By Miriam Gutierrez, January 21, 2025

Among the 50 states, Maryland currently ranks 14^th in economic growth, falling behind Virginia’s current robust growth. Certain counties in Maryland have competitive positions in healthcare, life science, and pharmaceutical and medical research.  However, there are major economic, demographic, and political challenges that could deteriorate the economic growth in these counties, and in the entire state of Maryland.  Among these challenges are:

1. The Trump administration plans to drastically downsize the federal workforce, abolish, reduce, or relocate 60 federal facilities currently operating in Maryland, and reclassify some civilian positions (converting them into short-term political appointees). Defunding or displacing federal facilities could bring drastic revenue reductions in the 2025 Maryland budget.

The displacement of federal workers will reduce local and state government budgets through taxation. (Giacomo Bologna, in The Baltimore Banner and also at [email protected])

This reduction in tax revenues will be inevitable since the federal labor force in Maryland represents 6 percent of its total labor force, or 10% if those who commute to DC. (US Census Bureau)

1. Escalated illegal-immigration costs have and are expected to continue depleting the expected-to-shrink Maryland budget.
2. Policies allowing illegal immigration have lowered labor wages among low-skill labor workers, undercutting their wages.
3. By allowing illegal immigrants into Maryland, some Maryland politicians are trying to gain seats in the U.S. House of Representatives. These politicians are also trying to retain their seats in local MD elections. In the past, politicians have re-distributed precincts to secure local elections that they are voted back in.  Now, they are hosting illegal aliens in primary counties (Montgomery, Prince Georges, and Frederick), in an attempt to later add Congressional seats.

Protecting illegal aliens is costly, and eventually the taxpayers are forced to pay the cost.  

1. The demographics in the three predominant counties in Maryland are shifting. The shift reflects fewer young adults and many residents reaching retirement age. This shift will decrease the income of older adults (as they retire) and reduce the versatility of the labor population. The older labor force has wisdom, reliability, and job longevity; the younger labor force does not have these attributes.
2. The economic performance in these predominant counties needs to improve to maintain the current level of tax revenue.

In general, Maryland budget and economic planners cannot focus only on promoting

Businesses. These planners must develop independent communities, improve means of transportation, and interact with other planners in the metro area. The challenges mentioned above need to be strongly considered to secure economic growth, prosperity, and/or economic recovery in 2025 and beyond.

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Dusty Miriam Gutierrez has earned degrees in economics, IT, and legal technology, and has published an economic article in the Townhall magazine.