Governor Wes Moore’s proposal to cut the state budget by $148.3 million has been approved by Maryland’s Board of Public Works on Wednesday, July 17.
The cut, which is to be made across various state agencies, is necessitated by the increase in demands from Medicaid and state childcare programs. Moore stressed the importance of the cut saying that his administration found out the Maryland economy was at a standstill when he took office in January 2023.
“While it’s never ideal, the reductions that we are advancing today are necessary to ensure that our fiscal stability is going to be sound and to create long-term economic growth for our state,” he added.
The three-member board that made the cut has the authority to trim up to a quarter of the state’s operational budget when the Legislature is out of Session. Led by Governor Moore, the other two members include Treasurer Dereck Davis and Comptroller Brooke Lierman.
The approved cuts come in response to significant increases in both childcare scholarship enrollment and Medicaid participation since the start of Moore’s administration.
The state’s childcare scholarship program rose from approximately 24,000 children at the start of Moore’s term to over 40,000 by mid-2023, surpassing initial projections of 38,000 to 40,000 participants for the fiscal year. Simultaneously, Medicaid enrollment surged by more than 260,000 from pre-pandemic levels, reaching 1,684,462 by the end of May 2023.
Moore’s plan avoids furloughs, layoffs, or salary reductions for state employees, but it will postpone hiring for numerous state positions. The governor’s budget chief, Helene Grady, highlighted that making healthcare and childcare more affordable were key priorities, with the budget cuts aimed at enabling more parents to enter the workforce.
However, the plan has faced pushback from Maryland Republicans. Senate Minority Leader Steve Hershey criticized it as relying on “fund transfers and budgeting tricks,” while Republican State Delegate Jesse Pippy argued that more comprehensive measures are needed to address the state’s fiscal challenges.
Amidst the economy debate, recall that Moore pushed for the legalization of Marijuana to aid Maryland’s economy and the industry recently accrued over $1.1 billion in the first year.
