As the Maryland General Assembly concludes its session Monday, Gov. Wes Moore has signed a $70.8 billion operating budget for fiscal year 2027 — one that closes a projected spending shortfall without raising taxes or fees.
“This budget protects our people,” Moore said at the budget signing Wednesday. “This budget makes life just a little bit more affordable for our people. This budget strengthens Maryland’s economic competitiveness, and it all starts with protecting our people.”
The state closed a projected $1.5 billion deficit, maintained an 8% Rainy Day Fund and a budget surplus of $250 million.
To close the gap, the budget did a combination of cuts, funding transfers and exchanging bonds for cash.
For example, the budget cuts $126 million from the Developmental Disabilities Administration. It moved $292 million from the Strategic Energy Investment Fund (SEIF) to the general fund and shifted $39.3 million retirement costs for teachers, librarians and community college staff to local governments.
“It meant making very challenging and hard decisions for many Maryland families, especially with programs that we know are protecting some of the most vulnerable,” said Senate President Bill Ferguson at the budget signing .
The structural deficit for next year’s budget is projected to be $2.3 billion due to employee compensation, teacher retirement costs and human services expenses, according to the 2026 fiscal briefing from the Maryland Department of Legislative Services.
Above, Capital News Service visualizes where Marylanders tax money is being allocated.
The new budget starts on July 1.