ANNAPOLIS, Md. (AP) — Maryland lawmakers are scheduled to end their legislative session late Monday in a challenging budget year that was aggravated by uncertainties with the Trump administration’s downsizing of the federal government on a state that relies heavily on federal jobs and contracts.
Gov. Wes Moore, a Democrat, and lawmakers addressed a $3.3 billion deficit by making cuts throughout state government and raising taxes and fees.
“We had very targeted revenue-raisers that were focused on those who have done the best over the last few decades and for user fees that people utilize across the state of Maryland," said Senate President Bill Ferguson, a Baltimore Democrat.
Republicans criticized the tax and fee increases, contending the state has spending problems and noting the deficit existed before Trump regained the White House in January. Sen. Justin Ready, the Senate minority whip, said during debate last week that “no other state in our region has this problem.”
The budget measures raise about $1.6 billion in revenues and include roughly $2 billion in spending reductions. The state would still have about $2.1 billion in its rainy day fund and a fund balance of more than $300 million.
Many of the priorities of leadership in the General Assembly, which is controlled by Democrats, were either settled or nearing passage.
“We have a few open items, but for the most part all of the most important and critical issues that we set out from the beginning of the year are near or through the finish line, from the budget to an energy package, to protecting against an uncertain future that comes from the Trump administration," Ferguson said Friday.
Here is a look at some of the highlights of legislation lawmakers have approved:
Budget changes
Lawmakers closed a big budget deficit with cuts throughout state government and tax increases.
A panel of House and Senate negotiators reconciled differences between the chambers on the legislation Friday night, but it still needs a final vote on Monday.
The budget includes a new 3% tax in information technology services. It also includes two new tax brackets for high-income residents, one for people who make over $500,000 annually and another for those with more than $1 million in annual income.
There also is a new 2% tax on capital gains for people with income over $350,000, as well as tax hikes on recreational cannabis and sports wagering. The total budget is about $67 billion.
Abortion funding
The Maryland Department of Health would have access to $25 million for an abortion grant program to help providers pay costs for the uninsured. The money comes from part of the federal Affordable Care Act that has collected fees from insurers to pay for abortion services for their policyholders.
Health care for young adults
Lawmakers approved a measure to make permanent a program that provides subsidies to help young adults get affordable health insurance.
Sentencing second look
People convicted of a crime between the ages of 18 and 25 who have served 20 years or more of a prison sentence would be able to petition for a reduction in sentence if they have not been sentenced to life without the possibility of parole or are a sex offender. The bill does not apply to offenders convicted of killing first responders.
Criminal records
Many more state residents would be able to expunge criminal records after completing their sentences. The measure also will require the state to automatically shield records from public view for roughly 175,000 people who were pardoned by the governor last year for minor cannabis convictions.
Slavery reparations
A statewide commission would study and recommend potential reparations for slavery and the lingering effects of racial discrimination.
Sex abuse lawsuits
Future liabilities from claims of sexual abuse at state and private institutions would be limited with caps on settlements from $890,000 to $400,000 for cases filed after May 31 for state institutions and from $1.5 million to $700,000 for private institutions.
A measure passed by lawmakers also changes the 2023 Child Victims Act to only allow each claimant to receive one payment instead of being able to collect for each incident of abuse.