December 18, 2024
How Maryland can get its finances in shape in the new year
As we reach approach the end of 2024, I want to wish everyone a merry Christmas and Happy New Year. I’m thankful to have the opportunity to represent our community in the State Senate and take the responsibility very seriously. The 2025 Legislative Session in Annapolis begins on January 8th and will run for 90 days. Every session brings challenges but the only Constitutional requirement is that we pass a balanced state budget for the next fiscal year (FY2026).
Unfortunately, Maryland now faces a projected $2.7 billion deficit for FY2026 and by FY2030, we would have a $6 billion deficit. We had an almost $5 Billion surplus at the end of 2022. What happened? Well, here are two of the main drivers. First, in the past few years the Democratic super-majority (over my strong opposition) passed the Kirwan “Blueprint” for an exponential increase in spending on education mandated over 10 years – but without a funding source to pay for it. Keep in mind – this is on top of what was already one of the highest per-pupil spending rates in the entire country BEFORE the General Assembly passed Kirwan over Republican opposition and overriding a Governor Hogan veto. That alone is responsible for a sizeable portion of the projected deficit but it’s not the only culprit.
Second, Maryland also has a crushing tax and regulatory burden that is stifling our economic growth. In just two years under Governor Moore, we’ve had no less than 338 tax and fee increases on Marylanders, everything from raising fees on professional licenses to doubling the car registration tax. All of these things, along with additional mandates on job creators that the Democrat-controlled General Assembly passed in prior years has led to where we are now – essentially zero private sector job growth this past year and stagnant tax revenues as a result.
The “easy” way out is for the General Assembly to raise taxes to address the looming $2.7 deficit. But that’s not what leaders do when times are tough. Instead, the governor and state legislators need to take the approach that any responsible family or small business would take if faced with overcommitments in their spending. We need a top-to-bottom look at everything our state is spending money on and carefully analyze what is the proper, necessary role of government. It should start with a look at the Kirwan Blueprint which mandates billions of dollars in spending increases every year. Simply stretching out the full implantation of Kirwan by a few years, we can ease a large percentage of this projected deficit.
One thing is absolutely clear – Maryland families, retirees and job creators cannot afford higher taxes and cost-of-living. One of my top priorities during the 2025 Session will be to address Maryland’s over-spending and holding the line on taxes. In fact, we need to reduce the cost-of-living and tax burden long-term to stimulate our economy and keep families and retirees here in our state instead of forcing them out.
Despite the serious nature of the problems I’ve outlined above, the truth is that there are solutions that do not further burden Marylanders’ stretched pocketbooks or further damage our private sector economy. Along with my Republican colleagues in the State Senate and House, I am ready to work with Governor Moore and the Democrats leading the General Assembly on a 2025 “New Year’s Resolution” to get oversized government in shape and roll back overcommitments on spending we can’t afford. We need Maryland’s leaders to finally commit to budgeting like our families and businesses do every year.
Senator Justin Ready
The writer is a Maryland State Senator Representing Carroll and Fredrick Counties
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