Bill > HB736

This bill modifies the local cost-share formula for school construction projects in Maryland by introducing two new pathways for counties to receive adjustments in their funding shares. First, counties with median household incomes in the bottom quartile of the state can have their local cost-share reduced to match the lower local share of an adjacent county, with the state correspondingly increasing its share. Second, counties can qualify for a cost-share adjustment if they meet specific criteria: having a higher-than-average percentage of students eligible for free or reduced-price meals, having all schools participate in the U.S. Department of Agriculture Community Eligibility Provision, maintaining a 50/50 state-local cost-share, and focusing on elementary, middle, or high school projects. In this scenario, the local cost-share would be reduced to match the average of counties with similar program participation. The bill also maintains existing provisions for additional state share increases based on school poverty levels, maintenance effectiveness ratings, and net-zero school construction. These changes aim to provide more flexible and potentially more supportive funding mechanisms for school construction in counties with specific economic and educational characteristics. The bill is set to take effect on July 1, 2025.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0736?ys=2025RS