Comptroller Brooke Lierman announced that the State of Maryland closed its books on fiscal 2023 with an unassigned general fund balance of $555 million.
According to the Closeout Report, Maryland closes fiscal 2023 with a general fund balance of $2.584 billion. Of this amount, the General Assembly allocated $2.392 billion for fiscal 2024 operations. Previous estimates made in March by the Board of Revenue Estimates were within 2/10th of a percent of the Closeout Report.
“The Closeout Report closely follows revenue forecasts made in March by the Board of Revenue Estimates, signaling that Maryland’s economy remains stable but is experiencing some challenges, including the effects of national inflation, with a disproportionate impact being felt by our families making low- to moderate-incomes,” Comptroller Lierman said.
“Overall, the labor market has been resilient, as withholding income tax revenues increased by more than 5 percent in the fiscal year,” said Director of the Bureau of Revenue Estimates, Robert Rehrmann. “Maryland’s economic growth slowed, but remained positive, as the Federal Reserve raised interest rates to reduce inflation. Sales tax revenue growth slowed, showing that many low- and moderate-income Marylanders needed to use the savings they had accumulated during the pandemic to offset the rising prices for necessities.”
In the fiscal 2022 Closeout Report, Maryland reported a $2 billion unassigned fund balance, and in the fiscal 2021 Closeout Report, Maryland had a $2.5 billion unassigned fund balance. Both years’ balances reflect federal stimulus funding that significantly increased personal and business income and expanded consumer spending. In fiscal 2020, Maryland reported a $585.8 million unassigned fund balance.