ANNAPOLIS, MD — In the final days of the legislative session, House and Senate leaders have come to an agreement on a more than $63 billion budget.
"We are in agreement as houses," said Senate Budget and Taxation chair Guy Guzzone.
The two sides have agreed on tax and fee increases that start at $350 million this year and escalate to $450 million in the coming years.
So far, all the revenue creases are just estimates.
The chairs are proposing tax increases on tobacco products.
Expecting to bring in $80 to $90 million on the back of a $1.25 a pack increase on cigarettes.
That money is earmarked for the Blueprint for Maryland's Future, the funding plan for Maryland's education system.
"It also reinvests in the blueprint on one of the main concerns of Pre-k, we did not have enough providers," said House Appropriations chair Ben Barnes.
The largest tax and fee increases will head to the Transportation trust fund.
$250 million to start, with an increase to $350 million in the coming years.
That funding comes through increases to vehicle registration fees, a special fee for electric vehicles and increasing fines for speeding in work zones.
"There's going to be money for additional transit workers. There's going to be money for additional road projects that might have been eliminated had we not come to this agreement," said Senator Guzzone.
Republicans released a statement following the announcement of the tax and fee increases.
“While we are pleased that the more broad-based and draconian tax increases have been avoided, it is important to keep in mind that new revenues do not come from the government. Any tax or fee increase comes from the pocket of hardworking Marylanders," said House Minority Leader Jason Buckel.
The Maryland Fair Funding Coalition pushed for major tax increases through closing corporate tax loopholes and higher taxes on the wealthiest Marylanders.
None of their proposal was included in this year's budget.
"While the Maryland General Assembly is taking an important first step by addressing transportation needs, they failed to fully address revenue for other commitments to education, state workers, and the other state services that Marylanders rely on," said Benjamin Orr, president of the Maryland Center on Economic Policy.
The revenue package doesn't fully cover some of the funding shortfalls the house pushed to address.
"We know that we have major projects that maybe aren't going to covered by the money that we've come up with here," said Delegate Ben Barnes.
Both chairs said the Key bridge collapse didn't play a role in the negotiations.
There are still procedural steps that need to be taken to get the bill to the Governor's desk.
