Md. Has Budget Surplus Of $2.5-Billion

Maryland has concluded the fiscal year with an unassigned balance of the state’s general fund of $2.5-billion.

That represents more than five-percent of Maryland’s $48-billion operating budget for Fiscal Year 2021. Comptroller Peter Franchot said Wednesday that the fund balance is driven by much-larger-than-expected revenue growth directly affected by federal stimulus funding.

“Even with this great financial news, we still have a tale of two Marylands,” Franchot said. “In one Maryland, there are hundreds of thousands of residents facing dire circumstances. Those without a job see their unemployment benefits expiring. Renters are facing homelessness since rental relief funds are not being disbursed quickly enough and the eviction moratorium has been lifted. Parents returning to work are struggling to find and afford daycare. Small businesses who couldn’t access federal relief funds are struggling to rebuild.”

“In the other Maryland, which is about two-thirds of our population, workers are able to do their jobs remotely, invest their wealth in the markets, and run businesses that not only carried on throughout the pandemic, but in fact, did very well,” Franchot added.

“The state’s surplus is a once-in-a-generation opportunity to invest in programs that lift all Marylanders and help stabilize housing and other critical expenses for our lower- and middle-income families,” Franchot said. “In order to accomplish this, we should put most of the surplus in the state’s Rainy Day Fund and create a proper structure for addressing these urgent needs that our current systems are failing to do effectively. We must deliver this money quickly to those who need it most and not into the hands of fraudsters.”

Franchot is one of several announced Democratic candidates for Governor of Maryland in 2022.

Governor Larry Hogan released the following statement Wednesday afternoon:

“I was elected governor to rein in years of out-of-control spending in Annapolis, to eliminate the $5.1 billion structural deficit we inherited, and to turn around our state’s floundering economy. This historic surplus is further proof that we have done exactly that. We succeeded in creating one of the biggest economic turnarounds in America, and when the COVID-19 pandemic threatened to wipe out all of our progress, we took decisive actions to protect the state’s fiscal health. As chairman of the National Governors Association, I successfully led the charge for federal aid for the states, and we reached a historic bipartisan agreement with legislative leaders to expeditiously allocate relief across all 24 jurisdictions.”

“Maryland is experiencing one of the strongest health and economic recoveries in the nation. As we move forward, we will continue to practice fiscal discipline while prioritizing relief that advances our recovery.”

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