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House rejects GOP amendments, gives final approval to bill creating Reparations Commission

April 4, 2025 by Maryland Matters Leave a Comment

It’s done.

The House of Delegates gave final approval Wednesday evening to a bill that would create a Maryland Reparations Commission, sending the measure to the governor for his signature.

The 101-36 party-line vote would make Maryland one of the few states in the nation with a statewide body to study the inequality endured by African descendants. California became the first state in 2020 to pass legislation; then Illinois in 2021 and New York in 2023.

If approved, the commission would assess specific federal, state and local policies from 1877 to 1965, the post-Reconstruction and Jim Crow eras. Those years “have led to economic disparities based on race, including housing segregation and discrimination, redlining, restrictive covenants, and tax policies,” according to the bill.

The commission would also examine how public and private institutions may have benefited from those policies, and would recommend appropriate reparations, which could include statements of apology, monetary compensation, social service assistance, business incentives and child care costs.

Passage Wednesday followed 90 minutes of sometimes emotional debate and attempts to amend the bill, which could have blocked its passage with just five days left in the General Assembly session.

Del. Lauren Arikan (R-Harford) tried to amend the bill to have the commission study the impact of government policies on those who endured child sexual abuse and those as minors “in the care and custody of the State.” Arikan, who identified heraself as a victim of abuse, emphasized her point by reading out about three dozen names of child abuse victims.

“I will stand up again on any bill I can continue to read the names of victims that our state’s harmed today,” said Arikan, who told a reporter she had been “molested as a young child.”

“That is what reparations is, paying back the aggrieved and the injured,” she said. “So don’t wait 200 years to help the families of these victims who we have harmed today.”

Del. Joseline Peña-Melnyk (D-Prince George’s and Anne Arundel), said that she used to work as a child-neglect lawyer in Washington, D.C., and that she understands Arikan’s passion for children.

But Peña-Melnyk, the chair of the Health and Government Operations Committee, told her colleagues to reject Arikan’s amendment because it rewrites the measure and “changes the purpose of the bill. They’re very different issues.”

The House appeared to agree, rejecting the amendment 101-34.

Delegates also rejected two amendments from House Minority Leader Jason Buckel (R-Allegany), one that would have limited reparations to Maryland residents and another that would have required the commission to estimate the fiscal impact to the state of any of its recommendations.

“We will have people come from all over [the] 50 states and try to find ways to receive those payments, justifiable or not, however you feel about it,” Buckel said of his proposed residency restriction\. “That is what will happen.”

Peña-Melnyk said the commission will assess and determine eligibility requirements. In addition, she said the commission must submit a preliminary report of recommendations by Jan. 1, 2027, to explain its findings, and a final report by Nov. 1 of that year.

The House rejected the residency amendment 101-38.

As for the fiscal reporting requirement, Peña-Melnyk noted that the bill already requires the commission’s final report include an estimate of costs “associated with awarding any type of reparations recommended.”

“So you see my friend, it’s already in the bill and it’s not needed,” Peña-Melnyk said. That amendment failed 100-37.

‘Reparation tax’

The all-volunteer commission would consist of nearly two dozen people, including two employees from the state’s four historically Black colleges and universities with expertise in the history of slavery; a representative from the Maryland Lynching Truth and Reconciliation Commission; and the state archivist or a designee from that office.

Although the House passed Senate Bill 587, sponsored by Sen. C. Anthony Muse (D-Prince George’s), many delegates hugged, smiled and even shed a few tears with Del. Aletheia McCaskill (D-Baltimore County). McCaskill sponsored the House version that didn’t advance out the Health and Government Operations Committee.

That’s fine with her.

“It’s about ushering the purpose and the plan. I work very well behind the scenes, and so it’s OK,” she said to two reporters after Wednesday evening’s debate. “I would love to give Sen. Muse the glory for accepting to be my cross-filer [bill]. Because in prior years, we did not have a cross-filer. So finally, we made it through.”

It also helped that, for the first time, the Legislative Black Caucus made the bill one of its top priorities for the 90-day session that ends Monday. A hearing on the Senate version was first held Feb. 27 and then approved by the full chamber March 14.

Critics, like Del. Matthew Morgan (R-St. Mary’s), called the measure divisive and said it would amount to a “reparation tax.”

“I think it’s disgraceful that we’re going to set up a reparation tax that might tax one race and give to another race,” he said. “It is the year 2025. Are you kidding me? All in the name of equity? Equity is a Marxist term. Splits people up and divides it.”

But Del. Stephanie Smith (D-Baltimore City), noted that Black Marylanders in the 1900s paid taxes but did not receive the benefits from them.

“There were roads they paid for, they could not drive them. There were schools they paid for, they could not enter,” she said. “We are offering just a conversation and a commission to acknowledge that they were here, that they lived, that they contributed, and I think they merit our time because they lived, they died … and guess what? They were taxpayers that never got what they invested in.”

The bill would go into effect July 1 and remain in effect until June 30, 2028.

– Reporter Bryan P. Sears contributed to this report.

By: William J. Ford – April 3, 2025 8:16 am

Maryland Matters is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Maryland Matters maintains editorial independence. Contact Editor Steve Crane for questions: [email protected].

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States ordered by U.S. Education Department to certify school DEI ban or lose funds

April 4, 2025 by Maryland Matters Leave a Comment

This story was updated at 6:44 p.m. EDT.

WASHINGTON — The U.S. Department of Education demanded in a letter to state education leaders on Thursday that they certify all K-12 schools in their states are complying with an earlier Dear Colleague letter banning diversity, equity and inclusion practices if they want to keep receiving federal financial assistance.

The department’s sweeping order gives K-12 state education agencies 10 days to collect the certifications of compliance from local school governing bodies, and then sign them and return them to the federal department.

The new demand stems from a February letter threatening to rescind federal funds for schools that use DEI, or race-conscious practices, in admissions, programming, training, hiring, scholarships and other aspects of student life.

