Wes Moore announces plans for $150 million in budget cuts

Just ten days into Maryland’s budget, Gov. Wes Moore (D-MD) announced a proposal that will cut $150 million in spending across five state agencies and the state savings account in order to finance Medicaid and childcare.

The proposed cuts will drain the states' savings account by 10%.

Moore shared his plans in an op-ed for the Baltimore Sun, noting that the state’s stagnating economy has made it challenging to meet the state’s budget needs.

As a former businessman, Moore prided himself and the legislature’s ability to pass a balanced budget for the second year in a row, marking the first back-to-back balanced budget for the state in ten years.

However, with the rise in popularity of the state’s childcare subsidy program and the unexpected costs of Medicaid, Moore determined that cuts must be made to the $57.7 billion budget.

“By increasing state investments in healthcare and childcare, we will ensure that we elevate our communities, help Marylanders participate in our economy, and stimulate long-term growth,” Moore wrote . “And on top of that, today’s proposed changes to the state budget won’t cut a penny for critical priorities, from transportation to K-12 education.”

The proposed budget cuts will affect local health departments, planned raises for public defenders, an urban forestry program, and a drone security program, all of which Moore had deemed a lower priority than Medicaid funding and the childcare subsidy program.

Between 2019 and 2023, the cost of childcare in Maryland increased by at least 14% and as much as 30%.

Maryland’s comptroller, Brooke Lierman, found that as childcare costs increase, the overall female employment decreases by 5%.

The state established a Child Care Scholarship Program which grants financial assistance for a family of four making less $126,000 a year. The state was surprised by the program’s popularity, with a 70% increase in enrollment since the program’s first day.

Meanwhile, Medicaid enrollments remain near peak levels from COVID-19, with just under 1.7 million of the state’s 6.1 million people enrolled.

For Moore, ensuring the health of the state’s population is critical in ensuring that people are able to work and pursue the best jobs available to them.

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“We are making tough decisions about how we spend what we have,” Moore said. “That’s what responsible governing looks like, and it will help us unlock Maryland’s promise.”

The budget cuts will be voted on by the Maryland Board of Public Works, a three-member panel composed of Moore, the state treasurer, and the state comptroller.