Gov. Wes Moore has followed through on his commitment to restore funding for the Developmental Disabilities Administration (DDA) in Maryland. But to make room for that money, other programs—including clean energy initiatives and state employee raises—have taken a hit.
The $360 million supplemental budget released Tuesday also postpones the rollout of the Family and Medical Leave Insurance program by another year. Cost reductions in the package amount to $117 million, including these deferrals and cuts.
DDA Funding Restored, But Future Uncertainty Remains
Moore’s initial budget plan had proposed slashing DDA funding by $200 million by the end of the fiscal year, sparking outcry from advocates. Facing mounting pressure, his administration reversed course, securing funds for the agency, which provides services to individuals with developmental disabilities.
Yet, even with the revised budget, the bigger issue remains: a looming $457 million cut to the DDA for fiscal 2026. Advocacy groups are not letting their guard down.
“We’re grateful that the governor issued the supplemental to address that (fiscal 2025),” said Laura Howell, CEO of the Maryland Association of Community Services. “Obviously, that doesn’t help with the $457 million cost containment for FY ’26. So that’s still a big priority we need to work on.”
The supplemental budget plays a key role in state negotiations, often serving as a tool to shift funds once analysts have scrutinized the governor’s original proposal. But with Maryland staring down an estimated $3 billion budget shortfall, lawmakers, advocates, and agencies are examining every decision under a microscope.
Projected Revenue Drop Could Complicate Budget Plans
Moore’s budget adjustments came just days before the Board of Revenue Estimates (BRE) is set to release its final revenue forecast. Early reports suggest the state could be looking at a revenue decline of up to $300 million for the current fiscal year and fiscal 2026 combined.
Notably, Moore’s supplemental budget does not explicitly account for these anticipated losses. If BRE confirms a shortfall, further cuts or policy shifts may be on the horizon as lawmakers attempt to balance the books.
State Employees Face Wage Restrictions
One of the most contentious cuts in the supplemental budget involves state worker compensation. While all 52,000 state employees will receive a 1% cost-of-living adjustment for fiscal 2026, not all will be eligible for additional wage increases.
- Represented employees can still qualify for merit-based or step increases.
- Approximately 12,000 state employees, primarily managers, executives, and special appointees, will be ineligible for raises beyond the 1% adjustment.
- The wage policy change is expected to save the state $37 million.
This move has already drawn concern from labor groups, who argue that limiting raises for certain employees could affect retention and morale.
Clean Energy Budget Shrinks
Another major shift in the budget involves Maryland’s investment in clean energy projects. Moore’s initial plan allocated $180 million to boost the Strategic Energy Investment Fund, effectively doubling its budget. But the revised version cuts that amount by $80 million, leaving only $100 million for the initiative.
Despite the reduction, the remaining funds still mark a $10 million increase from the previous fiscal year. However, the diverted $80 million will now go into the general fund to offset other costs.
The decision raises questions about Maryland’s long-term commitment to its clean energy goals, particularly as federal and state climate policies evolve.
What Comes Next?
With lawmakers bracing for the BRE revenue report, further budget discussions could see additional revisions. As the state navigates a multi-billion-dollar shortfall, funding priorities will continue to be fiercely debated in Annapolis.
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