January 12, 2026
Happy New Year!
Which means it is the start of another legislative session of the General Assembly. To help keep you informed, here is the first of the weekly legislative update, which will come out every Monday through the end of the General Assembly session in April. My goal is to provide concise summaries each week, and when helpful, I will include links where you can find more detailed information.
We have a new Mayor in Annapolis and four new members of City Council to start the New Year. Mayor Littmann is up and running by taking steps to address the short-term rental issue in the City and fill key positions in his administration. We look forward to hosting the Mayor for a State of City Breakfast on February 12 at the Annapolis Waterfront Hotel. More information will be forth coming.
It is also budget prep time for the County Executive as he puts together his budget proposal for the Council to review. To help formulate the budget, there will be a series of Budget Town Halls that will provide attendees an overview of budget priorities and give you a chance to put forward ideas and comments about the budget.
Moving Forward,
Mark Kleinschmidt
President/CEO
Legislative Breakfast Wrap‑Up
To kick off the New Year, we hosted a Legislative Breakfast in partnership with six other local Chambers of Commerce to begin an ongoing dialogue with our legislators.
The event drew more than 180 attendees who came to hear from Congresswoman Sarah Elfreth, a panel from the General Assembly, and a panel from County Council as they discussed key issues that will take shape 2026.
We were pleased to welcome nearly twenty elected officials, and we used a text‑message system to collect questions from the audience. This helped generate a robust, wide‑ranging conversation on many of the issues top‑of‑mind for our members and community. I also want to take a moment to thank everyone who attended and contributed to such a productive and engaging event.
Key Dates for the General Assembly
In Maryland, the General Assembly operates on a very fast‑paced 90‑day schedule. The 2026 session begins on January 14 and must conclude all of its work by April 14, a day known as sine die—a Latin phrase meaning “adjournment without assigning a day to reconvene.”
A few other important dates to keep in mind:
- January 21: The Governor will introduce the state budget, which will then be assigned to a House committee for review.
- March 23: Crossover Day – This is a key milestone in the legislative process. By this date, any bill that has been introduced must have passed either the House or the Senate in order to be considered by the other chamber. While this may seem like a procedural technicality, it effectively determines which bills remain viable for the rest of the session.
- April 6: The state budget must be passed by this date.
- April 14: Sine Die – The final day of the legislative session.
The Biggest Issue: Budget Deficit
The most significant issue facing the General Assembly this session will be the $1.5 billion budget shortfall. At this time, both the Governor and members of the General Assembly have stated that they will not pursue any tax increases to close the deficit. This stance is largely influenced by the fact that all of them will be up for reelection in November.
Because Maryland’s constitution requires a balanced budget, lawmakers will need to identify $1.5 billion in spending reductions to close the gap. We will be watching this process very closely, as certain programs may face cuts and some responsibilities may be shifted or pushed down to county and city governments. These unfunded mandates could place additional financial burdens on our local governments.
Affordable Housing
Affordable housing remains a major concern for many of our members, as it directly affects their employees’ ability to find reasonably priced housing close to their workplaces. This issue will impact us at the state, county, and city levels.
The General Assembly is expected to explore a variety of strategies to increase the supply of housing and reduce the cost of construction. To begin this discussion, The Governor put forth his Housing Growth and Affordability Agenda to increase housing production and address the housing shortage across the state. It contains three pieces of legislation for consideration:
Maryland Transit and Housing Opportunity Act of 2026. The proposed legislation aims to accelerate housing and job growth near transit by removing zoning and financing barriers. It eliminates minimum parking requirements for certain transit‑oriented developments, encourages mixed‑use projects around key stations, expands financial incentives, and gives the State greater authority over land next to transit.
Silver Starter Home Act of 2026. This proposes actions to increase housing options by allowing smaller, more affordable homes. The legislation allows for smaller single-family homes on smaller lots and townhouses in residential areas statewide. The idea is to help first time homebuyers and senior citizens that want to downsize.
Housing Certainty Act of 2026. This is designed to stabilize and streamline the housing development process by ensuring that once a project is approved, the governing rules cannot later be changed in ways that delay or derail construction. County and municipalities have concerns about the State superseding their role in land use decisions.
Budget Time for the County
The County Government provides many important services to the businesses and residents of Anne Arundel County. In an effort to get input from the public about the FY 2027 Fiscal Year Budget, the County Executive is holding a series of Town Hall meetings in conjunction with each Councilperson. For more information, click HERE.
January 15 @ Arundel H.S. District 4 Julie Hummer | January 21 @ North County H.S. District 1 Pete Smith | January 22 @ Chesapeake H.S. District 3 Nathan Volke | February 3 @ Severn Run H.S. District 5 Allison Pickard | February 4 @ Annapolis H.S. District 6 Lisa Rodvien |