Maryland Lawmakers Cautioned on Use of Reserves to Solve Nearly $1.5 Billion Deficit

Reading faces growing need to balance budget by using reserves

READING — The City of Reading may be forced to pull millions of dollars from its reserves over the next few years to balance its budget as unexpected costs and overtime outstrip revenue. Experts say that trend is worrying for a city that exited the state’s financial distress program in 2022 and requires officials to maintain a healthy savings account (known as a fund balance or reserves). Reading officials have projected a growing need in recent…

Maryland lawmakers cautioned on use of reserves to solve nearly $1.5 billion deficit

The General Assembly’s top budget analyst cautioned lawmakers against draining the state’s cash reserves to offset a nearly $1.5 billion deficit that has emerged in the coming fiscal year. With lawmakers unlikely to raise taxes in an election year, one potential option for covering more than half the shortfall would be to pull $815 million from the state’s $2.3 billion rainy day account. But Department of Legislative Services budget analyst Davi…

Maryland’s $1,400,000,000 Deficit The ‘Inevitable Result Of One-Party Rule,’ Lawmakers Say

'crisis was created here at home'

High-Tax Democrat State’s $1,400,000,000 Deficit The ‘Inevitable Result Of One-Party Rule,' Lawmakers Say

Maryland is facing down a budget deficit of about $1.4 billion for fiscal year 2027, according to budget projections released on Wednesday.

Maryland projects a $1.4 billion deficit despite tax increases

Lawmakers cautioned on use of reserves to solve nearly $1.5 billion deficit

Department of Legislative Services budget analyst David Romans (right), in a January 2025 photo, warned lawmakers Wednesday that bond rating agencies might take a dim view of reducing emergency reserve funds to bare minimum limits established in law. (File photo by Bryan P. Sears/Maryland Matters)The General Assembly’s top budget analyst cautioned lawmakers against draining the state’s cash reserves to offset a nearly $1.5 billion  deficit that …