OCEAN CITY — Senate President Bill Ferguson said Thursday afternoon during the Maryland Association of Counties’ annual conference that, in spite of recent cuts made to the active budget, he doesn’t foresee any more major reductions in light of Maryland’s fiscal shortfall.
“I think there’s going to be serious, active budget management to make sure that every dollar that goes out is being spent well,” Ferguson, a Baltimore Democrat, said. “We have places where there were a few additional costs that were unexpected, and revenue is a little lower than anticipated, and so we have to live within our means.”
Last month, the Maryland Board of Public Works approved $148.3 million in cuts to the $63 billion budget that went into effect July 1, declaring it a measure to increase spending for child care and health programming, like Medicaid.
The decreases represent just 0.2% of the budget for fiscal year 2025.
Ferguson said that, combined with some declined revenue sources, “increased costs and utilization” of the child care tax credit and Medicaid have made “a big impact” on the budget.
“It is very clear that we are going to have some tough decisions to make, but I think it’s too early to make, sort of, projections about what the approach will be until we have more data,” he said, noting that there is no plan to “radically” shift priorities away from things like the Blueprint for Maryland’s Future and other education initiatives.
Republicans are not keen on the scope of the cuts.
“They really didn’t cut anything,” House Minority Leader Jason Buckel, a Republican representative of Allegany County, said in a phone interview, asserting that they only reappropriated funding from certain line items to others.
“I think the biggest question is, ‘Where does it leave us?’” Buckel, also in town for the Maryland Association of Counties conference, said.
Ferguson said he foresees a sales tax decline, but is waiting to see whether income taxes decline to determine where the state’s financial chips will fall.
But he also said that making cuts for expanded child care and Medicaid access are “fundamental priorities” — not budget mismanagement.
“It just means that it costs more, and that money has to come from somewhere so we have to — anywhere where there’s additional discretionary spending or new programs that haven’t been launched yet — I think it makes sense that we’re going to have to make some tough cuts and some tough choices, but that’s just governance, and I don’t think there’s anything draconian or I don’t think it’s going to be severe,” he said.
As for an increase in taxes in 2025, Ferguson said the bar is still high. But there could be a slowdown for Democratic Gov. Wes Moore’s priorities, like the Blueprint and Baltimore’s Red Line East-West transportation project.
Still, Ferguson says the timeline changes that may be observed likely won’t be “radical,” but there are likely shifts to be made.
“When you pass something five years prior, it only makes sense to actively look at it and make sure you’re getting the results that are anticipated, and so we should be doing that in every category — in education, in climate, in health care,” he said. “And so, I wouldn’t foreclose any changes. I think we will invest and make sure we are investing for young people and families — that will be the key.”
Regarding the Red Line, Ferguson said there is “no planned money for construction,” and conversations about the state’s ability to invest need to be had.
Buckel told The Baltimore Sun that, while at the Ocean City conference, he has heard representatives of the Maryland Department of Transportation tell local officials from across the state that they can’t afford their priority projects.
“I’m not against the Red Line just to be against it,” he said. “It just doesn’t seem realistic.”
