Moore, a rising Democratic candidate, was elected on a major platform of “leaving no one behind,” but he found himself facing a budget shortfall to cover his pledge.
The Maryland Public Utilities Commission, a three-member panel made up of Moore, the state treasurer and the state comptroller, is scheduled to vote next week on proposed cuts to the state’s $57.7 billion budget.
The cuts proposed Wednesday would affect the local health department, a planned pay increase for public defenders and the Port of Baltimore’s drone security program. There are a variety of projects, including an urban forestry program, that the Moore administration has labeled as spending increases and decided to slow down the pace of spending to free up funds for higher priorities.
“By increasing our state’s investments in health care and child care, we will lift our communities, empower Marylanders to participate in our economy and stimulate long-term growth,” Moore wrote in an opinion piece in The Baltimore Sun announcing the budget cuts Wednesday morning. “And on top of that, today’s proposed changes to the state budget do not cut a single penny from critical priorities, from transportation to K-12 education.”
Enrollment in the state’s subsidized child care program has surged over the past two years, and the governor has sought to contain costs by imposing copayments for most families.
At the time, some Democrats criticized the measure as a way to balance the state budget “at the expense of working families,” but ultimately, the copayments that Moore said were necessary for the program’s sustainability went into effect this summer.
Under the program, families of four who earn less than $126,000 a year can receive state assistance for child care in licensed child care facilities. When Moore takes office in January 2023, roughly 24,000 children were expected to be enrolled, but as of June this year, more than 40,800 children had been enrolled, exceeding the state’s expectations.
Moore argued that investing in child care supports helps parents stay in the workforce and benefits the state’s economy.
According to an economic analysis conducted in January by Maryland Comptroller Brooke Lierman (D), 100,000 women have dropped out of the state’s workforce since the pandemic began, a rate at least double the national average. Most of these women were in the prime of their working lives. At the same time, the cost of child care has risen dramatically in Maryland. Between 2019 and 2023, the average annual cost of child care will increase by at least 14% and as much as 30%, the report said.
State budget officials said they couldn’t predict how much of the $150 million would be needed for child care programs and how much would be needed to meet unexpectedly high Medicaid costs. In a background briefing with reporters, administration officials said Moore had asked for the cuts early on after seeing both programs run short on funds.
In Maryland, Medicaid enrollment remains near its pandemic peak, even as the state gradually winds down a blanket enrollment policy it enrolled during the pandemic. Just under 1.7 million of Maryland’s roughly 6.1 million people are enrolled in the low-income health program, state officials said. Medicaid budget experts’ projections were wrong on two counts: enrollment is growing and per-person costs are rising.
Republican leaders in the Legislature’s minority offered mixed reviews of the proposed cuts. “Following tax and fee increases over the past year and a half, we applaud the Governor’s action to not increase spending or taxes at this time,” House Minority Leader Jason C. Buckle (R-Allegany) said in a statement. “However, it is important to note that this is not a true budget cut. This is essentially a diversion of funds from other priorities rather than saving money for future budget shortfalls.”
