Gov. Larry Hogan’s proposed budget for the fiscal year that begins in July closes an estimated $544 million revenue shortfall and ends with a balanced budget. The Republican executive, a proud fiscal conservative, touted this achievement when he announced his budget last week.
But Warren Deschenaux, the state’s top policy analyst, warned a joint meeting of the House Appropriations and Senate Budget and Taxation committees that state spending is likely to outpace revenues by more than $300 million in the following fiscal year, not counting a few tax cuts Hogan has proposed. And the deficit is likely to grow to more than $1 billion four years later.