Craig Trainor, the department’s acting assistant secretary for civil rights, said “federal financial assistance is a privilege, not a right,” in a statement Thursday.

“When state education commissioners accept federal funds, they agree to abide by federal antidiscrimination requirements,” Trainor said. He added that “unfortunately, we have seen too many schools flout or outright violate these obligations, including by using (diversity, equity and inclusion) programs to discriminate against one group of Americans to favor another based on identity characteristics in clear violation of Title VI.”

He did not cite examples in the statement.

Trainor said the department “is taking an important step toward ensuring that states understand — and comply with — their existing obligations under civil rights laws and Students v. Harvard.”

In the February letter, Trainor offered a wide-ranging interpretation of a U.S. Supreme Court ruling in 2023 involving Harvard University and the University of North Carolina. The nation’s highest court struck down the use of affirmative action in college admissions.

Trainor wrote that though the ruling “addressed admissions decisions, the Supreme Court’s holding applies more broadly.”

The four-page letter raised a slew of questions for schools — from pre-K through college — over what exactly falls within the requirements.

The department later released a Frequently Asked Questions document on the letter in an attempt to provide more guidance.

In the document, the department noted that it’s prohibited from “exercising control over the content of school curricula” and “nothing in Title VI, its implementing regulations, or the Dear Colleague Letter requires or authorizes a school to restrict any rights otherwise protected by the First Amendment.”

The agency also clarified that “programs focused on interests in particular cultures, heritages, and areas of the world” are allowed as long as “they are open to all students regardless of race.”

Teachers unions react

Meanwhile, legal challenges are already underway against the Dear Colleague letter, including one spearheaded by the American Federation of Teachers and another from the National Education Association.

“In the middle of a school year, the president is trying to bully the very same school districts that he insisted, just a few weeks ago, should be in charge of education,” Randi Weingarten, president of the American Federation of Teachers, said in a Thursday statement.

Weingarten added that “this is a power grab and a money grab — and it’s also blatantly unlawful.”

“We know the administration wants to divert federal education funds into block grants, vouchers or tax cuts, but it’s simply not legal; only Congress can do that. Further, federal statute explicitly prohibits any president from telling schools and colleges what to teach, and funds cannot be withheld on the basis of Title VI Civil Rights Act claims without due process,” she said.

In a Thursday statement, Becky Pringle, president of the National Education Association, said “educators and parents know that teaching should be guided by what is best for students, not by threat of illegal restrictions and punishment.”

“That is why we sued the Trump administration — and we stand by our lawsuit,” she said.

“This latest action by the Trump administration to shut down free speech and coerce educators to abandon inclusive practices at school remains illegal and unconstitutional as we pointed out in our legal filing,” she added.

Last updated 6:44 p.m., Apr. 3, 2025

by Shauneen Miranda, Maryland Matters
April 4, 2025

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Maryland faces $418 million ‘catastrophic’ loss in pandemic-era relief funds

April 1, 2025 by Maryland Matters Leave a Comment

The U.S. Department of Education told states Friday that it was canceling previous approvals to spend down remaining COVID-19 recovery funds, a change that could mean $418 million to the Maryland Department of Education.

The change was announced in a letter from U.S. Education Secretary Linda McMahon that was dated Friday at 5 p.m., and said the decision to cancel the pandemic funding was effective — Friday at 5 p.m.

“Shock does not begin to describe our reaction when we received the notification late Friday evening,” Maryland State Superintendent Carey Wright said Monday. “This jeopardizes over $400 million in funding.”

Wright called the federal agency’s decision “catastrophic,” noting that the money has already been spent or at least committed to the state’s 24 school systems. She said the money is being used for tutoring, reading materials, after-school programming, even some construction projects such as repairs for heating and air conditioning units, among others.

State officials said about $305.2 million has already been spent but not reimbursed by the federal department. Another $112.8 million is in “encumbered” funds not paid out by the state, which means school systems must immediately stop any ongoing work on capital projects, or educational programs.

“It may be a tutoring program that’s going on right now in schools that was intended to go through this school year, or it might be an improvement to a health room in a school,” said state Board of Education President Joshua Michael. “There’s going to be significant disruption.”

Officials said it remains unclear if the state would need to cover costs for ongoing programs, or if the local school systems may have to return any money already spent.

“The federal government is breaking the trust that it has once held strong with states across America,” Michael said.

School officials said they are consulting with the Office of the Attorney General on the possibility of filing suit against the federal department.

“I think it’s fair to say that we are exploring all legal options at this time given the severity of this action,” Michael said.

He said the majority of the money comes from the American Rescue Plan’s Elementary and Secondary School Emergency Relief, or ARP ESSER, program.

The state last year requested and received approval for an extension on how it would draw down the ESSER funds it had left over. Wright said the state sought extensions because of supply chain issues and construction delays.

The approval was given before a Jan. 28 deadline set by former President Joe Biden (D) before he left office that month. But in her letter Friday, McMahon dismissed the approvals by the previous administration.

“The extension approval was issued recently, so any reliance interests developed are minimal,” McMahon wrote. “Moreover, an agency may reconsider its prior decision. So you could not rely on the Department adhering to its original decision. That is especially true because the extension was a matter of administrative grace.”

She said that extending deadlines to allocate “COVID-related grants … years after the COVID pandemic ended is not consistent with the Department’s priorities and thus not a worthwhile exercise of its discretion.”

But McMahon also wrote the department would reconsider funding for states if the could explain “how a particular project’s extension is necessary to mitigate the effects of COVID on American students’ education, and why the Department should exercise its discretion to grant your request.”

Wright said ending the program at 5 p.m. Friday and offering to consider appeals from states “seemed to be contradictory,” but she said her department plans to send a letter to justify why money for Maryland is necessary.

A U.S. department spokesperson said that specific projects would be assessed if funds are used directly to mitigate the effects of COVID-19.

