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 

The proposal cuts nearly $900 million and includes several cost-saving measures, according to the governor's office. 

The governor blames the Trump administration for the shortfall after 25,000 federal workers lost their jobs in the state. 

He also says federal budget cuts have impacted the state's bottom line. Additionally, the state says healthcare costs continue to rise because of inflation and more people going to the doctor.

"What I can control is by making sure that we can be smart and disciplined in our state, that in our state, we are going to say we have to spend wisely and demand more from every single dollar that we're going to that we're going to invest," Moore said.

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. 

Additionally, money from the state's capital budget, which is typical used for construction projects, to the operating budget.

It is also requiring local governments to foot the bill for retirement plans for local teachers, librarians and community college workers.

Other cuts were described broadly by state leaders Wednesday. The proposal chops $150 million from the Developmental Disabilities Administration, which battled against the largest budget cut in last year's negotiations.

Laura Howell, CEO for Maryland Association of Community Services, says these cuts could impact the most vulnerable who require more complex care.

"A better resolution would minimize the impact on people with more complex needs," Howell said. "We don't want to see them at risk of institutionalization. That would be the worst outcome for someone."

The administration says it is actively working with the DDA and advocates on the budget.

Republicans say the governor is kicking the state's spending woes down the road.

"Our spending continues to outpace the revenues coming in," said State Sen. Paul Corderman, who represents Frederick and Washington counties and sits on the Budget and Tax Committee. "How they've addressed that is a lot of just moving money around from one fund to another fund, not really addressing the structural issues."

Democrats in the House say affordability remains the top priority, which is why a proposed tax increase is off the table. Among the priorities, leaders in the house say they are focused on making childcare accessible to all families.

"We will not be burdening our citizens with any additional taxes to balance this budget, we will have to balance the budget with just cuts," said Del. Ben Barnes, who represents Anne Arundel and Prince George's counties and is the chair of the appropriations committee.

The state is legally required to pass a balanced budget. 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. 

The governor also said he wants to bolster the state's revenue by attracting new industries to Maryland. 

A priority from the 2025 legislative session, Moore says he wants Maryland to be a hub for cybersecurity, quantum, and life sciences, touting the recent news that Samsung is opening a manufacturing site in Rockville and AstraZeneca's Maryland expansion. He also highlighted that a Sphere Entertainment venue is on it's way to the state, which he says will bring 2,500 construction jobs and 4,700 permanent jobs, resulting in more than $1 billion in economic impact every year.

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."