later, and again to $5.9 billion in the 2030 budget year.
“I am confident we will do what is necessary to protect Marylanders and pave the way for long-term success and prosperity,” Ferguson said in his statement.
The Senate leader provided no insight into the options he is willing to consider.
The state’s revenue picture is hampered by stagnant revenues.
The results of the 2024 election have some concerned that President-elect Donald Trump will make good on his campaign promises to reduce the size of the federal workforce and relocate some agencies. Both measures raise concerns about the disproportionate impact on Maryland’s state and local government revenues.
Both Ferguson and Gov. Wes Moore (D) have said a “high bar” must be met before they can support tax increases.
Ferguson has eschewed broad tax increases over the past year in favor of more targeted options earmarked for specific needs.
Ferguson’s statement did not say whether the projections made public last week exceed his “know-it-when-you-see-it” threshold.
“We will work closely with our partners in the House of Representatives and the Governor to navigate this challenging budget season,” Ferguson’s statement said. “We must protect the priorities Marylanders care about most: creating a world-class public education system, protecting access to affordable health care, creating safe communities, fueling economic growth and protecting our environment. ”