“COVID is over. States and school districts can no longer claim they are spending their emergency pandemic funds on ‘COVID relief’ when there are numerous documented examples of misuse,” said Madi Biedermann in a statement Monday afternoon.

“The Biden Administration established an irresponsible precedent by extending the deadline for spending the COVID money far beyond the intended purpose of the funds, and it is past time for the money to be returned to the people’s bank account,” Biedermann’s statement said.

In part because of the Education Department’s decision, the Maryland Senate approved an amendment to a budget bill Monday that would require the governor’s budget team to track federal cuts and, if they hit $1 billion, recommend state spending cuts to the General Assembly’s Legislative Policy Committee.

“If we have a $1 billion problem from combined actions by the federal government, we would begin a process of review through our policy committee, and work with the governor to come up with solutions,” said Sen. Guy Guzzone (D-Howard), chair of the Budget and Taxation Committee. “We have to be wide-eyed open about what could be happening because it is happening.”

Sen. Chris West (R-Baltimore and Carroll) asked if any recommendations that may come from the policy committee would be for the legislature next year.

“Could very well be,” Guzzone said.

by William J. Ford, Maryland Matters
March 31, 2025

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Sheriffs defend cooperation with federal officials on immigration enforcement

March 28, 2025 by Maryland Matters 3 Comments

Supporters of a bill that would force sheriff’s departments to cancel agreements with federal immigration officials said deputies could still enforce the law just as effectively — they would just not be doing so as an extension of federal authorities.

“There are counties that do not have these formal agreements that still cooperate with ICE [Immigration and Customs Enforcement], still honor judicial warrants, still honor detainers when they are presented to them,” Del. Nicole Williams (D-Prince George’s) said Thursday during testimony for her bill, House Bill 1222.

The bill would prohibit local law enforcement agencies from entering into so-called 287(g) agreements that allow ICE to delegate some federal enforcement authorities to local officers, including the authority to arrest and check a person’s immigration status through a federal database. The bill also requires those departments that have 287(g) agreements to cancel them by July 1.

Six counties — Carroll, Cecil, Frederick, Garrett, Harford and Washington — currently have 287(g) agreements with ICE. Frederick and Harford sheriffs turned up at Thursday’s Senate Judicial Proceedings Committee hearing to defend the program.

“Please allow the local counties to provide public safety as they see fit,” Harford County Sheriff Jeffrey Gahler said.

Frederick County Sheriff Chuck Jenkins said his jurisdiction has been part of the 287(g) program since 2008 and “removed 1,795 criminals,” the majority of whom he described as “dangerous” and “violent.”

But opponents of the agreements say 287(g) agreements “significantly undermined any trust in law enforcement” in immigrant communities.

“287(g) agreements literally turn local law enforcement into ICE agents,” said Nicholas Katz, general counsel for the nonprofit immigrant-rights organization CASA, based in Prince George’s County.

“In this moment, Black and brown families don’t know if it’s safe to go to work, if its safe to walk their kids to school, if it’s safe to go to the hospital,” Katz said.

Currently, jail staff in a jurisdiction can check for any immigration enforcement actions against inmates. If there is a detainer, local officials will notify the agency that’s under the U.S. Department of Homeland Security.

Under Williams’ bill, which passed the House 98-38 last week, if federal authorities identify an immigrant who’s been convicted and is being held in a local jail, the local officials would have to give ICE at least 48 hours notice before release of the inmate. They would have to turn the immigrant over when federal authorities arrived.

At Thursday’s hearing, Sen. Chris West (R-Baltimore County) said the sheriffs would continue to do their job protecting the public, but asked if not having the 287(g) program would decrease their public safety work. It would, Gahler said.

“If we lose the ability to have these agreements with ICE, we lose what comes along with it,” Gahler said. “Which is finding out whether these people are indeed in the country illegally, and recommendations from ICE in relation to national security.”

Sen. William C. Smith Jr. (D-Montgomery), chair of the committee, said he understood the perspectives from supporters and opponents of the bill. But he acknowledged “there is a distinct fear” under the administration of President Donald Trump (R), who has made an immigration crackdown a key element of his tenure. The 287(g) program began under former President Bill Clinton (D) in the 1990s.

“I guess our policy debate here is centered on the federal prerogatives and their implementation of deportation policy and the existence of 287(g) in Maryland,” Smith said.

“Is that creating such an atmosphere that people are not going to want to cooperate with law enforcement? Live life?” he asked. “Is that something that is beneficial to keeping the 287(g) program or getting rid of it?”

by William J. Ford, Maryland Matters
March 28, 2025

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Tensions boil over in shouting match during final House vote on fiscal 2026 budget

March 27, 2025 by Maryland Matters Leave a Comment

There were repeated references to “my friend” from here or “the gentle lady” from there, but the niceties were overpowered by the shouting and the finger-pointing Wednesday during a second day of debate on the fiscal 2026 budget.

The House ultimately approved the $67 billion budget for next year, after three hours of debate — which was on top of seven hours of testy debate Tuesday, when House Democrats beat back a series of Republican amendments.

While Wednesday’s debate was shorter, it was no less heated, with the highlight — or lowlight, perhaps — coming in a shouting match between two Democrats that eventually pulled in the Speaker.

“I know this is not popular, as a person in the majority party … I stand here because I feel like I don’t have a place in this place anymore — I don’t. And it’s for some of these reasons in this very budget,” said Del. Sheree Sample-Hughes (D-Dorchester and Wicomico).

“It doesn’t look like what the Eastern Shore is in need of,” she said in explaining her “no” vote on the budget, which includes more than $2 billion in cuts and $1 billion in tax increases.

When House Speaker Adrienne Jones (D-Baltimore County) tried to tell her the allotted two minutes of floor time was up, Sample-Hughes steamrolled over the Speaker.

