The Maryland General Assembly passed the state's budget on the final day of the legislative session to close the $3.3 billion deficit, with a slew of tax and fee increases coupled with cuts to state spending.

Last month, Gov. Wes Moore and leaders in the General Assembly agreed on the framework for the state's budget . The 90 days of the legislative session have been contentious, with the state navigating budget cuts and how to generate revenue.

Also headed to the governor's desk are an energy reform package and legislation to protect consumers from wasteful utility spending.

Maryland's budget goals

On the final day of the legislative session, called "Sine Die," Gov. Wes Moore revisited the three goals he had when the session began.

"We have to reform the tax code, and not on the backs of middle-class families, that we've got to make Maryland more business-friendly and economically competitive, and we have to invest in our people," Moore said. "We are accomplishing all three of those goals with this session."

Moore says those goals were met in Maryland's $67 billion budget, which includes about $1.8 billion in tax and fee increases.

What's included in the state budget?

The budget creates two new tax brackets for the state's highest earners.

Those who make $500,000 per year will be taxed at 6.25%, while those making $1 million will be taxed at 6.5%. Currently, Marylanders who make over $250,000 are taxed at 5.75%.

There will also be a 3% tax on IT and data services, a new 2% tax on capital gains for people with income over $350,000, and an increase in the cannabis and sports betting taxes.

Republican lawmakers still have concerns about the burden on taxpayers. The House Republican caucus released a statement saying these tax increases weren't necessary.

"It's really scary for the six million Marylanders this new budget falls on," said Del. Stuart Schmidt, a Republican from Anne Arundel County. "I mean, the highest tax increase we've ever had in the state of Maryland, it's scary."