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DLS Recommends Cuts to Commerce Budget; Secretary Coker Warns of Lost Investment
Summary
DLS recommended targeted reductions to Maryland Commerce funding for fiscal 2027, including cuts to grant programs and a proposed cap and sunset for a jobs tax-credit program; Commerce Secretary Harry Coker told lawmakers those cuts risked losing private investment and jobs and defended the department’s strategic investments.
The Education and Economic Development Subcommittee heard competing budget views Friday as the Department of Legislative Services (DLS) urged reductions in several Commerce programs while Maryland Commerce leadership warned the changes would undercut business attraction and growth.
DLS budget analyst Elizabeth Wyel told the panel the Department of Commerce’s FY2027 allowance totals $283 million, a $20.5 million drop from FY2026. The analyst identified underused special funds and recommended a series of reductions and BERA (budget reconciliation) provisions: cutting the Build Our Future grant from $7 million to $3.5 million, reducing the Strategic Infrastructure Revolving Loan Fund from $10 million to $5 million, trimming the biotechnology investment incentive tax credit (BITSY) from $12 million to $10 million, and capping the annual value of the More Jobs for Marylanders tax credit at $15 million with a 2037 sunset to provide fiscal predictability.
"There is a lot of uncertainty around how much this program will cost and how long the state will be paying for it," Wyel said, citing DLS projections showing potential long‑term liability under some incentive structures.
Commerce Secretary Harry Coker and his team strongly pushed back. For the record, Coker said the department’s budget is aimed at keeping Maryland competitive and that each recommended cut would reduce the state's ability to attract jobs and private capital. "Each of the proposed cuts would hinder Commerce’s ability to attract new investment to the state, spur job creation, and to strengthen and grow our economy," he said.
Coker acknowledged agreeing with one DLS item — supporting a sunset date for the More Jobs for Marylanders program — and said Commerce will work with the Legislature to communicate the end date to enrolled businesses. On other items, he said the programs are targeted to strategic sectors and that smaller state investments often leverage much larger private and federal commitments.
Committee members asked Commerce for more detailed outreach metrics after DLS raised concerns about special funds that appear underutilized. Commerce said it deploys a 10‑person regional team, conducts site visits, maintains ongoing ROI assessments for its 30 incentive programs, and coordinates with local economic development organizations to ensure businesses know available resources.
The committee did not take votes; the hearing records the competing recommendations as lawmakers weigh the final budget.
What’s next: The subcommittee will consider DLS recommendations and departmental responses as it works toward a fiscal 2027 allowance; any statutory changes to program eligibility or caps would require committee and legislative action prior to final appropriation.
