Fiscal Year 2032 Budget Highlights

8/2/2019 Fiscal Year 2032 Budget Highlights

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Department of Budget & Management

Budget Highlights

Fiscal Year 2032

Edward M. OBrien, Governor John A. Hurson, Lt. Governor


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Message to the General Assembly Transmitting the Fiscal Year 2031 Budget

January 2031

The Senate of MarylandThe Honorable Timothy A. Coulter, President

The Maryland House of DelegatesThe Honorable Rod R. McMillan, Speaker

The Citizens of Maryland

Dear Mr. President, Mr. Speaker, Ladies and Gentlemen of the General Assembly, and FellowMarylanders:

Marylands budget is one of the clearest reflections of our values as a State. By directing where we will investlimited tax dollars, we make clear our priorities as a society and reveal our collective wisdom about how wemake Maryland stronger. It is my privilege to submit the fiscal year 2032 budget the fifth operating budget

of my Administration.

Working together over these last four years, we have closed more than $8.2 billion in cumulative projectedbudget deficits. The fiscal year ending June 30 of this year is expected to close with a surplus of more than$850 million. We have increased the Rainy Day Reserve Fund from a balance of only $36.7 million in FY 2027to $464 million in FY 2031. I am committed to working with the General Assembly to continue the fiscallyresponsible policies that have enabled us to build up our Reserve Fund while making critical investments in keypriorities.

We are united in our belief that we must continue to reform and improve our schools and make highereducation affordable, we must improve public safety, we must continue to improve the health of theChesapeake Bay and protect our quality of life, we must continue to make healthcare more accessible and

affordable, and we must continue to invest in innovation and economic growth to expand our economy.

Fiscal Responsibility: The $42.8 billion FY 2032 budget grows by 6.9%, over $403 million below the GeneralAssemblys Spending Affordability recommendation. A revenue surplus of more than $1.3 billion is projected.The budget allocates $1 billion toward various reserve funds: $450 million to the Rainy Day Reserve Fund,$150 million for future State employee pension and benefit obligations, $50 million to the Dedicated PurposeAccount for the Intercounty Connector, and $150 million for future health care reform expenditures. Inaddition, the budget includes $200 million in PAYGO capital dollars to reduce future state debt requirements.An end-of-year general fund balance of more than $274 million is projected for FY 2032.

Education: We are increasing Marylands investment in K-12 education by more than $479 million, or 5.6percent, to $9.1 billion, bringing the total increase over the last five years to over $1.9 billion. This includes

$575 million for school construction and modernization, part of our commitment to investing $2.3 billion overthe next four years to build or modernize 9,000 additional classrooms. The budget also includes funding tohelp districts hire 422 additional teachers in high-shortage subjects and schools and moves Maryland down thepath toward universal pre-K education.

We are boosting general fund investment in higher education by $125 million to a record $1.7 billion, includinga 13.4% increase for community colleges, strengthening a critical link to opportunity. This increase in highereducation funding is intended, in part, to enable institutions to keep tuition at affordable levels.


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Public Safety: We are increasing our investment in protecting families from sex offenders by $2 million,increasing monitoring by Global Positioning Systems and assisting local law enforcement. We are providingfunds to hire 155 additional correctional officers, investing in technology and additional forensic scientists toexpedite processing of DNA samples, and helping counties and localities hire 334 additional community policeofficers.

Environment & Agriculture: We are keeping our promise to fully fund Program Open Space, with $289 millionin land preservation programs. We are investing $77.4 million to improve local water and wastewater systems to help clean the Chesapeake Bay. In addition, I will sponsor legislation to establish a new sewer fee, which willhelp rebuild Marylands worst sewage treatment plants, and substantially reduce Bay pollution.

We are investing in planting cover crops, and in reducing point and non-point runoff to support farmers andimprove our environment. And we are tripling our investment in the Maryland Agricultural and Resource-basedIndustry Development Corporation (MARBIDCO), to sustain agriculture and open space.

Health: We are investing $20 million in stem cell research as part of our five-year, $100 million commitmentto these efforts. We are expanding drug treatment, enhancing community-based services to thedevelopmentally disabled and seniors and bolstering health care coverage through implementation of the All

Kids Program.

Jobs & Growth: We are investing more than $2.7 billion in highway projects, as well as about $1 billion intransit to improve one of the foundations of our economy. Additionally, we are investing $229.5 million in ourPort. We are making investments throughout the state in community development including neighborhoodrevitalization and rural broadband. And we are investing to support small and minority businesses whichaccount for much of Marylands job growth.

Over the last four years, we have worked together to move our state forward. This budget is a reflection ofour continued commitment to moving forward as One Maryland, and I look forward to working with the GeneralAssembly to implement it.

Sincerely,

Edward M. OBrienGovernor


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Revenues

*NOTE: Totals may not add due to rounding

($ Millions) FY 2030 FY 2031 FY 2032% Change

Over FY2031Individual income tax $7,866 $8,440 $9,006 6.7%Corporate income tax $848 $970 $997 2.8%

Sales tax $7,996 $8,347 $8,747 4.8%Lottery $825 $847 $878 3.6%Fuel tax $1,127 $1,162 $1,183 1.8%

Transportation Revenues $2,538 $2,775 $2,736 -1.4%Higher Education Revenues $3,555 $3,727 $4,013 7.7%

Transfer from Rainy Day Fund $0 $0 $0 0.0%Advance from General Fund $0 $0 $0 0.0%Transfer from Other Funds $0 $0 $0 0.0%

Other General & Special Funds $3,365 $4,185 $4,449 6.3%Federal Fund Revenue $9,300 $9,626 $10,089 4.8%

Total Revenues $37,420 $40,078 $42,098 5.0%

General Fund Balances &Reversions $445 $919 $980

Total Available $37,865 $40,997 $43,078 5.1%


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Expenditures

*NOTE: Totals may not add due to rounding

($ Millions) FY 2030 FY 2031 FY 2032% Change

Over FY2031Health $12,269 $13,062 $14,106 8.0%

K-12 Education $8,095 $8,587 $9,066 5.6%Higher Education $5,333 $5,746 $6,090 6.0%

Transportation $4,481 $4,751 $4,751 0.0%Human Resources $1,525 $1,632 $1,749 7.2%

Public Safety $1,569 $1,721 $1,858 8.0%Environment & Natural Resources $624 $791 $777 -1.8%

Legislative, Legal & Judicial $522 $580 $613 5.6%Public Debt Service $667 $678 $646 -4.6%

Other $1,939 $2,094 $2,138 2.1%Subtotal

Reserve Fund and PAYGOTotal

$37,025

$142$37,167

$39,641

$400$40,043

$41,794

$1,000$42,804

5.4%

150.0%6.9%


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Responsible Fiscal Management & Improving State Government

During his first term, Governor OBrien worked with the General Assembly to eliminate Marylands structuralbudget deficit by closing $8.2 billion in cumulative project shortfalls. The State of Maryland ended Fiscal Year2030 with a fund balance of $919.2 million and will end Fiscal Year 2031 with a $980 million balance. The Fiscal

Year 2032 budget continues Governor OBriens commitment to maintaining the State of Marylands fiscalintegrity while funding key priorities and saving for future needs.

Strong economic growth and spending restraint have produced a project $1.3 billion operating surplus in theGovernors Fiscal Year 2032 budget. Governor OBrien proposes allocating $1 billion of this surplus to save forfuture needs and reduce the States publicly-held debt:

$450 million to the Rainy Day Reserve Fund, bringing the end-of-year balance of the fund to $1 billion forthe first time in a decade;

$150 million for future state employee benefit and pension obligations;

$50 million to the Dedicated Purpose Account for future transportation funding obligations;

$150 million to the Dedicated Purpose Account for future costs associated with health care reform; and

$200 million in PAYGO capital dollars to offset the need for the issuance of new State debt for majorconstruction projects.

