(The Center Square) — Gov. Wes Moore called on Marylanders to ‘confront crisis with courage’ on Wednesday during his State of the State address, speaking to the $3 billion state budget deficit and another four years under the Trump administration.
Besides Maryland’s fiscal shortfall, Moore sees President Donald Trump as a threat to human rights and Maryland’s large federal workforce. The state has more federal workers than any state besides California and Virginia at nearly 143,000, according to the Congressional Research Service.
However, despite these challenges, Moore urged Maryland to do more than just ‘batten down the hatches’ to survive.
“We must close this $3 billion budget gap. And we have to do it in a way that actually grows the middle class, that supercharges and diversifies our economy and breaks our distinct reliance on Washington,” Moore said.
In the minutes ahead, Moore shared some of the highlights of a budget that he believes will work toward accomplishing those ends, partly by redirecting funds toward those segments of the economy that will have the greatest return on investment.
“The journey forward starts by modernizing government. It starts by reigning in spending and being more responsible in how we invest taxpayer dollars,” Moore said, “We are looking closely at every single state initiative so we can invest in programs that work and stop investing in the programs that don’t.”
While Moore didn’t list any programs for which the state will cut funding, he did provide examples of tax reforms and increased investments.
“Every single Marylander I talk to has a very strong opinion about their taxes because under the current law, our system just isn’t fair,” Moore said.
The proposed budget will make Maryland taxes “simpler, fairer and pro-growth.”
“For the third year in a row, our proposed budget does not raise sales taxes. For the third year in a row, our proposed budget does not raise property taxes,” Moore continued. “We are going to close corporate loopholes and lower the corporate tax rate to make Maryland more business-friendly.”
In 2024, Maryland’s corporate tax rate was 8.25%, one of the highest corporate tax rates in the country.
The new budget also doubles the standard deduction and expands access to the child tax credit, according to Moore. Moore maintained the changes would lead to tax cuts for at least two-thirds of Marylanders, though it would raise taxes for some.
“We will be asking people that have done exceptionally well to pay a little bit more so we can invest in growing our economy,” Moore said.
The budget also includes $750 million to “boost economic competitiveness and our workforce,” with a special focus on the “lighthouse industries” of information technology, aerospace and defense and the life sciences.
“I want to make sure that all the sectors that will define the economies of tomorrow will be housed right here in the state of Maryland,” Moore said.
But Maryland can’t forget to nurture the existing industries that have been foundational to its economy, according to Moore, which is why the budget includes new funding for a project with logistics company Tradepoint Atlantic and $21 billion for improvements to the state’s road, bridges, tunnels and mass transit systems.
On Monday, Moore unveiled the new design for the Francis Scott Key Bridge, which collapsed almost a year ago upon being struck by a container ship.
“For the first time in a long time, Maryland has a clear economic growth strategy,” Moore said.
