By SAM GAUNTT
It was a busy 90 days in the Maryland General Assembly.
The state entered its annual legislative session with a projected $3 billion budget deficit, a rapidly evolving federal environment, and ballooning costs in education, medicare and childcare.
In the three-month session that ended April 7, legislators focused their efforts on bringing the state out of its shortfall, while also tackling issues including energy and education.
Here’s a look at how this year’s legislative session could affect residents of PRince George’s County..
State budget
Maryland Gov. Wes Moore and the General Assembly’s top leaders agreed on a budget deal that is projected to bring the state out of its deficit—but it didn’t come without sacrifices.
The plan closed the budget gap by generating about $1.5 billion in new revenue, primarily through an increase in income tax on the state’s top earners and several new fees, and more than $2 billion in spending cuts. Among those cuts were more than $100 million from the University System of Maryland.
But funding for local school systems was preserved—and saw an increase over last year’s allocation, according to state Sen. Jim Rosapepe (D-Prince George’s and Anne Arundel).
“We want to protect education, we want to protect health care, we want to protect public safety,” Rosapepe told Streetcar Suburbs.
Still, the county school system may see a decrease in funding after the Legislature trimmed the Blueprint for Maryland’s Future—the state’s sweeping education reform plan passed in 2021.
Rosapepe said legislators added “Trump triggers” to the new state budget. If there are significant further federal spending cuts or state revenue drops, the triggers will require Maryland’s budget department and executive branch to come back to the General Assembly with a plan to tackle the issue.
Tax increases
Some residents may see a change to their tax bill next year after the state made two new, higher tax brackets for its top earners and consolidated others.
Under the plan, the state will create two new income tax brackets: 6.25% for earnings between $500,000 to $1 million, and 6.5% for earnings more than $1 million.
Moore said the new tax system will result in a tax cut or no change at all for 94% of Maryland residents.
“This is what good governance looks like,” Moore said during a press conference announcing the new taxes on March 20. “It is responsible, and it hits every requirement that we laid out at the start of the session.”
The state will also impose a new 3% fee on data and information technology services, and add an additional 2% tax on capital gains income of more than $350,000.
Fines and penalties
Several new laws will affect the amount of local and state fines.
One bill, sponsored by Rosapepe, will raise the maximum amount municipalities can charge for infractions of local ordinances or resolutions from $1,000 to $5,000.
Another will raise the penalties for speeding violations from $50 to a maximum of $425.
Stabilizing utilities prices
The general assembly also approved measures to attempt to limit utilities companies from charging significant fee increases.
Rosapepe said the General Assembly will tackle the issue by expanding Maryland’s renewable energy production and battery capacity.
“We’re way behind other states, and that will help bring down these rate increases,” he said. “And then also, we have a whole lot of regulatory changes to the powers of the Public Service Commission to crack down on these rate increases.
