ANNAPOLIS, Md. (WDVM) — On Tuesday, Gov. Larry Hogan unveiled Maryland’s economic recovery budget for FY 2022.
The Fiscal Year 2022 recovery budget, which makes record investments in K-12 education and public health, provides substantial tax relief to struggling Marylanders and small businesses, expands resources for crime prevention and fighting the opioid epidemic, fully funds Chesapeake Bay restoration, and lays a strong foundation for the state’s economic recovery.
“This economic recovery budget and the RELIEF Act of 2021, with all of its immediate tax and stimulus relief, are far and away from the most important things that the legislature must address right now as we continue our work to prevent more illnesses and deaths, to get our kids back in school, to mitigate the damage to our economy, and to bring about a robust health and economic recovery and eliminate and eradicate this pandemic,” said Hogan.
- Governor Hogan’s budget provides a record$7.5 billion for K-12 education, above and beyond the legislature’s funding formulas.
- This budget aims to stimulate Maryland’s economy with the implementation of Governor Hogan’s recently announced $1 billion RELIEF Act, an emergency legislative package that will provide more than $1 billion in direct stimulus and tax relief for Maryland working families, small businesses, and those who have lost their jobs as a result of the COVID-19 pandemic.
- To address the state’s sky-high retirement taxes, the governor’s budget calls for a major $1 billion tax cut for all Maryland retirees.
- The governor’s budget calls for expanding the Hometown Heroes Tax Credit, to exempt law enforcement, fire and rescue, corrections, and emergency response personnel from state tax on all retirement income specific to their service. It also calls for increasing the tax exemption for all military retiree pensions.
- In the FY 2022 budget, police aid to local governments is funded at $74.6 million and local law enforcement grants are funded at $43.7 million—including $3 million to protect Marylanders against hate crimes.
- In order to combat the ongoing, silent epidemic of opioid abuse and other substance use disorders, the Hogan administration has once again provided record funding—$978 million—for substance abuse treatment. Spending in this area has increased 562% since FY 2016.
- For the sixth consecutive year, the Hogan administration has fully funded Chesapeake Bay restoration efforts and ensured that all state environmental protection programs funded by the transfer tax are fully funded as well.
The budget will be formally submitted to the Maryland General Assembly on Wednesday.