Maryland Gov. Wes Moore delivered a State of the State speech Wednesday that carefully balanced caution with optimism and acknowledged there are difficult times ahead.

The full speech is available here. But if you didn’t have time to tune in, don’t worry. We’ve broken down the key points here.

Two storms: The budget and Trump

Moore warned that Maryland is facing “two storms” that are finally making landfall. The state’s fiscal outlook is bleak, and Moore’s budget proposal had to fill a $3 billion deficit by making cuts to programs and adding new taxes and fees.

And President Donald Trump poses a new and unpredictable threat. Maryland is heavily reliant on the federal government, both because it provides billions of dollars in funding each year and because so many residents of the state are federal employees.

Trump’s swift and haphazard actions since taking office — his attempt to freeze all federal grant money, his executive orders attacking diversity initiatives, and his deferred resignation offer to federal employees, to name a few — have Maryland lawmakers on edge.

The new administration, Moore said, “sows uncertainty, confusion, and chaos.”

“Now, I still look at the new leadership in Washington and hope we can work together to make progress for Maryland. ... But if the policy decisions of these last few weeks are any preview, I fear that our most charitable expectations will be met with harsh realities,” Moore said.

Tax reform

Moore’s budget proposes changes to the tax code, including doubling the standard deduction and streamlining income brackets. Most Marylanders would see a tax cut.

Two new brackets would cover the state’s top earners, who would be taxed at slightly higher rates.

Moore said Wednesday that the current system “just isn’t fair.” A person making $30 million is in the same tax bracket as a family making $300,000.

“As someone who will be affected by this change, I am OK with paying a little more if it means we don’t have to lay off firefighters or police officers,” he said. “If it means we can have the best public schools in America. If it means we can have the resources to grow our economy.”

Maryland’s economy

The state’s stagnant economy poses another challenge for Moore, who said Wednesday that “for the first time in a long time, Maryland has a clear economic growth strategy.”

That strategy, he said, includes investing in key “industries of the future,” such as life sciences, information technology and aerospace and defense. Moore also pledged to protect Maryland’s keystone industries and said improving the state’s transportation infrastructure and housing affordability would support economic growth.

Maryland’s education Blueprint

Moore has also proposed reshaping Maryland’s signature public school improvement plan, a move that faces opposition in a state legislature that spent years crafting the Blueprint.

His plan, which he presented to lawmakers last month, would save more than $1.6 billion over the next four years by shifting money away from some of the Blueprint’s more expensive programs. The changes will likely be felt by some of the state’s most vulnerable students, including those living in poverty and learning English.

Moore tried to sell those adjustments to skeptical lawmakers during Wednesday’s speech.

“If history teaches us anything, it’s that laws of enormous consequence must be adjusted to endure changing times,” he said. “But working together to make the Blueprint more successful and sustainable doesn’t mean we’re backing down. It means we’re stepping up.

“All of you did the work to create it. Together, we will do the work to make sure it is implemented effectively, and you have my word on that.”