“And you know what, I’m not even going to talk about the budget stuff anymore, and yes I know that’s what the purpose is – I get that,” Sample-Hughes said. “This institution is not for everybody … ”

Del. Stephanie Smith (D-Baltimore City). (Photo by Bryan P. Sears)

When Del. Stephanie Smith (D-Baltimore City), the House Parliamentarian, called a point of order to remind the delegate that her time was up, Sample-Hughes pushed right on through, leading Smith to shout over her. That didn’t stop Sample-Hughes, who was trying to press how the budget would affect her constituents.

“Parliamentarian, I hear you, but enough is enough,” Sample-Hughes said. “When I have an 80-year-old woman calling me saying she’s working with candles to light her house–”

As Jones brought the gavel down, Smith issued another warning. “The two minutes for the gentle lady,” she said, pausing for emphasis, “are over.”

“I can count,” Sample-Hughes shot back.

“Yes, but you must sit down,” Smith said. “You no longer have the floor.”

“I understand, the one last thing I will say,” Sample-Hughes continued, “and I was not trying to be controversial –”

“People are allotted two minutes to explain their – I can talk louder; do you want to do that?” Smith shouted, her frustration growing. “Sit down.”

“Let’s keep calm,” Jones jumped in. “You had your two minutes.”

Sample-Hughes yielded but not before saying, “Two minutes is up, but the passion for the people continues” — a line that drew a smattering of applause from House Republicans.

It was not the first flare-up of the day: Several delegates engaged in pointed remarks over the “core values” of Republicans and Democrats as they argued over what should be cut or preserved as the state works to close the $3 billion deficit for fiscal 2026.

“I’m disappointed that the minority party wants our citizens to go it alone based on their proposals on this budget. They want every man to fight for themselves,” said Del. Malcom P. Ruff (D-Baltimore City), citing a series of failed amendments Republicans proposed Tuesday.

Del. Malcolm P. Ruff (D-Baltimore City). (Photo by Bryan P. Sears/Maryland Matters)

Ruff said that despite $2.5 billion in spending cuts, he is proud that the proposed budget still funds programs in education and raises salaries for state workers.

“This is what our budget and our morals and our values are about — stand 10 toes down,” he said, raising his voice to a level that Del. Jason Buckel (D-Allegany) later described as yelling.

“I appreciate my friend from Baltimore City, but I don’t appreciate being yelled at,” Buckel said. “If I did it too, you wouldn’t like it as much.”

But as Buckel’s comments went on, the volume of his comments also rose at times.

“We’re the only state in our damn region that has a multibillion-dollar budget deficit and needs to raise billions of dollars in taxes to do the same stuff that they do in Richmond,” he said raising his voice at the end.

“I don’t know if we know how things work here in Maryland,” he said. “They seem to know how they work in Virginia. They seem to know how they work in Pennsylvania, and Delaware and West Virginia. But we can’t seem to get it done here in Maryland.”

Despite the shouting and two hours of debate, the House voted 100-39 to approve House Bill 350, the main part of the budget , with Sample-Hughes joining Republicans to vote no.

About an hour later, the House voted 93-46 to approve the second prong of the budget in House Bill 352. In addition to Sample-Hughes, Democratic Dels. Brian Crosby of St. Mary’s County and Heather Bagnall of Anne Arundel County joined Republicans opposing the bill.

by Danielle J. Brown, Maryland Matters
March 27, 2025

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Developmental disability community ‘tentatively exuberant’ at restored funding

March 24, 2025 by Maryland Matters Leave a Comment

Weeks of persistent lobbying, heart-wrenching public testimony and rallies that brought hundreds to the State House apparently paid off, with legislative leaders signaling an agreement last week to restore hundreds of millions of proposed cuts to the Developmental Disabilities Administration.

That promise was confirmed within the hour Thursday, when the House Appropriations Committee voted to restore $300 million of the $457 million in fiscal 2026 cuts that had been proposed for the DDA in the governor’s original budget.

It also came weeks after the governor released a supplemental budget for fiscal 2025 that restored much of the $200 million in cuts that had been contemplated for the current year.

While there will still be funding cuts in fiscal 2025 and 2026, advocates are breathing a sigh of relief, believing the current cuts will be much more manageable.

“We’re in such a better position now,” Ande Kolp, executive director for The Arc Maryland, said Friday. “These cuts are painful – but oh my gosh, they were going to be catastrophic.”

She said advocates are “tentatively exuberant” following events Thursday.

In a midday news conference, Gov. Wes Moore (D) joined House and Senate leaders to announce that they had agreed to a broad “framework” for ongoing budget negations, which included restoring some funding to the DDA for fiscal 2026.

That was followed by an Appropriations Committee voting session, when members approved a series of adjustments to the fiscal 2026 budget. Those included reining in reductions to spending for programs and wage bonuses that the administration had planned to eliminate entirely.

Thursday “was such a big day for our community. It represented an unprecedented cooperation and collaboration between everybody,” Kolp said. “It’s kind of a weird feeling because we’re so grateful … for all of the work that went into this.”

Moore’s original budget, released in January, would have eliminated a handful wage rate bonuses available for certain providers of developmental disabilities services, while also slashing some support funding. State health officials argued that those cuts were necessary to offset “unsustainable” growth and spending at the agency, all while juggling $3 billion shortfall in the budget this year.

But the developmental disabilities community quickly spoke up, saying that the reduced funding would cut into the wages of support staff and reduce access to additional resources that help families support their loved ones. They worried that employees would be asked to do the same work for less pay, leading to an exodus of support staff.

The Moore administration had already backed away from most of the 2025 cuts earlier this month and said it was willing to discuss changes to the 2026 budget.

Appropriation’s actions did not fully restore all the cuts in Moore’s budget, but softened the blow of many.

The cuts still slated for the DDA include a reduction in the “geographic differential” rate, which provides higher pay for providers in central Maryland, among other reductions related to wage bonuses. The committee also reduced funding for the Low-Intensity Support Services (LISS), now the current $5.5 million to $2 million, among other funding reductions. Moore’s budget would have eliminate both funds entirely.

