Governor Hogan Press Conference – January 19, 2021
Economic Recovery Budget
- Immediate tax and economic relief to families and businesses in need.
- Record investments in top priorities.
- Lays a fiscally responsible foundation for strong recovery.
The budget is 100% balanced with NO tax increases, layoffs, or cuts to essential services.
Maintaining Reserves
- Allows us to preserve AAA bond rating.
- Ensures we remain prepared during what could be the most challenging months of the pandemic while still providing relief.
The Relief Act of 2021: $1 Billion Tax and Stimulus Relief
Proposing $1 billion in tax cuts to help every single retired Marylander
The $1 Billion RELIEF Act. The Recovery for the Economy, Livelihoods, Industries, Entrepreneurs, and Families Act includes the following economic stimulus and tax relief:
- $270 million – Provides direct stimulus payments for low-to-moderate income Marylanders, with benefits of up to $750 for families and $450 for individuals. This relief begins with immediate payments of $500 for families and $300 for individuals who filed for the Earned Income Tax Credit, followed by a second-round stimulus for EITC filers that would provide an additional $250 for eligible families and $150 for individuals. This relief will directly help more than 400,000 Marylanders. Similar to federal stimulus payments, no application for relief is necessary.
- $180 million – Repeals all state and local income taxes on unemployment benefits, providing further support and assistance for Marylanders who have lost their jobs.
- $300 million – Supports small businesses with sales tax credits of up to $3,000 per month for four months— for a total of up to $12,000—freeing-up much needed resources to protect payrolls and sustain operations. This relief will directly help more than 55,000 Maryland small businesses.
- $218 million – Extends unemployment tax relief for small businesses, staving off sudden and substantial tax hikes in 2021. This provision codifies an emergency order the governor issued last month.
- $40 million – Safeguards Maryland businesses against any tax increase triggered by the use of state loan or grant funds.
Tax Relief for Retirees
- Expands the Hometown Heroes tax cut to exempt law enforcement, fire and rescue, corrections, and emergency response from state tax on retirement income.
- Increases the tax exemption on all military retiree pensions.
Top economic priority is ensuring Marylanders can keep more of their hard earned money in their pockets.
Record Funding for Education
- Historically high $7.5 billion for K-12.
- $213 million above and beyond legislative spending formulas.
- Every single school system will see increased investment by the state.
- $375 million from casino lockbox.
- $151 million for targeted tutoring.
- $53 million to expand full-day Pre-K.
- $10 million for BOOST program.
- $411 million for higher education projects.
- Major projects at all HBCUs.
- Record funding for community colleges.
- Holding the line on tuition increases.
Providing a record $833 million in additional school construction funding to fulfill every funding request in every jurisdiction.
Infrastructure
- $1 billion for roads and highways.
- $1 billion for mass transit.
- Transformative Howard Street Tunnel Project.
Environment
- Fully funded Chesapeake Bay restoration efforts.
- Fully funded Program Open Space
- $43 million for renewable energy
- $14 million for energy efficiency
Public Health and Safety
- $74.6 million for police aid to local governments.
- $43.7 million for local law enforcement grants.
- $5 million to support crime prevention, prosecution, and witness protection in Baltimore City.
- $250 million to provide direct care services to youth and support comprehensive juvenile crime strategy.
- $9.6 million in savings through Criminal Justice Reform Act.
- $978 million for mental health and substance abuse programs in response to heroin and opioid epidemic.
- Increases funding for local health departments.
- Expands resources for developmental disability services and in-home care for the elderly.
For more information or to speak with a Maryland attorney, contact Nemphos Braue.
