County budget briefing warns of state shortfall; council approves joint legislative priorities seeking hospital, housing and flood funds

Prince George's County received an overview Jan. 14 of the 2025 state budget outlook and approved a joint letter to its state legislative delegation requesting targeted capital and operating assistance, including hospital expansions, affordable housing preservation funding and flood mitigation projects.

The presentation and ensuing discussion focused on a projected structural shortfall in Maryland’s finances and a set of county priorities to ask state leaders to fund or help fund this year.

Budget outlook presented to council Darryl Barnes and Jimmy Tarlow of Barnes International told the committee the state faces a difficult fiscal picture. Barnes said Maryland’s operating budget is roughly $63 billion and that the state is facing about a $3 billion shortfall in the current cycle; he added that, without intervention, some forecasts project the gap could reach about $6 billion by fiscal 2030. Barnes cited higher‑than‑expected public assistance spending — including Medicaid, child care and disability services — and slower employment recovery since the pandemic as contributing factors.

Barnes outlined options being discussed in Annapolis: new revenue sources such as changes to income tax brackets, sales tax expansions or fee increases; and budget cuts and reserves. He noted the governor has signaled reluctance to raise new taxes but has proposed sizable program reductions; the governor was scheduled to release a budget on Jan. 15. The presentation also noted federal exposure for the state (many federal jobs and contracts are located in Maryland), and that the General Assembly’s fiscal calendars will drive decision points in March and April.

Council discussion and concerns Council members pressed for clarity on the likely mix of cuts and revenue changes. Council Member Harrison asked whether the legislature’s “temperature” suggested agreement on the need for cuts; presenters said most leaders acknowledge action is necessary but disagree on mechanisms. Multiple council members flagged the potential impact of higher reserve requirements cited in recent affordability reports and warned the county may face reduced state aid.

Joint letter of county legislative priorities The committee considered a proposed joint letter to the chairs of the Prince George’s County delegation in the Maryland Senate and House transmitting the county’s 2025 legislative priorities. County Executive staff summarized the letter’s priorities and answered questions about specific capital asks.

Key requests included: - $78,000,000 for health care infrastructure projects tied to county priorities. - $30,000,000 to redevelop Adventist HealthCare facilities. - $15,000,000 to expand University of Maryland Capital Region Hospital. - $9,000,000 for MedStar Southern Maryland upgrades. - $5,000,000 for CCI Health Services upgrades. - $14,800,000 for climate resilience and stormwater management projects. - $12,000,000 for flood reduction in Calvert Hills and a $2,800,000 request for Fort Washington (the administration agreed during the meeting to modify the letter language to specify “flood mitigation and water quality improvements” for Fort Washington). - $4,500,000 request for the Health Assures program (previously funded with ARPA dollars). - $20,000,000 total for right‑of‑first‑refusal and Housing Investment Trust Fund (split $10,000,000 each), to help preserve affordable housing; the administration said those funds preserved roughly 1,800 affordable units in prior rounds. - Continued advocacy for Blue Line corridor investments in downtown Largo; the administration noted $400,000,000 in prior bonding authority through the Maryland Stadium Authority for related projects and said the county will continue to seek additional resources as projects advance.

Council members also asked that the letter reflect concerns about the Purple Line, specifically the lack of sidewalks and pedestrian access to some stops; the administration said Delegate Tavares and others are working on a targeted request and that the county hopes to include a sidewalk/pathway ask in follow‑up correspondence. Committee members approved two amendments on the letter (adding Fort Washington flood mitigation language and a minor wording change referencing state investments in other sports and entertainment districts), then voted to transmit the letter to delegation chairs; the final motion passed on roll call.

What remains outstanding County staff said they will provide council members additional detail on the Fort Washington stormwater/flood project scope and on the status of Blue Line corridor projects funded through the bonding authority. Staff also said they plan further follow‑up with PGCPS about the proposed school compliance office and with the school system regarding implementation questions for the drug‑detection product proposal.

Context and timing Barnes and Tarlow noted the governor’s budget release and the General Assembly’s upcoming fiscal milestones, and county staff said they will return with more detailed information as Annapolis develops the fiscal package. Several council members warned that deep cuts alone would be painful and that a combination of cuts and revenue measures is likely to be debated in the coming weeks.