Maryland

Maryland

Fiscal Year Begins
July 1

Governor Signs Budget 
Late April/May

Budget Links

FY2027 (enacted)
FY2027 (proposed)
FY2026 (enacted)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)

Enacted Budget – Fiscal Year 2027

On April 8, Maryland Governor Wes Moore approved the state’s fiscal 2027 budget and separate legislation, the Budget Reconciliation and Financing Act of 2026 (SB 284). The fiscal 2027 budget provides $71.04 billion in all funds appropriations, an increase of $863.8 million, or 1.2 percent, from the fiscal 2026 budget. General fund appropriations total $27.8 billion in fiscal 2027, a decrease of $91.05 million, or 0.3 percent, compared to fiscal 2026. The March 2026 revenue forecast estimates general fund revenues of $27.03 billion in fiscal 2027, a decrease of 0.3 percent from the revised fiscal 2026 estimate. Final legislative action on the budget leaves an estimated general fund cash balance of $201 million at the end of fiscal 2027, in addition to $2.2 billion in the Rainy Day Fund.  

The budget includes no new taxes or fees and has general fund expenditures smaller than the fiscal 2026 general fund budget. Priorities included in the enacted budget include funding for renewable and clean energy programs and funding to support lower utility bills while also investing in research on energy resiliency and providing utility fee relief. The budget continues record state funding to support the Child Care Scholarship program and includes funds to invest in community-driven initiatives to tackle child poverty. Through the state’s housing agency, the budget funds more than 250 projects through six state revitalization programs. Public safety investments include record funding for law enforcement through the State Aid for Police Protection Program, expansion of community-based programs to serve justice-involved youth, and support for correctional facilities improvements. The budget increases funding for K-12 education and invests in evidence-based literacy and math coaches, work to reduce the state’s teacher vacancy rate, and support of Community Schools, which provide wraparound student and family support services. Other investments include funds to diversify the state’s economy, make Maryland the capital of quantum, and support a one percent rate increase for nursing homes.

Enacted Budget Information
Fiscal Year 2027 Enacted Budget 

Legislative Summary

90 Day Report

Governor's Press Release

Revenue Estimate

Proposed Budget - Fiscal Year 2027

On January 21, Maryland Governor Wes Moore released a $70.8 billion all funds budget for fiscal 2027, an increase of 0.8 percent compared to fiscal 2026. General fund spending totals $27.7 billion, a decrease of 0.6 percent, from fiscal 2026. Estimated general fund revenues for fiscal 2027 are $27.1 billion, an increase of 1.4 percent over the fiscal 2026 estimate. The proposed budget would leave an unappropriated general fund balance of $108.0 million and closes fiscal 2027 with a rainy day fund balance of $2.2 billion, or 8.0 percent of general fund revenues.

Proposed Budget Highlights 

The proposed budget reflects the administration’s core priorities: to protect people; to lower costs for Marylanders; and to increase the state’s economic competitiveness. The budget makes nearly $900 million in targeted cuts and other cost-saving measures, includes no new taxes or fees, and eliminates the projected $1.5 billion cash shortfall. Responding to changes in federal policy and resulting economic impacts, the budget prioritizes funding for programs that align with measurable outcomes. 

Tax Provisions

• Weighing conformity to federal tax policy changes in the One Big Beautiful Bill Act (OBBBA):
  
  • the administration will fully decouple from the new depreciation allowance for production property; 
  • the state will modify a tax benefit for eligible manufacturing companies tied to capital investments (bonus depreciation) by replacing a federal calculation with a state-specific rule;
  • the administration chose to conform with provisions that provide enhanced deductions for research and development expenditures, certain business interest payments, and capital investments made by manufacturing small businesses.

Public Safety

• Increases funding for the State Aid for Police Protection program.
• Continues support for a key gun violence prevention program, the Thrive Academy, which provides specialized programming for youth at heightened risk for involvement in gun violence.
• Supports several initiatives at the Department of Juvenile Services including the Safer Stronger Together initiative, facility operations and services to youth under residential supervision, and community services to youth under community supervision.
• Utilizes state funds to maintain operational continuity at the Department of Emergency Management by backfilling funding for positions impacted by federal funding reductions. 

Housing Affordability

• Launches a new Permanent Supportive Housing initiative providing project-based and tenant-based rental assistance to residents facing chronic homelessness.
• Continues funding for the Statewide Rental Assistance Voucher Program.
• Directs funds in the capital budget for significant investments for housing and community revitalization programs including developing affordable rental housing, demolishing blighted properties and stabilizing vacant buildings, supporting Homeownership Programs, and revitalizing communities. 

Economic Competitiveness 

• Includes the DECADE (Delivering Economic Competitiveness and Advancing Development Efforts) Act in the governor’s legislative package, a continued effort to overhaul the state’s economic development strategy and modernize programs with a focus on high-growth sectors.
• Continues investments in specific projects focused on Deep Tech, quantum technology companies and stem cell research institutions.
• Sustains funding for key items in the economic growth agenda including the state’s Economic Development Opportunities Fund, Child Care Capital Support Revolving Loan Fund, Certified Sites Program, and CyberMaryland.
• Funds a new initiative, MD TRAIN, to help small and mid-sized businesses upskill their workers for the AI era while also allocating first-time strategic funding for a program to expand health care training and job placement for those in underserved communities. 

Education

• Provides record funding for K-12 education, directing investments in the state’s public schools in the fifth year of funding the Blueprint for Maryland’s future. The additional funds reflect an increase to per pupil funding of 5.0 percent.
• Directs funds for the first year of the Academic Excellence Program to support literacy and math coaches in public schools. 
• Allocates additional funds for the Consortium on Coordinated Community Supports, which is responsible for expanding access to comprehensive behavioral health services for students in pre-K through grade 12.
• Provides record funding to the funding formula for community colleges. 

Health and Human Services

• Includes general funds to implement new work requirements and changes to eligibility for recipients of Medicaid and the Supplemental Nutrition Assistance Program (SNAP).
• Allocates general funds to comply with new federal administrative cost share requirements for SNAP. 
• Provides a record investment in community-driven investments to eliminate child poverty.
• Sustains state funding to support the Child Care Scholarship program to help families enroll their young children in high-quality childcare. 
• Allocates funding for the state’s Medicaid program, which assumes more than 1.4 million Marylanders will have access to health care. 
• Provides increased funding for mental health and substance user disorder programs.
• Continues the young adult subsidy program through the Maryland Health Benefit Exchange. 

Other Priorities

• Includes a 1.5 percent cost-of-living adjustment for most state employees, an increment for some employees, annual salary reviews for hard to recruit classifications, adjustments to certain pay scales, and funds to support the increased cost of employee health insurance and retirement benefits. 
• Provides historic funding for renewable and clean energy programs.
• Directs funds to the Cover Crop program to support farmers who reduce agricultural run-off into the Chesapeake Bay. 
• Increases funding to expand and enhance Maryland Corps and Service Year Option, part of the administration’s commitment to creating a state of service. 
• Provides a grant to the Veterans Trust Fund to offer additional support to veterans who were affected by the federal calendar year 2025 government shutdown. 

Proposed Budget Information
Fiscal Year 2027 Proposed Budget Volume I

Budget Volume II

Budget Highlights

Governor’s Press Release