Big Questions to Ask About the Governor’s Budget

Tomorrow is the deadline for Gov. Larry Hogan to propose his budget for the next fiscal year, which begins July 1. In the coming weeks, we’ll be breaking down what the budget means for Maryland families. These are some of the big questions we’ll be trying to answer as we dig into the details.

How will he balance the budget? In order to make up an anticipated funding shortfall, the governor had to identify at least $300 million in cuts or new revenues to state programs and services. Where we invest our money is the strongest reflection of our state’s priorities, so we’ll be taking a close look at where Gov. Hogan is cutting back and where he’s investing more. After years of cuts and tight budgets, using budget gimmicks to close even a relatively small gap may not be enough.

Does the budget leave some Marylanders behind?  Choices about where the state invests its money can help or hinder children’s education, economic opportunities for families and communities, and public health and safety. We’ll be examining whether changes in spending affect some groups of Marylanders more than others.

Will he pay for additional tax breaks? The governor has said he wants to cut state taxes in response to the federal tax bill, which could increase state revenues due to interactions between the state and federal tax codes. We’ll be looking at whether the governor goes a step farther and makes additional cuts in state services to pay for new tax breaks.

Are we prepared for cuts in federal investment? To pay for the $1.4 trillion in tax breaks congressional Republicans passed at the end of the year, Congress is widely expected to try to cut investments in health care, food assistance, housing assistance, transportation, scientific research, and much more. If enacted, Maryland could find itself $2 billion or more short of the funding it needs to continue providing services at the state level that Marylanders rely on. Our economy could also take a hit from cuts to federal investment, due to the large number of federal employees, agencies, and contractors that call Maryland home. We’ll be looking at whether Gov. Hogan prepares to address these needs.

Will the budget address understaffed agencies? The General Assembly’s Spending Affordability Committee recommended that the governor take steps to address staffing shortages at state agencies, which are making it harder for employees to provide services.