Maryland leaders unveil nearly $70.8 billion 2027 budget proposal
Maryland Gov. Wes Moore unveiled his nearly $70.8 billion budget proposal for Fiscal Year 2027 on Wednesday.
The governor has promised that the state will "not raise taxes or fees."
"Through this budget proposal, our Administration is choosing to protect our people, focus on driving down costs for working families, and strengthen our state's economic competitiveness—all without raising taxes or fees," the governor said.
The spending plan addresses a nearly $1.5 billion deficit.
Addressing the budget deficit
According to the governor's office, the proposal cuts nearly $900 million and includes several cost-saving measures.
The proposal also maintains 8% in the state's Rainy Day Fund and cuts government spending by $154 million between 2026 and 2027, the governor said.
It must be passed by the House and Senate by April 6 before it can be signed into law.
2027 funding priorities
The budget proposal focuses on increasing education funds, reducing energy costs and investing in law enforcement.
The budget allocates $10.2 billion to public schools, $124.1 million to law enforcement and $73.7 million for revitalization and economic development projects.
The $10.2 billion for schools would represent a 6% increase in funding for K-12 programs compared to the 2026 budget, which totaled $67 billion. The 2026 budget allocated $9.7 billion to public schools.
The $124.1 million for law enforcement would come from the State Aid for Police Protection Program, according to the governor. The budget proposal also includes $10.6 million for the Department of Juvenile Services to expand youth programs and $30 million to maintain aging Department of Corrections and Public Safety facilities.
The $73.7 million would fund 252 revitalization projects under the Maryland Department of Housing and Community Development.
The spending plan also allocates $306 million for renewable and clean energy programs and $414 million for the Child Care Scholarship program.
The proposal also sets aside nearly $54 million for investments in the quantum energy industry and nearly $100 million in business tax cuts to diversify the state's economy.
Maryland's 2026 budget
Maryland's $67 billion spending plan for 2026 was crafted to address a nearly $3 billion budget shortfall.
The 2026 budget introduced more than $1.8 billion in new and increased taxes, leaving the state with a $2.4 billion cash reserve and surplus.
Changes included a new 3% tax on IT and data services, and a 2% tax on capital gains for residents with income over $350,000. The 2026 budget also increased sports betting, cannabis and vending machine sales taxes.
According to the governor, 94% of Marylanders saw tax cuts or no changes to their income taxes under the 2026 budget.
"We turned a $3 billion inherited deficit into a surplus, while still reserving 8% in the rainy day fund above the recommended levels," Gov. Moore said last year. "We made over $2 billion in targeted cuts, which was hard, but it's the largest amount of cuts that we've seen from a Maryland budget in 18 years."