FY 2027 Md. budget plan relies on fund transfers, level funding

Gov. Wes Moore unveils $70.8B Maryland state budget proposal for FY 2027

Updated: 6:11 PM EST Jan 21, 2026

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Maryland’s governor said his next spending plan does not include tax or fee increases.Gov. Wes Moore unveiled his $70.8 billion fiscal year 2027 budget proposal Wednesday, saying he is closing a projected $1.4 billion budget deficit through cuts, level funding and transfers of money from one account to another.| HIGHLIGHTS: FY 2027 Maryland state budget proposal (PDF)During his announcement, the governor said this budget proposal will provide $10 billion in K-12 education funding, $124 million for public safety, $352 million to expand the housing supply, and $306 million for renewable and clean energy.”It’s an articulation of our core principles. It sits firmly on the values of this administration, the values of this state and the values of this moment,” Moore said.11 TV Hill video below: Governor pledges no tax, fee increasesThe governor and his top budget official explained the budget cuts proposed. The proposal also includes a $187 million transfer from the state’s Fiscal Responsibility Fund, $150 million from the local income tax reserve and $145 million from the Rainy Day Fund.”(This is) a budget that still keeps a healthy 8% in the Rainy Day Fund, a budget still keeps a minimum of $100 million in our cash balance,” Moore said. “This budget shows that we can spend wisely and also protect our values.””There’s $322 million that we are using in the capital budget to fund this year’s general fund,” Acting Budget Secretary Jake Weissmann said. “We utilized $292 million from the Strategic Energy Investment Fund for general fund relief.”The Maryland Department of Health’s Developmental Disabilities Administration will receive less money this fiscal year. There will be level funding for the Sellinger Program, which provides scholarships to students attending private colleges.The administration also proposes shifting 50% of the retirement costs for K-12 education, community colleges and libraries to local jurisdictions.The governor said his budget reflects increasing economic competitiveness and that decisions were made with three pillars in mind:Protecting residents with more support for law enforcementMaking Maryland more affordable by investing in child care scholarshipsExpanding the housing supplyThe budget plan also includes more than $100 million in targeted business tax cuts to diversify the state economy. The governor cited the new Sphere project in Prince George’s County that he said will result in 4,700 permanent jobs and $1 billion in economic impact each year.”The governor has presented a budget proposal that is thoughtful, well-executed and in line with our shared values,” Senate Budget and Taxation Committee Chairman Guy Guzzone, D-District 13, said in a statement from the governor’s office. “As we move forward with session, I look forward to joining my colleagues on the Senate Budget and Taxation Committee to evaluate the details carefully to ensure that we are maximizing our resources and meeting the needs of all Marylanders.”Video below: Session 2026 begins amid another state budget deficit The Moore administration described the budget as “low growth,” saying it only funds essential services.The budget plan now goes to the General Assembly, where lawmakers have the power to make changes. The Senate gets the budget first before it goes to the House.Republicans: Budget plan moves money aroundThe governor said he briefed Republican legislative leaders on his budget proposal during a breakfast meeting. Republicans said the spending plan does not address structural issues and instead moves money around.”It’s a $70 billion budget, which is $3 billion more than last year. Our revenues continue to not keep up with our spending. So, basically, our spending still outpaces our revenues. And, at the end of the day, we’re not addressing our structural issues. This budget really is just about moving a lot of funds around,” said Western Maryland Sen. Paul Corderman, R-District 2, the ranking Republican member of the Senate Budget and Taxation Committee.11 TV Hill video below: Republican perspective, priorities for Session 2026Senate Minority Leader Steve Hershey, R-District 36, released a statement, saying:”While the governor’s budget avoids new taxes and fees at first glance, there is a lot beneath the surface that gives us pause. The proposal shifts additional responsibilities to counties and municipalities, putting local governments in a position where higher local taxes become more likely. It also relies on moving and raiding funds to support ongoing spending.”Now that the budget is in the hands of the General Assembly, we’ll see how it ultimately takes shape — but what’s missing is a firm commitment from the governor to stand against any tax or fee increases that could be added during the legislative process, especially given what Marylanders experienced last year.”Senate Minority Whip Justin Ready, R-District 5, released a statement, saying:”Marylanders are still waiting for tax relief, and this budget doesn’t deliver. After passing the largest tax increase in state history, working families and small businesses were hoping for a different approach. Instead, they’re being asked to absorb higher costs with no relief in sight.”House Minority Leader Jason Buckel, R-District 1B, released a statement, saying:”The governor’s budget proposal is largely based on accounting tricks and adjusting anticipated spending increases rather than meaningful changes in budgetary policy that stop the tax and