LEONARDTOWN, Md. — Local lawmakers gathered with business leaders and civic stakeholders at the annual St. Mary’s County Legislative Breakfast on Thursday morning to reflect on the 2025 General Assembly session. Held at the historic Old Breton Inn, the event centered on the state’s controversial IT services tax, budget shortfalls, and their ripple effects on Southern Maryland’s economy — with delegates offering sharp critiques and foreshadowing potential legislative battles ahead.
Doors opened shortly before 7:30 a.m., welcoming attendees who quickly lined up for a self-serve breakfast. Conversation filled the warmly lit hall, easing guests toward the formal agenda.
By 8 a.m., the room settled as Chamber leaders outlined the morning’s itinerary. Members of the Southern Maryland legislative delegation were invited to reflect on the recent 2025 legislative session, emphasizing impacts on the local business community.
Sen. Jack Bailey began by describing this past session as “the most challenging” of his tenure, sharply criticizing House Bill 352, a significant tax measure unanimously opposed by St. Mary’s delegates. Bailey highlighted concerns about the newly introduced IT services tax, noting it would disproportionately impact local defense contractors and health care providers. He also proudly cited the successful funding for a long-awaited 20-bed mental health facility near Charlotte Hall. “We shouldn’t have to send our loved ones to Baltimore to get help,” Bailey emphasized.
Del. Todd Morgan continued, focusing heavily on what he described as Maryland’s “self-inflicted deficit crisis,” criticizing state leadership for failing to enact meaningful spending cuts. Morgan underscored the disparity in capital budget allocations, observing that Republicans, despite representing 28% of the General Assembly, received just 4% of state capital funding.
Del. Matt Morgan provided a pointed critique of Gov. Wes Moore’s budgetary choices, especially the controversial IT and digital products tax. Morgan traced the problematic emergence of these late-session tax proposals, recounting significant public and media backlash that led to the defeat of multiple proposed taxes — including those targeting sugary drinks, mattresses and home deliveries. Additionally, Morgan noted his direct involvement in blocking legislation that would have tied Maryland’s vehicle emissions standards to California’s stringent requirements, which he labeled “bureaucratically reckless.”
Del. Brian Crosby offered remarks that combined legislative critique with personal experience as a small defense contractor. Crosby argued that Maryland’s version of the IT services tax was uniquely problematic, disproportionately burdening smaller subcontractors unable to access direct Department of Defense exemptions available to larger firms. Crosby detailed the unintended consequence: larger companies avoiding subcontracts with minority- and women-owned businesses to sidestep added costs, thus undermining years of local economic development efforts.
A significant moment arose when Todd Morgan highlighted a controversial last-minute carve-out exempting IonQ — a tech park in Prince George’s County located on the University of Maryland campus — from the IT services tax. Crosby further explained that this exemption, orchestrated by powerful legislative figures, even extended a half-mile radius around IonQ, safeguarding other affiliated businesses from tax liability. Bailey reinforced the point, underscoring how political influence, rather than sound policymaking, drove key legislative decisions.
While the speeches were focused and informative, discussion remained centered on local issues, with minimal reference to national politics or broader federal policies. Delegates primarily addressed topics with direct relevance to the St. Mary’s community.
The event concluded around 9:30 a.m. with brief announcements of upcoming Chamber activities and acknowledgments of sponsors. No groundbreaking policy revelations emerged, yet the breakfast clearly illuminated ongoing tensions within Maryland’s state government, hinting strongly at the likelihood of a special legislative session come fall.
For attendees — primarily local business owners and civic observers — the event highlighted ongoing fiscal and legislative challenges. As one delegate noted, “The way this was done — we’re not done.”
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