Last Friday, Governor Wes Moore released his first annual state budget plan. The plan outlines his priorities and proposed expenditures for Fiscal Year 2024 (FY 2024) which begins July 1, 2023, and ends June 30, 2024. With its formal submission to the Maryland General Assembly, Senate Bill 181/House Bill 200 - Budget Bill, marks the start of the legislative budget deliberation process in the Maryland General Assembly especially within the bills referred committees; the Senate Budget & Taxation Committee and the House Appropriations Committee.

This year’s budget process is unlike any other due to the constitutional amendment approved by Maryland voters in 2020 that significantly changed the Maryland budget process and goes into effect this legislative session. This change allows state legislators for the first time in Maryland’s history the opportunity to increase, decrease, and/or add items to the Governor’s $63.1 BILLION budget. Regardless of the newly-implemented constitutional amendment, the budget must still stay balanced and not exceed the total amount proposed by the Governor.

BUDGET HIGHLIGHTS

Governor Moore's $63.1 BILLION budget plan incorporates a $2.3 BILLION projected budget surplus in the General Fund from FY 2023. The Governor’s plan allocates a large portion of the FY 2023 anticipated surplus funds to state education reform ($500 MILLION) and state transportation projects ($500 MILLION). Furthermore, the Governor’s plan maintains 10% of the General Fund for the Rainy Day Fund ($2.5 BILLION) as well as an additional $820 MILLION General Fund Balance to hedge against economic uncertainty.  

Moreover, in addition to indexing Maryland’s minimum wage to inflation, the Governor’s plan accelerates the minimum wage rate increase to $15/hour by October 2023. Indexing Maryland’s minimum wage to inflation is similar to the current way the Maryland gas tax is allowed to automatically increase each year without legislative approval. Needless to say, this is of enormous concern to the Maryland business community since under current law the state’s minimum wage will increase to $15/hour on January 1, 2025, for employers with 15 or more employees and on July 1, 2026, for those employers with 14 or fewer employees. 

The Governor’s plan also cuts the Broadening Options & Opportunities for Students Today (BOOST) - a scholarship program for children from low-income families to attend nonpublic schools - from $10 MILLION to $7 MILLION thereby reducing Maryland’s families' educational opportunities outside the public school system.

HIGHLIGHTS FROM THE MARYLAND529 PREPAID COLLEGE TRUST PLAN

This week, the Senate Education, Energy & the Environment Committee (EEE) and the Budget and Taxation Committee (B&T) held a joint briefing on the status of the embattled Maryland529 Prepaid College Trust Plan. CLICK HERE to view the briefing.

As a result of the briefing and with still so many questions left unanswered, Maryland529 Plan designated a legislative liaison in an attempt to improve constituent communication for those families that reached out to their state legislators.

MARYLAND GOVERNOR'S VETERAN ROUNDTABLE:

On Thursday, I was honored to be invited by the Governor’s Office to participate in a veterans roundtable discussion that not only included Governor Moore, the Acting Secretary of the Department of Veterans Affairs Tony Woods, and several other legislative colleagues but also over 100 veterans. The roundtable provided a tremendous opportunity to hear from our Maryland veterans that have sacrificed so much to protect our country on those issues of importance to them.  

During the Roundtable, Governor Moore announced his veterans’ legislative agenda which includes:

• an expansion of the military retirement tax exemption to $25,000 in Tax Year 2023 and $40,000 in Tax Year 2024 for all recipients and each year thereafter, as well as, eliminating the current age distinction and expanding the tax exemption for any veteran or surviving spouse recipient of this retirement income; 

• free medical and dental care for members of the Maryland National Guard and their families who are eligible for Tri-Care Reserve Select.

LEGISLATIVE POLAR BEAR PLUNGE

It's PLUNGE TIME!

On Thursday, February 2nd, I along with many of my fellow legislative colleagues, will once again take the plunge for the 3rd year in a row during the Maryland Special Olympics Legislative Plunge. If you are able, please consider donating to such a great cause - Special Olympics Maryland.

CLICK HERE to donate.

*All donations will go directly to Special Olympics Maryland*

SAVE THE DATE: District 7 Night in Annapolis

Join your District 7 Team for a Night in Annapolis. After enjoying a FREE meal, stop by Session and see the Senate and House of Delegates in action!

RSVP requested: [email protected]/410-841-3706