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FEDERALSBURG – Local and state officials offered a peek into the 2026 Maryland General Assembly session and its impacts on Caroline County during two recent discussions, one at a legislative wrap-up breakfast hosted by the Caroline County Chamber of Commerce, and one with County Commissioners and lobbyists at the May 5 Commissioners meeting.
State Budget and Fiscal Outlook
Budget concerns dominated both talks, with officials warning that significant budget issues remain unresolved. Delegate Jeff Ghrist said the state missed an opportunity to address a long-term imbalance between spending and revenue, “We had an opportunity to deal with a structural deficit that we have… if we don’t fix it then what we’re going to end up seeing is higher taxes,” Delegate Ghrist said.
Lawmakers described a 71 billion dollar state budget plagued by slower revenue growth and continued spending increases. While some cuts were made, officials argued those reductions were offset by shifting costs elsewhere, including onto counties.
At the county level, contracted lobbyist Steve Wise said the budget discussion is “unavoidable next year” as the state will need to reconcile a deficit in the multi-millions. All three groups said they foresee the state pushing more fiscal requirements onto the counties.
Energy and Affordability
Partially due to rising electricity bills, energy policy emerged as one of the most contentious issues of the session. Delegates described it as the second most significant issue behind the budget, but said little meaningful relief was achieved. “I can expect that our energy rates… will continue to go up,” said Senator Johnny Mautz.
Multiple state representatives framed the issue as a supply problem. Delegate Chris Adams explained that increasing energy production would lower costs, but Maryland continues to push green energy requirements, forcing electric companies to rely on out-of-state energy sources, hence high delivery fees. “This session was very, very frustrating because that was the one thing that needed to be accomplished,” Senator Mautz said, referencing unsuccessful efforts to slow the renewable energy mandates.
At the county level, Bereano pointed to a broader energy package that included provisions related to data centers, noting it could have future implications for local infrastructure and tax policy.
Local Authority and State Mandates
A recurring theme across both discussions was concern over what local officials described as increasing state “preemption” of county authority. Commissioner Larry Porter said the trend is “worrisome,” pointing to legislation both passed and proposed throughout the session that dictates how counties operate, from elections to revenue structures.
“I saw this session… the continued preemption of counties,” Commissioner Porter said. As far as weekly Commissioners meetings, “I’m not sure in the future what we’re going to come up here for, because everything is being preempted,” he said.
Bereano echoed that concern, calling the volume of legislation affecting local governments unprecedented. “I’ve never seen such onslaughts with county and local government,” he said.
One example cited by Bereano was House Bill 1142, which created a “Task Force to Modernize County and Municipal Revenue Structures.” Bereano described it as another instance of state-level intrusion into local government matters.
The Eastern Shore delegation also raised concerns about law enforcement being barred from collaborating with federal Immigration and Customs Enforcement. Maryland’s Community Trust Act mandates that local law enforcement have no contact with ICE. “We think that that's unconstitutional… [we’re] sure local law enforcement will find another way around that,” said Senate Minority Leader Steve Hershey.
Voting Rights and Elections
The Maryland Voting Rights Act drew significant attention, particularly for its potential impact on local election systems – and the drama that unfolded in the final moments of the legislative session with shouting between democratic supporters and republican opposition. While the stated goal of those in favor of the bill was to protect voters, Wise said one of the primary concerns is the provision allowing courts to require local governments to pay plaintiffs’ legal fees if they lose a lawsuit brought by residents or the Attorney General concerning potential voter suppression.
“There were amendments… one would have been a notice provision… and that amendment was rejected,” Wise said. Commissioners raised concerns that the law could open the door to challenges against Caroline County’s at-large commissioner system, which Commissioner Porter indicated was under fire at the beginning of the session with proposed bills to require a five-person, district-based Commission. “We believe that this should be a county-wide office,” Breeding said, adding that he believes changes to the current three-person Board could lead to operational inefficiencies.
Education and the Blueprint
Education funding remains a growing concern, particularly as costs associated with the Blueprint for Maryland’s Future continue to rise. While lawmakers noted some wins, including increased state support for new school construction, they acknowledged that the broader funding structure remains unresolved. Commissioners expressed concern that as state contributions to the Blueprint level off, counties will be expected to absorb more of the cost. “I think the blueprint… is the real elephant in the room,” Porter said, “I don’t think anybody knows what’s going to happen with that.”
Additional legislation included new reporting requirements for bullying and harassment, as well as a bill increasing compensation for Caroline County Board of Education members.
Agriculture, Aquaculture, and Rural Priorities
Several measures affecting agriculture and watermen were highlighted as positive outcomes. Delegate Jay Jacobs highlighted successful legislation easing penalties for aquaculture violations and expanding oyster restoration funding. A separate bill established a loan program for watermen impacted by poor harvest seasons.
Also passed this year was a “lemon law” for farm equipment, providing protections for farmers making significant investments in machinery. Maryland is the 11th state to pass such a law.
At the same time, officials emphasized the importance of the re-energized Rural Caucus in advocating for Eastern Shore priorities, a task taken up by Delegate Ghrist.
Housing and Development
While some lawmakers said the intent behind housing affordability measures is positive, concerns were raised about implementation and cost. Delegate Steve Harris said definitions of “affordable housing” remain unclear and warned that layered subsidies, paid for by tax dollars, can burden smaller developers.
Local officials also tied housing challenges to broader regulatory requirements, including septic rules and building mandates, which they say increase construction costs and deter inexpensive growth.
Healthcare and Social Services
Lawmakers pointed to several healthcare-related bills, including expanded access to certain services and efforts to improve coverage options under Medicaid. One proposal would allow Medicaid to cover additional treatments specifically for obesity in the form of GLP-1s, while another explores expanding coverage for hospice care. Officials also highlighted legislation supporting behavioral health providers, including measures that could benefit local organizations like For All Seasons by instituting provisions for private insurance to cover behavioral health services.
Business Climate and Economic Pressures
Eastern Shore delegates repeatedly raised concerns about Maryland’s business environment, citing high costs and regulatory burdens. Senator Hershey referenced state rankings on cost of living and doing business, calling it a major issue for economic growth. At the same time, Senator Hershey highlighted the thousands of residents leaving the state, potentially due to the high cost of living. “We’re net 45th in migration,” he said, referring to data collected by the state Chamber of Commerce.
“It’s a difference of priorities,” Delegate Adams said, contrasting democratic and republican approaches to regulation and business policy. The all-republican delegation said they tend to prioritize business owners, while their democratic counterparts are “all about protecting the consumer.”
Proposals affecting minimum wage, unemployment insurance, and family medical leave were all cited as areas where businesses could face increased costs in future sessions.
Local Legislative Wins
Despite broader concerns, county officials had success with two county-requested bills, which Wise called “housekeeping” bills. One updates outdated dog licensing requirements, giving the county greater flexibility, while the other clarifies the role of the county’s liquor inspector. Both measures passed with support from the local delegation.
Looking Ahead
Officials across both discussions agreed that the 2026 session may be a precursor to more difficult decisions next year. With an election year limiting major fiscal action this session, lawmakers and local leaders expect revenue discussions, tax adjustments, and additional cost shifting to dominate the 2027 legislative agenda.
“I think next year… [will be] a very serious revenue year,” Bereano said. County Commissioners say they are preparing for continued financial pressure while looking for “hidden” opportunities to offset rising costs.
