The Maryland Association of Counties Winter Conference in Cambridge

Maryland Governor Wes Moore told state leaders on Thursday that tax increases will not be a solution to the projected $1.5 billion budget gap for fiscal year 2027.

CAMBRIDGE, MD - Maryland Governor Wes Moore told state leaders on Thursday that tax increases will not be a solution to the projected $1.5 billion budget gap for fiscal year 2027. 

Moore told constituents he did not anticipate any new tax proposals during an evening address on the second day of the Maryland Association of Counties’ winter conference in Dorchester County. 

Senate Minority Leader and Eastern Shore representative for District 36 Steve Hershey (R) told WBOC Friday that he is skeptical that the commitment will hold. 

"It's good to hear the governor talk last night about affordability,” Hershey said. “Last year, the governor said that there was a very high bar for raising taxes, and he blew through that and raised $1.6 billion in new taxes." 

Senator Hershey told attendees at Friday’s 2026 General Assembly Forecast that lawmakers must weigh wants against needs with the deficit looming. Hershey told WBOC that the Republican position is to cut costs from programs he called non-essential, including the Family and Medical Leave Insurance Act. 

"If that's fully implemented, that's a $1 billion a year tax on employers,” Hershey said. “At this point, you really just have to look at eliminating that program." 

Fellow Eastern Shore Senator Mary Beth Carozza represents Somerset, Wicomico and Worcester Counties. She told WBOC that the Blueprint education plan should also be reevaluated during the next legislative session. 

“The local school systems are asking, demanding the flexibility they need for whatever the budget might be on education,” Carozza said. “We at the state level haven’t paid for it … we can’t pass those costs onto the counties.” 

The Maryland General Assembly will meet again in Annapolis on January 14, 2026. 

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