In Ocean City address, Moore declares 'new season of challenge' for Maryland economy

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Beachgoers have a few more weeks to enjoy the last days of summer, but Saturday during a sober economic policy speech in Ocean City, Maryland Gov. Wes Moore declared a “new season of challenge” for the state.

“We are forced to reckon with the structural challenges that are facing our economy,” said Moore, during his keynote closing address at the Maryland Association of Counties summer conference. The first-year governor said 17 of the last 20 state budgets have required cuts to stay balanced.

“Our economic engine does not support our ambitions,” said Moore, a former finance pro. “The trouble beneath the surface has been masked by federal cash, and federal infusion of cash, and big stock gains that happened during COVID,” he told the crowd of local officials, several county executives, at least one county commissioners president and a U.S. congressman.

Democratic Gov. Wes Moore delivers an economic policy address at the Maryland Association of Counties summer conference in Ocean City on Saturday, August 19, 2023. He called on local officials to help grow the state's economy.
Democratic Gov. Wes Moore delivers an economic policy address at the Maryland Association of Counties summer conference in Ocean City on Saturday, August 19, 2023. He called on local officials to help grow the state's economy.

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Moore's remarks applauded by elected officials

Moore told the audience his belief that “preserving the status quo is not enough,” citing statistics that showed Maryland ranked 47th in the country last year in economic momentum — a measure that includes personal income growth, employment growth and a state’s population growth.

In an interview immediately following the speech, Washington County Commissioners President John Barr, a Republican, noted the remarks’ “transparency,” praising the governor for being “straightforward,” and “such an inspiration for the state.”

Similarly, U.S. Rep. C.A. “Dutch” Ruppersberger, a Democrat whose district includes small portions of Baltimore City and parts of both Carroll and Baltimore counties, said the address “hit the right tone.”

“Some of these numbers are pretty bad when you talk about 47th. I didn’t realize that,” said the veteran lawmaker in his 20th year in Congress, alluding to the 2022 statistics from the Federal Funds Information for States, during an interview after the governor’s speech, in the convention center's parking lot. “He’s saying, ‘Hey I have a job to do, everything’s nice, everything looks good, but it’s not.’”

In the address, Moore summarized his view of his administration’s accomplishments during its first seven months and was met with a crescendo of applause from the crowd after including items such as the “service year option” for high school graduates and addressing child poverty.

Moore then returned to themes of discipline and partnership as he promoted three principles for the state as it builds its annual budget while currently lagging behind its neighbors economically.

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Governor outlines three principles for Maryland's economic growth

“We’re going to take a balanced approach,” said the governor, as his first principle. He called fiscal responsibility the “North Star” of his administration since its inception, but also forewarned a “season of discipline” ahead.

The state reported a nearly $2 billion budget surplus last year, but also a “historically high” level of vacancies in state government as two-term Republican Gov. Larry Hogan left office.

Moore’s first budget this year kept about $2.5 billion in the state’s Rainy Day Fund, but also made $1 billion in investments for future year costs between both education and transportation.

In this file photo, Maryland Gov. Wes Moore calls the 1,000-plus page budget document a “summation of our values” during the unveiling of his first proposed budget at the State House in Annapolis on January 20, 2023. Lt. Gov. Aruna Miller, left, and Helene Grady, the secretary of Budget & Management, right, stand beside the governor, who was inaugurated just two days prior.

Moore called for being “data-driven,” as a second principle, and announced his intent to hire a chief performance officer for the state.

The chief performance officer, Moore said, will also work with local officials to “track progress on the local level.”

The governor’s last principle was a call to prioritize spending to strengthen assets and grow the economy for the long term. Alluding to the juxtaposition of the state’s highly rated education and research institutions with the low economic momentum ranking, he said, “We’re better than that!”

“I want Maryland to be the headquarters of the 21st century,” Moore said.

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Building a budget, a next step for administration

He closed by reiterating the need for discipline and collaboration, referencing Republican officials from the state’s Eastern Shore in Cecil County Executive Danielle Hornberger to Western Maryland in Garrett County Board of County Commissioners Chair Paul Edwards.

“We are going to win in partnership,” said Moore, encouraging the officials in the audience to “fix the foundation of what’s broken” together.

The audience, which included Moore’s wife and most of Moore’s cabinet seated in the first few rows, rose to its feet after the speech and met the first-year politician with a standing ovation.

“So far I’m very impressed with what he’s done,” said the veteran politician Ruppersberger, standing outside the convention center, sporting shorts in the summer weather, “(and) who he’s hired.”

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In this file photo, Maryland Lieutenant Governor Aruna Miller speaks after she was sworn in at the State House in Annapolis on Jan 18, 2023.
In this file photo, Maryland Lieutenant Governor Aruna Miller speaks after she was sworn in at the State House in Annapolis on Jan 18, 2023.

Lieutenant Gov. Aruna Miller echoed Moore’s remarks during an interview outside the convention center after the address.

“We are going to make sure that we build an economy and grow the economy,” said the state’s second-highest ranking official in the executive branch. She said the administration met with local leaders, including from Washington County, during the multi-day conference on the Shore.

The local officials, Miller said, are the ones “closest to the challenge” and “closest to the people, who can offer the solutions that we need.”

“We heard their ideas, their thoughts,” said Miller, “and that information is going to be vital as we build a budget.”

The governor is scheduled to introduce a budget bill for next fiscal year by Jan. 17.

Dwight A. Weingarten is an investigative reporter, covering the Maryland State House and state issues. He can be reached at dweingarten@gannett.com or on Twitter at @DwightWeingart2.

This article originally appeared on Salisbury Daily Times: Moore says 'reckon' with economic challenges in Ocean City address