The new cuts are much more survivable, according to Laura Howell, CEO with Maryland Association of Community Services.

“We never want to see a cut in funding, but we were able to work with the leaders of the House and the Senate and the administration to develop alternative cost-containment measures that will still allow services by community providers to be sustainable for the next few years,” Howell said.

“It’s been a very long time since we’ve seen this kind of financial crisis in our state, and everybody had to pitch in and try to contribute to the economic struggles of the state, and so that’s what we did,” she said. “We worked with our stakeholders to try to figure out what could we survive.”

Thursday’s budget changes by the Appropriation Committee are the first step in compressed budget negotiations ahead of the last day of the legislative session, just two weeks away. The full House is expected to pass the budget this week, followed by the Senate, before the two chamber sit down to iron out differences between their respective versions.

Kolp hopes that advocates are able to maintain the current progress in the waning days of session.

“We’re not expecting to see big differences between the Senate and the House, but we’re going to sit on pins and needles until the end — because you never know what’s going to happen,” Kolp said.

by Danielle J. Brown, Maryland Matters
March 24, 2025

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MD Senate Panel’s vote on Blueprint bill straddles House, Administration Versions

March 22, 2025 by Maryland Matters Leave a Comment

Senate Budget and Taxation Committee voted Friday for amendments to the Blueprint for Maryland’s Future that splits the difference between House and administration versions. (Photo by William J. Ford/Maryland Matters

A Senate committee advanced parts of Maryland’s sweeping education reform plan Friday, splitting the difference between versions of the bill advanced by the House and the Moore administration and setting up a showdown in the waning days of the legislature.

The Senate Budget and Taxation Committee approved a four-year pause in the start of funding for teacher “collaborative time” — something the administration supports — but also voted to keep funding for community schools — something the House insisted on.

Senate Bill 429 still needs to be taken up by a second Senate panel, the Education, Energy and the Environment Committee, which is scheduled for Monday. That gives lawmakers just two weeks to approve a Senate bill and hammer out differences with the House before the April 7 end of the General Assembly session.

The so-called “Excellence in Maryland Public Schools Act” was sparked by the state’s fiscal crisis and by the repeated call from local school officials for flexibility in the implementation of the Blueprint for Maryland’s Future, the sweeping 10-year, multibillion-dollar education reform plan.

Gov. Wes Moore introduced a bill that keeps the goals of the plan largely intact, but delays funding and implementation of some portions.

One portion is the proposal for an increase in teacher “collaborative time,” or time that teachers spend on planning, training and working with individual students, as opposed to time in front of a classroom. The Blueprint calls for teachers’ classroom time to be cut from 80% of their day to 60%; the administration bill would delay the start of that for four years, in part because it would require the hiring of at least 12,000 new teachers at a time when the state faces a teacher shortage.

The House rejected that plan, and set collaborative time to begin in 2026. But the Senate went with the governor’s version in what Budget and Taxation Committee Chair Guy Guzzone (D-Howard) called a “pacing” of the initiative.

“Whenever you don’t extend the full amount, if, in fact, you want to get to the full amount, by definition, it has to go out further,” Guzzone told reporters after the committee’s vote.

The committee did agree with the House version and rejected the administration’s call for a two-year freeze on funding for community schools, those located in low-income neighborhoods Sen. President Bill Ferguson (D-Baltimore City) has said such a delay would negatively affect students.

The Senate committee also agreed with the House to “hold harmless” funding for multilingual learners, students in poverty and those in special education — exempting those students from any per pupil funding reductions that might come down. The committee on Friday also added students at the Maryland School for the Blind, Maryland School for the Deaf and the SEED School of Maryland.

The committee was more generous than either the House or the administration when it comes to Consortium on Coordinated Community Supports, a part of the Blueprint plan that deals with mental health, behavioral and other wraparound services for students. The House agreed with the governor that it should be cut from $130 million this year to $40 million in fiscal 2026, but senators want to cut the fund to $70 million next year and raise it to $100 million in fiscal 2027 and each year after.

But senators sided with the administration on “foundation” funding, or per pupil spending. Under the Blueprint, it was slated to grow from $8,789 per pupil this year to $9,226 next year, but the administration proposed reducing the growth to $9,063 next year and slowing the pace of growth for several years after. The Senate committee agreed, but the House voted to keep the original Blueprint funding levels.

With an eye toward looming cuts to the federal government, another Senate amendment made Friday would freeze funding increases if federal funds or revenue projections by the state’s Board of Revenues in December decrease by 3.75%.

Senate Majority Leader Nancy King (D-Montgomery), a member of the Budget and Taxation Committee, earlier this week defended delays in Blueprint goals for the time being.

“There’s a lot of good that’s already come out of the Blueprint, and a lot more that is going to come as we go,” King said Tuesday. “I don’t think it would be a bad thing if we just slowed it [collaborative time] down a bit.”

The Senate Education, Energy and the Environment will review, and possibly vote on, the other parts of the bill Monday that deal with teacher programs, initiatives and other incentives before sending it to the full Senate for consideration and then back to the House.

Del. Vanessa Atterbeary (D-Howard), chair of the House Ways and Means Committee, said during a press conference Thursday to announce a framework for the overall fiscal 2026 budget, that negotiations on the Blueprint are ongoing. But Atterbeary said she and Del. Ben Barnes (D-Prince George’s and Anne Arundel), chair of the Appropriations Committee, have made their positions “pretty clear.”

“Where we stand and where the House stands in … protecting those that are most vulnerable, particularly those in community schools,” she said. “So we’ll see what the Senate does, and we’ll link up with them and negotiate that in the days to come.”

