Governor Moore Introduces His Budget and Some New Bills of Interest

 

            On Wednesday January 15^th, Governor Moore introduced his Fiscal Year 2026 Budget (starts 7/1/25).  His budget addresses the $3 Billion budget deficit for the upcoming budget.  Maryland must pass a balanced budget before the end of the legislative session.  His proposal is to balance the budget with $2 billion in budget cuts and efficiencies, increase revenue by $1 billion and transfer $500 million from the Rainy Day (the Rainy-Day Fund will still be 8% of revenues which is above the mandated minimum of 7%). There are also some spending initiatives in the package.

            The most intriguing (for me) part of the package is the Governor’s initiative in putting forth some progressive revenue proposals.  These include:

o   *Setting two new tax brackets for high income earners

§  Rate for individuals who make over $500,000 goes up from 5.5% to 6.25% (the higher tax rate is only for the income above $500,000 – the rest is taxed at 5.5%)

§  The rate for individuals who make over $1,000,000 goes to 6.5% for the income above that amount.

o   Lowering the estate tax exemption from $5 million to $2 million and also eliminating the inheritance tax (MD is the only state that has both an estate tax and an inheritance tax)

o   1% surcharge on capital gains tax for households earning more than $350,000 (revenue goes to a ‘sunny day’ fund to attract new businesses to the state and goes away after 4 years)

o   Abolishing the combined reporting loophole that allows companies not to pay taxes on subsidiaries in MD and also lowers the corporate income tax by .25%.

o   Abolishing the ineffective Enterprise Zone Tax Credit

o   Increasing the tax on sports betting and the casino table tax

o   Increasing the tax on cannabis sales

o   Adding a 75-cent fee on retail deliveries for companies with over $500,000 in sales

There are also some very significant cuts in the budget including:

o   $2.5 billion in cutting back the historic Blueprint for Maryland’s’ Future Scholl funding Reform.

o   Reduced funding for the Development Disabilities Administration

o   Reduction of Childcare scholarship program

 If you want to read more you can look at the analysis of the budget by the Maryland Center for Economic Policy:  https://mdeconomy.org/first-look-governor-combines-revenues-cuts-to-narrow-budget-gap

 

Interesting Bills Introduced in the General Assembly

 

                Over the last few years, I have been working with the Maryland Legislative Coalition (https://mdlegislative.com ).  We regularly review the bills that have been introduced and then let people know about them and how they can advocate for them.  I will be copying their material from now on rather than rewriting what’s already been done.

Energy

HB0121 / SB0037 Electric Companies - Regional Transmission Organizations - Report (Utility Transparency and Accountability Act) would make electric companies submit an annual report to the Public Service Commission. It would also prohibit electric companies from using ratepayer money to pay for lobbying or political activity. The goal of this legislation is to enhance transparency and accountability by focusing on how electric companies spend ratepayer money and participate in planning with the regional transmission organizations. House Economic Matters /Senate Education, Energy and the Environment

 

HB0270 SB0116 Data Center Impact Analysis and Report requires the Maryland Department of Legislative Services to conduct an impact analysis of the economic, environmental, and social impacts of data centers. Under existing practices, all electricity customers pay for the expansion of the grid to essentially support bitcoin mining and AI! Data centers are straining our grid and increasing costs for everyone. This study is the first step in understanding this apparent inequity. House Economic Matters /Senate Education, Energy and the Environment

 

HB0220 SB0010 Renewable Energy Portfolio Standard - Eligible Sources - Alterations (Reclaim Renewable Energy Act of 2025) would mean that we would no longer be subsidizing in-state and out-of-state incinerators to create more air pollution. House Economic Matters /Senate Education, Energy and the Environment

 

Housing

SB0154 HB0103 Access to Counsel in Evictions - Task Force Termination and Special Fund would ensure access to legal representation for tenants facing eviction by requiring the Comptroller to move $14M of abandoned property funds each year to ensure this special fund can provide the support required for low-income Marylanders. Given Maryland’s housing crisis, this bill seeks to promote fairness in the eviction process and prevent unjust evictions. House Judiciary/Senate Judicial Proceedings

 

Criminal Justice

SB0141 Criminal Procedure - Incarcerated Seniors - Motion to Reduce the Duration of a Sentence aims to authorize incarcerated individuals who are at least 60 years old and have been imprisoned for at least 20 years to file a motion to reduce the duration of their sentence. We have way too many people whose lives have been on hold for committing offenses for which they have long ago served an adequate amount of time.  Senate Judicial Proceedings

   

Criminal Justice

HB0089 SB0152 Criminal Law - Crimes Relating to Animals - Conviction and Sentencing increases the severity of animal cruelty offenses by preventing the grouping of multiple animals harmed into a single crime. It also ensures that penalties for animal cruelty are addressed separately and not diluted by merging them with other charges House Judiciary/Senate Judicial Proceedings

