WES MOORE, Governor Ch. 217
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Chapter 217
(House Bill 1115)
AN ACT concerning
County Boards of Education – Budgets – Notice
(Transparency in Education Spending Act)
FOR the purpose of requiring the State Board of Education to adopt a process for the
uniform and timely reporting of certain county board of education budget
information to a county governing body; requiring a county board to post certain
information in a certain manner on the county board’s website; requiring a certain
transfer to be made only following the approval of the county commissioners or the
county council; providing for exemptions from certain requirements related to
certain transfers; requiring a certain audit to be sent to the county council or the
county commissioners; and generally relating to the budgets of county boards of
education.
BY repealing and reenacting, with amendments,
Article – Education
Section 5–101(a) and (b), 5–102(e), 5–105(b), 5–109, and 5–111
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, without amendments,
Article – Education
Section 5–102(a) and (b) and 5–105(a)
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Education
5–101.
(a) (1) Subject to the rules and regulations of the State Board and with the
advice of the county superintendent, each county board shall prepare an annual budget
according to:
(i) The major categories listed in this section; and
(ii) Any other major category required by the State Board.
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(2) In addition to the information required by this section, the county fiscal
authorities may require the county board to provide details to the service areas and
activities levels in the account structure within the “Financial Reporting Manual for
Maryland Public Schools”.
(3) With the annual budget, each county board shall provide:
(i) The number of full–time equivalent positions included within
each major category; and
(ii) A description of any fund balances or other money held by any
outside source, including an insurer, that are undesignated or unreserved and are under
the direction and control of the county board.
(4) THE STATE BOARD SHALL ADOPT A P ROCESS FOR THE UNIFO RM
REPORTING OF THE INF ORMATION IN SUBSECTI ON (B) OF THIS SECTION TO T IMELY
SHARE THE INFORMATION PROVIDED BY A COUNTY BOARD IN SUBSECTION (B) OF
THIS SECTION TO A CO UNTY GOVERNING BODY .
(b) The budget shall be prepared to include the following categories:
Part I
(1) Current expense fund, estimated receipts:
(i) Revenue from local sources;
(ii) Revenue from State sources;
(iii) Revenue from federal sources;
(iv) Unliquidated surplus, the actual from the previous fiscal year
and the estimated from the current fiscal year, whether accrued from revenues or
expenditures; and
(v) Revenue from all other sources with identification of the source.
(2) Current expense fund, requested appropriations:
(i) Administration, which means those activities associated with the
general regulations, direction, and control of the county board, including:
1. Executive administration;
2. Business support services; and
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3. Centralized support services;
(ii) Mid–level administration, including:
1. The office of the school principal; and
2. Staff providing administration and supervision to the
school instructional programs;
(iii) Instructional salaries, which means those activities which deal
directly with teaching students, including:
1. Teachers;
2. Aides;
3. Psychological personnel;
4. Guidance counselors; and
5. Library personnel;
(iv) Textbooks and classroom instructional supplies;
(v) Other instructional costs;
(vi) Special education with subcategories and items budgeted in this
category to be determined by the State Board with the advice of the county board;
(vii) Student personnel services;
(viii) Health services;
(ix) Student transportation;
(x) Operation of plant and equipment;
(xi) Maintenance of plant;
(xii) Fixed charges;
(xiii) Food services; and
(xiv) Capital outlay.
(3) CURRENT FUNDS HELD IN RESERVE, INCLUDING: Ch. 217 2024 LAWS OF MARYLAND
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(I) REVENUE TO AND EXPEND ITURES FROM FUNDS HE LD IN
RESERVE IN THE PRIOR FISCAL YEAR; AND
(II) APPROPRIATIONS PLANNE D IN THE UPCOMING FISCAL
YEAR FROM FUNDS HELD IN RESERVE.
(4) THE AMOUNT OF ANY FED ERAL FUNDS RECEIVED IN THE LAST
FISCAL YEAR, INCLUDING:
(I) EXPENDITURES OF THE F EDERAL FUNDS IN THE PRIOR
FISCAL YEAR;
(II) A DESCRIPTION OF WHETH ER THE FEDERAL FUNDS ARE
COMMITTED FOR A PART ICULAR PURPOSE ; AND
(III) THE ANTICIPATED TIMIN G TO APPROPRIATE THE FEDERAL
FUNDS IN THE UPCOMIN G FISCAL YEAR.
