What a difference a week makes.

The shocking March 26 collapse of the Francis Scott Key Bridge in Baltimore brought jaw-dropping tragedy to the region. Within a week, it had also brought unprecedented economic, financial, and legislative uncertainty that will be felt well beyond Maryland’s borders for months — and possibly years — to come.

As state officials look to provide solace and support to the families of the six construction workers killed in the collapse, they’re also shifting their focus to the economic and financial stability of the region, and the nation at large.

The collapse cut off shipping access to the Port of Baltimore, which stands to lose $15 million per day as a result. Maryland's General Assembly has moved quickly to draft legislation that would provide income replacement for the thousands of port workers impacted by the collapse. And in the days immediately following the collapse, Maryland Gov. Wes Moore asked the Biden administration for $60 million in immediate federal aid, which the president promptly granted.

Beyond that, though, the economic outlook is cloudy at best.

Even before the bridge came down, fiscal concerns at a number of statewide levels had been putting pressure on Maryland legislators to find new sources of revenue. The spotlight centered squarely on state transportation funding. Plans to close an estimated $3.3 billion budget shortfall for Maryland’s Department of Transportation with deep cuts to all transportation-related agencies are being questioned by state and county officials throughout Maryland. State lawmakers even briefly suggested implementing a sales tax on professional services — including those provided by CPAs — as one idea to help close the shortfall. That proposal ultimately was left out of this year's budget talks.

The uncertainty among lawmakers of how to close the state's budget shortfalls has grown significantly since the bridge came down. President Biden vowed that the federal government would foot the entire bill for rebuilding the bridge, and the early $60 million infusion of federal aid certainly helps.

But experts say rebuilding the bridge could take several years and cost at least $400 million — and possibly much more than that. But how much of the price tag for bridge replacement and the port's closure will ultimately become the state's responsibility? That's the question everyone is asking — and to which no one knows the answer.

“It’s added a lot of uncertainty into what was already an uncertain environment,” Senate President Bill Ferguson told The Baltimore Sun.

State Comptroller Brooke Lierman tried to mitigate some of that uncertainty by announcing that her office will waive certain late payment penalties and interest for Maryland businesses through May 31, 2024, to help ease the economic impact of the collapse.

In Annapolis, meanwhile, there remains so much uncertainty that budget talks between Maryland's House and Senate reached an impasse on April 1 — just a week before the planned end of the General Assembly's 2024 legislative session. As a result, Gov. Wes Moore issued an executive order extending the session by an additional 10 days, giving lawmakers additional time to resolve their differences.

Even more uncertainty ahead?

Given Maryland's current economic and financial environment, we must accept that almost anything could be considered during the final days of this year's budget negotiations, and certainly in next year's General Assembly session — including, potentially, the reintroduction of a sales tax on professional services.

Indeed, we're expecting it — and we'll need your help. Here are three key ways you can support the MACPA's legislative efforts:

• Stay vigilant: Follow our legislative updates in our Connect communities and on our blog. We’ll keep you posted as developments warrant.
• Join us at CPA Day: The 2025 edition of CPA Day in Annapolis will be held on Jan. 16. Mark your calendars and save the date. Join us there in person. It will be more important than ever to turn out in force and make our voices heard.
• Support our PAC: Issues like this are perfect examples of why supporting our political action committee is more important than ever. Through con tributions from members like you, our PAC is able to work toward favorable outcomes on legislative issues that affect CPAs, educate legislators about matters that are important to the CPA profession, and keep MACPA members informed. Your generous contribution will help ensure Maryland CPAs have a voice in Annapolis and will help ensure a vibrant CPA profession in the future. Learn more and donate today by visiting MACPA.org/advocacy.