 

Environment

HB0128 SB0149 Responding to Emergency Needs from Extreme Weather (RENEW) Act of 2025 establishes the Climate Change Adaptation and Mitigation Payment Program to secure payments from fossil fuel extractors and refiners. This program provides a source of revenue for state efforts to adapt to and mitigate climate change effects and to address health impacts on vulnerable populations. If your legislator appears here, please send the email(s) as noted. If not, consider emailing this. House Economic Matters /Senate Education, Energy and the Environment

Health

HB0268 Hospitals - Financial Assistance and Collection of Debts - Policies mandates hospitals to reduce a patient's out-of-pocket expenses based on family income. For all patients, HB0268 prevents filing civil actions to collect debts of $500 or less and extends the interest-free payment period to 240 days. House Government Operations

 

HOW TO ADVOCATE FOR BILLS

 

When there is a Committee Hearing on A Bill Scheduled, it is important to contact members of the Committee.  The General Assembly website lists all the committees, the members of each committee and their contact information.  Go to the main page (https://mgaleg.maryland.gov/mgawebsite) and click on the Committees tab.

 

Call or send an email to your legislators using the contact information found.   Here is where you can find out who are your Delegates and Senator:  https://mgaleg.maryland.gov/mgawebsite/Members/District.

 

If you would like to include a short description of the bills, you can include the descriptions shown above. You are also encouraged to include any details of why you think this bill is important.

 

Dear (legislator),

My name is _________ and my address is ______________.  I am writing to let you know that the following bill(s) is(are) important to me and to all Marylanders.  I would like to request that you be a champion for these bills and help them get passed quickly. 

Each of these bills is important for Maryland and I support them and would like your help in getting them passed.  If you are not on the relevant committee, I would appreciate your voting for them during the session.  If you are on the relevant committee, I hope you will fight for them and support the sponsors as much as possible.

Thank you for your consideration,

(name)

2025 Maryland General Assembly Session Starts This Week

 2025 Maryland General Assembly Session Starts This Week

 

                The 2025 Session of the Maryland General Assembly starts this Wednesday, January 8^th.  The session lasts 90 days.  In order for legislation to be signed into law, a bill has to be introduced, heard by the appropriate committee, pass the House of Delegates and State Senate with exactly the same wording and signed into law by the Governor.    

The Budget Deficit and How to Meet the Challenge

                The number one topic of the legislature will be the projected Maryland Budget Deficit over close to $3 billion.  The legislature must (as opposed to the Federal government) pass a balanced budget by the end of the legislative session.  This means that the legislature will have to cut the budget, raise new revenue or a combination of the two.

                The budget deficit is quite serious.  The total operating budget is $63 budget, so the deficit is 5% of the total budget and is projected to grow to $6 billion by 2030.  People are saying that this is a worse situation than during the recession of 2008-2009. 

                Some of the causes of the problem with the deficit have been stated as being a smaller growth in the economy compared to other states, the end of pandemic relief programs, and rising cost of Medicaid expenses.  There is also the major risk of the new Trump administration impact on Maryland.   Over 250,000 Federal workers live in Maryland (8% of the workforce) and there will be a major option.

                The Moore Administration and the legislature are looking at three options: cutting back services, using reserve funds and raising new revenue which might include closing corporate tax loopholes, fee increases, or a sales tax on services (e.g. dog walking).   The Governor has stated that he does not want to raise taxes, so we’ll see what he proposes.  His budget is to be presented on Wednesday January 15^th.

 

Pre-Filed Bills

                The Legislative Session has not even started and there are over 550 bills that have been ‘pre-filed’.   While every bill that is introduced on time (there is a deadline for bill introduction) will have a hearing on the bill, the overwhelming majority of the bills introduced will not be passed or even be voted on.  Looking over the bills that were pre-filed, I picked out just a few that I personally find interesting and will be following over the next three months.  There will be a heck of lot more to follow in the next few weeks:

 

HB 37 – Declaration of Right to Organize - Delegate Vogel: - Bill states that every person employed by the state has the fundamental right to organize and bargaining.   Referred to Appropriations Committee

HB 132/SB 70 – Enabling Counties to Have Different Income Tax Brackets – Delegate Palokovich Carr/Senator Rosapepe - This would allow counties to raise the income tax  rates for higher income residents and lower the rates for lower income residents.  Referred to House Ways and Means Committee and Senate Budget and Taxation.

