Enacted Budget – Fiscal Year 2025
On May 16 Maryland Governor Wes Moore approved the state’s fiscal 2025 budget, which provides $63.1 billion in all funds appropriations, a decrease of $1.1 billion, or 1.8 percent, from the fiscal 2024 working appropriation. The budget includes $25.9 billion in general fund appropriations, a decrease of $1.5 billion, or 5.3 percent, compared to the fiscal 2024 working appropriation. The March 2024 revenue forecast estimates $24.9 billion in general fund revenues for fiscal 2025, an increase of 1.8 percent over fiscal 2024. Final legislative action on the budget leaves an estimated general fund cash balance of $109.7 million at the end of fiscal 2025 and a Rainy Day Fund balance of $2.3 billion. The budget provides most state employees with a 3.0 percent cost-of-living adjustment while law enforcement union members are provided with a 5.0 percent adjustment. The budget also supports an additional increment for employees continuously employed since June 30, 2019, along with a shift differential for certain employees.
Priorities funded in the budget include child care scholarships, operating support for the Washington Metropolitan Area Transit Authority (WMATA), behavioral health and developmental disability administration provider reimbursements, aid to local governments, the statewide trauma care system, and transportation. In fiscal 2025, state aid for education grows by 5.1 percent, providing local school systems with $9.1 billion in funding. The budget is supported by revenue enhancements through the associated Budget Reconciliation and Financing Act, including an increase to vehicle registration fees on a phased-in schedule over three years; a $0.75 surcharge on ride share trips; an annual surcharge for electric vehicles; increased fines for speeding in work zones; and increasing the sales and use tax rate for electronic smoking devices from 12 percent to 20 percent.