As officials deal with a budget crisis, the state’s ambitious goals for climate change may be scaled back. Next week, more details will be revealed.

Maryland Gov. Wes Moore announced Wednesday that he will reduce spending on the ambitious climate change goals of Maryland as part of a bid to find $2 billion of cuts. This is the first offer made in negotiations with General Assembly to address a budget deficit.

Moore, a first term Democrat, made the statement during a press conference in Annapolis, ahead of the General Assembly opening day.

Moore went on to say, “The state’s spending has exploded and we don’t have any data that can show how effectively that capital was spent.” “We have to take this seriously.”

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General fund of the state is $27.2 billion. The lackluster economy combined with the ending of temporary pandemic assistance and the over-enrollment into popular programs like Medicaid has led to a projected deficit of $3 billion for the new fiscal. State officials have 90 days to close the gap by April.

Moore told The Washington Post that the cuts will affect nearly all aspects of state government. Moore made his announcement in an interview.

Moore stated that “we’re not going balance our budget with the environment.”

Cuts to climate programs could include drastic reductions in those that rely on federal funding, like the nascent state offshore wind program. The overall budget for environment programs may rise under the proposed budget.

“There are some budget aspects that I dislike.” What I do know is that these things must be done. Moore said, “We’ve got be adults in this moment.”

In a wide-ranging, Wednesday morning interview, part of the Eye on Annapolis program hosted by the Daily Record, the Governor expressed his continued reluctance in raising taxes to cover the projected deficit. He did not provide any details on the inefficient programs that he intended to cut.

He cited the incoming Trump Administration as the reason to cut environmental policies that Democrats love. Maryland would not be able to invest as much into its climate change goals without a federal partner who could help fund it.

The governor spoke at a public event. “I believe deeply in so many aspects of our environmental agenda. I also know we have a Washington administration that calls it the great “green hoax.”

Maryland has set some of the most aggressive goals in the country to transition to cleaner energy. Moore’s campaign for 2022 was based on Moore implementing these goals. His goals, however, have been stymied by a harsh financial reality which has forced him to make other difficult budget decisions.

Maryland has already drastically cut transportation spending, and is currently debating how to adjust an ambitious education program favored by Democrats – known as Blueprint for Maryland’s Future – in order to reduce future deficits.

The Democrats have supermajorities both in chambers of General Assembly, but they are not united around a plan to improve the state’s finances in the short term.

House Democrats have proposed tax increases and cuts in order to bridge the gap, but Senate Democrats have rejected these efforts.

House Speaker Adrienne A. Jones, D-Baltimore County, stressed the importance of lawmakers making difficult decisions, and signaled that the House would consider new revenue sources to close the budget gap.

She said, “We cannot just cut our way through this financial situation.”

Moore’s Budget will be the starting place for budget negotiations between legislative leaders. They are bracing themselves for tough conversations, which may become even more difficult under the new White House Administration.

The Senate could have a stricter standard for tax increases. Bill Ferguson, Senate President (D-Baltimore City), said that raising revenue was a last option but he did not exclude it. He said that any policy adopted by the Senate must protect Marylanders from rising costs, and maintain the state’s economic competitiveness with its neighbors.

Ferguson said that the state should also look at ways to reduce unanticipated expenditures on entitlement programs, without reducing investments for the most vulnerable residents. He said that lawmakers would not support cutting Medicaid programs, despite the fact that the state had spent more than anticipated due to the increased demand for health care since the pandemic.

Moore said at the Eye on Annapolis that he also wants to address how the state finances transportation projects. Moore called the dependence on gas tax revenues, which have been declining over the years as cars become more fuel-efficient and electric vehicles become more common, a “business models mess”. He also said that he planned to introduce legislation to deal with the affordable housing crisis.

Moore reaffirmed his plan for strategic investment, citing his prior experience as an investor banker and identifying cyber and life sciences industries as the key targets to grow the state’s economy. He didn’t say if he supported or opposed potential tax increases. However, he did state that he is focused on improving the efficiency and effectiveness of government.

During the event, he stated: “I have said before that my bar on revenue is high.” “That bar hasn’t moved.”

Environmentalists rejected Moore’s claim that under Trump’s administration, the state would not be able to move forward with climate goals and encouraged him to support proposed legislation to impose a charge on fossil fuel companies to compensate for damages caused by climate changes. New York Gov. Kathy Hochul (D), New York’s governor, signed a law similar to this one in December.

In an interview, Mike Tidwell of the Chesapeake Climate Action Network, a group that advocates for climate action, stated, “The Governor shouldn’t backtrack from any of the state’s climate commitments.” We believe that if Moore wants to leave a legacy of environmental protection, he must support this bill. This is the most important climate bill this session.

Ferguson was an early and powerful supporter of Moore’s proposal, which would reduce investment in climate-change programs.

Ferguson told me in an interview that it was important to “readjust” to the reality of the resources available or not at the federal level. “The federal funding for the national climate agenda will be more difficult.” We must adapt.

Moore’s Budget will be released the following week. However, lawmakers have stated that discussions about how to fill in the gap are likely to continue well into March.