A Letter to Maryland Governor Wes Moore on the Fair Share Maryland Plan

March 13, 2024

Dear Governor Moore,

RE: FY 2025 Budget and the Fair Share for Maryland Act (SB388 / HB1007)

On behalf of Maryland Nonprofits, representing the over 40,000 nonprofit organizations across our state and our 1,800 members, I extend my sincere gratitude for the important initiatives proposed in your FY2025 budget. Your commitment to addressing the needs of Maryland’s nonprofit sector and the communities we serve is commendable and deeply appreciated.

The strategic investments outlined in your budget reflect a thoughtful approach to strengthening our state’s social safety net and promoting economic opportunity for all. Maryland Nonprofits supports your proposed funding for state employee wages and benefits, the Child Care Scholarship program, and investments in housing and community development. These initiatives enhance the capacity of nonprofits to address systemic inequities in partnership with governments. Your administration’s focus on addressing child poverty, promoting equitable economic growth, and improving access to healthcare and mental health services lay the foundation for a Maryland where all residents have an equitable opportunity to thrive.

Unfortunately, the proposed FY 2025 budget lacks revenues to sustainably support these key goals and fails to upset Maryland’s outdated system of regressive taxation. Our state’s structural deficit is projected to grow to almost a billion dollars in 2026, $1.5 billion in 2027, $3 billion in 2028, and more in 2029. State agencies are perpetually under-resourced and understaffed, dramatically impacting the communities they hope to serve and the nonprofits with which they partner. Meanwhile, one-third of the largest corporations making money in Maryland pay zero income taxes in a typical year and the wealthiest 1% of Marylanders pay a smaller share of their income in taxes than the rest of us. Polling by Maryland Rise found that 64% of Marylanders believe our tax system to be unfair and more than three out of four surveyed said it was important for the state to make sure wealthy individuals pay their fair share. We must act now to set Maryland on a sustainable trajectory while upholding our shared values of justice, diversity, equity, and inclusion.

The Fair Share for Maryland Act (SB388 / HB1007) stands as a pivotal cornerstone in our shared endeavor to build a more equitable future. Through its comprehensive reforms and modernization of Maryland’s revenue system, the Fair Share for Maryland Act rectifies systemic imbalances, ensuring that the burden of taxation is distributed more fairly. Simultaneously, the Act addresses the pressing needs of low-income families by providing expansion of crucial tax credits, including the Child Tax Credit and Earned Income Tax Credit.

The Institute on Taxation and Economic Policy’s analysis reveals that the Fair Share for Maryland Act would result in a tax cut for just over 13% of taxpayers, while 12% would experience a tax increase. 95% of those facing a tax increase are within the wealthiest 5% of taxpayers. The Fair Share for Maryland Act upholds the principles of fairness and justice and embodies our shared commitment to fostering a state where every Marylander may thrive.

It is past time Maryland offers all residents a fair share of our common future. Governor Moore, Maryland Nonprofits strongly urges you to continue your leadership in advancing the well-being of all Marylanders by supporting the Fair Share for Maryland Act.

Thank you once again for your dedication to the people of Maryland. I look forward to our continued partnership in service to our state.

Sincerely,

Heather Iliff
President & CEO
Maryland Nonprofits