ANNAPOLIS, MD – Maryland Senate Republican leaders are warning that the state’s finances are heading toward a breaking point after budget analysts revealed a projected $1.4 billion structural deficit for the upcoming fiscal year.
The forecast was presented during a Spending Affordability Committee briefing earlier this month.
Senate Minority Leader Steve Hershey said the report validates repeated Republican warnings about overspending and the long-term costs of new government programs.
“You can’t spend like there’s no tomorrow and act surprised when the bill comes due,” Hershey said, pointing to rising costs tied to the Blueprint for Education and other state initiatives.
He argued that despite record tax and fee increases, Marylanders now face growing fiscal pressure at home.
Republicans blame deficit on spending growth
Senate Minority Whip Justin Ready said the timing of the announcement signals a contentious 2026 legislative session, which will coincide with an election year.
“The 2026 session will be an Election Year Budget, and Democrats will do everything possible to paper over the problem until after November,” Ready said. “These programs are growing faster than our economy—and the bill is coming due.”
Republican leaders said the shortfall reflects structural imbalances rather than a lack of revenue. They called for greater spending restraint, arguing that the state cannot sustain long-term commitments without corresponding funding.
Budget analysts are expected to present updated projections in early 2026 as lawmakers prepare to debate the next fiscal plan.
Key Points
- Maryland faces a projected $1.4 billion structural deficit heading into the 2026 session.
- Senate Republicans blame unchecked spending and expansion of state programs.
- GOP leaders predict fiscal restraint will dominate next year’s budget debate.