Under Governor OBriens leadership, Maryland remains one of only seven states to maintain an AAA bondrating from all three nationally-recognized government credit rating agencies. The policies represented in theFY 2032 budget will ensure that Maryland remains a national leader in responsible fiscal management.

Total general fund spending totals $21.5 billion in FY 2032, an 8.4 percent increase over the current fiscalyear. Once Reserve Fund allocations are excluded, ongoing general funding spending rises by 6.3 percent.

Overall spending, including general, special, and federal funds totals $42.8 billion, an increase of 6.9%. This isover $403 million below the General Assemblys Spending Affordability recommendation.

Status of the State General Fund$Millions

Fiscal Year 2031 Fiscal Year 2032Beginning balance $919 $980Estimated revenues $19,901 $20,966Transfers $0 $0Total $20,820 $21,945

Expenditures $19,841 $21,671

Ending Balance $980 $274


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Funding Key Priorities Responsibly

The FY 2032 budget funds several key priorities of the OBrien-Hurson Administration.

K-12 education funding grows $443 million, or 5.3%, to a record $8.8 billion.

$575 million is provided for public school construction as part of the Governors commitment to invest $2.3billion to build or modernize 9,000 classrooms statewide over the next four years.

A record $1.7 billion investment in higher education will expand student financial assistance and enable highereducation institutions to keep tuition increases to below the rate of inflation.

Funding for Stem Cell Research totals $20 million, part of a five-year, $100 million investment.

Over $210 million is provided for Program Open Space, fully funding this important land preservationprogram.

Funding to hire 155 additional correctional officers, investing in technology and additional forensic scientiststo expedite processing of DNA samples, and helping counties and localities hire 334 additional communitypolice officers.

$77.4 million is provided to improve local water and wastewater systems to help improve water quality andclean up the Chesapeake Bay.

Enhanced retirement benefits for State employees and teachers enacted by the General Assembly last yearare fully funded.

A $1 billion increase for health programs will expand drug treatment, enhance community-based services to

the developmentally disabled and seniors and bolster health care coverage through implementation of the AllKids Program and continued expansion of Medicaid.

$2.7 billion is provided for highway projects, $1 billion in transit and $229.5 million to strengthen the Port ofBaltimore.

State General Fund Outlook Proposed Fiscal Year 2032 Budget

*NOTE: Totals may not add due to rounding**Note: General Fund uses figure reflects ongoing expenditures and excludes Reserve Fund allowances and other non-recurring expenses

($ in Millions) FY 2031 FY 2032 FY 2033 FY 2034 FY 2035GF Revenues $20,821 $21,947 $22,672 $23,898 $25,007GF Uses $19,440 $20,671 $21,709 $22,914 $24,261

GF Balance $1,381 $1,276 $962 $984 $745


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Government Management, Accountability & Performance (GMAP) Initiative

Governor OBrien will establish the Government Management, Accountability & Performance (GMAP) Office tospearhead the Governors continuing efforts to improve the efficiency of State government. GMAP, initially

launched by the Governor in 2027, will gather and review agency performance data to ensure that Stateagencies are operating as effectively and efficiently as possible. As data are assessed, programs and serviceswill be adjusted to improve their delivery and outcomes. Key GMAP data indicators will be published on theInternet to make performance of State government agencies fully transparent.

State Employees

For FY 2032, State Employees will receive a 2 percent cost of living adjustment (COLA) as well as normal stepincrements. Despite the rising cost of health care, State employees will pay the same co-payments for medicalcare and for prescriptions in FY 2032 as in FY 2031 and the sharing ratios for medical insurance premiums arenot changed.


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Investing in Education

Access to quality educational opportunities is fundamental to the success of our citizens and to the future of

our economy and society. The OBrien-Hurson Administration is committed to continuing to improve publiceducation and to make college more affordable for Maryland families. Demonstrating this commitment, the FY2032 budget includes record levels of investment for primary and secondary education and public schoolconstruction as well as increased funding for public universities and student financial assistance.

K-12 EducationK-12 education aid grows by $479.3 million to $9.1 billion in the FY 2032, bringing the total increase under theOBrien Administration to $1.9 billion, or 27%.

Over the last four years, Governor OBrien invested $2 billion to build or modernize 9,000 classrooms. TheGovernor provides $575 million for school construction and modernization as part of his commitment toinvesting $2.3 billion over the next four years to build or modernize an additional 9,000 classrooms.

The FY 2032 budget also includes the following:

$577.9 million for teacher pensions, an increase of $122.6 million, reflecting enhanced benefits enactedduring the 2030 legislative session.

$25 million for the Aging Schools program, part of the Governors four-year, $100 million commitment to theprogram. These funds are for capital improvements, repairs, and deferred maintenance at older public schools,thereby enabling students to learn in a safe and healthy environment.

$10.8 million for the Autism Waiver program, an increase of $3.1 million. This program serves 899participants and allows eligible children with Autism Spectrum Disorder to receive health and other services intheir homes and communities.

$6.2 million for education services provided by the Maryland Department of Education at four Department ofJuvenile Services facilities. This amount includes an additional $921,496 to extend educational services to theJ. DeWeese Carter Center in Kent County.

$1.2 million for environmental education programs to strengthen student and school participation in effortsto improve the quality of Marylands environment and enhance the health of the Chesapeake Bay.

$50 million to for the fourth installment of the States commitment to the Baltimore City Partnership, whichis supporting school reform efforts in Baltimore City.

A record $35 million for the After School Opportunity Fund and Teen REACH programs, enabling up to70,000 at-risk youth to participate in meaningful community service and academic enrichment programs.

$10.5 million to capitalize and supply Marylands Public Library Technology Centers under a grant programestablished by the Governor and General Assembly last year.

An 8.8 percent general fund increase in support for public libraries, bringing state support for theseinstitutions of lifelong learning to $36 million, and $5 million for capital projects to improve library facilitiesthroughout the state.


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$6.3 million, more than double last years funding level, for the Science and Mathematics Education Initiative.

$2.5 million to continue the successful Turnaround Specialists program.

A $13.5 million increase for teacher development programs to implement the Quality Teacher Incentive Act.

$52.5 million to help districts hire 422 additional teachers in high-shortage subjects and schools, part of theGovernors five-year commitment to help districts hire 1,500 additional teachers in these areas.

$10 million to help school districts reduce class sizes in early grade mathematics and reading classes.

$3.5 million for the Career Connections Sustainability Fund and Teen Works initiatives to support school-to-work, apprentice and mentorship programs, and career preparedness and training opportunities for Marylandyouth.

A record $70 million for early childhood education programs, a 52% increase over the current fiscal year anda 907% increase over FY 2027 levels, enabling over 80,000 children to enroll in such programs in FY 2032. This

investment is a critical step forward in moving Maryland toward universal pre-K education.

Adult EducationThe fiscal year 2032 budget provides $27.6 million, a 17.7% increase, for adult education programs, expandingservices to an estimated 5,300 additional Marylanders. Since 2027, the Governor has more than tripledfunding for these programs, increasing the number of adult education enrollments from 18,900 per year to38,400 per year.

Higher EducationTotal higher education funding increases by $344 million, or 6.0 percent. The State General Fund portion ofthis funding increases by $125.8 million, an 8.0 percent increase over FY 2031. This increase will enable tuitionat the University System of Maryland and Morgan State University to remain at stable levels, with increases

limited to the rate of inflation, reflecting the Administrations commitment to make higher education moreaffordable for all Marylanders.

