Mid-Year Budget Reductions in Maryland

Blog post

In December 2014, the Spending Affordability Committee of the Maryland General Assembly issued its 2014 committee interim report, which makes budgetary recommendations to the governor and the Legislative Policy Committee. The report projected a $414 million deficit at the close of the 2014-15 fiscal year that requires spending reductions or the identification of additional revenues. The projected deficit comes despite the Board of Public Works approving a $75.9 million general fund budget reduction in July 2014, which included reductions of $6.3 million from the University System of Maryland and $3 million from state aid to nonpublic institutions of higher education.

On January 7, 2015, the Board of Public Works approved further mid-year budget adjustments, including a $197.8 million general fund reduction. That total includes a $6.6 million reduction to community college formula funding, a $40.3 million reduction to the University System of Maryland, and a $2.8 million reduction to the state Department of Education. In addition, the adjustments include an estimated $37.5 million in savings by abolishing currently vacant employee positions as well positions vacated as a result of a voluntary early retirement program, and $108.1 million in fund transfers.