Home > Press > Press Releases > Maryland’s Budget Surplus Presents Historic Opportunity to Reduce Hardship

Maryland’s Budget Surplus Presents Historic Opportunity to Reduce Hardship

Maryland ended its 2020–2021 budget year with a nearly $2.5 billion surplus, several times larger than any closing balance in recent history.

“This represents a historic opportunity to assist Marylanders who are still facing significant hardship in the ongoing fallout from the COVID-19 pandemic,” Maryland Center on Economic Policy President and CEO Benjamin Orr said.

“The American Rescue Plan’s strategy of supporting workers and families paid off, supporting strong consumer demand and ensuring the state had the resources to respond to the pandemic,” Orr said. “But there are still thousands of Marylanders who can’t pay their rent or afford enough to eat. These funds should be used as soon as possible to address immediate needs and ensure that the state’s economic recovery does not come to a screeching halt.”

Some possible uses of funding to support Marylanders facing hardship include:

  • Restoring unemployment benefits for workers who were cut out by the expiration of federal unemployment benefits on Labor Day
  • Assisting low-income renters who face eviction following the end of the federal eviction moratorium, including funding the state’s newly created access to counsel program
  • Raising wages for low-wage workers who provide important public services such as home health care.
Additional highlights of the budget closeout report:

  • General fund revenues for fiscal year 2021 totaled $20.8 billion, an 11.8% increase from fiscal year 2020 and $1.7 billion above state analysts’ March revenue estimate.
  • Nearly every major revenue source performed better than expected, with personal income tax revenue exceeding estimates by 8%, corporate income tax by 28%, sales tax by 9%, and estate and inheritance taxes by 35%.
  • State analysts attribute this strong performance in large part to federal actions to support the economy, including the American Rescue Plan passed this spring. The law’s strategy of supporting workers and families paid off, supporting strong consumer demand.
###
Media contact: Kali Schumitz, 410-412-9105 ext. 701 (forwards to mobile)