Maryland Budget Woes Still On The Minds Of Legislators In Annapolis

The state is facing a deficit of more than $3 billion.Delegate Jesse PippyAnnapolis, Md (KM) Maryland’s budget situation has been on the minds of legislators in Annapolis throughout the 2025 General Assembly session.   Frederick County Delegate Jesse Pippy says the state was already facing a $3 billion deficit.  But he  says the  Board of Revenue Estimates says its projections show the deficit has increased since the session began in January.“The revenue estimates are projected to be about another $280 million less than expected,” he said. “And, unfortunately, what that means is the majority party is probably looking  to raise another nearly $300 million in taxes.”The Democrats are the majority party in the Maryland Legislature. Pippy is a Republican and the Minority Whip.Pippy says some legislators are proposing a 2.5 percent tax on business to business services., and he’s opposed. “There was a massive tax bill introduced by the House Majority Leader. This bill would add a sales tax between businesses, between business to business, which if you think about it, is extremely detrimental to our private economy,” he said.He says he favors spending cuts to reduce the deficit, but they don’t have to be too severe. . “It’s a big budget, $66 billion. The budget deficit is $3 billion. Even if you cut 10 percent of the operating budget, which is $30 billion, that would cover the hole,” says Pippy.”Our caucus discovered that state salaries had been raised almost 36 percent over the last several years,”: Pippy noted. “I definitely think that maybe in lieu of firing state employees or laying them off, we certainly can stop the automatic increases, or the cost of living increases for the time being.”Pippy also pointed out that the state’s budget is overly reliance on the federal government which is now cutting spending. He says that puts Maryland is a “bad spot.” “The states that all surround us all have surpluses,” he says. “Regardless of what happens at the federal government level, the fact that they have extra money–they have surpluses—they can handle any reductions in force. They can handle any reductions in money coming from the feds.”Legislators are expected to vote on a budget next week.By Kevin McManus