By William J. Ford

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Budget agreement could generate more than $1 billion in new revenue

March 21, 2025 by Maryland Matters Leave a Comment

House Speaker Adrienne Jones (center), Gov. Wes Moore and Senate President Bill Ferguson announced an agreement to a budget framework Thursday, as the legislative session enters its last 18 days. (Photo by Bryan P. Sears/Maryland Matters)

A compromise spending plan for the coming budget year includes more than $1 billion in tax increases, including a proposal to let local governments increase the maximum local piggyback tax rate.

The revenues were unveiled Thursday by the governor and legislative leaders as part of a broad budget “framework” that will guide negotiators in the next few weeks, as they rush toward the end of the session.

The new revenues, coupled with an estimated $2.5 billion in budget cuts, are designed to cover a projected $3 billion deficit in the fiscal 2026 budget, and leave a reserve for fiscal 2027. The budget will also include “federal government spending triggers” that would activate in response to likely federal budget cuts.

“It ensures that those who rely on federal benefits are informed, prepared and can advocate for their continued access to essential service regardless of what happens at the federal level,” Senate President Bill Ferguson (D-Baltimore City) said.

Topping the list of new taxes unveiled Thursday is nearly $500 million from a 3% sales tax on data and IT services, according to budget documents shared with Maryland Matters. The tax, originally proposed as a business-to-business tax, would apply to anyone who uses such a service.

While the new proposal will have consumers pay the tax, too, the service on which the tax will be applied is smaller than the original proposal. Ferguson called it a modernization of the state tax code at a time when Maryland’s economy has become more service-based.

Tasha Cornish, executive director of the Cybersecurity Association Inc., said the tax has “harsh consequences for the state’s security” as well as Maryland’s ability to compete.

“We are sympathetic to the fiscal pressure exerted on lawmakers, but this tax is an unwise move,” Cornish said. “Maryland risks losing its competitive edge in cybersecurity, forcing companies to relocate and taking high-paying jobs with them. It’s a short-sighted attempt to gain revenue at the cost of our security and future economic stability.”

Another $367 million would come from a 2% surcharge on capital gains income over $350,000. The rate is double what Moore proposed in his budget. Most of the tax would land in the state’s general fund, with about 40% earmarked for the state’s Transportation Trust Fund.

The state would also raise $344 million from changes in the tax code, including the creation of two new tax brackets: Those earning $500,000 to $1 million would pay 6.25%; those above $1 million in earnings would pay a rate of 6.5%.

“We are asking those who have done exceptionally well to pay slightly more so we can have the best schools in the country, so we can support law enforcement and our firefighters, so we can make sure we are growing our economy.,” the governor said.

Moore said the “refinement”of his tax plan ensures “we hit our goal of delivering tax relief to the middle class.”

He told reporters that 94% of Marylanders will see a reduction in their taxes or no increase. But when asked how many would see a reduction and the size of the average reduction, Moore could not provide specifics.

Moore, in his budget, had also proposed doubling the standard deduction, but the framework unveiled Thursday called for a 20% standard deduction increase.

The compromise agreement also increases the maximum piggyback income tax rate for local governments to 3.3%. The current maximum is 3.2%.

The agreement also ruled out a number of potential tax changes;

No increase in the state’s 6% sales tax on goods.
No 75-cents fee on each retail delivery.
No property tax increase.
No expansion of gambling into iGaming.
No estate tax increase.
No changes to the car trade-in allowance.
No taxes on snacks or sugary drinks.
No increase in the gas tax.

The framework was roundly criticized by Republicans.

House Minority Leader Jason C. Buckel (R-Allegany) said “the lack of clarity and mushy talk was disappointing.”

“I expected someone to come out and say this is what the total revenue package is,” said Buckel.

Republicans make up about 30% of the House and Senate. They said Thursday’s announcement was the first time they heard how the spending plan would be altered.

“The word framework was used a lot more often than details, and that’s our biggest question,” said Senate Minority Leader Stephen S. Hershey Jr. (R-Upper Shore). “How are they going to get to the cuts that they talk about?”

Hershey also questioned Democrats’ plan to impose a 3% sales tax on data and IT services at a time when Moore has said he wants to attract “IT and cyber and AI” to the state.

“I don’t understand why those companies would end up coming to Maryland,” Hershey said. “That’s one of the biggest things we’ve talked about from day one, is that’s who he’s trying to attract, and yet he’s going to put a first-in-the-country tax on those types of services. We just don’t think that’s the way to go if you want to grow the economy, and for businesses here in Maryland.”

On Thursday afternoon, the House Appropriations Committee also approved a plan to implement combined corporate tax reporting. Moore had proposed phasing the reporting in by 2028, then cutting the corporate tax rate from 8.25% to 7.99%.

Appropriations kept the language implementing combined reporting but nixed the corporate tax rate reduction. The change faces tough sledding in the Senate.

Some of the changes proposed, include the addition of combined reporting, tracked with legislation backed by advocates for passing much more aggressive tax reforms.

“Marylanders value and deserve good schools, transportation, health care, and other essential services,” according to a statement released by Fair Share Maryland. “As our communities are being harmed by indiscriminate federal layoffs and threatened cuts to grants and programs, our state level services are more important than ever. Having sustainable, fair sources of revenue is essential to help us get there.”

The agreement makes other changes including:

Adding the state’s 6% sales tax to vending machine purchases.
Repealing the exemption for sales of photographic and artistic material used in advertising.
Repealing an exemption for sales of coins and bullion over $1,000 . The change leaves an exemption for sales made specifically at the Baltimore City Convention Center.
Increasing the tax rate on sports wagering from 15% to 20%. The change will bring in $32 million in new revenue.
The cannabis tax rate will jump from 9% to 12%, raising $39 million.

