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The proposal includes a new 3% tax on data and IT services.
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The controversial proposal is estimated to bring in $1 billion a year.
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The 2.5% tax would cover accounting, landscaping, and valet parking, among others.
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Frederick County prepares for the worst financially, as the Maryland General Assembly considers legislation that may shift the responsibility of balancing the state budget onto local governments.
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The fund shuffling comes at the cost of some state employee raises.
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Nearly half of that, about $33 million, went to the Baltimore City Fire Department to cover overtime for sworn positions and unexpected contracting costs for fire and EMS services.
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Legislative leaders say the cuts are necessary to prepare for likely cuts in federal spending.
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The Democrat used his annual address to make the case for his proposed budget, including plans to raise taxes on top earners.
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Gov. Wes Moore is scheduled to deliver his annual State of the State address Wednesday at noon.
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The state is facing a nearly $3 billion deficit next year.