Maryland faces projected $3 billion budget deficit

The Maryland Association of Counties (MACo) has warned that a projected state budget deficit could impact county budgets by 2027. While the state balanced its current budget in April, officials are now planning for a deficit approaching $3 billion in fiscal 2028.

Key drivers of the shortfall include the rising costs of the 'Blueprint for Maryland’s Future' education reforms, which are expected to require approximately $1.5 billion in cash as existing funding cushions are depleted. Additionally, state revenue growth has slowed to between 1% and 1.5%, significantly lower than previous years. Other contributing factors include projected federal job losses and shifts in federal funding for Medicaid and food assistance costs.