MD General Assembly Prepares To Consider Costs of Statewide Education Reform Plan

Lawmakers focused on education recently discussed pre-k expansion, early childhood education, and education cost concerns ahead of the 2025 legislative session. 

Students working at computersThe Maryland State Child Care Association recently hosted, on October 10th, several Maryland General Assembly members to discuss a wide range of issues regarding education policy and the Blueprint for Maryland’s Future. They were hosted by childcare providers from across the state and topics focused primarily on Pillar 1 of the Blueprint, including early childhood education and pre-kindergarten expansion.

According to a recent Baltimore Sun article, from that discussion, lawmakers appeared ready to start exploring more specifics around how both the state and local governments will pay for the Blueprint education reform plan. While the group acknowledged that addressing the funding challenges is a significant priority, more transparent and substantial discussions are set to take place after the upcoming election, according to comments made by the panelists. As primary funding contributors to the local school systems, MACo is also focused on the costs of the Blueprint and how both state and local governments will be able to meet its financial demands in the coming years.

A recent Conduit Street article highlighted the importance of an updated forecast incorporating current fiscal realities. This concept was also adopted by the MACo Legislative Committee as one of the four flagship legislative initiatives for the 2025 session. This effort is coupled with another MACo initiative which focuses on increased flexibility for local revenue structures as county governments tackle budget challenges across their entire operations.

While counties have been making record-setting financial commitments over three years of the roll-out, with the vast majority of jurisdictions funding well over their local share of Blueprint costs, the actual costs of the plan remain unknown. The plan’s initial and follow-up estimates could not have accounted for weaker-than-anticipated revenue growth, soaring inflation, and significant labor market shifts of the past few years, but a three-year delay for an updated forecast is unusual. It leaves the plan, and those implementing it in a precarious place. From a county perspective, the lack of clarity leaves local jurisdictions in a position where even those willing and able to raise revenue to fund the plan in its entirety have no realistic estimate to base those changes on.

On top of those primary factors threatening the plan’s success, a number of additional budget cuts are expected when the General Assembly meets this winter, which will only further threaten the scope, timeline, and success of the plan unless something changes. The State’s leading agency on education also appears concerned about the plan’s cost in terms of the budget outlook. A draft proposal of 2025 legislative initiatives for the Maryland State Department of Education (MSDE) and the Maryland State Board of Education (MSBE) included two components that share similar sentiments around fiscal pressure.

From the draft, pillar number five:

The State Board opposes unfunded legislative mandates for the State Board, MSDE, and local school systems, and supports streamlining areas of statute with outdated mandates and reporting requirements.

From the description of draft pillar number eight:

The State Board advocates for fiscal accountability and prudence, especially during difficult budgetary times. The State Board prioritizes support for legislation that minimizes fiscal impact on the State budget and results in the strategic reallocation of funding from existing Blueprint or other existing educational appropriations.

Final legislative recommendations from state and local associations will continue to be published as the 2025 legislative session nears. By December stakeholders will likely have a better sense of what changes to education policy might be on the agenda for the 2025 session.