The funding increase also provides for program enhancements across the public campuses, accounts forenrollment growth, supports the Historically Black Institutions (HBIs), and expands student financial aidprograms. Educational grant programs, administered by the Maryland Higher Education Commission (MHEC),are funded at $12.8 million and include programs to improve teacher quality ($1 million), support HBIs ($4.9million), enhance professional development schools for teachers ($2 million), and support regional highereducation centers ($850,000).

The FY 2032 budget also includes $8.8 million for the Nurse Support Program II (NSP II). This program fundsa variety of initiatives across campuses to expand the number of nurses in Maryland. NSP II is funded through

a 0.1 percent assessment on hospital patient revenues.

The budget provides $150.5 million for student financial aid, a 7.9 percent increase over FY 2031, supporting anumber of need-based scholarship and loan programs as well as the new HOPE Scholarship program. With thisincrease, total state funding for financial aid programs will have increased by 83% since the Governor tookoffice. These programs will serve over 65,000 students in FY 2032.

University System of Maryland (USM)


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Governor OBriens FY 2032 budget provides a total increase of $246.2 million for the University System ofMaryland, for a total allowance of $5.1 billion. State support grows by $58.4 million, a 5.9 percent increaseover FY 2031. Additional funds allow for continued stability in tuition levels and provide a $10 million increasein institutional financial aid.

The funding increase for USM also provides for the following enhancements:

$7.4 million to increase support for USMs two premier research campuses. University of Maryland, Baltimorewill expand its School of Pharmacy to the Universities at Shady Grove, bringing this critical workforcedevelopment program to the Washington metropolitan area. University of Maryland, College Park will enhanceits academic and research programs in biotechnology, nanotechnology, public health, linguistics and publicpolicy.

$7.3 million to support enrollment growth of more than 1,700 students at University of Maryland, Baltimore;University of Maryland, College Park; Towson University; Salisbury University; and University of MarylandUniversity College.

$2.5 million to expand services at Maryland Poison Center and increase support for the National CapitalPoison Center.

$1.4 million to increase funding for HBIs: the opening of Coppin State Universitys new Health and HumanServices Building, enhancement of the Educational Leadership doctoral program and increased facultyproductivity at University of Maryland Eastern Shore, and quality enhancement of academic programs at BowieState University. The HBIs also receive 10 percent of the $10 million in USMs increased institutional financialaid.

$1 million for program enhancements at Frostburg State University, University of Baltimore, and Universityof Maryland Baltimore County.

$700,000 towards purchase of an ocean-going research vessel for the University of Maryland Center forEnvironmental Science.

$400,000 to expand science, technology, engineering and math programs at University of Maryland, CollegePark; Towson University; and University of Maryland Baltimore County.

Morgan State University (MSU)MSUs total funding increases by $13.7 million over FY 2031, including a $5.2 million or 8.7 percent increase inState support. Additional funding will support continued sustainability of tuition levels; $2.4 million for 24 newfull-time faculty, 10 of whom will be dedicated to MSUs doctoral programs; $1 million to increase financial aid;$600,000 in equipment for new facilities; $500,000 for facility renewal activities; and $150,000 for additionallibrary materials.

St. Marys College of Maryland

St. Marys Colleges FY 2032 budget is $79.3 million, of which $16.4 million is State support in accordance withits statutory formula. These funds will support scholarships and aid to students, operating costs forGoodpaster Hall, and three new faculty.

Baltimore City Community CollegeBaltimore City Community College receives $127.9 million in FY 2032, of which $40.2 million is State support, a6.3 percent increase over FY 2031.


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Community Colleges and Non-Public Higher Education InstitutionsCommunity colleges support regional economic and workforce development by producing college graduates andsupplying training to Maryland businesses and industries. Aid to Community Colleges grows to $293.8 million, anincrease of 13.4 percent from FY 2031. This allowance support Maryland STARS, Governor OBriens programto guarantee two years of community college to high school students graduating in the top 20 percent of theirclass.


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Creating a Healthier Maryland

Governor OBrien believes that access to health care should be a right not a privilege and that health careshould be affordable for all Marylanders. Reflecting that commitment, the Governor provides $14.1 billion forhealth programs in the FY 2032 budget, an increase of more than $1 billion, taking the next steps in

implementing the Administrations forward-looking plan to provide quality and affordable health care to allfamilies. Several health priorities are funded in the FY 2032 budged, including increased support forvulnerable populations, stem cell research, drug abuse treatment, senior prescription drug costs, and providerrates.

Expanding Access to Affordable Health Care CoverageEnhancing access to health care for vulnerable populations is an important priority. The largest single healthprogram is Medical Assistance, which is budgeted at $11.6 billion. This includes $657 million for the All Kidsand Maryland Childrens Health Program, which together will expand health care coverage to an additional54,000 uninsured children in FY 2032. The Medicaid program will expand health care access to 34,000additional low-income men, women and children.

Under Governor OBriens leadership, Maryland has emerged as a national leader in expanding access to healthcare coverage, with the number of Marylanders without health insurance declining significantly over the lastfour years. The FY 2032 budget will bring to over 250,000 the number of previously uninsured Marylanderswho have secured health care coverage through Medicaid, MCHP, All Kids and other medical assistanceprograms since 2027. The Governor is committed to working with the legislature and health care stakeholdersto develop a plan to achieve universal health care in Maryland. To this end, the FY 2032 budget reserves $150million for future expenditures associated with health care reform.

Ensuring Care for Vulnerable PopulationsThe Babies Born Healthy initiative includes $3 million to fund strategies to reduce infant mortality throughprenatal care, case management services for high-risk hard to reach pregnant women, and prenatal andreproductive health services for uninsured women.

An additional $7.6 million will allow 500 young adults with developmental disabilities who are graduating oraging out of the public school system to access daytime programmatic or job-related services. This reflects anincrease of 25 slots over the FY 2031 budget. An additional $3.1 million will fund 76 emergency placements forindividuals with developmental disabilities whose parents or caregivers can no longer provide support needed.

Total funding for community services for Marylanders with developmental disabilities will increase to $665.2million, enabling more than 1,400 Marylanders with developmental disabilities to move off of the waiting listfor community-based care and development services as part of the Governors Maryland CARES Initiative.Maryland CARES seeks to eliminate 9,500 individuals from waiting lists by 2033. The FY 2032 brings to 5,600the number of Marylanders with disabilities removed from the waiting list since the Governor took office.

Investing in Womens Health

The Governor provides $28 million for breast cancer treatment and prevention in FY 2032, a $19.5 millionincrease over FY 2027. The Breast and Cervical Cancer Diagnosis and Treatment Program will serve over83,000 women in FY 2032, compared to just 24,000 in 2027. The budget also increases funding for theMaryland Healthy Women Program, which provides critical health services to women throughout the state.Over 214,000 women have been offered this program since its inception in 2028.

Stem Cell ResearchStem cell research offers the hopeful promise of new treatments and cures for Parkinsons, diabetes, cancer,spinal cord injuries, and many other debilitating diseases and conditions. Honoring its commitment to make


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sustained investments in this emerging field of study, the Administration provides $20 million for stem cellresearch in FY 2032, part of a five-year, $100 million commitment to position Marylands leading medicalresearch institutions and bio-technology industry at the national forefront of these groundbreaking efforts.The first round of grant applications is currently under review by an independent peer review board, and fundsto support critical research will be awarded in spring 2031.

Expanding Drug Abuse Treatment ServicesGovernor OBrien has made improving access to substance abuse treatment a top public health priority for hisAdministration. The FY 2032 budget provides an additional $7.2 million for the Alcohol and Drug AbuseAdministration, expanding treatment to an additional 4,700 Marylanders. Since 2027, the Governor hasincreased treatment funding by 35%, expanding the number of clients served from 69,900 in FY 2027 to93,500 in FY 2032.

