By Lauren Proudfoot
Baltimore Watchdog Staff Writer
Gov. Larry Hogan Thursday outlined a five-point plan for how he intends to use an estimated $2.5 billion surplus in the state’s coffers.
Hogan, a Republican who is serving his last term in office, said during a press conference that he will increase the state’s Rainy Day Fund by 7.5%. The plan will make more revenue available in the future for potential recessions and crises, he said.
The governor said he will also push for tax relief to the state’s retirees.
“I still hear nearly every day from folks who say to me that they love the state of Maryland … they can’t afford to retire here in Maryland,” Hogan said. “Sadly, we’re one of the worst states in the country to retire in even though we’re one of the best places in America to live.”
Hogan said he has been trying to cut retirement taxes for seven years, but he said the state Legislature won’t go along.
Third, Hogan said he will propose that Maryland build on the RELIEF Act that was passed by the General Assembly this year to provide stimulus checks to qualified state residents negatively impacted by the coronavirus pandemic. The governor specifically called for additional direct tax relief for working families who need help.
“My top economic priority continues to be making sure that Marylanders can keep more of their hard-earned money in their own pockets,” Hogan said.
Fourth, Hogan said he wants to continue providing targeted relief for residents who are struggling to make ends meet due to the coronavirus pandemic.
Maryland was given more federal funds from the American Rescue Plan Act of 2021 than any other state, Hogan said. In addition, the governor said the state distributed over $14.1 billion in unemployment aid and committed more than $248 million in rental assistance.
Lastly, some of the funds will be going to state employees who have been working throughout the pandemic, Hogan said. Hogan said he has directed the Maryland Department of Budget and Management to find out how best to benefit state employees.
“As long as I am governor,” Hogan said, “I will continue to fight for fiscal discipline, I will continue working hard every single day to make it easier for Maryland families, small businesses, and retirees to stay in our state, and I will continue fighting to allow Marylanders to keep more of their hard-earned money in their own pockets so that we can continue changing Maryland for the better.”
Maryland Senate President Bill Ferguson, D-Baltimore, expressed skepticism over the governor’s proposals.
“Today’s press conference by the Governor raised more questions than it answered regarding the State’s $2.5 billion surplus,” Ferguson said in his statement.
Ferguson said he is looking forward to seeing more details when they are released.