ANNAPOLIS, Md — On his second official day in office Governor Wes Moore revealed his administration's first budget proposal for Fiscal Year 2024.
If revenue projections hold up, Moore estimates a $2.3 billion general fund surplus at the close of Fiscal Year 2023.
That's more than $2 billion less than the current surplus left by former Governor Larry Hogan.
The Moore administration says that should be no surprise considering the state is preparing to no longer receive unprecedented amounts in federal stimulus and enhanced Medicaid funding. That on top of income taxes last year that generated $1 billion more than expected.
In his 2024 budget, Moore notes the potential for a future recession but commits to cutting the general fund surplus by more than half to $820 million while maintaining $2.5 million in Rainy Day Funds.
SEE ALSO: Hogan reveals last fiscal budget as Maryland Governor
A good chunk of money ($500 million) from that surplus is being allocated to the Blueprint for Maryland’s Future, with another half-a-billion going towards various state transportation projects.
Overall $8.8 billion of the FY24 budget is being earmarked for K-12 education.
Nearly $15 billion of the proposed budget will be reserved for Maryland’s Medicaid program, which Moore says would give 1.6 million residents access to the program, including almost 150,000 children.
Of that amount $154 million would be set aside for adult dental coverage.
Other major highlights include $171 million to permanently extend the enhanced Earned Income Tax Credit (EITC) and expansion of the Child Tax Credit (CTC).
Moore also says he intends to accelerate the state's minimum hourly wage to $15.
An additional $33 million is being budgeted to exempt a portion of military retirement income.
Additional social support programs addressed in the budget include $2.2 billion in federal Supplemental Nutrition Assistance Program (SNAP) benefits, $60 million in
General Funds for the Temporary Cash Assistance (TCA) program, and $37.5 million in General Funds for the Temporary Disability Assistance Program.
In total the budget comes to about $63 billion which can be read here.
Some Democratic state leaders like Anne Arundel County Executive Steuart Pittman praised Moore's budget proposal.
“I want to thank Governor Wes Moore for his support of Anne Arundel County projects in his 2024 Capital Budget Proposal," said Pittman. "His proposal includes funding for many of our key priorities, including $10M for a new joint 911 Call Center, $5M for Crownsville Hospital Memorial Park, and $24M for improvements to schools across the county."
Baltimore County Executive Johnny Olszewski added "Gov. Wes Moore has made it clear in his first budget that education and transportation will be top priorities. We're thankful for the state's renewed commitment to these major issues and look forward to helping deliver on this—and more—for all our residents."
Meanwhile State House Republicans warned the level of spending would require tax hikes down the road.
“I would hope, to the greatest degree practicable, that these historic budget surpluses are moved to state savings accounts or devoted to a reasonable middle-class tax cut for Maryland’s hard-working families allowing both to prepare for a possible economic downturn,” said House Minority Leader Jason Buckel. “It is not enough to tout the lack of tax increases in a budget year if the level of spending will require tax hikes down the road. It is important to be principled and disciplined now, so we don’t burden our taxpayers later.”
As of November 2022 Maryland ranked 47th among states for overall economic momentum, and 43rd highest on unemployment rate.