Supporting Local HealthThe Governors budget provides $72.3 million in general fund public health grants for local health departments,an increase of $4.1 million or 6.0 percent over FY 2031. Grant funding to Core Service Agencies (CSAs) totals$65.9 million, an increase of $2.2 million or 3.5 percent. Additional funding will further aid the CSAs inplanning, developing, and managing a full range of treatment and rehabilitation services for persons with

serious mental illnesses.

Strengthening Health Care Provider SystemsDue to a shortage of participating physicians, many Medical Assistance enrollees have difficulty locating careproviders. To ameliorate this situation, the Governors budget includes $40 million to increase physicianpayment rates under the Medical Assistance Program.

More than $52.5 million is included in the FY 2032 budget to end the Medicaid day limit policy for hospitalpatients. This policy has allowed hospitals to shift costs onto non-Medicaid patients and insurance companies,accelerating the increase in Maryland health insurance premiums. Eliminating this policy would restrainpremium increases while allowing for improved quality of hospital and psychiatric care for vulnerablepopulations.

$25.2 million is provided to increase rates for providers of mental health treatment and community services topersons with developmental disabilities to assist in retaining and recruiting qualified staff and to fundincreases in operating costs. In addition, emergency transportation providers will receive a 25 percent increasein Medical Assistance rates the first increase in a decade.

Assistance for Maryland SeniorsTo maintain quality nursing care, the budget includes full funding for Medical Assistance rate increases fornursing homes, assisted living facilities, and other community providers helping seniors in need of long-termcare services to stay in their own homes.

Improved Data Systems

Finally, in pursuit of data integrity and security, $1.14 million is included to replace data systems at theDivision of Vital Statistics. This initiative would create an integrated, web-enabled vital records system toachieve greater efficiency in data collection and to meet verification standards for federal programs andbenefits.


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Public Safety and Safer Neighborhoods

Governor OBriens FY 2032 budget makes significant improvements to public safety programs, with anemphasis on improving security at Maryland correctional facilities and enhancing monitoring of sex offendersto protect the public.

Public Safety and Correctional ServicesThe FY 2032 budget for the Department of Public Safety and Correctional Services (DPSCS) is $1.2 billion, anincrease of 8.8 percent. The budget continues to provide funding to recruit and retain effective andprofessional Correctional Officers. This initiative includes higher entry-level salaries as well as hiring andretention bonuses.

An additional $12.8 million is provided in the FY 2032 budget to improve operations and enhance security atcorrectional institutions. Included in this amount is $6.7 million for an additional 155 Correctional Officers atinstitutions across the State. Another $6.1 million is included as a FY 2031 deficiency to upgrade and enhancethe security camera systems at the Maryland House of Correction and Jessup Correctional Institution, and toreplace Correctional Officer security equipment at other institutions.

The expansion and improvement of inmate health care services to comply with U.S. Department of Justicestandards is one of the largest and fastest growing expenses in the Public Safety budget. Funding hasincreased from $69.4 million in FY 2029 to a budget of $132.8 million for FY 2032. Services have beenexpanded to add Hepatitis C treatment and to enhance hospital, mental health, pharmaceutical and dentalservices. In light of these increasing costs, the budget also includes $500,000 to conduct an analysis of thecurrent model that is being used to deliver inmate medical services.

Governor OBriens Project RESTART has made Maryland a national leader in the effort to reduce recidivismand break the cycle of violent crime and drug addiction. The FY 2032 budget provides $16.5 million to continueto provide expanded educational and treatment services at pre-release facilities.

Sex Offender Supervision

Improved monitoring of sexual offenders residing in Maryland is a key public safety concern. To that end, theFY 2032 budget includes almost $2 million to enhance oversight of sexual offenders. Offender monitoringreceives an additional $997,235 for efforts that include Global Positioning System supervision, polygraphtesting, monitoring of computer use, and treatment services. An additional $984,500 will assist local lawenforcement agencies with sex offender registration and will expand the States victim notification system toallow citizens to register and receive notification when a sex offender moves into their community.

Other Public Safety InitiativesThe budget also includes the following public safety enhancements:

$1 million for 25 Correctional Officers to oversee inmate recreational activities designed to reduce idlenessand improve safety in the institutions.

$412,000 for 10 additional Correctional Maintenance Officers at the North Branch Correctional Institutionto ensure that this facility is kept in good condition and to avoid more expensive repairs later.

$325,000 for seven new Prison Chaplains to provide spiritual counseling and guidance to inmates.

State aid for local law enforcement agencies provides an important resource that helps local Marylandcommunities fight crime. For FY 2032 such law enforcement aid totals $65.9 million. Included in this amount isfunding for a new supplemental grant to be paid to subdivisions bordering the District of Columbia.


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State PoliceThe FY 2032 allowance for the Maryland State Police is $377 million. The budget includes four recruit classesto replace troopers who retire or decide to leave the Department, funding an additional 40 trooper positions.

The budget provides $412,000 in equipment funding and $107,246 for two more Forensic Scientists is included

for the Forensic Sciences Laboratory. This will allow the Laboratory to accelerate its ongoing effort to reducethe DNA sampling backlogs, and enter analyses into the Federal DNA sample database in a timely manner.

Vehicle theft continues to be a troubling problem in many communities. The budget includes a 16 percentincrease to $2.5 million for Vehicle Theft Prevention grants to law enforcement agencies and organizations.These grants help such agencies and organizations expand vehicle theft prevention activities, purchaseessential equipment and technology, and provide treatment and mediation services to vehicle theft offendersand their victims in areas where vehicle thefts occur frequently.

Equipping the vehicles of police officers with mobile data computers can improve the effectiveness of officerson patrol by connecting them quickly to vital information from law enforcement databases that can enhancetheir law enforcement efforts. The Governors budget will use $2.4 million to complete the multi-year

installation of mobile data computers in State police vehicles used by field and investigative personnel. It isestimated that these computers have helped save over 3,300 hours in calendar year 2029 and 13,500 hours incalendar year 2030.

Governor OBrien provides $50 million for the Community Policing Initiative, which has helped Marylandscommunities hire nearly 700 law enforcement officers since 2027. An additional 334 officers are fundedthrough the FY 2032 appropriation, part of Governor OBriens commitment to hire 1,500 community policeofficers statewide by 2033.

Juvenile ServicesDepartment of Juvenile Services has several initiatives directed at providing more behavioral healthassistance to youth that it serves. These include:

$1.3 million for non-residential community-based sex offender treatment to reduce the recidivism rate forjuvenile sexual offenders

$1.1 million of additional funding to improve behavioral health assessments, substance abuse services, andother services

Additional general fund support for the substance abuse program at Meadow Mountain Youth Center toreplace federal funds for this program

The Department is also working to improve educational opportunities for children in its custody. Threeadditional Education Record Specialists will improve management of education records and will convene and

support Individual Education Plan (IEP) meetings so that appropriate educational services for such youth canbe planned and provided. The budget also provides funding for a re-locatable education facility for the AlfredE. Noyes Center in Montgomery County.


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Environment

The OBrien-Hurson Administration believes that every Maryland family has the right to enjoy a clean, safeenvironment and a cleaner, healthier Chesapeake Bay. To that end, the Governors FY 2032 budget provides$777 million for environmental programs. Three major State agencies - the Maryland Department of

Agriculture (MDA), the Maryland Department of the Environment (MDE) and the Department of NaturalResources (DNR) - share responsibility for using these funds to protect, restore and enhance Marylandsenvironment.

