Maryland lawmakers were warned Tuesday of an impending $2.7 billion deficit they’ll need to resolve for the next budget year — a significant hole that all but guarantees another debate in Annapolis over whether they should make deep budget cuts or raise taxes.
The budget picture is worsening faster than previously expected, according to new estimates presented to lawmakers in a briefing ahead of the annual 90-day session that begins in January.
David Romans, an independent state fiscal analyst, described it as “an enormous gap” due to growing expenses and recent years of quick fixes to cover for slow revenue growth.
The result of that combination: A five-year budget outlook that’s poorer than the one the state faced during the Great Recession in 2008-’09. Without any changes, the state will be able to cover only 84% of planned spending through the 2030 fiscal year.
“That is the worst situation we’ve seen in the last 20 years,” Romans said.
The forecast doesn’t factor in any potential erosion of federal support under the incoming Donald Trump administration — though the possibility of losing federal funding or jobs in Maryland, among several other potential impacts, is alarming, analysts and lawmakers said.