(5) THE AMOUNT OF FUNDS H ELD IN TRUST OR OTHE RWISE
DEDICATED TOWARD LON G–TERM OBLIGATIONS FOR RETIREE HEALTH CARE COSTS
OR OTHER POSTEMPLOYM ENT BENEFITS, AND INFORMATION USED TO CALCULATE
THE COUNTY BOARD ’S OBLIGATION FOR THO SE COSTS.
Part II
[(3)] (6) School construction fund, estimated receipts:
(i) Revenue from local sources;
(ii) Sale of bonds;
(iii) State General Public School Construction Loan;
(iv) Revenue from State sources;
(v) Revenue from federal sources;
(vi) Unliquidated surplus, the actual from the previous fiscal year
and the estimated for the current fiscal year, whether accrued from revenues or
expenditures; and
(vii) Funds from all other sources, with identification of the source.
[(4)] (7) School Construction Fund, requested appropriations: WES MOORE, Governor Ch. 217
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(i) Land for school sites;
(ii) Buildings and the equipment that will be an integral part of a
building by project;
(iii) School site improvement by project;
(iv) Remodeling by project;
(v) Additional equipment by project;
(vi) Debt service; and
(vii) An amount that is adequate to satisfy a final court judgment
that, after exhaustion of the rights of appeal, is rendered against the county board of
education or any of its officers or employees.
5–102.
(a) In this subtitle, “county council” means, in Baltimore City, the Mayor and City
Council of Baltimore.
(b) (1) Each county board shall submit an annual school budget in writing to
the county commissioners, county council, or county executive.
(2) The budget shall be submitted not less than 45 days before the date for
levying local taxes or on an earlier date on or after March 1 as may be requested by the
county fiscal authority.
(e) (1) Copies of the budget shall be made available to the public, on request,
at the time it is submitted by the county board.
(2) A copy of the budget as approved by the county commissioners or county
council shall be sent to the State Superintendent within 30 days after approval AND
POSTED ON THE COUNTY BOARD’S PUBLIC–FACING WEBSITE , IN AN EASILY
IDENTIFIABLE LOCATIO N.
(3) A COPY OF THE BUDGET SUBMIT TED UNDER SUBSECTION (B)(1)
OF THIS SECTION SHAL L BE PLACED ON THE C OUNTY BOARD ’S PUBLIC–FACING
WEBSITE, IN AN EASILY IDENTIF IABLE LOCATION .
5–105.
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(a) All revenues received by a county board shall be spent by the board in
accordance with the major categories of its annual budget as provided under § 5–101 of this
subtitle.
(b) (1) (i) A transfer may be made within the major categories without
recourse to the county commissioners or county council except that a report of the transfer
shall be submitted to the county commissioners or county council within 15 days after the
end of each month.
(ii) A report under subparagraph (i) of this paragraph shall include
a narrative summary that clearly indicates each transfer.
(2) (I) THIS PARAGRAPH APPLIE S ONLY TO A LOCAL SC HOOL
SYSTEM THAT RECEIVES AT LEAST 40% OF ITS FUNDING FROM THE LOCAL
GOVERNMENT .
(II) [A] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) (III) OF
THIS PARAGRAPH , A transfer between major categories OF MORE THAN 1% 10% OF THE
TOTAL FUNDING IN A M AJOR CATEGORY shall be made only [with] FOLLOWING the
approval of the county commissioners or county council.
(II) (III) 1. A COUNTY BOARD MAY MAK E A TRANSFER
BETWEEN MAJOR CATEGO RIES OF MORE THAN 1% 10% OF THE TOTAL FUNDING IN
A MAJOR CATEGORY WIT HOUT THE APPROVAL OF THE COUNTY COMMISSIO NERS OR
COUNTY COUNCIL IF TH E TIMING IN ACHIEVIN G APPROVAL OF THE CO UNTY
COMMISSIONERS OR COU NTY COUNCIL WOULD RE SULT IN THE LOSS OF
OPPORTUNITY .
