Gov. Wes Moore took office with the promise of advancing Maryland’s economic competitiveness. Yet, less than two years into his term, our state’s future continues to face a financial crisis. With the added attempt to scale back expenditures in the fiscal 2025 budget, the lack of growth in Maryland’s economy since 2017 requires more than budget cuts to avert disaster. For the state to thrive and bolster growth, Moore must engage private companies to drive innovation and job creation — especially as other states make moves to attract business and investments.

The troubling reality is that despite having one of the lowest unemployment rates in the country, Maryland’s economy is pretty stagnant. A recent report from the state comptroller’s office revealed that Maryland has not experienced significant growth in over seven years. Budget shortfalls raise concerns about Maryland’s ability to meet the needs of its citizens while remaining competitive on the national stage.

However, while the government scales back, Maryland’s private sector has been stepping up to fill the gap, making substantial business investments that generate jobs and support the health of state and local economies.

BlueHalo, a leading provider of critical capabilities and technologies based out of Arlington, Virginia, but with two offices in Maryland, announced plans this year to add 200 new high-paying, high-quality jobs in the state. In partnership with Maryland, the company’s expansion includes a 57,000-square-foot facility in Germantown for research that will strengthen Montgomery County’s short- and long-term economy.

Another example is CSX, a freight railroad operating the Curtis Bay Piers export terminal in Baltimore. In 2022, CSX generated $238.7 million in direct business revenue for the state and $96.3 million through local consumption and re-spending of income. CSX further contributed $21.1 million in state and local taxes to Maryland.

Beyond economic support, CSX is a key partner in the Howard Street Tunnel expansion which will allow for double-stack train service, subsequently increasing containerized freight capacity and supply chain efficiency for shippers nationwide. This public-private project will modernize Baltimore’s freight rail infrastructure more generally, allow for new shipping services in the area and create thousands of jobs. This collaboration between CSX, the U.S. Department of Transportation, Moore and the city demonstrates the positive impact of long-term partnerships on Maryland’s sustained growth.

Beyond financial contributions, companies like HASI and CSX are working to advance the state’s ambitious climate goals. Moore’s commitment to reducing greenhouse gas emissions by 60% by 2031 and achieving 100% clean energy by 2035 would require significant collaboration between the public and private sectors. CSX is already helping pave the way in the rail industry by investing in green technologies like its first-ever hydrogen-powered locomotive which helps move freight transportation toward a greener future. In a similar way, HASI is a leading climate investment firm based in Annapolis committed to developing community solar capacity across the state and producing more efficient technologies that lead to higher economic returns.

We should know now that navigating fiscal challenges cannot be done alone. Our business community has proven that it can help support state and local economies in times of hardship. However, for Maryland to have a promising future, the Moore administration must prioritize public-private partnerships as it continues to work to revitalize our state. Budget cuts that delay crucial advancements are short-sighted and risk Maryland’s long-term success. Without a course correction, we risk falling further behind as a leader in an ever-evolving economic landscape.

Moore’s vision of “leaving no one behind” must include robust engagement with the private sector. And as BlueHalo, CSX and HASI have demonstrated, business can — and must — play a vital role in the state’s future. We must lean into these opportunities to ensure policies and regulations support rather than stifle such investment. Only by working together can Maryland regain its economic footing and competitiveness and overcome its current fiscal uncertainty.

Christopher B. Summers is president and chief executive officer of the Maryland Public Policy Institute (csummers@mdpolicy.org).