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Hogan reveals last fiscal budget as Maryland Governor

Governor Hogan
Posted at 11:35 AM, Jan 19, 2022
and last updated 2022-01-19 17:23:38-05

ANNAPOLIS, Md. — Governor Larry Hogan on Wednesday revealed his proposed 2023 fiscal budget.

Hogan began his eighth and final year in the Governor's Office on Tuesday.

He pledged to leave the state with a $3.6 billion rainy day fund.

Hogan wants to pass two more tax relief bills, during this year's General Assembly.

One is the Retirement Tax Reduction Act, which aims to gradually eliminate taxes on all retiree income over 6 years. If passed, Hogan says the law would immediately remove 70,000 lower-income seniors from tax-rolls.

The other proposed bill is the Working Marylanders Tax Relief Act, that would permanently implement the refundable enhanced earned income tax credit that impacts nearly 300,000 families in the state.

Other priorities in the budget are electric and utility assistance for approximately 160,000 Maryland households.

Through the Maryland Energy Assistance Program, recipients would see their minimum benefit increase from $300 to $500.

Meanwhile, Electric Universal Assistance Program recipient benefits would double from $150 to $300.

Low income households in Maryland could expect to receive approximately $83 per month in Supplemental Energy Bill Assistance in six month periods in Fiscal years 2022 and 2023.

The Supplemental Nutrition Assistance Program would be given $1.96 billion, with $6.6 million going towards enhanced benefits for 27,000 seniors and another $4.8 million for 50,000 children.

Disability assistance is included for 11,300 residents, while over $187 million would fund provider rate increases in behavioral health, developmental disabilities, and Medicaid fields.

The state would commit $17.8 million to reduce wait lists for home health care programs, including $10.3 million for senior care; $5.3 million for the Senior Assisted Living Subsidy; and $2.2 million for the Congregate Housing Services Program.

RELATED: Gov. Hogan announces record funding for public health and human service

About $8.15 billion is reserved for K-12 education, including $144.1 million to expand full-day Pre-K for 3 and 4-year-old's and $1 billion towards school construction.

In a statement, Maryland House Speaker Adrienne Jones said the funding for education isn't enough.

"I am disappointed this budget continues to undermine the Blueprint’s commitment to providing a world class K-12 education for children in every zip code," said Jones. "I am skeptical this budget does enough to address historic state staffing shortages that put Marylanders at risk every day."

Jones was eluding to the $4 billion Kirwan education plan that was passed by the state legislature in 2019, which Hogan was vehemently against.

Funding elsewhere includes $601 million would be used towards higher education including Historically Black Colleges and Universities, as well as community colleges.

A total of $2.7 billion would go to infrastructure, split between mass transit and roads and bridges.

SEE ALSO: Maryland delegates announce over $400 million in infrastructure law funding for bridge repair

State Parks would receive a 20-year high - $75 million in funding.

Another $1 billion for mental health and substance use disorder programs, and $75 million more to local health departments.

An additional $50 million in grant funding would be used to support child care providers during the COVID-19 pandemic.

As of last September, a Comptroller's report had the State’s General Fund balance at $2.5 billion.

More: Comptroller indicates Maryland finished fiscal year 2021 in good financial shape

The full budget can be read here.