2. IF A TRANSFER IS MADE UNDER SUBSUBPAR AGRAPH
1 OF THIS SUBPARAGRAPH , A COUNTY BOARD SHALL REPORT THE TRANSFER
BETWEEN MAJOR CATEGO RIES OF MORE THAN 1% 10% OF THE TOTAL FUNDING IN
A MAJOR CATEGORY EXP EDITIOUSLY TO THE CO UNTY COMMISSIONERS O R COUNTY
COUNCIL WITH AN EXPLANATION OF THE C IRCUMSTANCES NECESSI TATING THE
EXPEDITED REALLOCATI ON.
(3) If the county commissioners or county council fail to take action on a
request for transfer between major categories within 30 days after the receipt of a written
request substantiating the transfer, the failure to take action constitutes approval.
(4) A county board shall submit to the county governing body a report
within 15 days after the end of each month if during that month the county board takes
any action that would commit the county board to spend more for the current fiscal year in
any major category than the amount approved in the annual budget for that category.
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(5) A report under paragraph (4) of this subsection shall include a narrative
explanation of the action taken, indicating any request for transfer between categories that
may become necessary for the fiscal year as a result of the action.
5–109.
(a) (1) Each county board shall provide for an annual audit of its financial
transactions and accounts.
(2) At the request of the Department, a county board shall conduct an audit
under § 5–203 of this title.
(b) (1) The audit shall be made by a certified public accountant or a
partnership of certified public accountants who are:
(i) Licensed by the State Board of Public Accountancy; and
(ii) Approved by the State Superintendent.
(2) The audit shall be made in accordance with the standards and
regulations adopted by the State Board.
(c) (1) The results of the audit, including the letter of recommendation
submitted by the auditor, are a matter of public record.
(2) The results shall be reported within 3 months after the close of the fiscal
year for the county board on the form and in the manner required by the State Board to:
(i) The State Superintendent;
(ii) The county fiscal authority AND THE COUNTY COUNC IL OR
THE COUNTY COMMISSIO NERS;
(iii) The Joint Audit and Evaluation Committee of the General
Assembly;
(iv) The Senate Budget and Taxation Committee;
(v) The Senate Education, Health, and Environmental Affairs
Committee;
(vi) The House Appropriations Committee; and
(vii) The House Committee on Ways and Means.
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(d) In addition to the audit required by this section, the county commissioners or
county council may conduct an audit using auditors employed by the county.
5–111.
(a) (1) Each county board shall make the reports required by the State Board
and by the State Superintendent.
(2) The reports shall be made at the time, include the items, and be on the
forms required by the State Board and by the State Superintendent.
(b) (1) Each county board shall prepare, publish, and make available to
interested parties an annual report on the condition, current accomplishments, and needs
for improvement of the schools as well as a statement of the business and financial
transactions of the county board.
(2) This report shall be published before the end of the calendar year.
(c) The public schools of each county shall use a uniform method, as required by
the county superintendent, for reporting the receipts, expenditures, and balances of the
operations and activities conducted by the public schools.
(d) (1) At the request of the county governing body made in writing at least 30
days before the reporting deadline, the county board or superintendent shall report to the
county governing body on or before November 1 and March 1 of each fiscal year on the
school system’s operations, including any adjustment made to the approved annual budget
AND POST THE REPORT ON THE COUNTY BOARD ’S PUBLIC–FACING WEBSITE , IN AN
EASILY IDENTIFIABLE LOCATION.
(2) A report under this subsection shall be made available to all interested
persons.
(e) (1) At the request of the county board made in writing at least 30 days
before the reporting deadline the county governing body shall report to the county board on
or before November 1 and March 1 of each fiscal year on the county’s fiscal status for the
immediate fiscal year and the subsequent fiscal year AND POST THE REPORT ON THE
COUNTY BOARD’S PUBLIC–FACING WEBSITE , IN AN EASILY IDENTIF IABLE LOCATION .
(2) A report under this subsection shall be made available to all interested
persons.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2024.
Approved by the Governor, April 25, 2024.