Frostburg consultant: Maryland governor calls special session as state faces multibillion-dollar shortfall

Rich Reinhart, the City of Frostburg’s Annapolis consultant, told the city council on Dec. 9 that the governor signed an executive order calling the Maryland General Assembly into a special session beginning Tuesday, Dec. 16 to elect a new speaker of the House and to allow the body to consider other business, including possible veto overrides.

Why it matters: Reinhart said the order’s broad language could open the session to a range of items and that the special session comes at a moment when Maryland faces a deep budget shortfall. Citing the Department of Legislative Services’ spending-affordability report, he said the state faces a projected FY2027 gap of roughly $1.5 billion and that structural deficits could grow to about $3.2 billion in FY2028 and roughly $3.5 billion in FY2029.

Reinhart said rising Medicaid costs, the 10-year $40 billion public-education “Blueprint” investment and reduced federal funding are principal contributors to the projected deficits. “The latest projections as of the report, shows that the state has a budget gap of $1,500,000,000 in the upcoming fiscal year,” he said during the presentation.

He warned that short-term fixes such as dipping into the rainy‑day fund would be a temporary measure with consequences. “The problem with that is… it could impact our bond ratings and has no real way to help mitigate our out years,” Reinhart said, urging caution on using reserves as a long‑term remedy.

Reinhart also previewed likely topics for the special session and the upcoming 90‑day session: redistricting for congressional maps, energy policy (including debates over wind, solar and small modular reactors), housing, infrastructure and ongoing environmental concerns such as PFAS and sewage‑sludge regulation. He said municipal associations (NACo and MML) are continuing to push priorities such as highway-user funds, school construction and county budget security.

Next steps: Reinhart said the governor’s budget will be released after the special session convenes and that more specific implications for Frostburg will become clearer at that point. He encouraged council members to follow committee and bond‑authorization updates and offered to provide further updates as legislative activity unfolds.

The consultant opened the meeting to council questions about the redistricting commission’s schedule and the potential for veto overrides; he said the commission may hold a final public meeting but there was no public indication it would issue a report before the special session begins.