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MAKO briefing flags state fiscal squeeze and local housing and energy pressures
Summary
MAKO officials told the Prince George's County Council that persistent housing shortages, pressure to site large-scale clean energy and an unpredictable disparity grant complicate county planning — and that Maryland faces a $700M–$800M shortfall next year that could affect local services.
MAKO officials warned Prince George's County leaders on Oct. 29 that several statewide trends — a continuing shortage of affordable housing, pressure to site utility-scale clean energy and an uncertain state fiscal outlook — are likely to affect local budgets and planning.
"The state general fund budget is on the magnitude of $25,000,000,000," Michael Sanderson, director of the Maryland Association of Counties, told the council. He said revenues are forecast to grow only modestly and that the state is already "$700,000,000 or $800,000,000 short for next year," with larger risks — including education trust fund shortfalls — looming in subsequent years. Sanderson singled out swings in the state's disparity grant as a material risk for Prince George's, saying year-to-year recalculations can produce tens of millions in variation for counties.
Jack Wilson, MAKO's first vice president and a county commissioner, and Sanderson briefed the council on policy areas where counties are seeking a stronger voice in Annapolis. Sanderson described affordable housing as a persistent, statewide problem and urged local–state coordination for targeted projects such as transit‑oriented development and conversions of state facilities. He also discussed the challenge of siting large solar and wind projects, especially in rural and agricultural areas, and encouraged local planning for setbacks and buffers so projects can "fit into a community and not overwhelm" farmland.
The MAKO officials highlighted opportunities as well as risks: Sanderson noted the potential economic boost from projects such as a proposed FBI headquarters in the county and suggested Maryland's educated workforce positions it to capture green and tech jobs. Council members pressed MAKO on strategies to boost GDP and local revenues; Vice Chair Harrison described county shortfalls of about $171 million last year and $158 million this year and asked how MAKO priorities could help reverse that trend. "We don't even have the actual number, so it could actually be higher," Harrison said during questioning.
MAKO also raised implementation details on recently passed state law for cannabis siting, saying follow-up 2024 legislation added clearer guidance (for example on buffers around schools and houses of worship) that gives local governments more confidence to craft ordinances. On workforce issues, MAKO flagged an unusual drop in Maryland's labor-force participation after COVID and said the gap may help explain slower income-tax growth compared with neighboring states.
Sanderson and Wilson offered to follow up with more detail in writing and pointed council members to MAKO events (including a December conference with economic forecasters) for deeper discussion. The briefing underscored county leaders’ exposure to both statewide revenue volatility and long-term economic-competitiveness issues.
