Supplemental Budget Funds Disparity Grant Reform

The Governor’s supplemental budget, released yesterday, includes funding for enhancements to the disparity grant — signaling that a change to that county program will be part of a consensus budget plan yet to emerge.

From the supplemental budget:

PAYMENTS TO CIVIL DIVISIONS OF THE STATE

1. A15O00.01 Disparity Grants

In addition to the appropriation shown on page 1 of the printed bill (first reading file bill), to provide additional funds for the Disparity Grant program.

Object .12 Grants, Subsidies, and Contributions 6,372,062

General Fund Appropriation, provided that this appropriation is contingent upon the enactment of legislation modifying the Disparity Grant formula and increasing the local income tax rate required to be eligible to receive a grant.

6,372,062

See prior Conduit Street coverage of the Senate action on disparity grants.

See DLS analysis and recommendations on disparity grant issues.

Follow HB 102, the budget reconciliation bill, the likely vehicle for any proposed refinement to disparity grants.

Michael Sanderson

Executive Director Maryland Association of Counties
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