Local leaders weigh in on governor’s proposed budget

MARYLAND – Local business leaders are weighing in about Maryland Governor Wes Moore’s proposed budget for fiscal year 2026.

“Cautiously optimistic,” were the words Bill Chambers of the Salisbury Chamber of Commerce used to described the business community’s thoughts on Governor Moore’s proposed budget for the state.

“The governor has probably had one of the more difficult budgets in state history to develop,” said Chambers.

Chambers said he and others in the business community feel the governor’s proposed budget is a step in the right direction.

“His budget reduces the structural state deficit by $2.25 billion, which is significant since the budget deficit is projected at $3 billion,” said Chambers. “He’s investing $400 million in our community colleges, which is that conduit to the workforce that we need. Continued investment in law enforcement. He’s reducing the corporate income tax rates starting in 2028 which is a good sign.”

However, the budget does not come without worry.

One concern both Chambers and Bill Christopher of the Dorchester County Chamber of Commerce share is about increased taxes on high earners, especially because those same high earners also tend to be job creators.

“Putting that burden on the higher earners could potentially drive some folks out of the state, which is what we’ve seen happening as the tax rates for surrounding states are less,” said Christopher.

Christopher said he is also concerned about the implementation of combined reporting for businesses. This would require Maryland businesses to combine their income from labor in other states with their income from Maryland.

It’s something Christopher said will hurt small businesses.

“If the business in Maryland is not doing that well, your now going to pay more taxes for that business and [some would say] if that business isn’t doing well, I’m just going to shut it down because its actually driving my tax rates up and move those operations to a more profitable area,” said Christopher.

State law requires a balanced budget. The deadline to finalize it is the last day of the legislative session in April.