Maryland 2024 Regular Session

Maryland Senate Bill SB385 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0385
6	6
7	7	SENATE BILL 385
8	8	F1 4lr0876
9	9	CF HB 221
10	10	By: Senators Lewis Young, Hester, and Gile
11	11	Introduced and read first time: January 17, 2024
12	12	Assigned to: Budget and Taxation
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Education – Funding for General Education Programs – Definition Alterations 2
19	19
20	20	FOR the purpose of altering certain definitions relating to student enrollment that are used 3
21	21	for the calculation of funding for general education programs; and generally relating 4
22	22	to funding for general education programs. 5
23	23
24	24	BY repealing and reenacting, with amendments, 6
25	25	Article – Education 7
26	26	Section 5–201 and 5–239(b)(1)(v) and (d) 8
27	27	Annotated Code of Maryland 9
28	28	(2022 Replacement Volume and 2023 Supplement) 10
29	29
30	30	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
31	31	That the Laws of Maryland read as follows: 12
32	32
33	33	Article – Education 13
34	34
35	35	5–201. 14
36	36
37	37	(a) In this subtitle, except as otherwise provided, the following words have the 15
38	38	meanings indicated. 16
39	39
40	40	(b) “Assessable base” has the meaning stated in: 17
41	41
42	42	(1) § 12–201 of the Economic Development Article; or 18
43	43
44	44	(2) For Baltimore City, Article II, § 62 of the Charter of Baltimore City. 19
45	45
46	46	(c) “Assessed value of personal property” means the most recent estimate by the 20
47	47	State Department of Assessments and Taxation before the annual State budget is 21
48	48	submitted to the General Assembly of the assessed value for county purposes of personal 22 2 SENATE BILL 385
49	49
50	50
51	51	property as of July 1 of the first completed fiscal year before the school year for which the 1
52	52	calculation is made under this section. 2
53	53
54	54	(d) (1) Subject to paragraph (2) of this subsection, “assessed value of real 3
55	55	property” means the most recent estimate made by the State Department of Assessments 4
56	56	and Taxation before the annual State budget is submitted to the General Assembly of the 5
57	57	assessed value of real property for State purposes as of July 1 of the first completed fiscal 6
58	58	year before the school year for which the calculation of State aid is made under this section. 7
59	59
60	60	(2) (i) Subject to subparagraphs (ii), (iii), and (iv) of this paragraph, for 8
61	61	counties that qualify for a disparity grant under § 16–501 of the Local Government Article 9
62	62	and that established a development district under Title 12, Subtitle 2 of the Economic 10
63	63	Development Article or Article II, § 62 of the Charter of Baltimore City after May 1, 2016, 11
64	64	and is still in effect, using the assessed value of real property as of July 1 of the second 12
65	65	completed fiscal year before the school year for which the calculation of State aid is made 13
66	66	under this section, “assessed value of real property” does not include the lesser of: 14
67	67
68	68	1. The difference between the original base and the 15
69	69	assessable base of all real property in a development district that is subject to tax increment 16
70	70	financing under Title 12, Subtitle 2 of the Economic Development Article or Article II, § 62 17
71	71	of the Charter of Baltimore City as certified by the State Department of Assessments and 18
72	72	Taxation; or 19
73	73
74	74	2. The quotient of the annual debt service for a tax increment 20
75	75	financing bond in a development district divided by the county’s real property tax rate 21
76	76	pledged to the tax increment financing bond multiplied by 100. 22
77	77
78	78	(ii) If the result of items 1 or 2 of subparagraph (i) of this paragraph 23
79	79	is a negative number, then the result shall be $0. 24
80	80
81	81	(iii) The calculations under this paragraph shall be made separately 25
82	82	for each development district in a county. 26
83	83
84	84	(iv) For Baltimore City, if the result of item 1 or 2 of subparagraph 27
