House Passes Budget, Action Moves to Senate

The Maryland House of Delegates today gave final approval to HB 100, the Budget Bill, and HB 1407, the Budget Reconciliation and Financing Act of 2019 (“BRFA”). The Senate Budget and Taxation Committee will finalize its budget recommendations this week.

Overall, the House budget increases state aid to local governments by $612.9 million (7.1%), most of which is in the form of state aid to education/libraries, which increases by $564.1 million (7.4%).

House Budget Documents

House Appropriations Committee Report on HB 100 – the Budget Bill and HB 1407 – the Budget Reconciliation and Financing Act (“BRFA”)

2019 – House Appropriations Committee Reprint of HB 100 – (Budget Bill FY2020

2019 – House Appropriations Committee Reprint of HB 1407 – Budget Reconciliation and Financing Act of 2019 (“BRFA”)

Notable House Budget Decisions

  • Fully funds the Governor’s formula-driven fiscal 2020 allocation of $146,172,853 for the Disparity Grant Program
  • Fully funds the Governor’s formula-driven increase for aid to local health departments by $2.7 million (5.1%)
  • $320.5 million to begin implementing the recommendations of the [Kirwan] Commission on Innovation and Excellence in Education
  • $500 million for school construction
  • $46 million toward salary increases for state employees not covered by a collective bargaining agreement
  • Cuts funding for the Broadening Options and Opportunities for Students Today (BOOST) Program, which provides a limited amount of scholarships for low-income students to attend private schools
  • Alters the cap on projected nonwithholding income tax revenues that must be withheld under certain circumstances from general fund revenue estimates from 0.5% to 0.25% in fiscal 2020

The House budget maintains a fund balance of $120.1 million and does not propose any tax or fee increases.

Any differences between the House and Senate budget proposals will be worked out via a conference committee.

Stay tuned to Conduit Street for more information.

Useful Links

Previous Conduit Street Coverage: House Budget Proposal Keeps Disparity Grant Funding Intact

Previous Conduit Street Coverage: Hogan 2020 Budget Proposal: Targeted New Commitments, No Local Shifts

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