House Appropriations Committee Rejects AOT Cost Shift, Budget Moves to House Floor

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…

Comments Off on House Appropriations Committee Rejects AOT Cost Shift, Budget Moves to House Floor
Veterans’ Tax Credit Bills Advance With MACo Amendments, Mandate Stalls

Two veterans’ property tax credit bills are moving forward with MACo amendments, while a broader mandatory expansion appears dead after crossover. HB 842, as introduced, repealed the current two-year eligibility requirement for a property tax exemption for specified surviving spouses, expanding a mandatory exemption and directly reducing a primary local revenue source counties rely on to fund core services. MACo supports providing meaningful relief to eligible residents, and many counties already offer locally adopted property…

Comments Off on Veterans’ Tax Credit Bills Advance With MACo Amendments, Mandate Stalls
5-Year Assessment Cycle Proposal Appears Dead After Missing Crossover Deadline

A proposal to shift Maryland’s property assessment cycle from three years to five years appears unlikely to advance this session after failing to meet the crossover deadline. MACo opposed HB 1518, citing concerns that the change would increase the lag between real estate market changes and the resources counties rely on to fund essential services. Counties rely on timely, accurate property assessments to maintain stable, predictable revenue streams. Extending the assessment cycle reduces the frequency…

Comments Off on 5-Year Assessment Cycle Proposal Appears Dead After Missing Crossover Deadline
Senate Advances Budget: Blocks Some Cost Shifts, But Fiscal Pressures Remain for Counties

The Maryland Senate has passed the Budget Bill (SB 282) and the Budget Reconciliation and Financing Act (SB 284), advancing both measures to the House of Delegates. The Senate plan largely mirrors Governor Moore's overall spending level, maintaining a roughly $70.8 billion budget while closing a projected $1.5 billion structural gap through fund transfers, targeted reductions, and financing adjustments. The plan leaves approximately $2.2 billion in the Rainy Day Fund, about 8% of general fund…

Comments Off on Senate Advances Budget: Blocks Some Cost Shifts, But Fiscal Pressures Remain for Counties
State Takes Increased Share of School Construction Costs via Regulation Change

In a meeting last Thursday, the Interagency Commission on School Construction (IAC) adopted new regulations, effectively increasing the state share of costs for qualifying school construction projects in nine of the most resource scarce counties.  During a regularly scheduled meeting of the IAC, Executive Director Alex Donahue proposed a change in the existing regulations that set forth the state-local cost share for qualifying school construction projects in smaller jurisdictions with limited tax capacity. The proposed…

Comments Off on State Takes Increased Share of School Construction Costs via Regulation Change
Baltimore County Maintains Triple-A Bond Rating for 31st Consecutive Year

Baltimore County has announced that it has maintained triple-A bond ratings from all three major credit rating agencies for the 31st consecutive year, allowing the county to continue issuing bonds at the lowest possible interest rates and saving millions of dollars for taxpayers. From the county release: “Baltimore County is proud to maintain a strong financial foundation that supports our top bond ratings and allows us to invest in our residents, communities, and future,” said Baltimore…

Comments Off on Baltimore County Maintains Triple-A Bond Rating for 31st Consecutive Year
Due Soon: Non-Recurring School Cost Entries Are Due March 31

A method in state law for identifying one-time school costs ensures that long-term funding mandates remain unaffected by short-term budget bumps, but approval for non-recurring costs requires application to the State Department of Education, by March 31, 2026.  Maryland’s “maintenance of effort” (MOE) school funding law, enacted by the General Assembly, requires that counties maintain the same amount of funding for education per pupil each year. The maintenance of effort name derives from the concept…

Comments Off on Due Soon: Non-Recurring School Cost Entries Are Due March 31
MACo to MSDE: Private Pre-K Details Weeks Overdue as County Budget Deadlines Approach

Below is the full text of a letter sent Tuesday, March 10, 2026, from the Maryland Association of Counties to the Maryland State Department of Education, the Maryland State Board of Education, and the Blueprint for Maryland's Future Accountability and Implementation Board regarding the local share of funding for private prekindergarten expansion in Maryland. The Maryland Association of Counties (MACo) writes on behalf of Maryland’s 24 county governments regarding the continued delay in issuing invoices…

Comments Off on MACo to MSDE: Private Pre-K Details Weeks Overdue as County Budget Deadlines Approach
State Revenue Forecast Improves for Now, Softens Ahead

Maryland’s latest revenue forecast boosts revenues for the current fiscal year by $355.7 million but lowers projections for fiscal 2027 by $108.0 million as budget pressures continue to build. The Maryland Board of Revenue Estimates (BRE) released its March update today, revising the State’s revenue projections as lawmakers continue to navigate a challenging fiscal environment. The latest forecast increases expected revenues for the current fiscal year by $355.7 million, while projections for fiscal 2027 decline…

Comments Off on State Revenue Forecast Improves for Now, Softens Ahead
Session Updates on Housing, Budget Pressure, and the Road to Crossover

This week on the Conduit Street Podcast, we check in on the 2026 Maryland General Assembly session as lawmakers approach the critical crossover deadline.   Tune in to the Conduit Street Podcast weekly, wherever you get your podcasts! Subscribe to the Conduit Street Blog and stay in the know!

Comments Off on Session Updates on Housing, Budget Pressure, and the Road to Crossover