Maryland Faces $2.57 Billion Shortfall by 2028
Projections show the state's structural deficit growing as lawmakers prepare to return to Annapolis in January 2027.
Updated on Nov. 4, 2026 in Legislative Policy
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Should Maryland raise taxes or fees to close its projected budget shortfall?
Maryland lawmakers return to Annapolis in January, facing a projected $2.57 billion structural shortfall in fiscal 2028. The Department of Legislative Services expects the gap to widen to $3.44 billion by fiscal 2030.
Why it matters
A structural deficit means ongoing spending exceeds ongoing revenue, so the gap persists unless policy changes close it. The shortfall will shape decisions on taxes, spending and the state's budget for years across Maryland.
The Department of Legislative Services projects a $2.57 billion structural shortfall in fiscal 2028, rising to $3.44 billion by fiscal 2030. The 2025 budget package raised more than $1.6 billion through new or increased taxes and fees, and how lawmakers will close the gap remains unresolved.
The players
Wes Moore
Maryland's governor, who was reelected and has pushed for a new congressional map.
Bill Ferguson
President of the Maryland Senate, who has opposed mid-cycle redistricting.
The details
The state's structural deficit occurs when ongoing spending exceeds ongoing revenue. The 2025 budget package also included tax cuts for middle-class families and military veterans, while the Utility RELIEF Act reduces the average customer's utility bill by about $150 a year.
Timeline
January 2027: Maryland lawmakers return to Annapolis for the 2027 session.
2025: The budget package raised more than $1.6 billion in new or increased taxes and fees.
Fiscal 2028: The projected $2.57 billion structural shortfall begins.
Fiscal 2030: The projected structural shortfall grows to $3.44 billion.
Legislative Policy Context
The projected shortfall follows the 2025 budget package, which raised more than $1.6 billion through new or increased taxes and fees while also including middle-class and veteran tax cuts. The Department of Legislative Services now expects the structural gap to widen over the next several fiscal years.
The Utility RELIEF Act reduces the average Maryland customer's utility bill by about $150 a year, or roughly $12.50 a month. The projected shortfall could affect future decisions on taxes and fees that residents pay.
The takeaway
Maryland's projected shortfall means budget choices made in the 2027 session will carry consequences through fiscal 2030. Residents should watch how lawmakers balance new revenue against spending decisions.
What happens next
Maryland lawmakers return to Annapolis in January 2027 to begin the 2027 legislative session.
Further reading
Explore more coverage of Legislative Policy to see how Maryland's budget debates fit into broader state policy.
Source note: This article includes information reported by WBFF.
Live Poll
Should Maryland raise taxes or fees to close its projected budget shortfall?
