Medicaid, Child Care Spending Add to State’s Fiscal Woes

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Maryland faces nearly $1 billion in projected budget deficits driven by as much as $800 million in projected Medicaid shortfalls over two years. Last Wednesday, the Board of Public Works, chaired by Governor Moore, approved nearly $150 million in budget reductions. The cuts will be coupled with other actions in an attempt to ease the pressure on the state’s budget. Legislative budget analysts warn of growing structural deficits in the billions of dollars through fiscal 2028. Most of that is tied to more expensive parts of the state’s Blueprint for Maryland’s Future education plan.

Cuts or reallocations: Republican legislative leaders said the actions, unanimously approved by the board, are neither cuts nor fiscally responsible — arguing they have simply reallocated spending rather than reducing it.

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