Full Tax Decoupling Would Reduce FY 2028 Deficit by 26%

Estimated general fund cash balance ($ millions), FY 2027–2028

Bar chart showing the estimated general fund cash balance for fiscal years 2027 and 2028 under the governor's budget, the governor's budget with no decoupling, and a full-decoupling scenario, where full tax decoupling would reduce the fiscal year 2028 deficit by 26%.

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Governor's budget estimates are adjusted for the BRE March 2026 revision, assuming no revision to FY 2028 revenue. Impacts of March revision and more/less decoupling are reduced by 8% to maintain 8% Rainy Day Fund balance. Assumes any other change to the FY 2027 closing balance is carried over to FY 2028.

Chart: Maryland Center on Economic PolicySource: MDCEP estimates based on DBM budget data, BRE March revision, and BRFA (SB 284) Fiscal and Policy NoteGet the dataCreated with Datawrapper