Controller says Maryland ended fiscal 2021 in good financial shape
ANNAPOLIS, Maryland – Maryland ended fiscal 2021 in good financial health despite the COVID-19 pandemic, according to a report released Wednesday by Comptroller Peter Franchot.
The state’s general fund balance currently stands at $ 2.5 billion, more than five percent of the 2021 operating budget and 11.3 percent from pre-COVID figures for the fiscal year 2019.
Franchot says a significant portion of the balance is attributed to better-than-expected results for the 2020 tax year.
Although 14% of Maryland residents lost their jobs and 6% remained unemployed at the end of the year, state income tax collections increased by about 7.3% .
This is an indicator that taxpayers who earn business income and capital gains have experienced strong growth likely with the help of government funding and grants, especially in the last six months of the fiscal year. .
In addition, the report showed that corporate income tax was performing better than expected.
“It seems likely that large companies were well positioned to profit economically from the pandemic – to generate profits by capturing additional market share from weaker competitors, to increase sales through the federal stimulus and to reduce spending,” said the Franchot’s office in a press release.
The Board of Revenue Estimates is scheduled to meet virtually Thursday afternoon to review updated projections for fiscal 2022 and hear budget forecasts for subsequent years.