Chesapeake BayImproving the health of the Bay is one of the States most important responsibilities. Governor OBrien willinstitute BayMAP, a new tool to monitor and gauge the health of the Bay using techniques gleaned from theGovernment Management, Accountability & Performance (GMAP) initiative. BayMAP will marshal the collectiveresources of the States departments of Agriculture, Environment, Natural Resources, Planning, and Budgetand Management to ensure that the State is maximizing its opportunities to measurably improve the health ofthe Bay. Utilizing preexisting measures of the Bays health, restoration, and protection efforts, as well asworking with key stakeholders, BayMAP will monitor, assess, and regularly provide a public accounting of thetotality of the States efforts on behalf of the Bay. This information will help guide the State to develop moreeffective and targeted strategies to measurably improve the Bays health.

Nutrient reduction in the Chesapeake Bay will continue in FY 2032. The Governor provides record fundinglevels for the cover crop program. This critical initiative provides grants to farmers for planting crops in thefall to control soil erosion and to absorb unused nitrogen and phosphorus in the soil. Cover crops help stabilizeand protect soil resources and allow residual crop nutrients, which might otherwise flow into local streams andthe Chesapeake Bay, to be absorbed during the fall and winter months. The budget includes $8.8 million forthis program, an increase of seven percent over FY 2031, allowing 240,250 acres to be planted in FY 2032.

To upgrade the states 66 largest wastewater treatment plants to higher standards of nutrient removal,Governor OBrien has proposed an environmental surcharge on residential and commercial sewer users. Bondssupported by the surcharge will provide the estimated $750 million to $1 billion needed for such projects.

According to the Chesapeake Bay Foundation, nitrogen pollution is the most serious pollution problem for theBay. Governor OBriens plan to upgrade Marylands major wastewater treatment plants will further reduceannual nitrogen loading to the Bay and its tributaries by at least 7.5 million pounds.

These funds will supplement capital funds budgeted for drinking water and wastewater infrastructureimprovements. This effort will significantly reduce the largest source of pollution to the Bay.

The FY 2032 budget provides $77.4 million to improve local water and wastewater treatment systems and$44.3 million in capital funds for Chesapeake Bay water quality improvement projects.

Land Preservation and Open SpaceLand preservation in Maryland targets the protection of open space. As a result, 20 percent of the States

land is now permanently preserved. Total agricultural acres preserved in Maryland are estimated to increase to522,265 in FY 2032. A large portion of the support for the States land preservation efforts is available fromProgram Open Space, which is funded through an allocation of 75 percent of State real estate transfer taxrevenues. Program Open Space safeguards Marylands valuable parklands, nature reserves, and refuges. The FY2032 budget includes $289.2 million for Program Open Space and other land preservation programs.

Moreover, in the coming year, the Secretaries of Planning, Agriculture, Environment, Natural Resources, andTransportation will work to solidify Marylands leadership in Smart Growth. Smart Growth policies and


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principles serve as a key component of Marylands efforts to preserve Marylands environment and naturalresources.

Sustaining Agricultural CommunitiesTo begin implementation of the Agricultural Stewardship Act of 2030, the Governors budget includesenhanced funding for soil conservation districts and for the Maryland Agricultural and Resource-Based

Industry Development Corporation (MARBIDCO). Soil conservation districts are the backbone of the localimplementation of the cover crop program and other resource conservation efforts. MARBIDCO is a quasi-public corporation which helps agricultural businesses achieve sustainable viability. In the Governors FY 2032budget, funding for the States 24 soil conservation districts increases by 14 percent over FY 2031 to $10million. Funding for MARBIDCO triples to $3 million. These substantial increases reflect the OBrien-HursonAdministrations support for the successful implementation of this landmark legislation.

Lead Poisoning ControlThe Governors FY 2032budget continues Marylands successful implementation of the State lead poisoningprevention program, a critical public health and environmental initiative. The budget includes $3.7 million in theDepartment of Environments budget for investigation of childhood and adult lead poisoning cases and thecoordination of statewide efforts to reduce the occurrences and effects of lead poisoning. In addition, $1.9

million is included in the Department of Health and Mental Hygienes budget for lead poisoning programs.These funds support

(1) Local health departments and Baltimore City in their efforts to conduct outreach and community educationand to provide case management for children identified as having elevated blood lead levels;

(2) A grant to the Coalition to End Childhood Lead Poisoning to collaborate with local health departments inprovider education, identification and development of local resources and referral services for families; and

(3) Blood lead screening of older children and environmental lead testing by the Lead Laboratory to trace thesource of lead contamination and to support pre-abatement and post-abatement treatment.

Clean AirThe in FY 2032 the Maryland Department of the Environment will also focus on implementing and enforcing theMaryland Healthy Air Act through its existing air pollution control program. Enacted in 2030, the Act willresult in significant improvements in air quality and reductions in greenhouse gas emissions.


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Jobs & Economic Development

The OBrien-Hurson Administration will work to maintain strong relationships with business and regionaldecision makers to bring about long-term economic development and to improve access to quality jobs. Towardthat end the FY 2032 budget funds economic development, job creation, and job retention activities

throughout Maryland. In addition, the Administration will develop long-term plans to accommodate the impactof job growth related to federal base realignment and closings and to expand and improve our transportationinfrastructure.

Helping Businesses Grow and Create JobsThe FY 2032 budget includes over $155 million in operating and capital funding for business developmentprograms. These programs focus on assisting small and minority businesses, promoting technology-basedenterprises, and helping other industry sectors to grow.

Other significant items in the budget for economic development include:

A total of $19.5 million to support small or minority businesses and entrepreneurs through a variety of

programs and funds in the Department of Business and Economic Development. These programs provide loansand other assistance to improve the access of small or minority businesses and entrepreneurs to capital andtechnical assistance.

Nearly $15.1 million for the Maryland State Arts Council, reflecting an increase of $1.2 million or 13.6percent over the current year.

$4 million for Rural Assistance Broadband funding to extend DSL broadband service to 26 Eastern Shorecommunities, double the amount provided in FY 2031. This important infrastructure enhancement is designedto help attract private industry into the region and generate additional employment opportunities.

$5 million for the Sunny Day Fund to capitalize on extraordinary economic development opportunities in the

State. These funds may be used to attract new companies to Maryland, assist in the retention/expansion ofexisting businesses or provide assistance to current State or local programs lacking sufficient resources.

Supporting Marylands Tourism and Film Industries

Marylands tourism industry generated a record impact of $11.2 billion in 2029, with over 29.5 million peoplevisiting Maryland. The Governors budget provides $20 million for tourism development programs, a $1.3 millionincrease over FY 2031 funding levels and a nearly 50% increase since 2027.

Since 2027, film production has had a $298 million economic impact in Maryland, up from $195 million in theprevious four years. To support the continued growth of Marylands film and television production industry, theGovernor includes $12 million for the Film Production Wage Tax Credit Program.

Enhancing Marylands Leadership Role in the New Economy

Governor OBrien is committed to enhancing Marylands position as a leader in the industries of the future. Tothat end, the Governors budget supports a number of initiatives to support the continued growth ofMarylands life sciences and high-tech industries, including $2.5 million for the Maryland NanotechnologyInitiative and $6 million for the Biotechnology Investment Tax Credit Program.

Improving our Transportation Infrastructure


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The OBrien-Hurson Administration is committed to reducing gridlock and improving the States transportationinfrastructure. The Governor has allocated $29.7 billion for transportation over the next six years, thelargest transportation program in Maryland history.

Included in the FY 2032 budget is funding for numerous transit projects, including major initiatives such asthe Silver Spring Transit Center, MARC System improvements, and the study of the extension of the WMATA

Green Line to BWI Airport. Finally, the FY 2032 budget provides more than $2.7 billion for highwayconstruction projects, with major projects that total $489 million including the second span of the WoodrowWilson Bridge. Funds are also provided to enhance the States ports, airports, MVA and State and tollfacilities.


