According to the financial services leader, Moody’s, Maryland faces a greater threat to recession “than to any other state”. The report issued Tuesday ranks Maryland near or at the top due to risks from “changing federal priorities.”
Moody’s gave the state a AAA negative rating based on its share of federal employment, funding for scientific research and government contracts.
David Kass Ph.D, a professor in Financial Policy at the University of Maryland, tells MCM a negative “wealth effect” could kick in even if your job seems secure.
The state is already coping with a $3 billion deficit and the prospect of decreasing revenue from income, corporate and sales taxes. Last week the state Bureau of Revenue Estimates lowered its expectations for growth to 1%. In 2024 these estimates showed more than a 6% growth rate.
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