January 19, 2026
As the General Assembly prepares for what promises to be a busy week as the Governor rolls out his budget proposal, we pause today to honor the life and legacy of Dr. Martin Luther King Jr. His leadership moved our nation forward and profoundly advanced the principle of equal opportunity for all people.
Many choose to celebrate this day by performing an act of public service in Dr. King’s memory. If you have taken the time to give back, you have paid meaningful tribute to a great American. If not, I encourage you to take a moment to reflect on Dr. King’s accomplishments and consider how you might contribute to your community. Even small acts of service help carry forward his vision of justice, dignity, and shared purpose.
Check out the short updates about what is going on with legislation in City of Annapolis, County Council and the General Assembly. It is budget time for the County and the State so get your calculators out to keep track . Also make plans to join us on February 12 for Breakfast with Mayor Littmann, you can get more information and buy tickets HERE.
Moving Forward,
Mark Kleinschmidt
President/CEO
Chamber to Host Mayor Littmann
We look forward to hosting the Mayor for a State of City Breakfast on February 12 at the Annapolis Waterfront Hotel. There have been a lot of changes in the City Administration and this is your chance to get a first hand update from the Mayor. If you have not registered yet, you can click HERE.
City Dock
The City Dock project continues to be a concern as there is uncertainty about a $32 million grant from FEMA. which has not yet been dispersed to the city.
The grant is from the federal agency’s hazard mitigation grant program, as a repayment to Maryland for work done by the state during the COVID-19 pandemic. Without the funding, the City and developers will have to seek ways to replace these funds. In addition, a number of businesses in the City Dock area are being hit hard by the loss of parking and reduced foot traffic due the construction. A debate has started about ways to help these small businesses stay afloat during the ongoing construction.
Short Term Rentals
Annapolis continues to grapple with how best to manage the rapid growth of short‑term rentals which has become a hot topic. The city is establishing a 10% cap per block, a lottery system for over‑threshold areas, and exemptions for certain owner‑occupied or event‑based rentals, all aimed at balancing tourism with neighborhood stability. A yearlong moratorium to get things squared away has caused some disagreements and this issue will continue to be debated. Check out the City’s Short Term Rental Portal for more info.
Here comes the budget
On Wednesday, Governor Moore will unveil his FY 27 Budget proposal with total spending north of $65 billion. The state is facing a $1.5billion short fall and the Governor has promised no tax increases to cover it. This means budget cuts, we will follow the process closely.
Maryland is facing difficult economic conditions, as more than 25,000 residents have lost federal jobs due to DOGE-related actions and various budget cuts. This loss will significantly reduce consumer spending and decrease tax revenues for the state. These challenges come at a time when families are already facing rising costs driven by inflation in essential household goods, electricity, and food. As a result, affordability will be a major focus during the upcoming General Assembly session.
A key part of that affordability conversation will center on energy and electricity. This will quickly lead to the dual issues for increased power generation and the regulation of data centers. The data center issue is complex since we will need them to supply the computing power behind our apps and the growing use of AI, but they also require enormous amounts of electricity and water to operate. Don’t be surprised if data centers—and the cost of electricity—become major points of debate throughout the session.
County Budget Town Halls
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 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 |