FY 25 State Budget Cuts - What Municipalities Need to Know

Governor Proposes Nearly $150 million in Mid-Year Budget Cuts. On Wednesday, July 17, 2024, the Board of Public Works adopted the Moore-Miller Administration’s proposed budget cuts to rebalance the state budget. Here’s what municipalities need to know.  

Total amount cut: $148,308,221 

Background: The Department of Legislative Services (DLS) anticipates that the State’s structural deficit will grow from $483 million in fiscal 2025 to $3.7 billion by fiscal 2029, meaning ongoing spending will far exceed projected revenues. The proposed budget reductions are part of a broader strategy to address long-term structural budget challenges without raising taxes on Marylanders. The proposed cuts prioritize protecting funding for health care and child care.  

State law allows the Governor to reduce the legislative appropriation to the operating budget for any eight-digit program in the State. The Board of Public Works (BPW) must approve the reduction, and the reduction cannot be more than 25% of the appropriation. Though the cuts can legally be made now, money saved can’t be moved over to other programs until the General Assembly is back in session in January. 

Municipal Impacts: 

  • No reduction to Highway User Revenues (HURs) 

  • Maryland Forestry Education Fund – Reduction of $250k 

  • Urban Trees Program – 25% reduction, from $10 million to $7.5 million 

  • State Disaster Recovery Fund - Reduction of 25%, from $2 million to $1.5 million 

  • Department of Agriculture – Reduction of 25%, totaling a $2.25 million reduction impacting the Rural Maryland Council (RMC) grantmaking with a reduction from $9 million to $6.75 million 

  • Governor’s Office of Crime Prevention, Youth, and Victim Services - $5 million reduction impacting local law enforcement agencies’ funding for programs including the Warrant Apprehension & Absconding Grant Program and the Police Accountability, Community, and Transparency Grant (PACT). 

For more information on the State’s fiscal future, check out this article from the Baltimore Banner. 

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