85	85	(i) of this paragraph is a positive number, then the amount is required to be appropriated 28
86	86	by the Mayor and City Council of Baltimore City to the Baltimore City Board of School 29
87	87	Commissioners. 30
88	88
89	89	(E) “AVERAGE ENROLLMENT CH ANGE” MEANS THE RESULT OF THE 31
90	90	FOLLOWING CALCULATIO NS FOR THE FO LLOWING FISCAL YEARS : 32
91	91
92	92	(1) FOR FISCAL YEAR 2025, THE RESULT OF THE FO LLOWING 33
93	93	CALCULATION MULTIPLI ED BY 0.10: 34
94	94
95	95	(I) THE PRIOR SCHOOL YEAR FULL–TIME EQUIVALENT 35
96	96	ENROLLMENT MINUS THE THIRD PRIOR SCHOOL Y EAR FULL–TIME EQUIVALENT 36 SENATE BILL 385 3
97	97
98	98
99	99	ENROLLMENT ; DIVIDED BY 1
100	100
101	101	(II) TWO; 2
102	102
103	103	(2) FOR FISCAL YEAR 2026, THE RESULT OF THE FO LLOWING 3
104	104	CALCULATION MULTIPLI ED BY 0.20: 4
105	105
106	106	(I) THE PRIOR SCHOOL YEAR FULL–TIME EQUIVALENT 5
107	107	ENROLLMENT MINUS THE THIRD PRIOR SCHOOL Y EAR FULL–TIME EQUIVALENT 6
108	108	ENROLLMENT ; DIVIDED BY 7
109	109
110	110	(II) TWO; 8
111	111
112	112	(3) FOR FISCAL YEAR 2027, THE RESULT OF THE FO LLOWING 9
113	113	CALCULATION MULTIPLI ED BY 0.30: 10
114	114
115	115	(I) THE PRIOR SCHOOL YEAR FULL–TIME EQUIVALENT 11
116	116	ENROLLMENT MINUS THE THIRD PRIOR SCHOOL Y EAR FULL–TIME EQUIVALENT 12
117	117	ENROLLMENT ; DIVIDED BY 13
118	118
119	119	(II) TWO; 14
120	120
121	121	(4) FOR FISCAL YEAR 2028, THE RESULT OF THE FO LLOWING 15
122	122	CALCULATION MULTIPLI ED BY 0.40: 16
123	123
124	124	(I) THE PRIOR SCHOOL YEAR FULL–TIME EQUIVALENT 17
125	125	ENROLLMENT MINUS THE THIRD PRIOR SCHOOL Y EAR FULL–TIME EQUIVALENT 18
126	126	ENROLLMENT ; DIVIDED BY 19
127	127
128	128	(II) TWO; 20
129	129
130	130	(5) FOR FISCAL YEAR 2029, THE RESULT OF THE FOL LOWING 21
131	131	CALCULATION MULTIPLI ED BY 0.50: 22
132	132
133	133	(I) THE PRIOR SCHOOL YEAR FULL–TIME EQUIVALENT 23
134	134	ENROLLMENT MINUS THE THIRD PRIOR SCHOOL Y EAR FULL–TIME EQUIVALENT 24
135	135	ENROLLMENT ; DIVIDED BY 25
136	136
137	137	(II) TWO; 26
138	138
139	139	(6) FOR FISCAL YEAR 2030, THE RESULT OF THE FOLLOWING 27
140	140	CALCULATION MULTIPLI ED BY 0.60: 28
141	141	4 SENATE BILL 385
142	142
143	143
144	144	(I) THE PRIOR SCHOOL YEAR FULL–TIME EQUIVALENT 1
145	145	ENROLLMENT MINUS THE THIRD PRIOR SCHOOL Y EAR FULL–TIME EQUIVALENT 2
146	146	ENROLLMENT ; DIVIDED BY 3
147	147
148	148	(II) TWO; 4
149	149
150	150	(7) FOR FISCAL YEAR 2031, THE RESULT OF THE FO LLOWING 5
151	151	CALCULATION MULTIPLI ED BY 0.70: 6
152	152
153	153	(I) THE PRIOR SCHOOL YEAR FULL–TIME EQUIVALENT 7
154	154	ENROLLMENT MINUS THE THIRD PRIOR SCHOOL Y EAR FULL–TIME EQUIVALENT 8
155	155	ENROLLMENT ; DIVIDED BY 9
156	156
157	157	(II) TWO; 10
158	158
159	159	(8) FOR FISCAL YEAR 2032, THE RESULT OF THE FO LLOWING 11
160	160	CALCULATION MULTIPLIED BY 0.80: 12
161	161
162	162	(I) THE PRIOR SCHOOL YEAR FULL–TIME EQUIVALENT 13
163	163	ENROLLMENT MINUS THE THIRD PRIOR SCHOOL Y EAR FULL–TIME EQUIVALENT 14
164	164	ENROLLMENT ; DIVIDED BY 15
165	165
166	166	(II) TWO; 16
167	167
168	168	(9) FOR FISCAL YEAR 2033, THE RESULT OF THE FO LLOWING 17
169	169	CALCULATION MULTIPLI ED BY 0.90: 18
170	170
171	171	(I) THE PRIOR SCHOOL YEAR FULL–TIME EQUIVALENT 19
172	172	ENROLLMENT MINUS THE THIRD PRIOR SCHOOL Y EAR FULL–TIME EQUIVALENT 20
173	173	ENROLLMENT ; DIVIDED BY 21
174	174
175	175	(II) TWO; AND 22
176	176
177	177	(10) FOR FISCAL YEAR 2034, AND EACH FISCAL YEAR THEREAFTER , 23
178	178	THE RESULT OF THE FO LLOWING CALCULATION : 24
179	179
180	180	(I) THE PRIOR SCHOOL YEAR FULL–TIME EQUIVALENT 25
181	181	ENROLLMENT MINUS THE THIRD PRIOR SCHOOL Y EAR FULL–TIME EQUIVALENT 26
182	182	ENROLLMENT ; DIVIDED BY 27
183	183
184	184	(II) TWO. 28
185	185
186	186	[(e)] (F) “Enrollment count” means the greater of: 29 SENATE BILL 385 5
187	187
188	188
189	189
190	190	(1) The PRIOR SCHOOL YEAR full–time equivalent enrollment; [or] 1
191	191
192	192	(2) The 3–year moving average enrollment; OR 2
193	193
194	194	(3) THE SUM OF THE PRIOR SCHOOL YEAR FULL –TIME EQUIVALENT 3
195	195	ENROLLMENT AND THE A VERAGE ENROLLMENT CH ANGE. 4
196	196
197	197	[(f)] (G) “Foundation program” means the product of the annual per pupil 5
198	198	foundation amount and a county’s enrollment count. 6
