Friday Five
Oct. 23, 2026 | This week's latest on Maryland business and government
1 — Maryland sinks to 42nd for fiscal responsibility in new report
Truth in Accounting ranked Maryland 42nd out of 50 for fiscal responsibility, assigning Maryland a D grade and estimating the state lacks $25.7 billion to cover its bills. The report found that Maryland has just over $35 billion available to cover approximately $61 billion in liabilities, making it one of only four states where expenses exceed revenues. The findings also come amid concerns raised by a federal audit about financial reporting, recordkeeping and oversight.
The hard truth: Maryland continues to grapple with fiscal challenges due to overspending and a stagnant state economy that CNBC recently ranked 49th in the country. The only long-term resolution is to pursue policies that attract investment, generate economic activity and expand the tax base.
2 — Marylanders can’t afford more excuses on affordability
Maryland families and businesses face mounting affordability pressures from higher taxes and fees, rising electricity costs and limited housing supply, while the state’s fiscal 2027 budget approaches $71 billion. Maryland ranks 46th nationally for overall tax competitiveness and 47th for individual income taxes, raising concerns about its ability to attract businesses, investment and residents.
The fix: Improving affordability will require a focus on reducing taxes and regulatory barriers, expanding housing supply, increasing reliable energy generation and exercising greater discipline in spending.
3 — Statewide ballot questions
Maryland voters will consider three constitutional amendments covering state employee labor agreements, temporary appointments to the Commission on Judicial Disabilities and congressional redistricting. Question 1 would require the governor’s proposed budget to include funding for state employee wages and benefits established through collective bargaining or a neutral decision-maker, while Question 2 would allow temporary commission appointments when members are unavailable or their terms expire. Question 3 would clarify that certain constitutional standards apply only to state legislative districts and establish rules for reviewing congressional maps, potentially giving lawmakers greater flexibility to draw partisan districts.
Election 2026: Early voting in Maryland started yesterday, Oct. 22 and runs through next Thursday, Oct. 29, 2026. Voting centers are open 7:00 a.m.–8:00 p.m. Learn more at elections.maryland.gov.
4 — Maryland grant program helps manufacturers modernize, increase wages and create jobs
Maryland’s Manufacturing 4.0 Grant Program awarded nearly $7 million to 65 small and midsized manufacturers over the past two fiscal years, generating more than $17 million in total investment and helping create 88 full-time jobs. The funding supports investments in automation, artificial intelligence, software and equipment upgrades to improve productivity, increase wages and expand production capacity. Launched in 2023, the matching-grant program helps manufacturers modernize operations, attract additional private investment and strengthen their competitiveness.
Why it matters: The program helps Maryland manufacturers modernize operations, boost productivity, increase wages and create jobs, strengthening the state’s industrial base and economic growth. A more competitive manufacturing sector supports stronger supply chains, encourages private investment and helps businesses grow and retain talent in Maryland.
5 — Maryland September unemployment rate falls to 3.9%
Maryland’s unemployment rate fell 0.2 percentage points to 3.9 percent in September, its lowest level since April 2025 and below the national rate of 4.2 percent. However, the state’s estimated employment declined by 8,800 jobs, with the largest losses in health care and social assistance, accommodation and food services, and arts and entertainment. Manufacturing and transportation, warehousing and utilities added jobs.
Quoted: “BLS employer-based job estimates for Maryland and other states have experienced increased volatility (both positive and negative) over the past few months and it is likely that these estimates are impacted by challenges in data collection rather than volatility in employment levels,” a Maryland Department of Labor release said.
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The Maryland Chamber of Commerce is the state’s leading business advocacy organization — committed to working with our alliance of partners on critical public policy issues. With a focus on economic development and grassroots advocacy, we impact policies that directly affect Maryland business.
