Message to the General Assembly Transmitting the Fiscal Year 2031 Budget
January 2031The Senate of MarylandThe Honorable Timothy A. Coulter, PresidentThe Maryland House of DelegatesThe Honorable Rod R. McMillan, SpeakerThe Citizens of MarylandDear Mr. President, Mr. Speaker, Ladies and Gentlemen of the General Assembly, and FellowMarylanders:
Maryland’s budget is one of the clearest reflections of our values as a State. By directing where we will invest
limited tax dollars, we make clear our priorities as a society
and reveal our collective wisdom about how wemake Maryland stronger. It is my privilege to submit the fiscal year 2032 budget
the fifth operating budgetof my Administration.Working together over these last four years, we have closed more than $8.2 billion in cumulative projectedbudget deficits. The fiscal year ending June 30 of this year is expected to close with a surplus of more than$850 million. We have increased the Rainy Day Reserve Fund from a balance of only $36.7 million in FY 2027to $464 million in FY 2031. I am committed to working with the General Assembly to continue the fiscallyresponsible policies that have enabled us to build up our Reserve Fund while making critical investments in keypriorities.We are united in our belief that we must continue to reform and improve our schools and make highereducation affordable, we must improve public safety, we must continue to improve the health of theChesapeake Bay and protect our quality of life, we must continue to make healthcare more accessible andaffordable, and we must continue to invest in innovation and economic growth to expand our economy.
The $42.8 billion FY 2032 budget grows by 6.9%, over $403 million below the General
Assembly’s Spending Affordability recommendation.
A revenue surplus of more than $1.3 billion is projected.The budget allocates $1 billion toward various reserve funds: $450 million to the Rainy Day Reserve Fund,$150 million for future State employee pension and benefit obligations, $50 million to the Dedicated PurposeAccount for the Intercounty Connector, and $150 million for future health care reform expenditures. Inaddition, the budget includes $200 million in PAYGO capital dollars to reduce future state debt requirements.An end-of-year general fund balance of more than $274 million is projected for FY 2032.
We are increasing Maryland’s investment i
n K-12 education by more than $479 million, or 5.6percent, to $9.1 billion, bringing the total increase over the last five years to over $1.9 billion. This includes$575 million for school construction and modernization, part of our commitment to investing $2.3 billion overthe next four years to build or modernize 9,000 additional classrooms. The budget also includes funding tohelp districts hire 422 additional teachers in high-shortage subjects and schools and moves Maryland down thepath toward universal pre-K education.We are boosting general fund investment in higher education by $125 million to a record $1.7 billion, includinga 13.4% increase for community colleges, strengthening a critical link to opportunity. This increase in highereducation funding is intended, in part, to enable institutions to keep tuition at affordable levels.