Commerce seeks full funding for attraction tools; DLS flags possible reductions and oversight items

Department of Legislative Services analyst Elizabeth Bridal presented the fiscal 2026 budget analysis for the Maryland Department of Commerce and recommended several potential reductions and follow‑up items while Acting Secretary Harry Coker and commerce officials urged the subcommittee to retain strategic investments to support job growth and industry attraction.

DLS summary and proposed adjustments. Bridal told the committee that the Department of Commerce fiscal 2026 allowance increased roughly $33.6 million to about $310 million and highlighted programs and recommendations including: reducing tourism development board funding to the statutory minimum, using fund balances instead of new FY26 appropriations for some micro‑loan funds, lowering proposed allocations for certain pilot and grant programs (for example, DLS recommended reducing the Build Our Future grant pilot from $10 million to $7 million and lowering proposed Biohub Maryland funding), and making some Sunny Day Fund (economic development opportunities program) funding contingent on legislation.

Commerce priorities and responses. Acting Secretary Harry Coker asked the committee to view the requested funding as investments to grow Maryland’s economy rather than short‑term expenditures. Coker outlined key FY26 requested items the administration described as growth levers, including $25,000,000 proposed to capitalize the state’s dedicated purpose account (the “Sunny Day” fund) intended to provide quick incentives for business attraction, $27.5 million for a capital of quantum initiative at the University of Maryland College Park (leveraging university and private investment), and workforce and small business programs including funds for biotechnology training, manufacturing grants and small minority/women business accounts. Coker said the department concurs with some DLS recommendations (for example, swapping general fund to special fund authority where appropriate and making $10 million of the Sunny Day appropriation contingent on enactment of enabling legislation) but disagreed with others, arguing reductions could undermine Maryland’s competitiveness.

Film tax credits, RISE zones and other policy items. DLS flagged BRFA/BRFAA proposals affecting film production tax credits, RISE zones and the More Jobs for Marylanders tax credit program. Bridal told the panel that DLS recommended limiting certain film credit caps and asked Commerce to justify proposed changes to the RISE zone program, which DLS said had not produced measurable benefits in prior years. Commerce officials said an updated economic development plan (“Winning the Decade”) and pending administration proposals would guide program changes and strengthened coordination across agencies.

Stakeholder testimony. Tourism, business‑attraction and non‑profit witnesses addressed subcommittee members. Matt Liber of the Maryland Tourism Coalition urged not cutting tourism marketing funding, saying tourism drives billions in economic activity and tax revenue. David Spear of the Maryland Israel Development Center and other trade‑promotion groups asked that existing Commerce grants for trade partnerships remain in place; other witnesses described nonprofit acceleration work and local business success tied to Commerce programs.

What comes next: DLS recommended a slate of program adjustments and further detail on performance and fund balances; Commerce requested that appropriators retain most requested investments as part of a broader economic strategy and said it would provide requested follow‑up information and the economic development plan to the committee.