DLS briefing to Economic Matters Committee flags $1.4 billion federal-revenue uncertainty, outlines fund shifts

Tanya Zimmerman, operating budget manager for the Department of Legislative Services, told the Economic Matters Committee that the governor’s proposed budget leaves a modest general fund balance but shifts large sums across fund sources and contains notable fiscal risks, including an audit-flagged $1.4 billion in federal revenue documentation for the Maryland Department of Transportation.

Zimmerman summarized the administration’s plan as leaving an approximately $108 million general fund balance at the end of fiscal 2027 and an estimated rainy day fund of about $2.17 billion (roughly 8 percent of general‑fund revenue). She said the overall budget plan increases by roughly $5 million but that the change “varies by fund source,” with general funds and special funds moving in different directions.

Why it matters: committee members pressed DLS on the composition and durability of the plan — in particular, whether budget fixes rely on one‑time transfers, bond replacements, or ongoing spending changes that shift costs to local governments. Members also sought clarity on audit findings that could expose the…