Annapolis faces $3 billion budget shortfall as governor prepares to unveil fiscal plan

Hampstead Town Council members are gearing up for a busy legislative season as they prepare to review a significant number of bills that could impact local governance. During the meeting on January 14, 2025, council members discussed the upcoming budget announcement from the governor, which is expected to reveal a staggering $3 billion shortfall—approximately 5% of the total state funding.

The council highlighted the importance of understanding the budget's implications, particularly as revenues have decreased over the past three years, largely due to the waning of one-time federal funds. The projected revenue for the next fiscal year is expected to drop from $66.6 billion to $63.2 billion. Notably, income tax contributes 23% to the state's revenue, while federal funds make up the largest portion.

Expenditures are also a concern, with health care and education accounting for over half of the budget. Health care alone represents 32%, while elementary and secondary education takes up 18%. The council anticipates that any budget cuts will likely come from these critical areas.

In addition to budget discussions, the council addressed a recent bill that would require individuals managing municipal finances to hold a finance or accounting degree. The council expressed opposition to this bill, emphasizing that such a requirement may not be practical for local governments.

The meeting concluded with the reappointment of Sharon Callahan to the Planning and Zoning Commission for a five-year term. Callahan's extensive background in residential real estate has been invaluable to the council, and her continued service is expected to benefit future planning and zoning efforts.

As the legislative committee prepares to meet weekly throughout the session, the council remains focused on advocating for the town's interests and navigating the challenges posed by the upcoming budget.