HB 174/SB 171 – Delegate Foley/Senator Kagan– Special Election to Fill a Vacancy – Right now all vacancies in the General Assembly are done by appointment.  This legislation would  make it that a vacancy created in the first year of the four-year session would trigger a special election during the following Presidential year (thus with no extra election costs).  House Ways and Means Committee and Senate Education, Energy and the Environment

 

HB 211/SB 166 – Allowing Graduate Assistants and Postdoctoral Associates at the University of Maryland System to form Unions – Delegate Foley/Senator Kramer – Referred to House Appropriations Committee and Senate Budget and Taxation Committee

 

 

HOW TO ADVOCATE FOR BILLS

When there is a Committee Hearing on A Bill Scheduled, it is important to contact members of the Committee.  The General Assembly website lists all the committees, the members of each committee and their contact information.  Go to the main page (https://mgaleg.maryland.gov/mgawebsite) and click on the Committees tab.

Call or send an email to your legislators using the contact information found.   Here is where you can find out who are your Delegates and Senator:  https://mgaleg.maryland.gov/mgawebsite/Members/District

If you would like to include a short description of the bills, you can include the descriptions shown above. You are also encouraged to include any details of why you think this bill is important.

Dear (legislator),

My name is _________ and my address is ______________.  I am writing to let you know that the following bill(s) is(are) important to me and to all Marylanders.  I would like to request that you be a champion for these bills and help them get passed quickly.  

Each of these bills is important for Maryland and I support them and would like your help in getting them passed.  If you are not on the relevant committee, I would appreciate your voting for them during the session.  If you are on the relevant committee, I hope you will fight for them and support the sponsors as much as possible.

Thank you for your consideration,

(name)

New Maryland Laws Effective January 1, 2025

 Hearing Aids for Adults -  Insurers will be required to pay up to $1,400 per hearing aid for each ear every three years. If an insured patient wants a more expensive hearing aid, they will be able to pay the difference. Minors will be covered by the new law as well.

Opioid Overdose and Opioid-Related Emergency Act requires hospitals to follow specific protocol when treating opioid related emergencies. Mandates include requiring hospitals to use uniform practices for screening and diagnosing opioid emergencies. The laws will also require hospitals to refer patients who were treated for opioid emergencies to providers for further treatment before discharging them.

The So Every Body Can Move Act will require Medicaid and insurers operating in the state to cover partial or whole leg, arm and eye prosthetics, as well as their components or repairs on an annual basis. Patients may also be eligible for the replacement of their prosthetics in certain cases. Importantly, insurers won’t be able to impose a lifetime maximum for this coverage or a higher copayment or coinsurance rates than their customers have for similar benefits.

Expansion of  coverage for medical imaging screenings for breast and lung cancer. For diagnostic and supplemental breast exams using MRIs, ultrasounds and image-guided biopsies, insurers won’t be able to impose copays, coinsurance, or deductibles on patients unless enrolled in a high-deductible health plan. Patients will also be eligible for imaging in lung cancer screenings and follow-up testing, which won’t require prior authorization.

New Rules for Pet Insurance Providers rules for pet insurance providers requires insurers to disclose coverage exclusions. Though the law takes effect on the first day of the year, the Maryland Insurance Administration will be required to create informational material for veterinarians across the state by June 1.

The Maryland Road Worker Protection Act of 2024 provides higher ticket costs for speeding through a work zone.  In June, the penalty rose to $80, but the new pricing scheme effective in 2025 will depend on how much drivers go over the speed limit and if workers are present on the road during the offense. Going 12 to 15 mph over the limit, the lowest tier in the pricing structure, will result in a $60 fine without workers present and $120 if they are. The highest penalty provided by the scheme would be $1,000 for going 40 or more mph over the speed limit in a work zone with workers present. The law also expands the use of speed cameras in work zones.

 

The Housing Expansion and Affordability Act of 2024 will require local jurisdictions to allow for the development of new housing .First, the law will allow modular and manufactured homes to be built in zones designated for single-family homes, provided the home and the land meet certain requirements.

The law will also require jurisdictions to allow for greater density regardless of zoning for qualified projects. These qualified projects will necessarily entail a certain percentage of affordable housing units, depending on who owns the land, be it the state, federal government or a nonprofit, or if the land is three-quarters of a mile away from a rail station.

However, the increased density provisos won’t apply to agricultural land or land that’s being conserved. Qualified projects would also have to pass a public health assessment to be allowed to raise density.

Jurisdictions will be forbidden from imposing unreasonable requirements or limits on qualified projects in qualities like parking, height, setback or bulk.  Lastly, the law limits how many of each type of hearing a qualified project would be subject to.

Security guard licensing requirements Maryland individuals or businesses that employ one or more people for security services, or loss prevention, will be required to license those employees as security guards beginning Jan. 1. Newly designated security guard employers must also register online and submit proof of insurance with the Maryland State Police Licensing Division.

Election judge recruitment  Poll workers were in high demand this past election cycle. New laws will require the State Board of Elections to develop a marketing campaign to recruit more election judges. County employees serving as judges must also receive mandated administrative leave and compensation.

This newsletter was compiled from various news sources.

HAPPY NEW YEAR!!