Maryland Leaders Finalize Budget Deal to Address $3.3 Billion Deficit

Maryland officials, led by Governor Wes Moore, have reached an agreement on a budget framework to address a $3.3 billion deficit, incorporating both spending cuts and tax increases. The plan includes a new 3% tax on information technology services, increased taxes for wealthy residents, and adjustments to gambling and cannabis taxes. Despite these measures, Republican lawmakers have criticized the Democratic majority for not treating the budget crisis with the urgency it demands, calling for more drastic cuts. Moore emphasized that 94% of Maryland taxpayers will either see a tax cut or no change in their income taxes, and he framed the tax increases as necessary to invest in the state's future and support those affected by federal budget cuts. The agreement marks the largest reduction in the state budget in 16 years, with significant cuts made to various sectors while aiming to avoid burdening the middle class. As details continue to emerge, the budget is seen as a response to the fiscal challenges exacerbated by the Trump administration's policies.