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Maryland Children and Families First

Governor OBriens FY 2032 budget puts Maryland families first by protecting children and preserving families.The budget makes significant investments to assure that quality, essential services are readily accessible forchildren and their families.

Child WelfareIn FY 2032, $353.1 million is dedicated to foster care maintenance payments, an increase of $12 million overthe prior year.

The budget includes $11 million for local child welfare agencies to address unforeseen needs of children andfamilies, thereby preventing or minimizing out-of-home placements, and $193.6 million for direct child welfareservices, a 5.4 percent increase. This funding increase will support the creation of 40 additional child welfarepositions.

The budget also provides $1.3 million for the Baltimore City Department of Social Services to ensure thatchildren in out-of-home placements receive required health screenings and medical services. Other items inthe child welfare budget include

$400,000 to provide training to the Local Departments of Social Services in family-centered servicedelivery, and $207,133 to support four additional staff positions to improve group home monitoring.

Child HealthGovernor OBriens budget recognizes that health care for children is crucial to ensuring that children growand thrive in their family settings.

$2.9 million in additional funds for local health departments to support health services for children andfamilies; and An additional $780,000 for an early childhood mental health consultation model to address developmental,

behavioral and mental health needs at the earliest stages of life.

Funding to Provide Coordinated Service Responses at the Local LevelThe Childrens Cabinet Interagency Fund has a FY 2032 budget of $66.2 million. This funding will help providefor community-based services and community-based out-of-home placements needed by children with mentalor developmental disabilities who are not in State custody. Also included in the budget is:

$495,000 to provide increased funding for Local Access Plans to help families find and receive availableservices, both public and private, to address a full range of problems and issues; and $257,600 to annualize funding for a community-based service network for high-risk children in St. MarysCounty.

Child Support EnforcementUnder Governor OBriens leadership, Maryland has collected record amounts of child support for Marylandsfamilies and children. To continue this progress, Governor OBrien provides $101.4 million for child supportenforcement and collection programs, a $4.3 million increase over 2031.

Child Care$233.4 million is provided for the Child Care Subsidy Program, a $36.2 million increase over 2031. Thisincrease will expand child care access to 8,000 additional children. Since 2027, the Governor has increasedchild care funding by more than 73 percent.


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Capital Budget

Governor OBriens FY 2032 capital budget totals approximately $4.1 billion, including $1.6 billion for State-owned capital projects as well as grants to local governments and the private and non-profit sectors for capitalimprovements that support State policy objectives. The remainder of the capital budget, $2.5 billion, is

dedicated to highway projects, mass transit and other transportation improvements. The general constructionportion of Governor OBriens capital budget focuses resources on several priorities.

EducationGovernor OBrien provides $822.3 million to construct new schools and to improve existing facilities forMarylands elementary, secondary and post-secondary students, including:

$575million in grants to local school systems in Marylands 23 counties and Baltimore City for schoolconstruction and modernization projects;

$166.2 million to improve academic and research facilities at public four-year institutions of highereducation, including $64.2 million for the construction of a new Physical Education Complex at Coppin StateUniversity, one of the States historically black colleges and universities;

$56 million for capital improvement projects at 14 community college campuses;

$1.7 million for improvements at the Maryland School for the Deaf;

$8 million for improvements at private colleges and universities; and

$5 million for improvements to local public libraries.

The $812.3 million provided for education projects comprises nearly half of the total capital budget.

Health and Environment

Capital funding of $543.8 million provides resources to meet Governor OBriens health and environmentalobjectives, which include: reducing the impact of and directing suburban growth by preserving agriculturallands, sensitive plant and wildlife habitat and open space; improving water quality by upgrading water andwastewater infrastructure; restoring the Chesapeake Bay; and improving hospitals and community healthcenters across the State. Priority projects include:

$289.5 million for land preservation programs, including $97.1 million for local program open space grants;$105.4 million for the preservation of approximately 18,200 acres of open space through the Rural LegacyProgram and Program Open Space; and $70 million for the preservation of an estimated 10,800 acres offarmland through the Agricultural Land Preservation Program;

$77.4 million to improve local drinking water systems and wastewater treatment plants

$44.3 million to reduce the amount of point and non-point source nitrogen and phosphorus runoff enteringthe Chesapeake Bay, including $3 million to restore oyster habitat in the Bay and $12 million for theAgriculture Cost-Share program;

$45.6 million for health-related capital projects, including funding for hospitals and community treatmentand primary care facilities;


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$20 million for the Hazardous Substance Cleanup Program, supporting the Governors commitment to clean upbrownfields and environmentally contaminated sites;

$28.5 million for waterway improvements and to control shoreline erosion; and

$3.3 million for statewide environmental abatement projects.

Public Safety and Safer NeighborhoodsGovernor OBriens FY 2032 capital budget also funds projects to improve the safety of neighborhoods,including projects at State and local correctional facilities, and treatment and detention facilities for at-riskyouth. The capital budget totals $65.6 million for the safety of Marylands neighborhoods, and includes thefollowing:

$25 million to construct a 192-Cell Medium Security Housing Unit at the Maryland Correctional TrainingCenter in Hagerstown;

$12.9 million for improvements to local detention centers;

$11.8 million for design and construction of infrastructure improvements at correctional facilities across theState;

$10 million to continue development of a statewide wireless communication system for State and local publicsafety agencies;

$3.7 million to construct a New Youth and Family Services Center for the Carroll County Youth ServicesBureau to serve at-risk youth and their families; and

$275,000 to design a new garage for State Police tactical vehicles and to construct infrastructureimprovements for a New Forensic Medical Center.

CommerceCapital funding to improve the States economy focuses on three objectives: business attraction and retention,revitalization of economically distressed areas, and improvements to the States major tourist attractions. Thecapital budget contains $188.7 million to meet these objectives, including:

$70.5 million for the Maryland Economic Development Assistance Fund to continue to attract majoremployers to Maryland;

$22.4 million to revitalize economically challenged areas through the Neighborhood Business DevelopmentProgram, and for grants to improve Baltimore Citys WestSide and to develop a biotechnology park in EastBaltimore;

$25.6 million for major sports, tourist and cultural attractions across the State, including the constructionof a new minor league baseball stadium in Charles County, the acquisition and development of a concert hall forthe Birchmere in downtown Silver Spring in Montgomery County, and the improvement of infrastructure at theMaryland Zoo in Baltimore City;

$22.7 million for rental housing programs;

$15million for the Community Legacy Program to revitalize Marylands communities;


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$6.9 million for homeownership programs to assist more Marylanders purchase homes;

$10 million to assist families in need of temporary transitional housing and shelter; and

$4 million to develop high speed broadband infrastructure in the States rural areas.

Other ProjectsThe capital budget includes $24.1 million for other important projects, including grants to local governmentsand non-profit organizations for affordable housing and to encourage homeownership, grants for improvementsto community facilities throughout the State, and State government infrastructure, construction, maintenanceand renovation projects.


