This legislative update was provided by:
Johnny Mautz, Maryland State Senate District 37
Budget Crisis Worsens, Senate Kills Inappropriate School Bill
We’re now nine weeks into the 2025 Legislative Session, and I wanted to update you on some major developments that impact our community and our state’s future.
On Thursday, the Board of Revenue Estimates (BRE) announced that Maryland’s General Fund revenue has been written down by $280 million.This means our budget gap has grown to $3.3 billion — an alarming shift from the $2 billion surplus Governor Moore inherited when he took office.
Maryland’s budget problems have gone from bad to worse, and now they’re abysmal.Marylanders are paying the price for single-party rule in Annapolis and an overreliance on federal funding. Democrats are blaming the Trump Administration, but the truth is that economists have warned for years that Maryland’s economy depends too heavily on federal jobs.
We’ve seen this vulnerability during:
- 2008-2010 Financial Crisis & Stimulus Spending
- 2013 Sequestration & Budget Cuts
- 2017-2020 Federal Budget Constraints & Shutdowns
- 2022-Present COVID Recovery & Budget Deficits
Despite repeated calls for economic diversification, Maryland’s reliance on federal employment and grants continues, leaving our budget vulnerable when federal spending shifts.
We cannot tax our way out of this deficit. We need spending cuts and policies that foster economic growth and make Maryland financially self-reliant.
Proposed: New 2.5% Business-to-Business Sales Tax
Once again this week, Democrats introduced yet another tax proposal — a 2.5% sales tax on business-to-business services. If this passes, businesses will face extra costs when hiring accountants, consultants, or staffing agencies. This will make it even harder to operate a business in Maryland and risks driving Maryland companies to seek out-of-state services to avoid this tax.
Business types affected by the Democrat’s new 2.5% sales tax:
• Accounting, Bookkeeping, Billing, Payroll
• Office Support Services
• Staffing/Temp Agencies
• Data or IT Services
• Software/Mobile App Development
• General Consulting Services
• Photography, Design or Printing Service
• Lobbying
• Public Relations & Marketing
• Landscaping Services
• Heavy Truck or Bus Repair
• Financial Planning and Tax Preparation
• Appraisals
• Sports or Performing Arts Advertising Service
• Valet or Parking Services
This is yet another example of misguided policies that hurt Maryland’s business community. With neighboring states like Virginia offering lower taxes and fewer regulations, we’re making it harder for Maryland businesses to compete.
Maryland Federation of Republican Women’s (MFRW) Annual Red Scarf Day
| On Tuesday, we were proud to welcome members of the Maryland Federation of Republican Women (MFRW) to Annapolis. These dedicated women joined us in our morning caucus meeting, attended a Senate Floor Session in the Gallery, and spent the day connecting with members and advocating for Marylanders.We are incredibly grateful to the MFRW for always stepping up to support our Republican message, both in Annapolis and in communities across the state. |
Senate Kills “Condoms for Kiddies” Bill
I was pleased to see the Senate Judicial Proceedings Committee voted down House Bill 380 on Friday. This bill would have allowed condoms to be sold in vending machines in nursery schools, preschools, and elementary schools.It’s shocking that this bill passed the House in the first place. I applaud my Republican colleagues on the committee who led the effort to kill this inappropriate legislation. This is a win for parents and common sense. We need to let parents make decisions about when and how to have these discussions with their young children.
