DLS 90 Day Report: Education Funding

The Department of Legislative Services (DLS) has released its annual summary of the legislative session, The 90 Day Report – A Review of the 2017 Legislative SessionThe report is divided into 12 parts, each dealing with a major policy area. It also includes information relating to the final operating and capital budgets, including aid to local governments – and a breakdown of aid to each county. 

County level detail of state aid is available here.

DLS lists “Direct Aid” to counties in two groups: Primary and Secondary Education, and all other aid programs. A full breakdown of all programs is available here: Total State Aid to Local Governments (Exhibit A-3.5)

This blog post directs readers to sections of the 90 Day Report which describe the education programs.

From Part L, Education of the Report:

State aid for primary and secondary education increases by $61.1 million in fiscal 2018 to $6.4 billion, 1.0 % more than fiscal 2017 aid. State aid provided directly to the local boards of education increases by $113.6 million, or 2.1%, while retirement aid decreases by $52.5 million, or 6.7%. Fiscal 2017 to 2018 changes in major State education aid programs are shown in Exhibit L-1.

The foundation program totals $3.0 billion in fiscal 2018, an increase of $43.3 million over fiscal 2017, or 1.5%. This increase is attributable to enrollment growth of 0.8% (6,658 full-time equivalent (FTE) students) and a 0.7% increase in the per pupil foundation amount due to inflation. The increase in the per pupil foundation amount brought it from $6,964 per pupil in fiscal 2017 to $7,012 per pupil in fiscal 2018.

Aside from the foundation program, the largest single increase is $21.7 million for Limited English Proficiency.

The County level detail begins with a list of aid provided through primary and secondary education programs. The Primary and Secondary Education section of Part A provides detailed descriptions, history and funding amounts for public school programs, of which there are many:

  • Foundation Program ($3.0 billion),
  • Net Taxable Income Grants ($49.2 million),
  • Declining Enrollment and Tax Increment Financing Grants ($17.6 million),
  • Geographic Cost of Education Index ($139.1 million),
  • Compensatory Education Program ($1.3 billion),
  • public special education programs ($284.9 million),
  • funding for nonpublic special education placements ($123.6 million),
  • regular student transportation services ($250.6 million),
  • special student transportation services ($25.7 million),
  • limited English proficiency grants ($248.7 million),
  • Bridge to Excellence in Public Schools Act Guaranteed Tax Base Program ($50.3 million),
  • Public School Opportunities Enhancement Program ($2.5 million),*
  • Robotics Grant Program ($250,000),*
  • Next Generation Scholars of Maryland Program ($4.7 million),*
  • Early College Innovative Fund ($300,000),*
  • Aging Schools Program ($6.1 million),
  • Judy Hoyer and Head Start Programs ($12.4 million),
  • Infants and Toddlers Program ($10.4 million),
  • Teacher Induction, Retention, and Advancement Pilot Program ($2.1 million),
  • Governor’s Teacher Excellence Award Program ($96,000),
  • Food and Nutrition Services ($11.2 million),
  • Adult Education Programs ($8 million),
  • School-based Health Centers ($2.6 million),
  • Healthy Families/Home Visits Program ($4.6 million),
  • Prekindergarten funding ($8.0 million),
  • Prekindergarten supplemental grants ($10.9 million), and
  • Teachers’ retirement payments ($734.5 million).

*Governor’s proposed budget did not fund these programs, but the General Assembly restored them.

Governor Hogan provided a supplemental budget which provided additional education aid to school systems experiencing declining enrollment, and those providing prekindergarten. From page A-22:

On March 27, 2017, Governor Hogan provided a supplemental budget that included $28.2 million in education aid to provide grants to certain [local education agencies, or] LEAs, all of which was contingent on the enactment of House Bill 684. As directed under the bill, this funding is provided in two parts: (1) enrollment based supplemental grants and (2) prekindergarten supplemental grants.

An LEA is eligible for an enrollment based supplemental grant if it has declining enrollment, as determined by the LEA’s most recent prior three-year moving average FTE exceeding its FTE in the previous school year. In fiscal 2018, the eligible LEAs include Baltimore City and Allegany, Calvert, Carroll, Cecil, Garrett, Harford, Kent, Queen Anne’s, and Talbot counties. The supplemental budget provides $17.2 million for these grants.

An LEA is eligible for a prekindergarten supplemental grant based on it offering a full-day public prekindergarten program for all four-year olds whose parents enroll them. In fiscal 2018, the eligible LEAs include Baltimore City and Garrett, Kent, and Somerset counties. The supplemental budget includes $10.9 million for these grants.

From page A-79 on Teacher Retirement:

House Bill 152 (Ch. 23), the Budget Reconciliation and Financing Act (BRFA) of 2017, repeals the requirement, for fiscal 2018 only, that the Governor include an appropriation to the State Retirement and Pension System trust fund equal to one-half of the amount by which the unappropriated general fund surplus exceeds $10.0 million in the second preceding fiscal year, up to a maximum of $50.0 million. State retirement aid to local jurisdictions is reduced by a total of $37.7 million in fiscal 2018: $35.6 million for public schools; $1.5 million for community colleges; and $0.6 million for libraries. These differences are shown by county in Exhibit A-3.2.

Also, House Bill 1109 (Ch. 5) relieves county boards of education from their fiscal 2017 obligation to pay $19.7 million of their share of the employer normal cost for their employees who are members of the Teachers’ Retirement System or Teachers’ Pension System. This measure, which is accounted for in the budget, effectively increases State retirement aid by $19.7 million in fiscal 2017.

 

Deeper in the Report, DLS further discusses House Bill 1109Exhibit C-1 shows the amount that each local school system is relieved of paying in fiscal 2017.

 

More information on Education funding is available in Part L, Education.