Maryland’s Board of Revenue Estimates approves $1.4 billion increase for the upcoming fiscal year

Maryland

Several factors drove the anticipated revenues

ANNAPOLIS, Md. (WDVM) — Maryland’s Board of Revenue Estimates has approved a $1.4 billion increase for the upcoming fiscal year.

Several factors drove the anticipated revenues including a labor market, direct stimulus payments, and the paycheck protection programs.

The FY 2021 estimate officially shows a $672.6 million revenue decrease since the Board of Revenue Estimates last formally voted on projections in March, which was based on pre-pandemic data.

Maryland comptroller, Peter Franchot, said while the economy has avoided a worst-case scenario and the state is on the path to recovery, it is important to maintain volatility in our state.

“While it is tempting to view these numbers as indicators that our economy has avoided a worst-case scenario and we are on a path to recovery, it’s critical to acknowledge that we remain in a period of extreme volatility as our state, our nation, and our world continue to battle the COVID-19 pandemic,” Comptroller Peter Franchot said.

Franchot also says the numbers show the need for a second round of federal aid and is urging Gov. Larry Hogan to direct the $585-million fund balance from the previous year to help save small locally owned businesses.

Governor Hogan released a statement following the meeting.

“Today’s revenue estimates are still nearly $1 billion less than what was budgeted prior to the pandemic,” said Hogan. “Because of our early and aggressive actions, Maryland’s fiscal situation remains challenging but is significantly less painful than it could have been.”

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