Governor Wes Moore recently spoke to elected and appointed county officials from across Maryland at a conference of the Maryland Association of Counties (MaCO). Moore shared his thoughts his version of a proposed state budget that he must present to the General Assembly no later than January 24, 2026. The General Assembly must approve their version of the state budget and return it to the governor for final approval no later than midnight on April 3, 2025.
A reporter from Maryland Matters wrote that Moore said, “Budget decisions in front of us won’t be easy or simple.” Moore’s Acting Budget Secretary said much the same with, “The choices in front of us are difficult.” Both observations are huge understatements.
Current projections are a $1.5 billion budget deficit for the next fiscal year, despite news last week that projected revenue for next year has been increased very slightly by $9.1 million.
At MaCO, Governor Moore proclaimed, “We cannot – and will not – balance our budget on the back of Marylanders. This is not a year where we anticipate tax increases.” His comments were echoed by House Majority Leader David Moon, who said, “Tax increases are unlikely in the upcoming session.”
The key words in both comments made by Moore and Moon are “anticipate” and “unlikely.”
What they did not say was more telling than what they did say.
Neither said there would not be approval of new taxes, tax increases, new fees, fee increases, spending cuts, and withdrawals from the state budget reserve (rainy day) fund next year to achieve a balanced budget as mandated by the state constitution.
These omissions are reminiscent of a period before and during the 2025 General Assembly session, when Governor Moore repeatedly stated that he had set a very high bar for considering tax increases to address a previously projected budget deficit.
We now know Moore decide that high bar had been reached as he and the super Democratic majorities in the state House and state Senate agreed to address that deficit with a wide range of new state taxes, tax increases, new state fees, fee increases, and transfers from the state budget reserve (rainy day) fund, which now has a balance of between $ 2.3 to $2.4 billion, and relatively modest spending cuts.
Those actions were heralded at the time as a means of achieving a $300 million surplus for the next budget. Instead, Maryland is again facing a large deficit that could grow larger.
At MaCO, Moore also declared that he will right-size programs that, in his words, “need to be made more sustainable.”
He did not provide details on which programs may be considered, how he will evaluate more sustainability, or the total potential savings on state spending from program right-sizing.
In any event, that observation will surely catch the attention of a large number of progressive lawmakers in both the state House and state Senate who will strongly oppose any effort to reduce state funding for already approved progressive initiatives, especially, but not limited to the Blueprint for Maryland’s Future Education, also known as The Kirwan Plan.
Kirwan is projected to require at least $30 billion in funding over the first ten years to fully implement the plan.
Will history repeat itself in the upcoming 2026 regular General Assembly session?
Most likely yes, unless there are radical and long-overdue changes in how Maryland’s governors and a majority of legislators make decisions on state budgets in Maryland.
One change that merits consideration is in Richmond, the state capital of Virginia.
There, the governor and the legislature worked together to approve state budgets that resulted in $10 billion in surplus revenue over the four years ending in Fiscal Year 2025.
Some will say Virginia has not faced the same negative impacts of federal job losses as Maryland has.
Not so, based on research done by the Federal Reserve Bank of Richmond. That research concluded that between January 2025 and May 2025, Maryland lost 5.4 percent of its federal workforce and Virginia lost 4.8 percent of its federal workforce, a difference of 0.6 percent.
Virginia Governor Glen Youngkin has predicted Virginia will continue to see balanced or surplus state budgets and revenue growth, despite any federal headwinds. I suggest that is because Virginia has been successful at attracting economic development and adding private-sector jobs before and after Donald Trump was sworn in for a second term.
Prior to the start of, or early on in, the 2026 Maryland General Assembly session, the governor and legislative leaders should meet with their counterparts in Virginia.
The meeting goal is to explore how the Virginia governor and legislature have worked together to have Virginia be ranked “Americas Top State for Business” last year by CNBC, expanded their tax base, and consistently achieved balanced state budgets with surpluses.
Otherwise, I predict Maryland taxpayers will continue to endure a never-ending cycle of state spending increases followed by a never-ending cycle of new taxes, tax increases, new fees, fee increases and transfers from the rainy-day fund until that fund is drained to the point where a minimum balance of 5% of the previous year’s general fund revenues is no longer in place.
That, in turn, will accelerate the rate of Maryland businesses and residents moving to other states.
David Reel is a public affairs and public relations consultant. He is also a consultant for profit organizations on governance, leadership, and management matters. He lives in Easton.

