Each year, G.S. Proctor & Associates compiles for our clients a detailed report analyzing key developments in the legislative process affecting the issues and industries that matter most in the state of Maryland.
Here is a breakdown of this year’s key developments related to the state budget. Select a link below to see additional areas of interest or download a PDF of the full report here.
By law, the Maryland General Assembly is required to pass a balanced budget before the end of every Legislative Session. The Legislature met that requirement by passing a $52.4 billion dollar spending plan for Fiscal Year 2022.
The budget will be used for increased financial assistance to Marylanders most in need, expand education funding to reopen schools, provide tax breaks for small businesses, and attempt to invest in broadband access for state residents without it. The budget will also bolster the State’s unemployment insurance fund.
Some of the most significant increases in the budget are:
- $300 million will be invested in expanding broadband
- $100 million for workforce training
- $600 million will go towards reopening schools
- $572 million for COVID-19 operations
- $585 million in tax relief for businesses and low-income Marylanders
- Replenishes the Unemployment Insurance Fund with $1.1 billion
- $800 million for Maryland Emergency Economic Relief Programs – tax relief and economic relief
Much like the operating budget, due to the improving economic outlook for the State and the nearly $4 billion of federal funds, the Governor and the Legislature were able to enact a $4.274 billion Capital Budget for Fiscal Year 2022. This total includes $2.274 billion for transportation projects, $2 billion for other capital projects throughout the State, and $833 million for school construction projects. Check out the full Capital Budget report with additional details.