Maryland

In January 2020, Republican Governor Larry Hogan became the most popular governor in the United States with a 75 percent overall approval rating among Maryland voters in a majority Democratic state.¹ At the time, Maryland voters placed crime as the top issue for the state, with education ranked second. Faced with the impending worldwide spread of COVID-19 and expected economic downturn, the Maryland General Assembly ended the 2020 session three weeks early. Before adjourning, the assembly enacted a fiscal year (FY) 2021 budget approving several education bills dependent on the successful passage of HB1300, the Blueprint for Maryland's Future, for funding. However, citing economic challenges due to COVID-19, Hogan vetoed HB1300,² even though it contained a spending cap mechanism for economic downturns.³ In May 2020, Hogan's approval remained high, reaching 78 percent.⁴

Funding priorities for p-12 and higher education

The Commission on Innovation and Excellence in Education, or Kirwin Commission, was established in 2016 to improve the state's educational performance and funding formula. The Kirwin Commission released a report in 2019 with recommendations prioritizing free preschool for low income children, tutoring and supplemental reading instruction, improved teacher education and pay, standards for college and career readiness, trade and technical education, and allocations based on the concentration of students living in poverty. Charter schools and school choice were absent from the Kirwin Commission report. Hogan criticized the Kirwin Commission's increased educational spending recommendations and the funding plan stating, "Even after more than three years of meetings, there is still no clear plan whatsoever for how either the state or the counties will pay this massive price tag."⁵

Assuming an in-state tuition rate increase of 2 percent, higher education revenue provides 10.0 percent of Maryland's $48 billion FY 21 budget. The FY 21 operating budget provides $2.4 billion for higher education, an increase of $150.9 million (6.8 percent) from FY 20. $94.6 million, including $29.8 million for salary increases, is allocated to public four-year institutions. Allocations to private institutions grew 18 percent from FY 20 to FY 21 ($59.0 million to $69.6 million). Funding for community colleges increased by 10.9 percent from FY 20 to FY 21 from $330.1 million to $367.2 million, and Baltimore City Community College, which has its own funding formula, also experienced a slight (0.2 percent) increase.⁶

The FY 21 capital budget for higher education includes $414.2 million from the state with $297.1 million (71.7 percent) being directed to four-year institutions and regional higher education centers, $12.0 million (2.95) to private institutions, and $105.1 million (25.4 percent) to community colleges.⁷

Changes to the funding formula for p-12 and higher education

The Kirwin Commission's recommendations to alter the state's P-12 funding formula beginning in FY 22 were not enacted due to Hogan's veto.

The Senator John A. Cade funding formula for community colleges totals $286.1 million for FY 21, a $36.4 million (14.6 percent) increase from FY 20.⁸ Although this amount equates to the state providing 25 percent of community college funding, as in the past ten years, the state has fallen short of the Cade formula's original intent to provide 29 percent of funding to community colleges.⁹

Pressing issues affecting p-12 and education

Maryland public schools closed in March 2020 and remained closed through the end of the school year due to COVID-19.¹⁰ In response to the federal CARES Act, Hogan committed to allocating more than $255 million to education, including $100 million for remote learning enhancements, $100 million for tutoring, and $10 million for rural internet access.¹¹

Timely topics affecting higher education include "free college", a pending lawsuit, and new accountability measures. The Maryland Guaranteed Access Grant program, implemented in 2019, was praised for covering "the remaining cost of attendance after subtracting other grant aid and the recipient's expected family contribution" (p. 7).¹² The program covers the cost of attendance up to $18,600 for two...