ANNAPOLIS, Md. — Governor Wes Moore signed Maryland’s $70.8 billion fiscal year 2025 budget into law Thursday alongside Democratic and Republican legislative leaders, enacting what he called “the most equitable budget in state history.” The spending plan represents a 5.2% increase over last year’s budget and takes effect July 1.
The budget allocates $8.1 billion for K-12 education through the Blueprint for Maryland’s Future program, fulfilling a court-mandated funding formula. It also includes $1.3 billion in tax relief measures, including expanded child tax credits and elimination of retirement income taxes for most seniors.
“This budget proves we can fund transformational priorities while maintaining fiscal responsibility,” Moore said at the signing ceremony, noting the state’s $2.5 billion rainy day fund remains untouched. Senate President Bill Ferguson (D-Baltimore City) called the compromise package “a model for how divided government should work,” referencing the legislature’s Democratic supermajority working with Republican leaders on key provisions.
Analysts note the budget avoids controversial cuts proposed in January’s preliminary version, restoring $400 million for transportation projects after pushback from rural lawmakers. The final version passed both chambers with veto-proof majorities (45-2 in Senate, 132-8 in House).
Looking ahead, fiscal watchdogs warn the spending plan relies on optimistic revenue projections amid slowing economic growth. The Department of Legislative Services projects a $1.1 billion structural deficit by 2028 if current spending trends continue.