Maryland remains in a decades-long cycle of structural budget deficits driven by excess spending. For instance, Maryland’s budget has risen to $42 billion in 2016 from $30 billion just ten years earlier. The Institute’s key recommendations for budget and tax reform are:
- Rein in mandated spending, which accounts for 83 percent of Maryland’s state budget.
- Tie Maryland’s debt limit to property values, not property tax revenue, to erase the incentive to increase property tax rates to fill budget gaps.
- Tie state government spending to personal income growth or a “population plus inflation” metric.
- End the decades-long raiding of special funds to balance the state’s budget.