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Prince George's County officials warned of worsening Maryland budget gap and possible federal-driven job losses

March 11, 2025 | Prince George's County, Maryland


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Prince George's County officials warned of worsening Maryland budget gap and possible federal-driven job losses
Prince George's County Council Vice Chair Wanika Fisher convened the General Assembly Committee on March 11 for an informational briefing on the evolving Maryland budget picture and possible effects on the county.

Barnes, a longtime state budget presenter (introduced in the session as former chair Barnes), told the committee that "the budget deficit has increased from 3,000,000,000 to roughly $3,300,000,000." He and Delegate Jimmy Tarlow described a Board of Revenue Estimates update that also showed a roughly $280 million drop in projected revenue between fiscal years 2025 and 2026 and warned that job losses at the federal level could depress local income-tax receipts.

Why it matters: County officials said a significant share of Prince George's County income derives from federal wages, so cuts at the federal level would have an outsized effect locally. Tarlow noted the Board of Revenue Estimates and national economic signals underlay state-level choices on whether to raise revenue or cut spending, and that timing could trigger a special legislative session in September or October if federal changes take effect Oct. 1.

Details from the briefing: County and outside presenters flagged several points for the committee. The March revenue forecast showed a projected loss of about $280 million in state revenue across FY25–FY26. Presenters cited an estimated loss of as many as 20,000 federal jobs that would reduce income-tax and corporate-tax receipts (presenters tied the county impact to that federal worker concentration). The presenters said roughly 15% of Prince George's County household income is related to federal employment and that the average federal salary in the county appeared to be in the six-figure range.

State policy options under discussion in Annapolis include a proposed business-to-business services tax (a 2.5% levy on certain services such as accounting and advertising that supporters say could raise close to $1 billion), plus ongoing discussion of a tax on sugar-sweetened beverages. Presenters told the committee that some proposed revenue changes could be implemented more quickly than others; for example, measures affecting business-to-business services might take effect sooner than measures that require multi-year statutory changes.

Council discussion and next steps: Committee members asked for regular updates. Council Member Reyes asked for a "cheat sheet" listing which blueprint or program cuts would cost the county the most if restored, and presenters agreed to provide more detailed, evolving analyses. Committee members and staff said they were tracking possibilities including a short-term stopgap, a potential special session, and the knock-on effect of federal policy choices.

The presentation closed when the committee moved on to later agenda items; no formal action was taken on the budget briefing itself.

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Scribe from Workplace AI
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