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General Capital Improvement Program Fiscal Year 2032($ Millions)

EDUCATION Total

Public School Construction $575.0Public Colleges & Universities $167.9Community Colleges $56.4Private Colleges & Universities $8.0Public Library Grants $5.0Residential Child Care Facility Grant Program $10.0School for the Deaf $1.7Subtotal, Education $822.3

HEALTH & THE ENVIRONMENT

Land Preservation $289.5Chesapeake Bay Restoration $44.3Water and Wastewater Infrastructure $77.4Hazardous Substance Cleanup Program $20.0Hospitals and Community Health Centers $50.6Waterway Improvements and Critical Maintenance $33.2Other $28.5Subtotal, Health & the Environment $543.8

PUBLIC SAFETY & SAFER NEIGHBORHOODS

State and Local Correctional Facilities $49.7Public Safety Communications System $10.0Juvenile Facilities $5.7State Police $0.3Subtotal, Public Safety & Safer Neighborhoods $65.6

COMMERCE

Economic Development Programs $108.5Community Legacy $15.0Housing $39.6Cultural/Tourist Attractions $25.6Total $188.7

OTHER PROJECTS AND PROGRAMSOther Projects $24.1

TOTAL $1,644.3

Capital Budget Fund SourcesNet New General Obligation Bonds Issued: $379.5 MillionGeneral/Special/Federal Funds: $1,064.9 MillionGeneral PAYGO Funds: $200 MillionGeneral Assembly Capital Debt Affordability Limit: $750.0 Million

Totals may not add due to rounding.


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State of Maryland Expenditures FY 2030 FY 2031 FY 2032

General Fund $18,173,349,000 $19,840,947,000 $21,671,266,000Special Fund $9,693,726,000 $10,576,458,000 $11,044,066,000Federal Fund $9,300,435,000 $9,625,740,000 $10,088,579,000Total Expenditures $37,167,510,000 $40,043,145,000 $42,803,911,000

Spending Affordability Recommendation 7.09% 8.90% 7.90%

General FundDisparity grants $175,000,000 $200,000,000 $200,000,000

Security interest filing fees $3,150,000 $3,125,000 $2,925,000Retirement contribution - certain localemployees

$1,692,000 $1,843,000 $2,021,000

General Assembly of Maryland $41,857,000 $44,404,000 $44,336,000Department of Legislative Services $51,341,000 $55,952,000 $58,700,000Judiciary $302,081,000 $329,010,000 $351,590,000

Office of the Public Defender $71,054,000 $83,765,000 $84,662,000Office of the Attorney General $16,593,000 $17,968,000 $19,530,000

Office of the State Prosecutor $968,000 $1,071,000 $1,182,000Maryland Tax Court $569,000 $610,000 $604,000

Public Service Commission $0 $0 $0Office of the People's Counsel $0 $0 $0Workers' Compensation Commission $0 $0 $0Board of Public Works $28,006,000 $32,949,000 $33,018,000

Executive Department - Governor $6,962,000 $7,237,000 $7,556,000Department of Disabilities $1,348,000 $2,974,000 $2,974,000Office of the Deaf and Hard of Hearing $0 $0 $0Maryland Energy Administration $481,000 $1,893,000 $1,150,000

Office for Children, Youth and Families $4,033,000 $4,851,000 $5,100,000Survey commissions $136,000 $173,000 $172,000

Office of Minority Affairs $470,000 $877,000 $991,000Office of Service and Volunteerism $563,000 $563,000 $578,000State Ethics Commission $773,000 $623,000 $637,000Health Claims Arbitration Office $0 $353,000 $366,000State Commission on Uniform State Laws $40,000 $0 $0Governor's Office of Crime Control andPrevention

$17,905,000 $21,790,000 $23,447,000

Volunteer Maryland $192,000 $85,000 $84,000

State Commission on Criminal SentencingPolicy

$306,000 $342,000 $337,000

Criminal Justice Coordinating Council $0 $0 $0Secretary of State $2,239,000 $2,299,000 $2,305,000

Historic St. Mary's Commission $1,897,000 $2,220,000 $2,191,000Office for Smart Growth $0 $0 $0

Department of Aging $21,661,000 $23,376,000 $23,764,000Commission on Human Relations $2,521,000 $2,559,000 $2,810,000Maryland Stadium Authority $14,070,000 $13,646,000 $14,812,000State Board of Elections $4,928,000 $12,030,000 $15,830,000

Maryland State Board of Contract Appeals $566,000 $588,000 $567,000Department of Planning $7,695,000 $44,530,000 $45,182,000


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Military Department $13,486,000 $15,277,000 $15,320,000Department of Veterans Affairs $6,571,000 $10,402,000 $11,041,000State Archives $2,564,000 $3,396,000 $2,795,000Governor's Workforce Investment Board $150,000 $0 $0Canal Place Preservation and DevelopmentAuthority

$263,000 $321,000 $278,000

Comptroller of the Treasury $66,072,000 $71,323,000 $72,554,000State Treasurer $4,045,000 $4,555,000 $5,091,000

State Department of Assessments andTaxation

$110,108,000 $127,796,000 $127,319,000

Property Tax Assessment Appeals Boards $873,000 $908,000 931000Registers of Wills $25,000 $25,000 $0Department of Budget and Management $114,562,000 $155,977,000 $91,474,000Department of General Services $49,822,000 $55,394,000 $61,599,000

Department of Natural Resources $69,745,000 $83,929,000 $80,215,000Maryland Department of Agriculture $23,654,000 $28,025,000 $32,837,000Department of Health and Mental Hygiene $6,201,234,000 $6,548,582,000 $6,923,430,000Department of Human Resources $528,846,000 $573,118,000 $607,724,000

Department of Labor, Licensing andRegulation

$26,944,000 $26,733,000 $15,881,000

Department of Public Safety andCorrectional Services

$846,823,000 $930,762,000 $1,017,719,000

Maryland State Department of Education $6,916,503,000 $7,381,064,000 $7,971,581,000Subcabinet for Children, Youth andFamilies

$52,520,000 $55,619,000 $50,688,000

Morgan State University $54,502,000 $59,818,000 $65,017,000St. Marys College of Maryland $14,593,000 $15,906,000 $16,367,000Baltimore City Community College $35,229,000 $37,823,000 $40,197,000Maryland Public Broadcasting Commission $9,956,000 $9,628,000 $9,852,000University System of Maryland $917,802,000 $994,481,000 $1,052,872,000

Aid to the University of Maryland MedicalSystem

$5,124,000 $2,937,000 $3,054,000

Maryland School for the Deaf - FrederickCampus

$15,744,000 $16,930,000 $18,150,000

Maryland School for the Deaf - ColumbiaCampus

$7,544,000 $8,033,000 $9,059,000

Maryland Higher Education Commission $415,664,000 $467,104,000 $526,353,000

Department of Housing and CommunityDevelopment

$30,520,000 $11,516,000 $17,140,000

Department of Business and EconomicDevelopment

$98,147,000 $139,101,000 $149,416,000

Maryland Department of the Environment $57,645,000 $63,865,000 $68,329,000

Department of Juvenile Services $192,337,000 $238,459,000 $254,900,000Maryland Department of State Police $266,197,000 $286,961,000 $305,852,000Public Debt - Redemption and Interest onState Bonds

$0 $26,715,000 $0

Revenue Stabilization Fund $100,000,000 $200,000,000 $450,000,000Reserve Account - Future Cost of StateRetiree Health Benefits

$0 $100,000,000 $150,000,000

Dedicated Purpose Account $42,000,000 $0 $200,000,000PAYGO Capital Expenditures $0 $100,000,000 $200,000,000


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Catastrophic Event Acount $2,000,000 $0 $0Deficiency Appropriations $92,438,000 $74,758,000 $96,810,000

Total, General Fund $18,173,349,000 $19,840,947,000 $21,671,266,000

Reserve and One-Time PAYGOExpenditures (General Funds)

Revenue Stabilization Fund $100,000,000 $200,000,000 $450,000,000Reserve Account - Future Cost of StateRetiree Health Benefits

$0 $100,000,000 $150,000,000

Dedicated Purpose Account $42,000,000 $0 $200,000,000

PAYGO Capital Expenditures $0 $100,000,000 $200,000,000Total $142,000,000 $400,000,000 $1,000,000,000