The House plan also calls for additional money for state transportation. It would:

Increase the excise tax on vehicle sales from 6% to 6.8%. The change would raise $158 million.
Raise $51 million by accelerating the implementation of vehicle registration fee increases passed last year.
Increase vehicle emission fees from $14 to $30. That change would raise $20 million.
The package would also raise another $9 million by changing the definition of vehicles eligible for historic tags by defining eligible cars as vehicles older than model year 1999. The current definition of an older car is any car 20 years old.
Raise $47 million by imposing a 3.5% tax rate on short-term rentals.
Doubles titling fees on new and used cars to $200, raising $80 million.

The Senate has yet to sign off on the transportation-related proposals. The House and Senate have agreed to a roughly $400 million package for transportation. The two chambers differ on the specifics of reaching that number but are expected to come to an agreement before the session ends on April 7.

The House could have the budget on the floor for a preliminary vote early next week. A final vote could come soon after. The Senate could complete work on the budget within a week after and send differences quickly to a conference committee.

by Bryan P. Sears, Maryland Matters
March 20, 2025

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House approves Blueprint education bill that rejects most cuts proposed by governor

March 13, 2025 by Maryland Matters Leave a Comment

As expected, the House of Delegates approved an amended, comprehensive education plan Tuesday night that rejected cuts proposed by Gov. Wes Moore (D).

The 100-39 party-line vote sets up a potential showdown with the Senate over the Excellence in Maryland Public Schools Act. Senate leaders have indicated that, in the face of a projected $3 billion deficit for fiscal 2026, they may be more sympathetic to the governor’s version of the bill to amend the state’s multiyear, costly Blueprint for Maryland’s Future.

House Democratic leaders have consistently pushed back against the governor’s plan, saying that any cuts would negatively affect the Blueprint, now in its third year of implementation. But House Ways and Means Committee Chair Vanessa Atterbeary (D-Howard) said after Tuesday night’s floor vote that the House and the governor agree on the goals of the plan, but disagree on how to get there.

“He [Moore] was looking at the Blueprint also as a means to solve budgetary issues, and we did not,” Atterbeary said. “I think in large part we disagreed when it comes to funding. But I think policy wise, we agreed primarily with the governor.”

The debate put House Republicans in the unusual position of defending the governor’s bill against Democratic amendments.

“Didn’t agree with everything in it, but it was a compromise that suggests we can, in future years, account for the realities that we will not have to spend as much we’ll amend, in particular, the collaborative time,” said House Minority Leader Jason Buckel (R-Allegany), before voting against the amended House version of the bill.

“I think that we would have been best served to support Gov. Moore’s bill, rather than the bill as amended currently before the House,” he said.

Three Republicans – Dels. Kevin Hornberger (R-Cecil), Susan K. McComas (R-Harford) and Chris Tomlinson (R-Frederick and Carroll) – who signed on as co-sponsors of the previous version from the governor, asked to have their names removed from the amended bill, which opposed.

Some of the proposals in the original bill included a four-year pause in the phase-in of collaborative time for teachers, a freeze in funding for community schools located in low-income neighborhoods and a lower increase in per pupil funding.

Atterbeary’s committee and the Appropriations Committee amended the governor’s bill to restore funding to community schools and to reduce the four-year delay in collaborative time to a one-year pause to give the state’s 24 school systems time to prepare for a fiscal 2027.

The House did keep language from the governor’s version that would allow for the state Department of Education to establish a national teacher recruitment campaign to start in July and end by July 1, 2029. It also kept a $2,000 relocation grant that would be provided to “incentivize an out-of-state licensed teacher to move to the state,” in an effort to reduce the teacher shortage and the number of conditionally licensed teachers.

Administration officials defended their position during a joint hearing last month, saying it would be impractical to institute the increase in collaborative time next school year because it would require the hiring of at least 12,000 teachers at a time when the state and nation face a teacher shortage.

The administration’s proposal sought to hold community school at current levels for the next two years, instead of allowing it to increase as the Blueprint calls for.

On the House floor Tuesday, a few Republicans said the Blueprint plan is a vehicle the state can’t afford right now.

“If this is the Mercedes of education C class, it feels a little bit more like a Pinto that we’re selling for a Mercedes price,” said Del. Lauren Arikan (R-Harford), who voted against the bill.

Meanwhile, the Senate’s Budget and Taxation Committee — which took part in a joint hearing on the bill last month with the Senate Education, Energy, and the Environment Committee and the two House panels — could vote on the Senate version of the bill this week.

Senate Majority Leader Nancy King (D-Montgomery), a member of the Budget and Taxation Committee, has said she supports a pause in collaborative time, especially with the teacher shortage in the state. And Sen. Mary Beth Carozza (R-Lower Shore), a member of the “Triple-E” Committee, has said the Blueprint needs some restructuring that provides more autonomy to local school systems.

Del. Ben Barnes (D-Prince George’s and Anne Arundel), who chairs the Appropriations Committee, told reporters Tuesday night he’s confident the two chambers will find a solution.

“I think it’s because we all share the same values. We want to certainly protect these kids and make sure the funding is there and the policies are there,” he said. “We’ll get to a compromise in the end.”

by William J. Ford, Maryland Matters
March 11, 2025

The Spy Newspapers may periodically employ the assistance of artificial intelligence (AI) to enhance the clarity and accuracy of our content.

Ferguson warns of ‘Maryland Recession’

March 12, 2025 by Maryland Matters Leave a Comment

Maryland’s Senate president warned of a “Maryland recession” Tuesday, after a top bond rating agency released a report highlighting the state’s unique vulnerability to federal budget and employment cuts coming from the Trump administration.

“We have to brace for a Maryland recession. That is the news that we are receiving,” Senate President Bill Ferguson (D-Baltimore) told reporters.

“This will be acutely felt by the state of Maryland, and we have to be honest about how hard this is going to be,” he said.

State officials have been bracing for a hit to the state’s finances since President Donald Trump took office and — under the guidance of billionaire Elon Musk and his U.S. DOGE Service — began slashing federal jobs and freezing government spending.

