A Balancing Act

March 20, 2026

Dear Friend:

Of the 1,406 bills introduced in the Senate this session, the most significant is always the State Budget. Unlike Congress, Maryland is required by our Constitution to pass a balanced budget. This week, the Senate debated and approved a preliminary spending plan for Fiscal Year 2027. The budget now moves to the House; a conference committee will reconcile differences between the two chambers. The Capital Budget will be presented soon with funding for local community projects.

With 25 days remaining, here’s a brief overview of the Senate’s version:

Tackling a Budget Shortfall

This year, we faced significant budget challenges. Spending cuts and sweeping federal workforce layoffs by the Trump Administration and its arbitrary Department of Government Efficiency (DOGE) forced us to confront a roughly $1.5 billion shortfall.

Addressing this gap required tough but necessary actions, including spending reductions and program delays. I believe that Maryland must continue to be fiscally prudent and socially responsible.

The $70.8 billion budget approved by the Senate includes no increases in taxes or fees. I was proud to support this plan, which delivers critical funding and resources. I was disappointed that it did not receive unanimous, bipartisan support.

Speaking during the Budget floor debate on Tuesday.

Highlights of the budget include:

  • Investing in our public schools under the “Blueprint for Maryland’s Future” (learn more below);
  • Helping lower energy bills;
  • Funding Emergency Responders with $25 million (M) to compensate for federal cuts;
  • Dedicating $20M to the Child Care Scholarship Program for working parents;
  • Withholding $124M allocated for local governments until they certify they are not cooperating with the lawless Immigration and Customs Enforcement (ICE), in keeping with SB245;
  • Committing $24.4M for new voting equipment;
  • Protecting our future with $2.2 billion in the Rainy Day Fund (about 8% of General Fund revenue);
  • Distributing $20.4M in grants to nonprofit organizations; and
  • Creating a $250M surplus!

Adding It Up For Our Schools

Next year’s education budget continues to advance the historic Blueprint for Maryland’s Future, providing new resources for schools across the state. Funding increases ensure that per-student support grows, helping local school systems meet the standards and goals set by the 10-year plan.

Notable investments include:

  • K-12 Aid: $228M more to support schools and students needing additional help;
  • School Construction: $480.5M for modernize facilities, including $100M to address overcrowding in fast-growing counties;
  • Teacher Pipeline: $19.4M to train school staff as teachers and $6.6M to help teachers advance in their careers;
  • Community Schools: $572M to provide low-income students with extra services and support staff; and
  • Pre-kindergarten: $284M to expand early learning opportunities.

NOTE: Last year, the MoCo Delegation brought home more than $1.1 billion for Montgomery County Public Schools– including $52.1M for construction and renovations.

Follow me on Facebook (@CherylCKagan)Twitter/X (@CherylKagan), and Instagram (@CherylCKagan) for photos and posts. My website has a portal to request help with challenges you’re having with State government or communicate your legislative opinions. Subscribe to my YouTube ChannelApple podcasts, or Spotify to be alerted to new episodes of my “Kibbitzing with Kagan” podcast. And you can always send me questions or comments via email.