With the legislative stakes as high as they've ever been, scores of Maryland CPAs and their supporters converged on Annapolis on Jan. 16 for the Maryland Association of CPAs' annual CPA Day of advocacy.

Held in one of the nation's oldest, most historic state capitols, the event brought CPAs from throughout the state to Annapolis, where the state's General Assembly has gathered for its 2025 legislative session.

And what a session it promises to be. 

• Maryland’s budget gap is growing, with one analyst predicting that the state will be able to cover only 84% of its expenses by 2030. “That is the largest gap that we have seen in the last 20 years,” Department of Legislative Services budget analyst David Romans told Maryland Matters. “It is more significant than the Great Recession.”
  
  
• Maryland Senate President Bill Ferguson has said “everything is on the table” as lawmakers look for ways to address the budget shortfall. That could include yet another effort to enact a sales tax on professional services, including those provided by CPAs.
  
  
• Several campaign promises made by returning President Donald Trump could make a bad state budget situation even worse. With 8% of Maryland taxpayers earning federal paychecks and $42 billion in federal contracts directly impacting our state, efforts to scale back government projects and employment would be particularly painful to Maryland. State lawmakers could be tasked with raising the revenue needed to offset the potential losses.
  
  
• The CPA profession’s ongoing talent shortage could compel lawmakers to examine Maryland regulations and accommodate evolving licensure pathways in other states.

The convergence of these critical legislative issues highlights the growing importance of legislative advocacy for Maryland's CPAs — as well the vital role CPAs play in advising the lawmakers tasked with addressing the state's fiscal challenges.

"In times like this, you guys are our dream team," Lt. Gov. Aruna Miller told the CPAs in attendance. "You play such a huge role in making sure our state is financially sound, that we are investing strategically, and that our policies are fiscally appropriate. Your insights are so important, and we're thrilled that you take the time to make your voices heard."

At the heart of the CPA Day conversations was the state’s budget shortfall. A day earlier, Maryland Gov. Wes Moore released a proposed budget that outlines his plans for closing an estimated $3 billion budget gap. Those plans call for nearly $2 billion in spending cuts, leaving about $1 billion to be raised in new revenue. Moore hopes to raise the bulk of that through new taxes on the state’s wealthiest taxpayers, but the MACPA and its members will be watching legislative negotiations carefully as other revenue-generating ideas surface.

“We walked in here with a $3 billion structural budget deficit, which we must deal with. We have to walk out of here having solved that,” state Sen. Brian Feldman, chair of the Senate's influential Energy, Education and the Environment Committee and one of three CPAs currently serving in Maryland's General Assembly. “(The governor’s proposed budget) is the first inning of a nine-inning game.

"CPAs have a tremendous amount of credibility here, particularly on these critical business and tax issues," Feldman added. "Legislators see (the CPA) agenda as being more objective because you’re speaking on behalf of your clients and Maryland’s business community.”

Other dignitaries on hand to address the CPAs included Maryland's other two elected CPAs, Sen. Arthur Ellis and Del. William Wivell; Sen. Guy Guzzone, chair of the Senate's Budget & Taxation Committee, which will play a critical role during this year's legislative session; Grason Wiggins, vice president of government affairs for the Maryland Chamber of Commerce; Andrea Mansfield of MACPA lobbyists Manis Canning & Associates, who offered insights into Maryland's budget challenges; Barrett Young, CPA, who provided an update on recent Maryland Board of Public Accountancy activities; and Karen Syrylo, CPA, who offered insights into tax-related legislative issues.

• View photos from CPA Day 2025.

CPAs’ agenda: Five key issues

MACPA members braved the mid-winter cold and dodged construction projects at and near the iconic statehouse to visit their elected officials and discuss the profession’s 2025 legislative agenda, which is highlighted by five key issues:

1. Support enhanced mobility for CPAs. As conversations continue about how to best address the CPA profession's ongoing talent shortage, proposed new legislation aims to maintain CPA mobility in Maryland by adjusting existing statutes to accommodate evolving licensure pathways in other states. Sen. Ellis, himself a CPA, has introduced Senate Bill 51 to that effect.

2. Opposing sales taxes on professional services, including those provided by CPAs. Proposing a sales tax on services to raise revenue would burden the citizens and businesses of Maryland unnecessarily with additional taxes and compliance complexity. It also would negatively impact economic growth and development. CPAs believe any proposal to implement sales taxes on professional services would be bad for small business in Maryland, and the MACPA will work to defeat such legislation if introduced.

3. Opposing efforts to replace Maryland’s contributory negligence standard with a comparative fault rule. At present, Maryland courts allow a person sued for negligence or wrongdoing to raise the “contributory negligence” defense — that is, the party sued may claim that the plaintiff contributed to his injury and thus should not be allowed to recover from the defendant. This long-standing rule in Maryland courts prevents a person from shifting his or her responsibility to others.

The contributory negligence standard should be maintained in Maryland because:

• it prevents a flood of suits by plaintiffs who have a disproportionate amount of fault;
• it keeps the lid on insurance premium growth rates;
• it fosters the exercise of due care by all persons; and
• it enhances the predictability of litigation, including its costs.

4. Support proper budget funding for the Maryland Comptroller’s Office. During the past two General Assembly sessions, the MACPA has supported the Maryland Comptroller’s Office’ request for additional funding needed to carry out its extensive agenda. The Legislature agreed, and good things have happened during the past year thanks to the additional funds, but the need for expanded funding still exists, particularly when it comes to addressing current inefficiencies and ensuring successful implementation of any new tax policies.

5. Support the granting of an "emeritus" status for professional licensees, including CPAs, under certain circumstances as outlined in Senate Bill 148.

A comprehensive list of position papers and the bills the MACPA is following this year will be found throughout the legislative session at MACPA.org/advocacy.

"What we do here matters," said Thomas White, CPA, CGMA, chair of the 2024-25 MACPA Board of Directors. "This year it matters more than ever, given the bills that have been introduced that impact our profession, our businesses and our clients."