Senate President Bill Ferguson (D-Baltimore) has opposed broad-based tax proposals but billions in projected budget deficits have opened the door to some form of revenue policy changes, he said. File photo by Bryan P. Sears.
“Everything is on the table” when it comes to combating a budget gap analysts described as “enormous,” according to the leader of the Maryland State Senate.
Maryland faces a projected $2.7 billion deficit for fiscal 2026 that grows to almost $6 billion over a five-year period, according to budget analysts. Senate President Bill Ferguson (D-Baltimore) said the state has “important decisions ahead to protect” the state against what he called “severe uncertainty at the federal level” while balancing the state budget.
Ferguson’s statement opens the door to a discussion on some kind 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 achieving outcomes. We also will consider altering revenue policies so long as those changes keep our state competitive with the surrounding region. We must be targeted 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 briefed about potential budget problems.
David Romans, a Department of Legislative Services budget analyst, told the committee last week that, “The overarching takeaway from today’s meeting is that there’s an enormous gap between the ongoing spending commitments the state has made and ongoing revenues.”
Maryland faces more than $1 billion in combined structural and cash deficits in the current year. Analysts said that gap more than doubles to $2.7 billion in fiscal 2026, which legislators will be budgeting for in the upcoming General Assembly, and fiscal 2027.
By fiscal 2028, the state will exhaust the money set aside to cover the costs of education reforms and will require money from the general fund. The structural deficit grows to nearly $4.7 billion in 2028, then $5.2 billion a year later, and again to $5.9 billion in fiscal 2030.
“I am confident we will do what is necessary to protect Marylanders and set the stage for long-term success and prosperity,” Ferguson said in his statement.
The Senate leader did not provide insight into options he is willing to consider.
The state’s revenue picture is hobbled by stagnant revenues.
The results of the 2024 election have some concerned that President-elect Donald Trump will follow through with campaign promises to reduce the size of the federal workforce and move some agencies. Both moves raise concern about the disproportionate effect on Maryland’s state and local government revenues.
Both Ferguson and Gov. Wes Moore (D) have said a “high bar” would have to be met for them to support tax increases.
Ferguson has eschewed broad-based tax increases in the last year in favor of more targeted options earmarked for specific needs.
Ferguson’s statement does not mention if the projections made public last week cross his know-it-when-you-see-it threshold.
“We will work closely with our partners in the House and the governor to navigate this challenging budget season,” Ferguson’s statement said. “We must protect the priorities that Marylanders care about most: creating a world class public education system, protecting access to affordable healthcare, creating safe communities, stimulating economic growth, and protecting our environment.”