Annapolis, MD, January 22, 2026
Governor Wes Moore has introduced a comprehensive $70.8 billion budget proposal aimed at eliminating a projected $1.4 billion deficit for Maryland. The proposal focuses on spending cuts, fund transfers, and tax relief measures without increasing taxes or fees. Key areas of investment include public safety, education, and renewable energy initiatives. The Maryland General Assembly will review the proposal, which seeks to balance fiscal responsibility with essential state services.
Governor Wes Moore Proposes $70.8 Billion Budget to Address $1.4 Billion Deficit
ANNAPOLIS, MD — Governor Wes Moore has unveiled a $70.8 billion budget proposal for fiscal year 2027, aiming to eliminate a projected $1.4 billion deficit without raising taxes or fees. The plan focuses on targeted spending cuts, fund transfers, and reducing cost-sharing with local governments to balance the state’s finances.
Key Components of the Budget Proposal
- Spending Reductions: The budget includes nearly $1.8 billion in cuts and fund transfers, such as $322 million from the capital budget and $292 million from the Strategic Energy Investment Fund, to address the deficit.
- Tax Relief: To enhance economic competitiveness, the proposal offers $100 million in tax cuts for businesses, aiming to stimulate growth and job creation.
- Public Safety Investment: A record $124 million is allocated to support law enforcement through the State Aid for Police Protection Program, reflecting the administration’s commitment to public safety.
- Education Funding: The budget proposes $228 million in additional K-12 aid and $480.5 million for school construction, including $80 million for fast-growing counties facing overcrowded classrooms.
- Energy Initiatives: Historic funding of $306 million is designated for renewable and clean energy programs, supporting lower utility bills and clean energy infrastructure.
Financial Strategy and Fund Transfers
The proposed budget employs strategic fund transfers to balance the deficit:
- Rainy Day Fund: $145 million is drawn from the state’s Rainy Day Fund, maintaining an 8% balance as recommended by the Department of Legislative Services.
- Capital Budget: $322 million is reallocated from the capital budget to the general fund to support current fiscal needs.
- Strategic Energy Investment Fund: $292 million is transferred from this fund, designated for clean energy projects, to bolster the general fund.
- Fiscal Responsibility Fund: $187 million is moved from this fund to assist in closing the budget gap.
Context and Background
The budget proposal responds to a $1.4 billion deficit projected for fiscal year 2027. Governor Moore attributes the shortfall to federal policy decisions, including the loss of approximately 25,000 federal jobs in Maryland over the past year. The administration emphasizes a data-driven approach to spending, focusing on essential services and strategic investments to ensure fiscal responsibility while maintaining public services.
Governor Moore stated, “This budget shows that we can spend wisely while still protecting our values.” The proposal reflects the administration’s commitment to balancing fiscal discipline with investments in key areas such as education, public safety, and energy infrastructure.
Next Steps
The Maryland General Assembly will review the proposed budget during the 2026 legislative session, which began last week. Lawmakers are expected to collaborate to finalize the budget, ensuring it addresses the state’s fiscal challenges while meeting the needs of Maryland residents.
Frequently Asked Questions (FAQ)
What is the total amount of Governor Moore’s proposed budget for fiscal year 2027?
The proposed budget totals $70.8 billion.
How does the budget plan to address the projected $1.4 billion deficit?
The budget addresses the deficit through nearly $1.8 billion in spending cuts and fund transfers, including reallocations from the capital budget and the Strategic Energy Investment Fund.
Does the budget include any tax increases?
No, the budget does not include any tax or fee increases. Instead, it offers $100 million in tax cuts for businesses to enhance economic competitiveness.
What are the key areas of investment in the proposed budget?
The budget prioritizes investments in public safety, education, and energy initiatives, including a record $124 million for law enforcement and $306 million for renewable energy programs.
How does the budget plan to utilize the state’s Rainy Day Fund?
The budget proposes drawing $145 million from the Rainy Day Fund, maintaining an 8% balance as recommended by the Department of Legislative Services.
Key Features of the Proposed Budget
| Feature | Details |
|---|---|
| Total Budget | $70.8 billion |
| Deficit Addressed | $1.4 billion |
| Tax Relief | $100 million in business tax cuts |
| Public Safety Investment | $124 million for law enforcement |
| Education Funding | $228 million additional K-12 aid; $480.5 million for school construction |
| Energy Initiatives | $306 million for renewable and clean energy programs |
| Fund Transfers | $145 million from Rainy Day Fund; $322 million from capital budget; $292 million from Strategic Energy Investment Fund; $187 million from Fiscal Responsibility Fund |
Deeper Dive: News & Info About This Topic
HERE Resources
Police Search for Suspects After Rosedale Burglary Attempt
Governor Moore Unveils $73.7 Million for Economic Growth in Maryland
Karson Kamenetz Enters Baltimore County Council Race
Debate on Immigration Enforcement and Budget Priorities in Maryland
School Break Fun Day Planned for Annapolis Children
Baltimore County Superintendent Proposes $2.49 Billion Budget Amid Fiscal Challenges
Baltimore County Schools Propose $2.49 Billion Operating Budget for 2027
Baltimore County to Conduct Public Hearing on Operating Budget
Governor Moore Proposes Record Funding for Law Enforcement in Maryland
Baltimore MD Startups Struggle Due to Federal Funding Pause
Author: STAFF HERE BALTIMORE WRITER
The BALTIMORE STAFF WRITER represents the experienced team at HEREBaltimore.com, your go-to source for actionable local news and information in Baltimore, Baltimore County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Baltimore Book Festival, Preakness Stakes, and Artscape. Our coverage extends to key organizations like the Baltimore Chamber of Commerce and Visit Baltimore, plus leading businesses in shipping and healthcare that power the local economy such as the Port of Baltimore and Johns Hopkins Medicine. As part of the broader HERE network, we provide comprehensive, credible insights into Maryland's dynamic landscape.