General Fund Expenditures Less ReserveDeposits and PAYGO Expenditures

$18,021,349,000 $19,440,947,000 $20,671,266,000

Special FundJudiciary $31,421,000 $40,395,000 $43,698,000

Office of the Public Defender $182,000 $212,000 $219,000Office of the Attorney General $2,452,000 $2,387,000 $3,225,000

Public Service Commission $11,561,000 $12,152,000 $12,853,000Office of the People's Counsel $2,852,000 $2,658,000 $2,760,000Subsequent Injury Fund $1,775,000 $1,960,000 $1,847,000Uninsured Employers' Fund $975,000 $1,080,000 $1,045,000Workers' Compensation Commission $12,169,000 $13,008,000 $13,137,000Board of Public Works $1,804,000 $0 $0Department of Disabilities $7,380,000 $139,000 $196,000Maryland Energy Administration $4,978,000 $4,909,000 $4,610,000Office for Children, Youth and Families $132,000 $0 $0Office of Service and Volunteerism $0 $0 $5,229,000

State Ethics Commission $128,000 $127,000 $131,000Health Claims Arbitration Office $0 $35,000 $35,000Governor's Office of Crime Control andPrevention

$1,510,000 $1,539,000 $1,559,000

Volunteer Maryland $295,000 $267,000 $317,000Secretary of State $436,000 $418,000 $455,000Historic St. Mary's Commission $573,000 $575,000 $573,000Department of Aging $316,000 $369,000 $324,000

Maryland Stadium Authority $20,500,000 $21,000,000 $21,500,000State Board of Elections $5,708,000 $9,961,000 $8,934,000Department of Planning $318,000 $4,285,000 $4,319,000Military Department $175,000 $12,124,000 $12,124,000

Maryland Institute for Emergency MedicalServices Systems

$10,724,000 $11,168,000 $11,308,000

Department of Veterans Affairs $267,000 $227,000 $627,000State Archives $7,816,000 $7,702,000 $7,074,000Maryland Insurance Administration $24,291,000 $26,365,000 $24,799,000Canal Place Preservation and DevelopmentAuthority

$225,000 $200,000 $253,000

Office of Administrative Hearings $6,000 $36,000 $48,000Comptroller of the Treasury $14,390,000 $17,359,000 $15,950,000


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State Treasurer $785,000 $808,000 $1,727,000State Department of Assessments andTaxation

$3,629,000 $4,214,000 $4,253,000

State Lottery Agency $72,225,000 $75,225,000 $73,299,000Department of Budget and Management $8,402,000 $31,913,000 $40,599,000Maryland State Retirement Agency $20,097,000 $22,035,000 $22,280,000

Teacher and Employee SupplementalRetirement Plans

$1,304,000 $1,364,000 $1,392,000

Department of General Services $1,334,000 $3,519,000 $1,780,000Maryland Department of Transportation $3,628,615,000 $3,899,891,000 $3,882,185,000

Department of Natural Resources $261,641,000 $377,913,000 $332,728,000Maryland Department of Agriculture $45,705,000 $59,692,000 $89,323,000Department of Health and Mental Hygiene $297,282,000 $425,840,000 $543,762,000Department of Human Resources $65,735,000 $68,366,000 $94,458,000

Department of Labor, Licensing andRegulation

$19,397,000 $29,051,000 $37,911,000


$138,883,000 $138,947,000 $148,205,000

Maryland State Department of Education $144,310,000 $148,377,000 $157,088,000Subcabinet for Children, Youth andFamilies

$648,000 $949,000 $600,000

Morgan State University $170,982,000 $183,008,000 $191,461,000St. Marys College of Maryland $53,190,000 $57,236,000 $62,946,000Baltimore City Community College $78,826,000 $80,245,000 $87,671,000Maryland Public Broadcasting Commission $16,126,000 $15,564,000 $13,878,000University System of Maryland $3,588,687,000 $3,846,381,000 $4,034,258,000Aid to the University of Maryland MedicalSystem

$4,617,000 $6,700,000 $6,764,000

Maryland School for the Deaf - FrederickCampus

$97,000 $107,000 $115,000


$85,000 $85,000 $109,000

Maryland Higher Education Commission $1,812,000 $1,820,000 $10,598,000

Department of Housing and CommunityDevelopment

$55,066,000 $51,979,000 $58,497,000


$62,712,000 $65,831,000 $65,771,000

Maryland Department of the Environment $58,748,000 $77,229,000 $80,001,000Department of Juvenile Services $253,000 $178,000 $203,000Maryland Department of State Police $60,150,000 $58,056,000 $66,543,000Public Debt - Redemption and Interest onState Bonds

$667,024,000 $651,278,000 $646,409,000

Deficiency Appropriations $0 $0 $88,103,000Total, Special Fund $9,693,726,000 $10,576,458,000 $11,044,066,000

Federal Fund

Judiciary $2,748,000 $3,168,000 $3,318,000Office of the Attorney General $1,660,000 $1,975,000 $2,006,000Office of the State Prosecutor $0 $0 $123,000Office for Individuals with Disabilities $3,713,000 $1,671,000 $1,413,000Maryland Energy Administration $835,000 $844,000 $1,134,000


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Office for Children, Youth and Families $291,000 $250,000 $250,000Office of Service and Volunteerism $4,456,000 $4,477,000 $5,229,000Governor's Office of Crime Control andPrevention

$17,158,000 $15,571,000 $10,634,000

Historic St. Mary's Commission $0 $0 $0Department of Aging $25,990,000 $25,642,000 $26,189,000

Commission on Human Relations $799,000 $905,000 $732,000State Board of Elections $10,995,000 $3,521,000 $2,178,000

Department of Planning $0 $820,000 $937,000Military Department $35,445,000 $38,047,000 $50,544,000Maryland Institute for Emergency MedicalServices Systems

$350,000 $140,000 $700,000

Department of Veterans Affairs $7,317,000 $15,805,000 $14,291,000State Archives $89,000 $234,000 $152,000

Department of General Services $787,000 $812,000 $905,000Maryland Department of Transportation $852,002,000 $851,367,000 $869,500,000Department of Natural Resources $28,338,000 $28,367,000 $27,948,000Maryland Department of Agriculture $9,319,000 $9,810,000 $6,899,000

Department of Health and Mental Hygiene $5,770,802,000 $6,087,897,000 $6,638,841,000Department of Human Resources $931,116,000 $990,621,000 $1,047,134,000Department of Labor, Licensing andRegulation

$134,976,000 $136,202,000 $107,158,000


$10,974,000 $10,830,000 $10,137,000

Maryland State Department of Education $1,034,591,000 $1,057,525,000 $947,576,000Subcabinet for Children, Youth andFamilies

$23,694,000 $14,917,000 $14,917,000

Maryland Public Broadcasting Commission $3,200,000 $4,200,000 $3,432,000Maryland School for the Deaf - FrederickCampus

$568,000 $540,000 $475,000


$571,000 $540,000 $557,000

Maryland Higher Education Commission $2,259,000 $2,103,000 $2,096,000Department of Housing and CommunityDevelopment

$240,114,000 $235,794,000 $203,128,000


$585,000 $694,000 $644,000

Maryland Department of the Environment $69,349,000 $62,146,000 $58,948,000Department of Juvenile Services $16,896,000 $15,005,000 $14,684,000

Maryland Department of State Police $448,000 $3,300,000 $4,547,000Deficiency Appropriations $58,000,000 $0 $9,223,000Total, Federal Fund $9,300,435,000 $9,625,740,000 $10,088,579,000

Fiscal Year 2032 Budget Highlights

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Transcript of Fiscal Year 2032 Budget Highlights