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Maryland counties warned of multi-year state shortfalls; housing and energy flagged as priorities
Summary
The Maryland Association of Counties told the Anne Arundel County Council the state budget gap and structural funding shifts will pressure county budgets for years, and urged local officials to prepare for increased attention to housing and power-transmission issues in Annapolis.
Michael Sanderson, executive director of the Maryland Association of Counties (MACo), told the Anne Arundel County Council on Oct. 6 that counties face persistent, multi-year fiscal pressure because of state budget choices and a larger-than-expected shortfall from the most recent General Assembly session.
"It was a $3,000,000,000 problem by the new year," Sanderson said, describing the deficit that forced a sequence of difficult decisions in Annapolis. He and Jack Wilson, Queen Anne's County commissioner and MACo president, recommended county leaders plan for lingering consequences over the next several budget cycles.
Why it matters: MACo’s briefing framed state-level choices — including shifting program costs onto counties and a fading education trust fund — as likely drivers of future local tax and service pressures. Sanderson said the state used dedicated casino revenues to pay for the education blueprint; once that fund is depleted, the blueprint cost will move to the general fund and reappear as a multi‑billion dollar challenge for Maryland governments.
Policy takeaways from the presentation included:
- Fiscal outlook: Sanderson said counties already absorbed tens of millions in state-driven costs during this budget cycle and should expect more. He urged county officials to plan for a two-to-three year horizon when federal or state changes filter down to local budgets.
- Education blueprint timing: MACo expects a statutory review and reporting milestone in 2026, with tighter scrutiny of both program performance and funding in the 2027 session.
- Housing: Sanderson said housing policy is likely to be a high-profile issue in Annapolis, noting Maryland remains tens of thousands of units short of published need estimates. He predicted legislation this cycle will focus on permitting and local approval processes, while emphasizing the need to preserve public input in zoning.
- Energy and transmission: MACo warned county leaders to prepare for sharp growth in electricity demand driven by data centers and other high‑usage users, while the state pursues clean-energy goals. Sanderson said transmission upgrades and generation retirement (he referenced Brandon Shores) complicate local planning and could force large infrastructure projects into county landscapes.
Council reaction and next steps: Council members pressed MACo on the transmission issue and on how counties can influence regional grid decisions. Sanderson said MACo is engaging PJM (the regional grid operator) and national partners but cautioned that counties have limited direct authority in multi-state transmission planning. Several councilmembers asked MACo to continue outreach on opioid litigation and other federal- or state-led legal matters that affect local recovery funds.
The presentation was part of MACo’s annual county visits; Sanderson and Wilson distributed materials summarizing recent legislative outcomes and recommended policy priorities for local governments.
