The House Appropriations Committee rejected a proposed assisted outpatient treatment (AOT) cost shift and advanced the Budget Bill (SB 282) and Budget Reconciliation and Financing Act (SB 284) to the House floor.
The Senate retained the AOT provision, which would have required counties to reimburse the Maryland Department of Health for escalating shares of program costs, starting at 25% and rising to 100%. The House removed that provision, avoiding a significant new State-mandated, locally funded obligation.
As previously reported on Conduit Street, the Senate rejected several other BRFA proposals that would have shifted costs onto county governments or reduced core funding. The House largely follows that approach and preserves those decisions.
MACo opposed these cost shifts throughout the budget process, urging lawmakers to avoid shifting State responsibilities onto county governments or weakening existing funding commitments.
The Appropriations Committee retains the partial pension cost shift of $39.3 million to counties for teachers, community colleges, and libraries, rejecting the Department of Legislative Services’ recommendation to shift the full $78.6 million increase.
Both the House and Senate preserve Disparity Grant funding, rejecting a $27 million reduction and multi-year freeze, and strike proposed changes to the 9-1-1 Trust Fund, maintaining support for local emergency communications systems. MACo worked closely with lawmakers to highlight the impact on counties with limited tax bases, and both chambers maintained this critical component of the State-county fiscal partnership.
Taken together, these actions leave the partial pension shift as the primary remaining cost increase for counties in the fiscal 2027 budget.
The House plan also includes a Senate provision that would withhold approximately $124 million in State aid to local law enforcement agencies until each department certifies that it does not participate in federal immigration enforcement activities.
Once the House passes the Budget Bill and BRFA, both measures will move to a conference committee to resolve differences with the Senate.
MACo will continue working with lawmakers to address the remaining cost shift and protect counties from additional fiscal pressure as the General Assembly finalizes the State budget.
Stay tuned to Conduit Street for more information.
Useful Links
2026 – House Appropriations Committee Report on Senate Bill 282 and 284 – Summary Report
Senate Advances Budget: Blocks Some Cost Shifts, But Fiscal Pressures Remain for Counties
MACo: State Budget Plan Pressures Counties Toward Higher Taxes or Service Cuts