Senate Republicans Offer Spending Cuts, Tax Relief, and Accountability Amendments to Budget and BRFA

Caucus Pushes Back on “Election Year Budget” Built on Fund Raids, Cost Shifts, and Short-Term Fixes

Annapolis, Md. - Senate Republicans today offered a series of amendments to the Fiscal Year 2027 Budget and Budget Reconciliation and Financing Act (BRFA), advancing a clear alternative focused on tax relief, spending discipline, and accountability to taxpayers.

While Maryland faces growing multi-billion-dollar structural deficits in the years ahead, the Democrat budget avoids meaningful spending reductions and instead relies on a series of budget maneuvers, including transferring money out of dedicated funds, to backfill ongoing spending. “We targeted the issues causing the most stress for Marylanders: vehicle fees, energy costs, and taxes. Our members offered commonsense solutions that would deliver immediate relief,” said Senate Minority Leader Steve Hershey.

Republicans Push Spending Discipline and Tax Relief

As part of their effort to restore fiscal discipline, Sen. Paul Corderman, Ranking Republican Member on the Senate Budget and Taxation Committee, proposed a 5% across-the-board spending reduction, cutting hundreds of millions of dollars from state spending. The proposal reflects a straightforward principle: state government should not continue to grow unchecked while Maryland families are being forced to make tough financial decisions.

“Families across Maryland are tightening their budgets, government should be expected to do the same,” Hershey said.

Republican amendments focused on lowering everyday costs for Marylanders:

• Sen. Mike McKay — Repeals recent vehicle registration fee increases enacted in prior BRFAs, rolling back higher costs imposed on Maryland drivers.

• Sen. Justin Ready — Repeals the Vehicle Emissions Inspection Program (VEIP), eliminating a recurring cost and regulatory burden on vehicle owners.

• Senate Minority Leader Steve Hershey — Repeals the state’s IT/data tax, which has underperformed revenue projections while discouraging business investment and contributing to companies leaving the state.

• Sen. Jason Gallion — Prioritizes paying off the EMPOWER surcharge before funding additional renewable energy mandates, helping ease long-term pressure on ratepayers’ utility bills.

• Sen. J.B. Jennings — Updates historic vehicle eligibility by establishing a rolling 25-year standard, modernizing the law while preserving the program’s intent. This amendment was adopted with bipartisan support.

“Marylanders are feeling these costs everywhere – at the MVA, in their utility bills, and in everyday expenses,” said Senate Minority Whip Justin Ready. “These amendments were about real, practical relief people would actually notice.”

One Republican amendment, led by Sen. J.B. Jennings, was adopted with bipartisan support, demonstrating that commonsense reforms can move forward, even as the majority rejected nearly every other effort to lower costs and improve accountability.

Accountability, Economic Competitiveness and Public Safety

Senate Minority Leader Hershey also introduced an amendment to repeal Maryland’s 3% tax on technology services, a policy that has fallen far short of expectations while distorting business decisions.The tax was projected to generate nearly $500 million annually. However, midway through the fiscal year, collections totaled just $35 million, with revised estimates now around $100 million.

“That’s not a minor shortfall — that’s a fundamental miss,” Hershey said.

Rather than absorbing the tax, businesses have restructured contracts, shifted procurement out of state, and, in some cases, invested elsewhere — the predictable result of taxing a highly mobile sector. “Businesses don’t just sit still — they adapt, and Maryland loses,” Hershey said. Senate Republicans warned the policy is generating a fraction of the promised revenue while signaling that Maryland is becoming a more difficult place to invest. Beyond addressing failed policies like the tech tax, Republican amendments also worked to protect taxpayers and restore accountability in how state funds are used:

Additional amendments focused on protecting taxpayers and ensuring responsible use of funds:

• Senator Paul Corderman — Protects local governments by maintaining the current county share of teacher, library, and community college pension costs, preventing the state from shifting a larger share of these costs onto counties and local taxpayers.

• Senator Johnny Mautz — Prohibits funding to nonprofit organizations that are delinquent in filing required tax returns, strengthening basic financial accountability.

• Senator Mike McKay — Establishes a dedicated Roads and Bridges Account to ensure transportation-related revenues are used for infrastructure improvements, not diverted to other purposes.

Senate Republicans also pushed back against language tying police funding to immigration enforcement policies.

• Senator William Folden — Strikes language that would withhold funding from local law enforcement agencies based on their cooperation with federal immigration authorities.

“Public safety funding shouldn’t come with political strings attached,” Ready said. “Local law enforcement should be supported, not penalized, for working with federal partners to protect their communities.”

Democrats Reject Republican Amendments as Budget Maneuvers Continue

While Senate Republicans offered amendments to lower costs, increase accountability, and reduce spending, the Democrat majority rejected nearly every proposal. The votes forced clear contrasts on the Senate floor, between policies that would provide real relief to taxpayers and a budget that continues to rely on shifting funds, backfilling spending, and avoiding structural reform.

“We put real solutions on the table,” Hershey said. “The majority had a choice: stand with taxpayers or stick with the status quo. They made their decision.”

Despite these efforts, the budget continues to rely on raiding dedicated funds, shifting costs to local governments, and one-time maneuvers, rather than addressing the structural drivers of spending.

The result: projected budget shortfalls that will balloon to $4 billion in the coming years, raising concerns about future tax increases and reduced services.

“Avoiding tough, often unpopular decisions today only guarantees bigger costs tomorrow,” Hershey said.

Bottom Line

“Our focus is simple: lower costs, responsible spending, and accountability to taxpayers,” Hershey said.

“That’s the approach Maryland families expect, and it’s what we’ll keep fighting for.”

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