Commerce highlights tax‑credit and small‑business programs as DLS reviews FY25 allowance
March 04, 2024 | Education, Business and Administration Subcommittee, Budget and Taxation Committee, SENATE, SENATE, Committees, Legislative, Maryland
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Elizabeth (DLS analyst) presented the Department of Commerce's fiscal 2025 allowance, reporting an approximate $241.5 million operating budget, down about $48.5 million from FY24 primarily because of one‑time items such as the Cannabis Business Assistance Fund in FY24.
DLS highlighted major allocation categories: roughly 30% of the allowance for financial assistance (grants and loans including SMOWBA and MSBDFA), 25% for marketing/tourism/arts, 22% for tax‑credit programs (notably the More Jobs for Marylanders program), and roughly 7% for administrative costs. The analyst called out program changes such as additional federal funding for the Maryland Small Business Development Financing Authority and projected growth in More Jobs for Marylanders tax credits in future years, noting those projections are estimates.
Secretary Kevin Anderson testified in support of the allowance, citing recent program outcomes and investment leverage. "These funds are critical to the Department's mission of supporting business growth, attracting and retaining new jobs and new investment," Anderson said, and he summarized key allocations: $37.5 million for the More Jobs for Marylanders tax credit reserve fund, $17.5 million for Advantage Maryland (MDAF), $19.3 million for the Maryland Small Business Development Financing Authority, and support for tourism and the Maryland State Arts Council.
Committee members asked for follow‑up data on the tiered allocation within the More Jobs for Marylanders program (tier 1 vs. tier 2 distribution); Commerce agreed to provide additional detail after the hearing. DLS recommended clarifying budget bill language to align a contingent reduction for the business telework assistance grant program with pending legislation that would eliminate the mandated funding (but not the program), and Commerce concurred with that recommendation.
A panel of tourism and small‑business stakeholders testified in support of Commerce programs and marketing funding, citing economic impact figures and loan/grant performance. Witnesses urged full funding for tourism marketing and small‑business financing programs and described how program investments leverage private capital and support jobs across the state.
No formal votes were held on Commerce budget items during the hearing; committee members requested supplemental information on program allocations and turnover assumptions for staff vacancies.
DLS highlighted major allocation categories: roughly 30% of the allowance for financial assistance (grants and loans including SMOWBA and MSBDFA), 25% for marketing/tourism/arts, 22% for tax‑credit programs (notably the More Jobs for Marylanders program), and roughly 7% for administrative costs. The analyst called out program changes such as additional federal funding for the Maryland Small Business Development Financing Authority and projected growth in More Jobs for Marylanders tax credits in future years, noting those projections are estimates.
Secretary Kevin Anderson testified in support of the allowance, citing recent program outcomes and investment leverage. "These funds are critical to the Department's mission of supporting business growth, attracting and retaining new jobs and new investment," Anderson said, and he summarized key allocations: $37.5 million for the More Jobs for Marylanders tax credit reserve fund, $17.5 million for Advantage Maryland (MDAF), $19.3 million for the Maryland Small Business Development Financing Authority, and support for tourism and the Maryland State Arts Council.
Committee members asked for follow‑up data on the tiered allocation within the More Jobs for Marylanders program (tier 1 vs. tier 2 distribution); Commerce agreed to provide additional detail after the hearing. DLS recommended clarifying budget bill language to align a contingent reduction for the business telework assistance grant program with pending legislation that would eliminate the mandated funding (but not the program), and Commerce concurred with that recommendation.
A panel of tourism and small‑business stakeholders testified in support of Commerce programs and marketing funding, citing economic impact figures and loan/grant performance. Witnesses urged full funding for tourism marketing and small‑business financing programs and described how program investments leverage private capital and support jobs across the state.
No formal votes were held on Commerce budget items during the hearing; committee members requested supplemental information on program allocations and turnover assumptions for staff vacancies.
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