Batten Down the Hatches Stormy Weather Ahead
There have been heavy seas of “uncertainly” coming out of Washington in the form of Executive Orders, frozen funding, lay-off, tariffs, tax proposals and potential budget cuts including Medicaid. When you combine all of this with the efforts of the General Assembly to put together a budget by March 31st they are going to encounter some choppy seas.
It looks like the budget shortfall will exceed $3 billion because of the stormy weather from Washington and the current proposals for “revenue enhancements” (clever words for a tax increase) and spending cuts will not cover the shortfall. So, there will have to be some significant changes to the Governor’s recommended budget.
The Governor made his pitch to the House Appropriations Committee last week trying to gain support but final decisions can not be made until the next revenue estimate is formulated later this month and we get a better handle on the fiscal impact of the “new reality” coming from DC.
Some of the tax proposals, such as combined reporting, will be detrimental to the long-term growth of Maryland’s economy. Maryland does not stack up well when compared to other states. We are lingering at 45th in the country for tax climate, 47th for cost of doing business, and 49th for job growth as compared to our peers.
To help advocate for a reasonable approach to the deficit that does not put the burden on existing and future businesses, the Maryland State Chamber of Commerce has put together the Fair Opportunity Maryland initiative to highlight the impact of the proposed tax increases could have on business, particularly small business. Click HERE to get more details.
Tariffs are Here—Now What?
There has been a lot of uncertainty about the “on again—off-again” tariffs, but it looks like they going into effect today. What are the actual tariffs and how might it impact the economy and more importantly could they impact your business?
To help answer this question, the U.S. Chamber of Commerce is hosting a Webinar on March 14: Tariffs, Trade and Other Economic Trends
The Chief Economist, Joe Brusuelas, from RMS and Neil Bradley, the Executive Vice President of the U.S. Chamber of Commerce, will discuss the tariffs and their impact on the economy. Click here to register.
City of Annapolis: Update from Mayor Buckley
Last week the Chamber hosted a Leadership Breakfast at The Choptank Restaurant right on Ego Alley and we were pleased to have Mayor Buckley as our guest speaker. The Mayor provided a comprehensive overview of the last seven and a half years, the time he served as Mayor. He highlighted the various challenges he encountered and some of the projects that were completed, like the new Hillman Garage. He also talked about the plans for City Dock.
We were able to get a firsthand view of the City Dock Redevelopment Project, right outside the windows of The Choptank. The City Dock project has been moving forward over the last six years and has been very transparent by including a wide range of stakeholder in the planning and development process. The last significant local approval was granted last week when the Historic Preservation Commission approved the new welcome center and harbormaster buildings along with the preservation of the Burtis House and the development of a small waterfront park that will hopefully be dedicated to Vince Leggett, a great advocate for the Blacks of the Chesapeake and member of the Chamber’s Business Hall of Fame. Unfortunately, Vince passed away recently so he will not be able to experience the new City Dock. To get more details, you can click HERE to check out a story in the Capital Gazette.
County Economic Impact Report
With all the turbulence coming from Washington and the uncertainty of the State budget, the Anne Arundel Economic Development Corporation (AAEDC) has been able to implement a number of very impactful programs to support economic growth throughout the County. If you want to get a better understand about the impact of the AAEDC click HERE for their 2024 Impact Report. It highlights some of the outstanding projects they have supported and programs that they offer like the Inclusive Ventures Program, the VOLT Loan program and workforce development grants.