Ferguson considers all options to address budget deficit

Maryland is facing a projected budget deficit of $2.7 billion for fiscal 2026, which is expected to grow to almost $6 billion over the next five years. Senate President Bill Ferguson has stated that “everything is on the table” in terms of combating this massive deficit, including the possibility of tax increases.

Ferguson emphasized the need to make cuts and adjustments to existing programs that are not achieving outcomes, while also considering revenue policy changes to keep the state competitive with the surrounding region. He highlighted the importance of being targeted and purposeful in their approach to protect Marylanders and set the stage for long-term success and prosperity.

The state’s revenue picture is hindered by stagnant revenues, and concerns have been raised about the potential impact of President-elect Donald Trump’s promises to reduce the size of the federal workforce and move some agencies on Maryland’s state and local government revenues.

Ferguson and Governor Wes Moore have both expressed that a “high bar” would need to be met for them to support tax increases. Ferguson has previously favored more targeted options earmarked for specific needs over broad-based tax increases.

The Senate leader did not provide specific insight into the options being considered to address the budget gap, but emphasized the importance of protecting priorities such as public education, healthcare, safe communities, economic growth, and the environment. Ferguson expressed confidence that Maryland will take the necessary steps to navigate this challenging budget season in collaboration with the House and the governor.

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