Drastic cuts to core services on table as Maryland lawmakers seek to plug $3B budget hole

Proposals include: 11,300 people losing Medicaid coverage; 1,560 inmates could be released from prison

Proposals include: 11,300 people losing Medicaid coverage; 1,560 inmates could be released from prison

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DEVASTATING CUTS TARGETING CORE SERVICES ARE NOW ON THE TABLE TO BALANCE THE STATE BUDGET. AND THAT’S NOT ALL LAWMAKERS ARE STILL CONSIDERING TAX AND FEE INCREASES. 11 NEWS HAS LEARNED MAJOR CUTS ARE UNDER CONSIDERATION AS LAWMAKERS SCRAMBLE TO MAKE UP FOR A $3.3 BILLION HOLE IN THE BUDGET BOOK. HOUSE AND SENATE LEADERS ARE WORKING WITH THE GOVERNOR TO COME UP WITH ANOTHER BILLION DOLLARS IN SAVINGS. WE ARE FACING A HISTORIC BUDGET CHALLENGE THAT REQUIRES FISCAL DISCIPLINE, THAT REQUIRES CLEAR EYED LEADERSHIP, AND THAT REQUIRES REAL BELT TIGHTENING, THAT BELT TIGHTENING IMPACTS THE VERY CORE OF SOCIAL SERVICES, AND WE HAVE TO PROVIDE THE SAFETY NET FOR MARYLANDERS IN THIS TIME OF GREAT UNCERTAINTY. AND THAT IS GOING TO COME AT A COST. HERE ARE SOME OF THE TEN REAL EXAMPLES OF WHAT’S BEING CONSIDERED. IF CUTS ARE THE ONLY APPROACH. 11,300 PEOPLE COULD LOSE MEDICAID COVERAGE. THIS INCLUDES ALL PREGNANT WOMEN WHO ARE WITHIN 264% OF THE FEDERAL POVERTY LEVEL, 36,000 PEOPLE WOULD BE KICKED OFF THE FOOD STAMP ROLLS. 2550 CHILDREN WOULD LOSE FOSTER CARE PLACEMENTS. 1560 INMATES WILL BE RELEASED FROM PRISON, AND 36,000 UNEMPLOYMENT INSURANCE CLAIMS WOULD NOT BE HONORED. ALL OF THOSE CUTS CERTAINLY SCARE ME, AND THEY SCARE ME BECAUSE THEY’RE VERY REAL. AND AND BEING CONTEMPLATED. SO LAWMAKERS ARE LOOKING AT A MIX OF TAX INCREASES AND CUTS STILL ON THE TABLE. THE 2.5% TAX ON BUSINESS TO BUSINESS SERVICES. OTHER TAX INCREASES COULD AFFECT HIGH EARNERS AND THE CORPORATE WORLD. ONLINE GAMING, CANNABIS SALES, VEHICLES, FIREARMS, EVEN SUGARY DRINKS AND DELIVERY FEES. THE STATE’S CAPITAL BUDGET APPEARS TO BE THE ONLY BRIGHT SPOT, LEGISLATORS SAY THE SPENDING PLAN FOR STATE INFRASTRUCTURE, SCHOOLS AND PARKS IS A BIPARTISAN EFFORT. $2.8 BILLION OF DIRECT INVESTMENTS THAT WILL CREATE MORE THAN 14,000 DIRECT AND INDIRECT JOBS THAT COULD BE SEEN AND FELT THROUGHOUT THE STATE OF MARYLAND. STATE HOUSE LEADERS ALSO PLEDGE THAT THE BUDGET WILL INCLUDE SOME RELIEF TO B.G.E. RATEPAYERS. REPORTIN

Drastic cuts to core services on table as Maryland lawmakers seek to plug $3B budget hole

Proposals include: 11,300 people losing Medicaid coverage; 1,560 inmates could be released from prison

