Governor Larry Hogan Announces Fiscal Year 2017 Budget
Provides Record Investment in Education and Positive Tax Relief, Holds Line on Spending
Provides Record Investment in Education and Positive Tax Relief, Holds Line on Spending
ANNAPOLIS, MD – Governor Larry Hogan today announced his Fiscal Year 2017 Budget, which is both fiscally responsible and balanced; it controls spending while fully funding all education formulas and all legislatively mandated spending.
The FY 2017 operating budget totals $17.1 billion, and includes a Rainy Day Fund balance of almost $1.1 billion and a cash balance of $449 million going into FY 2018. In 2015, the Hogan administration inherited $5.1 billion in accumulated structural deficits, including a $2.1 billion deficit in 2015 and 2016. Over the course of the last year, almost 90 percent of that inherited $5.1 billion deficit has been eliminated. The governor’s proposed budget continues to build on this progress and provides for sound fiscal management in future years.
"Our proposed FY 2017 budget brings fiscal restraint back to Annapolis and holds the line on spending, while increasing funding for top priorities like education and infrastructure," said Governor Hogan. "I am hopeful that this budget will set the stage for bipartisanship, while helping us clean up problems of the past, take care of our current issues, and make provisions for a better future."
For the second straight year, the governor’s budget provides a record-high level of funding going toward the education of Maryland’s children, including $6.3 billion for K-12 education, which is approximately $140 million more than last year. The budget also fully funds the Geographic Cost of Education Index (GCEI), making Governor Hogan the first governor in Maryland’s history to fully fund this program in a second budget.
Additionally, the FY 2017 budget provides for the tax and fee relief legislation recently announced by the governor that will save Maryland citizens and businesses approximately $480 million over the next five years. The Marylanders who will benefit the most under the governor’s proposals are the citizens who have been struggling the most: working families, retirees, and small businesses.







