Bill > HB432

This bill establishes an automatic inflation adjustment mechanism for the Locally Operated Transit System Grant Program's annual funding. Specifically, starting in fiscal year 2026, the Governor must include at least $80,533,314 in the annual budget for the program, with subsequent years' appropriations adjusted based on changes in the Consumer Price Index for All Urban Consumers (CPI-U). The CPI-U adjustment will be calculated by comparing the average index for the past 12 months to the previous 12-month period, with two key limitations: the increase cannot exceed 5% in any given year, and if the CPI-U shows no growth or a decline, the appropriation will remain the same as the previous year. The bill defines the CPI-U as the monthly index published by the U.S. Bureau of Labor Statistics that tracks the average cost of a basket of consumer goods and services. This approach ensures that the transit system grant program receives funding that keeps pace with inflation, helping to maintain the program's operational capabilities over time, with the new funding mechanism set to take effect on July 1, 2025.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0432?ys=2025RS