Maryland revenue estimates drop about $255M in two fiscal years

ANNAPOLIS, Md. (AP) — Maryland’s revenue forecast has been revised downward by about $255 million in two fiscal years, state officials said Thursday, citing slowing growth while also noting that the state was not experiencing a recession.

The state’s Board of Revenue Estimates revised the state’s general fund down by $120.3 million to $24.5 billion for the current fiscal year. Revenue projections for the next fiscal year, which begins July 1, were reduced by nearly $135 million to about $24.8 billion.

“This is not what any of us wanted to hear, yet here we are,” said Treasurer Dereck Davis, a board member. “Today’s presentation represents a bit of a shift since our last meeting. There is a reduction in our growth rate, and there is a discrepancy between our tax data and our economic data. The good news is, as of right now, our economy is stable. We’re not in a recession, however, the future remains uncertain.”

Fiscal analysts noted a sharp decrease in withholding income tax revenues, from 7.2% during the 2022 calendar year to 2.9% in 2023. They pointed to a drop in sales and tax revenues in fiscal year 2024.

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