# State Government (GSG)

## Title 2. General Assembly

### Subtitle 10. Spending Affordability

#### Section 2-1001

In this subtitle, "Committee" means the Spending Affordability Committee.

#### Section 2-1002

(a) The General Assembly finds that State expenditures for operating and capital programs must be controlled so that the level of State spending is consistent with the economic growth of the State.

(b)

  (1) The control of spending shall be exercised through the budgetary process as well as through legislative oversight and program review.

  (2) The budget focuses on spending for the next fiscal year and provides careful scrutiny of new programs or expansion of existing programs and services and weighs the incremental cost of the State budget in light of the priority needs of the citizens.

  (3) Legislative oversight seeks to eliminate inefficiencies in governmental activities and to evaluate programs in order to eliminate those no longer required and to avoid overlap and duplication of services and activities.

(c)

  (1) The Legislative Policy Committee shall be responsible for coordinating the spending affordability program of the General Assembly by appointment of a Spending Affordability Committee and by selection of program evaluation projects and direction of oversight activities.

  (2) The goal of the spending affordability program is to limit the rate of growth of State spending to a level that does not exceed the rate of growth of the State's economy.

#### Section 2-1003

(a) On or before June 1 of each year, the Legislative Policy Committee shall create a Spending Affordability Committee comprised of an equal number of Senators and Delegates. The Committee membership includes:

  (1) the President and the Speaker;

  (2) the chairs of the Senate Budget and Taxation Committee and the House Appropriations Committee;

  (3) the majority and minority leaders of the Senate and the House or their designees; and

  (4) other members of the Senate and the House who may be appointed by the President and the Speaker.

(b) The chair of the Committee shall be designated jointly by the President and the Speaker.

(c) The President and the Speaker may appoint an advisory committee of citizens to assist the Committee in its deliberations.

#### Section 2-1004

(a) The Committee shall review in detail the status and projections of the revenues and expenditures of the State and the status and projections of the economy of the State.

(b) In evaluating future State expenditures, the Committee shall consider economic indicators such as personal income, gross State product, or other data.

#### Section 2-1005

(a) On or before December 20 of each year, the Committee shall submit, subject to Sec. 2-1257 of this title, to the Legislative Policy Committee and the Governor a report with recommendations on fiscal goals for the State budget to be considered at the next regular session of the General Assembly, including:

  (1) a recommended level of State spending;

  (2) a recommended level of new debt authorization;

  (3) a recommended level of State personnel;

  (4) a recommended use of any anticipated surplus;

  (5) a recommended end-of-the-year General Fund balance;

  (6) a recommended end-of-the-year balance in the Revenue Stabilization Account established under Sec. 7-311 of the State Finance and Procurement Article;

  (7) a recommended structural balance goal;

  (8) a recommended fund balance for the Transportation Trust Fund established under Sec. 3-216 of the Transportation Article;

  (9) a recommended minimum expenditure level for system preservation by the Maryland Department of Transportation; and

  (10) other findings or recommendations that the Committee considers appropriate.

(b) If the report recommends expenditures in excess of the annual increase in personal income, gross State product, or other data that the Committee used to measure the growth of the State's economy, the Committee shall provide the Senate and the House with an analysis as to the extent the recommendation exceeds those economic indicators.

#### Section 2-1006

The Senate and the House budget committees:

(1) in considering a proposed State budget, shall consider the recommendations of the Spending Affordability Committee; and

(2) shall:

  (i) report a budget bill that conforms to those recommendations; or

  (ii) if the level of the budget bill in the report is above those recommendations, provide, with the report, an analysis stating the extent to which the budget bill exceeds the recommendations and explaining the budget committee's rationale for exceeding the recommendations.

#### Section 2-1007

(a) The Department of Legislative Services shall provide staff services for the Committee.

(b) Units in the Executive Branch of the State government shall cooperate with the Committee and provide information to the Committee and its staff as requested.

#### Section 2-1008

On or before June 1 of each year, the Department of Legislative Services shall report, subject to Sec. 2-1257 of this title, to the Legislative Policy Committee the extent to which the State budget as enacted by the General Assembly conformed to the recommendations of the Spending Affordability Committee.

#### Section 2-1009

On or before June 1 of each year, the Legislative Policy Committee shall select units or programs that the Legislative Policy Committee believes should be subject to legislative review and assign the selected units and programs to an appropriate committee for review and recommendations during that legislative interim.

#### Section 2-1010

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Internal Revenue Code" means Title 26 of the United States Code.

  (3) "Private activity bond" has the meaning stated in Sec. 141 of the Internal Revenue Code.

  (4) "State issuer" means the State of Maryland or any agency of the State of Maryland with authority to issue private activity bonds.

(b) On or before January 15 of each year, any State issuer of private activity bonds shall report, subject to Sec. 2-1257 of this title, to the Committee:

  (1) the actual level of private activity bonds issued in the prior year; and

  (2) the projected level of private activity bonds to be issued in the current year.

---

Md. Code Ann., State Gov't (as displayed at mgaleg.maryland.gov, October 16, 2026)