Maryland Gov. Larry Hogan has put an immediate freeze on any state spending or hiring across all agencies unless it directly relates to addressing the COVID-19 crisis.
Hogan provided the update in a wide-ranging press conference Friday, adding that he’s unlikely to sign into law any of the 679 pieces of new legislation passed by the Maryland General Assembly earlier this year if they require increased spending. Although he didn’t mention it specifically, that could include the education spending proposal recommended by the so-called “Kirwan Commission.” The bill requires $3.8 billion in annual public education funding by 2030. A spokesperson for the governor declined to comment specifically on the legislation.
“The state will be tapping into and spending much of, perhaps even all, of the state’s rainy day fund balance,” Hogan said. “Responding to this crisis will likely create a multiyear budget issue, which will require further substantial budget reduction actions.”
A spokesperson for the governor’s office said Friday there is an estimated $1.18 billion available in the rainy-day fund, based on the current 2020 fiscal year budget.