Maryland Budget Woes Deepen

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The State of Maryland’s estimated general fund revenues have been reduced by another $123 million for the current year and $148 million for the next fiscal year. The reductions by the Maryland Board of Revenue Estimates come on top of earlier revenue write downs in September, leaving Governor-elect Larry Hogan a projected gap of $423 million for the current year ending June 30 and $748 million for next fiscal year for the State’s $16 billion general fund budget.

The reduced revenue estimates were mostly attributable to lower projected individual income tax collections. Although State agencies have been cautioned to reduce expenditures, Governor Martin O’Malley has not indicated whether he plans additional budget balancing actions before he leaves office next month. See the Board’s estimates.