MFRW Legislative Update Jan 19, 2025

Here is the MFRW Weekly Legislative Update for January 19th.  Lots of additional information and hearing dates.  Remember to submit written or oral testimony you must sign up through your MyMGA account at: http://mgaleg.maryland.gov two workdays prior to the date of the hearing for House bills, and one workday prior to the hearing for Senate bills from 8 a.m. to 6 p.m.

The Governor's budget was released on Wednesday.  Below is a summary that Senator Johnny Mautz' shared with us:

 FY26 Budget Highlights

  • Governor Moore’s FY26 Budget $67.3 billion FY26 budget proposal represents a 1% spending increase over last year, and includes $987 million in new or increased taxes, fees, and assessments.

  • This year, the House of Delegates will work on the budget first, and the Senate will then work on the version of the budget they pass.

  • The Governor’s submittal falls short of the SAC Recommendation to eliminate the   projected $2.5 billion structural deficit.

  • Investments in economic development – Sunny Day Fund and Trade Point Atlantic

  • Doubles money for climate reduction plans from $90 million to $180 million. All climate money is for wind and solar.

  • Level funding ($122 million) for local police funding.

  • $200 million reduction in Developmental Disabilities Administration

  • $2.5 billion in adjustments to Blueprint over five years.

  • $400 million in childcare scholarships

  • $9.7 billion for K-12 education

  • Rainy Day fund stays at 8% 

Taxes & Fees

  • Increases the standard deduction and applies it to all households regardless of income BUT creates two new income tax brackets for high-income earners.

  • Reduces Corporate Income Tax rates from 8.25% to 7.99% but implements combined reporting.

  • Cannabis Tax is increased from 9% to 15%

  • Casino table game tax rate increased from 20% to 25%

  • Establishes a four-year surcharge on capital gains income over $350,000

  • Eliminates the inheritance tax BUT lowers the estate tax exemption from $5 million to $2 million.

  • Creates an online retail delivery fee of 75 cents on deliveries subject to the sales tax.

  • Increases emissions fee from $10 to $30 and the emissions late fee from $15 to $30

  • Establishes an Administrative Fee if you pay your vehicle registration costs through installments

  • Caps Vehicle Trade-In Allowance

  • Expedites the implementation of last year’s increases in vehicle registration fees.

  • Establishes a 0.15% Unemployment Insurance Administrative Fee

  • Increases in Medicaid Hospital Assessment by $139 million.

Next week on January 29th the hearing on MFRW Priority Fairness in Girls' Sports (HB 156) will be held in the Ways & Means Committee.  The Chairman has limited oral testimony to the bill sponsor only.  However, we can all submit written testimony and contact the W&M Committee members and urge their favorable vote for protecting biological girls in high school competitive sports.  We are grateful to Delegate Szeliga and the other 23 Republican Delegates sponsoring this legislation.  Watch for more information on activities to support this bill.

The day before on January 28th, HB 91 - Proof of Identity to Vote in person by Delegate Bob Long will be heard in Ways & Means Committee.  It is truly difficult to understand why the Committee has been unwilling to vote favorably for Voter ID at the polls.  Maryland voters overwhelming support Voter ID.  Please submit written testimony and/or send emails to the Ways & Means Committee to support this bill.

Sincerely,

Ella

Ella Ennis

Legislative Chairman

Maryland Federation of Republican Wome

Darcey Clark