Maryland’s Budget Surplus Presents Historic Opportunity to Reduce Hardship
“This represents a historic opportunity to assist Marylanders who are still facing significant hardship in the ongoing fallout from the COVID-19 pandemic,” Maryland Center on Economic Policy President and CEO Benjamin Orr said.
Some possible uses of funding to support Marylanders facing hardship include:
- Restoring unemployment benefits for workers who were cut out by the expiration of federal unemployment benefits on Labor Day
- Assisting low-income renters who face eviction following the end of the federal eviction moratorium, including funding the state’s newly created access to counsel program
- Raising wages for low-wage workers who provide important public services such as home health care.
- General fund revenues for fiscal year 2021 totaled $20.8 billion, an 11.8% increase from fiscal year 2020 and $1.7 billion above state analysts’ March revenue estimate.
- Nearly every major revenue source performed better than expected, with personal income tax revenue exceeding estimates by 8%, corporate income tax by 28%, sales tax by 9%, and estate and inheritance taxes by 35%.
- State analysts attribute this strong performance in large part to federal actions to support the economy, including the American Rescue Plan passed this spring. The law’s strategy of supporting workers and families paid off, supporting strong consumer demand.