spend spiral that leads us to yearly multibillion-dollar deficits.”We are spending more than last year, increasing Medicaid and Blueprint education spending, and neither cutting the size of state government nor reducing its costs. Luckily, the stock market and the national economic growth enabled our revenue to continue to grow, creating the illusion that Maryland is on a steady fiscal course, which is not true at all.”House Minority Whip Jesse Pippy, R-District 4, released a statement, saying:”The governor is still dumping money into pet projects as if taxpayers have money to burn. The Blueprint is already one of the most expensive parts of our budget, and he is spending even more than required. He continues to pour money into the struggling (Washington Metropolitan Area Transit Authority) system and into the failed green energy schemes that are burdening our citizens not only with higher taxes but also with exorbitant energy bills. Marylanders cannot take much more.”Eastern Shore Del. Jeff Ghrist, R-District 36, the ranking Republican member of the House Appropriations Committee, released a statement, saying:”I have seen nothing in the governor’s budget proposal that addresses the long-term issues that have created these giant budget holes. We are just setting Marylanders up for another round of tax increases after the election. It is disappointing.”Reaction from BaltimoreIn a statement released by the governor’s office, Baltimore leaders pointed to the budget plan’s impact on public safety.Baltimore Mayor Brandon Scott said in the statement:”Despite another difficult budget year, Gov. Moore and his team are working to ensure that the state continues to make strategic investments in Baltimore’s renaissance. From maintaining Highway User Revenue to investing in our proven Group Violence Reduction Strategy and community violence intervention ecosystem, Gov. Moore continues to be a partner who understands that the success of Baltimore is critical to the success of Maryland. While more work remains over the course of this legislative session, this proposed budget lays a strong foundation to tackle this year’s budget deficit, while supporting the needs of residents across Baltimore and the entire state.”Baltimore Police Commissioner Richard Worley said in the statement:”Over the last 40-plus months in Baltimore City, there have been historic declines in violent crime, and significant drops in most every other non-violent category. There are a lot of actors and reasons behind this tremendous progress. One that is not often talked about or mentioned has been the continued and increased funding from the state. Specifically, through the state aid for Police Protection grant, the Baltimore Police Department has been able to modernize the agency and maximize our resources, allowing greater focus of our officers to front line police work. We thank the governor as well as the General Assembly for their commitment to this program, to our department, and to the public safety of the city and the entire state.”Downtown Partnership of Baltimore President Shelonda Stokes said in the statement:”Gov. Moore’s leadership and continued investment in Downtown Baltimore reflect a clear commitment to strengthening public safety and community well-being through collaboration and innovation. This allocation of $3 million toward our planned Strategic Operations Center further invests in our ability to enhance quality of life throughout downtown with our founding partner, the University of Maryland, alongside our city, public safety, and community partners, by deploying technology and coordinating the right response for the right situation. We are grateful for the governor’s partnership in this key initiative as, together, we work to define downtown’s future.”MDOT releases $22.1B final six-year capital budgetAlso Wednesday, the Maryland Department of Transportation released its $22.1 billion Final Consolidated Transportation Program for fiscal years 2026-2031 that is based, in part, on $400 million approved during Session 2025 by the General Assembly in additional transportation revenues, which MDOT said it’s using as a match to unlock more federal funding.According to MDOT, the Final CTP includes funding for the following priorities, among others.Construction to improve safety on U.S. Route 15 and Interstate 81 in Western MarylandModernize Baltimore’s Light Rail systemRehabilitate the Port of Baltimore’s Dundalk Marine Terminal berths 11-13Complete Street project efforts for Maryland Route 97 in Montgomery County and Maryland Route 5 in St. Mary’s CountyWork to improve safety and reduce congestion on Interstate 97 in Anne Arundel CountyThe Final CTP also includes $10 million in fiscal years 2026 and 2027 to support feasibility studies to advance local and state priority highway, pedestrian, bicycle and transit projects through initial planning, MDOT said.Chesapeake Bay Foundation budget statementAllison Colden, Maryland executive director of the Chesapeake Bay Foundation, released a statement, saying:”Investing in the environment is an investment in Maryland’s future. With continued uncertainty at the federal level, Maryland’s leadership is more important than ever to sustain our progress for Marylanders and the Chesapeake Bay.”Maryland’s investments in healthier, more resilient waterways are not just good for the bay, but also support jobs, improve human health and provide numerous other benefits.”We appreciate Gov. Moore’s leadership and the many difficult decisions made by him and his team to balance their preliminary budget plan. We urge the governor and General Assembly leaders to prioritize the bay as they finalize the Maryland budget.”