Bill > HB562

This bill, known as the Maintenance of Effort Modernization Act, alters how county governments in Maryland calculate the minimum amount of money they must contribute to their local school operating budgets. Currently, counties must appropriate at least the previous year's per-pupil spending multiplied by the current year's student enrollment. This bill introduces an "inflation adjustment," which is a percentage calculated based on the increase in the implicit price deflator for state and local government expenditures or the Consumer Price Index for the Washington Metropolitan Area, capped at 5%. This inflation adjustment will be added to the previous year's per-pupil appropriation before being multiplied by the current year's student enrollment, ensuring that the required local funding for schools keeps pace with inflation, starting in fiscal year 2023.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0562?ys=2026RS