Friday Five
July 26, 2024 | This week's latest on Maryland business and government
1 — America’s top states for business in 2024
CNBC has recently released their annual American's Top States for Business. To rank each state, CNBC scores all 50 based upon 128 metrics across 10 broad categories of competitiveness. Each category is weighted based on how frequently states use them as a selling point in economic development marketing materials. This year, Maryland 31st overall; scoring 47th in cost of doing business, but eighth in technology and innovation.
Our neighbors: Virginia took home first place overall as the best state for business in 2024. Pennsylvania also scored higher than Maryland, at 17th. Maryland's continued poor showings in business competitiveness, especially compared to her neighbors, poses a real concern to future economic prosperity in our state.
2 — Medicaid, child care spending add to state’s fiscal woes
Maryland faces nearly $1 billion in projected budget deficits driven by as much as $800 million in projected Medicaid shortfalls over two years. Last Wednesday, the Board of Public Works, chaired by Governor Moore, approved nearly $150 million in budget reductions. The cuts will be coupled with other actions in an attempt to ease the pressure on the state’s budget. Legislative budget analysts warn of growing structural deficits in the billions of dollars through fiscal 2028. Most of that is tied to more expensive parts of the state’s Blueprint for Maryland’s Future education plan.
Cuts or reallocations: Republican legislative leaders said the actions, unanimously approved by the board, are neither cuts nor fiscally responsible — arguing they have simply reallocated spending rather than reducing it.
3 — Port of Baltimore expansion project to add $1.5 billion to Maryland's GDP
An upcoming addition to the Port of Baltimore will generate 8,000 new jobs and add $1.5 billion to Maryland's GDP, the groups behind the project said today. Tradepoint Atlantic and Terminal Investment Limited released the results of an economic impact study showing that the Sparrows Point Container Terminal is projected to hit those economic benchmarks by 2035. In adding a new container terminal, intermodal yard, and support facilities, the Sparrows Point Container Terminal will expand operations at the Port of Baltimore by an estimated 70 percent. It will also make Baltimore the third largest port (in terms of capacity) on the East Coast, trailing only New York/New Jersey and Savannah, Ga.
Our take: Expansions to the Port of Baltimore will have a enduring, positive impacts on Maryland's economy, job market and regional competitiveness.
4 — Key Bridge collapse means Maryland will likely raise bridge, tunnel tolls in 2027
The Maryland Transportation Authority will raise tolls for the Bay Bridge and harbor tunnels in two years, part of the ongoing economic fallout caused by the collapse of the Francis Scott Key Bridge earlier this year, but the size of the increases aren’t yet known. MDTA officials originally planned to raise tolls, due in part to inflation, in July 2028, the start of the authority’s fiscal year. But with lost revenue because of the bridge collapse and uncertainty over whether Congress will pay the whole amount to rebuild it, the toll increase will take place in 2027, a spokesperson said.
Crunching the numbers: Transportation officials have said the new bridge will cost at least $1.7 billion to rebuild, meaning the state’s contribution under the typical cost-sharing agreements would be at least $170 million. In the most recent fiscal year, tolls from motorists using the Key Bridge generated upwards of $56 million, according to state records. Officials said they expect to lose $143.9 million in revenue over the period from the collapse to when the bridge is ultimately rebuilt.
5 — Service Year program graduates first class of workers with skills, experience
231 members were among the inaugural class of Maryland Corps and Service Year Option graduates who were applauded last Tuesday at their commencement ceremony. The programs were among the first priorities of the Moore administration. The Service Year Option is a first-of-its-kind program that allows recent high school graduates between ages 18 and 21 to complete a year of service at over 100 businesses, agencies, and organizations across the state. It was merged with Maryland Corps, a 2016 program that is open to people of all ages and provides them with vocational training as well.
Leading the way: Paul Monteiro, the secretary of the Department of Service and Civic Innovation, said in his remarks at the commencement that the program will have more than 500 people starting this September. And he said other states are launching programs like Maryland’s — including Utah, Colorado, Minnesota, California and New York.
Advancing inclusive partnerships for a Maryland where all businesses and their communities thrive
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.