“There’s a great uncertainty in our economy right now created by the chaos created by this president, and Maryland is not going to be immune from that,” said House Appropriations Chair Del. Ben Barnes (D-Prince George’s and Anne Arundel).

“I’m not an economic forecaster so I’m not going to say that we’re going to hit a recession. What I am going to do is follow the data and right now the data is concerning to say the least,” he said.

The Moody’s Ratings report that Ferguson was referencing said Maryland ranks “at or near the top for risk from changing federal priorities and policies.”

“We are a highly vulnerable state,” Ferguson said. “It is clear there is an intentional effort to disrupt the federal government with massive cuts, and Maryland will have an outsized role in that, validated by Moody’s.”

The report, which was released Monday, highlights three factors — federal employment, existing budget deficits and concentrated federal grant funding — that place Maryland at more risk than any other state in the nation.

It’s the second report from the rating agency to raise concerns about the state. In May, the agency reaffirmed the state’s cherished AAA bond rating but moved the state’s creditworthiness outlook from stable to negative. It was the first time since 2011 that Moody’s had issued a negative outlook for Maryland.

Over-reliance on federal employment

Senate Minority Leader Stephen S. Hershey Jr. (R-Upper Shore) said Ferguson’s comments obscure a more longstanding policy problem, saying “economists have been warning us for more than two decades that Maryland’s economy was too reliant on the federal government.”

“Instead of implementing a much-needed culture shift and adopting policies that would help Maryland’s economy grow independently, Maryland Democrats have doubled down on large spending programs and continue to rely on the federal government to balance our budget,” Hershey said. “Even now, when our financial situation is dire, Democrats are creating even more tax burdens for our private-sector business community.”

Maryland houses headquarters for the National Institutes of Health, the Food and Drug Administration, the Centers for Medicare and Medicaid Services, the National Oceanic and Atmospheric Administration and the National Security Agency, and oter agencies have facilities here. are all within the state.

The number of federal jobs in the state grew from 143,000 in 2014 to 160,000 today, an increase of 13% that was faster than state and local government growth and the 10% rise in federal jobs in Virginia during the same period.

And the Moody’s report said that is in addition to the estimated 250,000 Maryland residents who work at federal jobs in Washington, D.C.

Federal job growth also grew the state’s per capita personal income. At 7.4%, Maryland’s share of personal income from federal employment is more than four times higher than the 50-state median

Moody’s projects that federal layoffs could be concentrated in Charles, Montgomery, Prince George’s and St. Mary’s counties. All are “adjacent to the capital district and also have a very large number of federal facilities.“Donald Trump is intent on testing our federal workforce and destroying our economy,” Barnes said. “He’s also intent on walking away from our communities that are most vulnerable and need us.”Last week, the state Board of Revenue Estimates projected more than 28,000 federal jobs could be lost in Maryland.

“Counties in the state generate the overwhelming majority of their operating revenue from property and income taxes,” the Moody’s report states. “Federal contraction will squeeze both revenue streams, potentially pressuring county budgets.”

Montgomery County Executive Marc Elrich in November said his county would begin to assess how cuts could affect county finances.

In some counties, federal wages count for as much as 20% of gross income.

There are also concerns about the federal government shrinking the amount of office space it needs. Such a reduction could have “a disproportionate impact on Maryland’s commercial real estate market,” according to the report.

Already bad budget outlook gets worse

The report also notes that Maryland was already “confronting a large and growing budget gap even before job cuts and other downsizing objectives emerged,” but decreased tax revenue caused by federal job cuts will worsen those fiscal challenges.

Gov. Wes Moore (D) and lawmakers started the 90-day session staring down a projected $3 billion deficit for fiscal 2026. The House Appropriations Committee is expected to finalize its version of that budget late this week, with a vote possible by the full House early next week.

Included in that package may be a controversial 2.5% sales tax on some business-to-business services. More than 400 businesses have signed up to oppose that proposal at a hearing Wednesday, but Ferguson said the tax is being considered “very seriously” as a way of protecting social safety-net programs that would be affected by Trump’s cuts.

YOU MAKE OUR WORK POSSIBLE.

“And look, as I’ve said over and over again, the last thing in the world we want to do right now is raise revenues,” Ferguson said. “But the alternative is consequential, and it means kicking kids off of Medicaid. It means shutting down long-term care facilities. It means reducing access to foster care.”

The Moody’s report Monday notes that the state’s fiscal situation was further complicated by the Board of Revenue Estimates write-down of projected revenues for the current and coming fiscal year.

“Decreased tax revenue will add to the state’s projected deficit, which may be exacerbated by other factors, including potential reductions in federal funds for Medicaid,” according to the report.

“When we look at all of our core priorities, the actions of the Trump administration are causing us to have to rethink everything from public safety to health care to education,” Ferguson told reporters. “And it is no surprise that it’s validated by this Moody’s report today that everything continues to have to be on the table, because it’s not just about filling the gap that exists.”

Federal grant cuts could also play a role

Finally, Moody’s notes that “less generous federal grant policies” could encourage nonprofit research organizations to “scale back,” specifically noting Johns Hopkins University.

Moody’s said scientific research, including that done at the university, is “an economic cornerstone of the state.” Research grants from the National Institutes for Health and National Science Foundation per 1,000 residents is second only to Massachusetts, according to the report. But new federal policies calling for capping some expenses “could force retrenchment by the scientific community in the state.”

Maryland could also take a hit in federal contracting, which accounts for 8.9% of personal income in the state, a larger share than all but Virginia at 16.5% and New Mexico at 10.6%. The 50-state median 1.8%, according to Moody’s.

By Bryan P. Sears

The Spy Newspapers may periodically employ the assistance of artificial intelligence (AI) to enhance the clarity and accuracy of our content.

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‘Reparation tax’

By: William J. Ford – April 3, 2025 8:16 am

Teachers unions react

Over-reliance on federal employment

Already bad budget outlook gets worse

Federal grant cuts could also play a role