That could affect the spending and budget decision of local governments like Frederick County.
Frederick County Executive Jessica Fitzwater
Frederick, Md (KM) The State of Maryland is facing some funding shortfalls in fiscal year 2027, according to Frederick County Executive Jessica Fitzwater.
Speaking on Monday, December 1st during the first hearing on the fiscal year 2027 budget, Fitzwater noted that the state has lost more than 15,000 federal jobs which will result in lower personal income tax collections and withholdings; and that will affect not only the state’s budget, but spending plans of local jurisdictions like Frederick County.
“The recent Department of Legislative Services Spending Affordability Report that they do each fall reported that the state is facing a nearly $1.5 billion shortfall in fiscal 2027. That’s a ‘b,” she says. “This is five times larger that what is projected in the spring.”
Fitzwater also says right now, the state has not developed a plan on how to deal with this funding shortfall. “But we do know that often the counties are being looked at for filling in the gaps, and that is something we take very seriously, but also really affects our budgeting and spending decisions, “: she says.
And then there’s the Blueprint for Maryland’s Future, the massive educational reform plan. “The Blueprint for Maryland’s Future spending will exceed $3.7 billion by 2031. But it’s dedicated funding will run out by fiscal year 2028,:” says Fitzwater.
Fitzwater says the county will not always have access to federal funding in the future. “We also know that there have been significant changes in federal funding. The County has already lost several grants that we have received in several areas. And we’re especially keeping our eye on things in emergency management and others where regionally there is funding, and the county has received funding in the past,” she says.
There will be a number of town halls and budget hearings over the next few months before the County Executive releases a proposed budget document for fiscal year 2027. That’s expected to take place in April, 2026.
By Kevin McManus