Budget Cycle

Governor Submits Budget
January (3rd Wednesday)

Fiscal Year Begins
July 1 

Governor Signs Budget 
Not applicable*

*Governor is not required to sign budget.

Budget Links

FY2023 (enacted)
FY2023 (proposed)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)
FY2019 (enacted)
FY2018 (enacted)

Proposed Budget - Fiscal Year 2023

On January 19, Maryland Governor Larry Hogan released a $58.2 billion all funds proposed budget for fiscal 2023, a decrease of 5.4 percent compared to fiscal 2022; this is partly attributed to reduced federal fund revenue. General fund spending totals $25.7 billion, an increase of $4.6 billion or 21.9 percent. This increase is largely attributable to a $2.4 billion contribution to the state’s rainy day fund plus an increase of $669.0 million in PAYGO projects. Estimated general fund revenues for fiscal 2023 are $22.8 billion, an increase of 5.6 percent over fiscal 2022. The fiscal 2023 proposed budget would leave a general fund unappropriated balance of $583.7 million and includes a balance of $3.6 billion in the Revenue Stabilization Account, which is equal to 15.9 percent of revenues. The governor proposed over $4.6 billion in tax relief (over six years) in the fiscal 2023 budget including: phased-in elimination of taxation on all income of retirees receiving Social Security or who are above the age of 65; removing 70,000 lower-income seniors from the tax rolls in the first year; and permanent expansion of the enhanced State Refundable Earned Income Tax Credit, benefiting nearly 300,000 families.

Proposed Budget Highlights 
The governor addressed multiple priorities in his budget proposal including strengthening the rainy day fund, providing tax relief for retirees and working Marylanders, increasing funding for education, and more. The budget also highlights $358.9 million in spending from the American Rescue Plan Act (ARPA) State Fiscal Recovery Fund. 


  • Invests $8.15 billion in K-12 public schools with direct aid to local schools growing by $610.9 million (9 percent).
  • Increased funding is provided to support for low-income students ($80.6 million), grants for students learning English ($88.2 million) and students with disabilities ($24.8 million).
  • Includes a record $1 billion in K-12 school construction funding across the state.
  • Provides an additional $144.1 million to support full-day pre-kindergarten for low-income 3-and 4-year olds.
  • Increases general fund support by $10 million for the Child Care Scholarship program and brings scholarship rates to the 70th percentile of market rates.
  • Includes more than $2 billion for state-operated institutions of higher education, which represents annual growth of 17 percent.
  • Increased funding is provided for the University System of Maryland ($277.5 million) and local community colleges ($59.3 million), along with independent colleges and universities (nearly $30.0 million) and Historically Black Colleges and Universities ($77.6 million).


Public Safety

  • Funds the governor’s “Re-Fund the Police Initiative,” a multi-year investment that will provide $500 million over three years to state and local police agencies. Funding provided in the fiscal 2023 budget includes $190 million over three years for salary increases at state police agencies, $45 million increase in aid to local police departments, $10 million to launch a new program of neighborhood safety grants, and approximately $3.6 million to support critical crime victim programs and initiatives.
  • Provides $10 million for scholarships and loan repayment assistance for police officers and students pursing law enforcement careers.
  • Includes $3.5 million to reduce the backlog of sexual assault test kits at the local level.
  • Provides nearly $37 million to help address staffing levels across the Department of Public Safety and Correctional Services, allowing the agency to fill more than 350 vacant positions.


Health Care

  • Includes nearly $14.1 billion in total funds for the state’s Medicaid program; general fund support totals $4.6 billion, an increase of $538 million.
  • Provides an additional $30.2 million to support community services for people with developmental disabilities, expanding services and reducing waiting lists.
  • Includes $92.8 million in general funds to fund provider rate increases in the fields of behavioral health, developmental disabilities, Medicaid and other health care services.
  • Increases aid to local health departments by $23.4 million, for a total of $75 million.
  • Provides more than $996 million in direct state support for mental health and substance use disorder programs, including an $8 million increase for substance use disorder services, a 7 percent increase for treatment for the uninsured population, and more than $11 million as the sixth installment of funding for the Opioid Operational Command Center.
  • Invests $30.5 million to increase salaries of critical staff across Department of Health facilities and $4.7 million to provide a one-grade salary increase for registered nurses.


State Government Operations

  • Provides compensation increases over two years (fiscal 2022 and 2023), with most employees receiving a salary increase of 8 percent over the two years and a $1,500 bonus.
  • Contributes $100 million more than is actuarially required to the state’s pension system. The pension fund remains on track to be fully funded by 2039.
  • Includes $334 million in Major Information Technology funding to support 44 major projects.
  • Invests $120 million in renewal and critical maintenance of state facilities.


ARPA Funding

  • $569,885 – Temporary Cash Assistance
  • $40.0 million – Healthy Schools/HVAC
  • $3.9 million – Veterans Home
  • $37.5 million – Employment Training and Apprenticeships
  • $46.0 million – Learning Loss
  • $5.0 million – Enhance State Government Teleworking Capabilities
  • $200.0 million – Transportation Trust Fund
  • $25.0 million – Project Restore (Housing and Community Development)
  • $875,000 – Homeownership Works