Drastic cuts to core services are on the table as Maryland state lawmakers scramble to plug a projected $3.3 billion hole in the state budget. House and Senate leaders are working with the governor to come up with another $1 billion in savings."We are facing an historic budget challenge that requires fiscal discipline, that requires clear-eyed leadership, and that requires real belt-tightening," Gov. Wes Moore said Thursday.| GRIM OUTLOOK: Maryland state lawmakers are looking for another $200 million to $500 million to cut from the budget, 11 News reported in February."We have to provide the safety net for Marylanders during this time of great uncertainty, and that is going to come at a cost," said Senate President Bill Ferguson, D-District 46.A list obtained Friday by 11 News reveals 10 points of impact that include Medicaid and food stamps.Among some of the 10 examples of what's under consideration — if cuts are the only approach — could mean 11,300 people could lose Medicaid coverage, including all pregnant women who are within 264% of the federal poverty level.Other proposals include kicking 36,000 people off of food stamps, 2,550 children would lose foster care placements, 1,560 inmates would be released from prison, and 36,000 unemployment insurance claims would not be honored."All those cuts certainly scare me. They scare me because they are very real and are being contemplated," Ferguson said.| 'MEET THE MOMENT': In his third annual State of the State address, Maryland Gov. Wes Moore warned of difficult decisions ahead but, in his words, reassured that the state will "confront this moment of crisis with courage." See what the governor had to say.Amid the cuts, lawmakers continue to consider a mix of tax and fee increases, including a 2.5% tax on business-to-business services.Other tax increases could affect high-earners and the corporate world, online gaming, cannabis sales, vehicles, firearms, sugary drinks and delivery fees. The state's capital budget appears to be the only bright spot. Lawmakers said the spending plan for state infrastructure, schools and parks is a bipartisan effort.Montgomery County Sen. Craig Zucker, D-District 14, pointed to "$2.8 billion in direct investments (that would) create more than 14,000 direct and indirect jobs that can be seen and felt throughout the state of Maryland."State legislative leaders also pledged the budget will include some relief to Baltimore Gas and Electric ratepayers for rising energy costs. | REPUBLICANS CONCERNED: Maryland state Republican legislative leaders are taking issue with some pieces of the governor's 2026 budget proposal, particularly when it comes to tax code changes and 18 instances of new or increased taxes and fees. Here's why.

ANNAPOLIS, Md. —

Drastic cuts to core services are on the table as Maryland state lawmakers scramble to plug a projected $3.3 billion hole in the state budget.

House and Senate leaders are working with the governor to come up with another $1 billion in savings.

"We are facing an historic budget challenge that requires fiscal discipline, that requires clear-eyed leadership, and that requires real belt-tightening," Gov. Wes Moore said Thursday.

| GRIM OUTLOOK: Maryland state lawmakers are looking for another $200 million to $500 million to cut from the budget, 11 News reported in February.

"We have to provide the safety net for Marylanders during this time of great uncertainty, and that is going to come at a cost," said Senate President Bill Ferguson, D-District 46.

A list obtained Friday by 11 News reveals 10 points of impact that include Medicaid and food stamps.

Among some of the 10 examples of what's under consideration — if cuts are the only approach — could mean 11,300 people could lose Medicaid coverage, including all pregnant women who are within 264% of the federal poverty level.

Other proposals include kicking 36,000 people off of food stamps, 2,550 children would lose foster care placements, 1,560 inmates would be released from prison, and 36,000 unemployment insurance claims would not be honored.

"All those cuts certainly scare me. They scare me because they are very real and are being contemplated," Ferguson said.

| 'MEET THE MOMENT': In his third annual State of the State address, Maryland Gov. Wes Moore warned of difficult decisions ahead but, in his words, reassured that the state will "confront this moment of crisis with courage." See what the governor had to say.

Amid the cuts, lawmakers continue to consider a mix of tax and fee increases, including a 2.5% tax on business-to-business services.

Other tax increases could affect high-earners and the corporate world, online gaming, cannabis sales, vehicles, firearms, sugary drinks and delivery fees.

The state's capital budget appears to be the only bright spot. Lawmakers said the spending plan for state infrastructure, schools and parks is a bipartisan effort.

Montgomery County Sen. Craig Zucker, D-District 14, pointed to "$2.8 billion in direct investments (that would) create more than 14,000 direct and indirect jobs that can be seen and felt throughout the state of Maryland."

State legislative leaders also pledged the budget will include some relief to Baltimore Gas and Electric ratepayers for rising energy costs.

| REPUBLICANS CONCERNED: Maryland state Republican legislative leaders are taking issue with some pieces of the governor's 2026 budget proposal, particularly when it comes to tax code changes and 18 instances of new or increased taxes and fees. Here's why.