Hogan: Put surplus into Rainy Day Fund, tax relief

ANNAPOLIS, Md. (AP) — Maryland’s governor wants to put away much of the state’s record $2.5 billion surplus and spend the rest on tax relief and helping Marylanders in need.

Gov. Larry Hogan announced Thursday that he wants to boost the Rainy Day Fund to at least 7.5%, or $1.67 billion. Hogan also proposed tax relief for retirees and other Marylanders and providing more relief for people “struggling to make ends meet.”

As the state prepares for fall negotiations for collective bargaining for public employees, Hogan said he has directed the Department of Budget and Management to explore how to best use some funds to benefit state employees.

The surplus announced by Comptroller Peter Franchot last week was attributed to larger-than-expected revenue growth from federal stimulus funding and better-than-expected results for tax year 2020.

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