Budget Message for Partners
Maryland is a national leader in land preservation, largely due to the programs funded by the Transfer Tax is a 1⁄2 % tax on virtually all real estate transactions. The suite of programs funded by the transfer tax not only enhance the quality of life for Maryland residents but are also a significant economic engine.
The programs funded are:
Collectively these programs are major economic drivers for the state: Economic Impacts of Natural Resources- Related Activities in Maryland (source: Natural Resources Conservation on the Delmarva Peninsula; Economic Impact 2024)
38,622 jobs
$4,353.4 (in millions) economic output
Agriculture is the largest commercial industry in Maryland, employing some
350,000 people contributing some $8.25 billion annually to the economy (source: Maryland Department of Agriculture, 2025)
Value added agriculture adds 74,000 jobs and $20.6 billion annually to the state’s economy. This level of economic activity, in turn, adds nearly $875 million to the state’s fiscal resources. (source: BEACON study 2020)
Outdoor Recreation Generates (source: Outdoor Industry Association, 2019):
$14 billion in consumer spending annually
109,000 direct jobs
$4.4 billion in wages and salaries
$951 million in state and local revenue
Tidal Salt Marsh Ecosystems Generate (Source; Audubon Society 2024)
1.8 billion in commercial fishing direct sales
$600 million in flood prevention ecosystem services
402.6 million in clean water ecosystem services
2.2 billion in tourism income
1 billion in agriculture economic impact
951 million in outdoor recreation state and local tax revenue
Prior Cuts: Maryland has a goal of protecting 40% of the state by the year 2040. To be successful these programs need continued, consistent funding. But the funds have consistently been used for other purposes:
Between 2002 and 2018 $600 million in transfer tax revenue was diverted with no plans for repayment.
This year, and each year the transfer tax formula allocates approximately 25 –30% of the total available funding to DNR administration and state park maintenance and operation.
The current BRFA transfer an additional $16.4 million from state side POS to parks maintenance and operation.
A minimum of $21 million in the local side is transferred to DNR operations and maintenance annually.
In FY 22 $21.9 million was transferred from land acquisition pack to critical
maintenance in the parks.
FY 2026: The Governor’s proposed FY 2026 includes:
A transfer of $340,000 from heritage area programs to department of Planning operating expenses
A transfer of $16.4 million from state side POS to Maryland Park Service operations
Total transfer tax revenue projected in the FY 2026 budget is $219,596,904 but it is subject to an “under-attainment” reduction of $85,337,958 or roughly 38% of the annual revenue.
We ask: support the Governor’s FY2026 budget as presented. The under attainment and the two legislative transfers have already significantly reduced the funds available to the programs. Any further reductions would effectively cripple these programs, eliminating their economic, environmental and social benefits.
We look forward to working with you to meet the protect 40% of Maryland by the year 2040 further advancing the states position as a leader in preservation.
Partners for Open Space Steering Committee Members
Baltimore County Land Trust Coalition, Ann Jones; Chesapeake Bay Commission, Mark Hoffman; Chesapeake Bay Foundation, Matt Stegman, Chesapeake Conservancy, Mark Conway; The Conservation Fund, Bill Crouch; The
Eastern Shore Land Conservancy, Owen Bailey; Forever Maryland/Harford Land Trust Kristen Kirkwood; Maryland Association of County Parks and Recreation Administrators Jessica Leys; The Nature Conservancy, Michelle Dietz; League of Conservation Voters, Kristen Harbeson; Potomac Conservancy, Anna Mudd; Preservation Maryland, Nick Redding; Rural Maryland Council, Charlotte Davis; The Southern Maryland Heritage Area Consortium, Lucille Walker; The Trust for Public Land, Kent Whitehead.
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