199	199
200	200	[(g)] (H) “Full–time equivalent enrollment” means the sum of: 7
201	201
202	202	(1) The number of students enrolled in kindergarten through grade 12 or 8
203	203	their equivalent in regular day school programs on September 30 of the [prior] school year; 9
204	204
205	205	(2) The number of full–time equivalent students, as determined by a 10
206	206	regulation of the Department, enrolled in evening high school programs during the [prior] 11
207	207	school year; and 12
208	208
209	209	(3) The number of P–TECH students, as provided in § 7–1804(b) of this 13
210	210	article. 14
211	211
212	212	[(h)] (I) (1) Subject to paragraph (2) of this subsection, “inflation 15
213	213	adjustment” means a percentage, rounded to the nearest two decimal places, that is the 16
214	214	lesser of: 17
215	215
216	216	(i) The increase in the implicit price deflator for State and local 18
217	217	government expenditures for the second prior fiscal year; 19
218	218
219	219	(ii) The Consumer Price Index for All Urban Consumers for the 20
220	220	Washington Metropolitan Area, or any successor index, for the second prior fiscal year; or 21
221	221
222	222	(iii) 5%. 22
223	223
224	224	(2) If there is no increase in the implicit price deflator for State and local 23
225	225	government expenditures for the second prior fiscal year or in the Consumer Price Index 24
226	226	for All Urban Consumers for the Washington Metropolitan Area, or any successor index, 25
227	227	for the second prior fiscal year, then “inflation adjustment” means 0%. 26
228	228
229	229	[(i)] (J) “Local contribution rate” means the figure that is calculated as follows: 27
230	230
231	231	(1) Multiply the statewide full–time equivalent enrollment by the target 28
232	232	per pupil amount and by 0.50; divided by 29
233	233
234	234	(2) The sum of the wealth of all of the counties in this State; and 30 6 SENATE BILL 385
235	235
236	236
237	237
238	238	(3) Round the result obtained in paragraph (2) of this subsection to seven 1
239	239	decimal places and express as a percent with five decimal places. 2
240	240
241	241	[(j)] (K) “Local share of the foundation program” means the product of the local 3
242	242	contribution rate and a county’s wealth rounded to the nearest whole dollar. 4
243	243
244	244	[(k)] (L) “Local wealth per pupil” means a county’s wealth divided by the 5
245	245	county’s full–time equivalent enrollment. 6
246	246
247	247	[(l)] (M) “Major education aid” means the sum of the State and local share of the 7
248	248	following: 8
249	249
250	250	(1) Foundation program under § 5–213 of this subtitle; 9
251	251
252	252	(2) Transportation aid under § 5–218 of this subtitle; 10
253	253
254	254	(3) Compensatory education under § 5–222 of this subtitle; 11
255	255
256	256	(4) English learner program under § 5–224 of this subtitle; 12
257	257
258	258	(5) Special education under § 5–225 of this subtitle; 13
259	259
260	260	(6) Guaranteed tax base program under § 5–214 of this subtitle; 14
261	261
262	262	(7) Comparable wage index grant under § 5–216 of this subtitle; 15
263	263
264	264	(8) Post college and career readiness pathways under § 5–217 of this 16
265	265	subtitle; 17
266	266
267	267	(9) Concentration of poverty under § 5–223 of this subtitle; 18
268	268
269	269	(10) Transitional supplemental instruction under § 5–226 of this subtitle; 19
270	270
271	271	(11) Publicly funded prekindergarten under § 5–229 of this subtitle; and 20
272	272
273	273	(12) Career ladder for educators under § 6–1009 of this article. 21
274	274
275	275	[(m)] (N) “Net taxable income” means the amount certified by the State 22
276	276	Comptroller for the second completed calendar year before the school year for which the 23
277	277	calculation of State aid under this section is made, based on tax returns filed on or before 24
278	278	November 1 after the current calendar year. 25
279	279
280	280	[(n)] (O) “Original base”: 26
281	281
282	282	(1) Has the meaning stated in § 12–201 of the Economic Development 27
283	283	Article; or 28 SENATE BILL 385 7
284	284
285	285
286	286
287	287	(2) For Baltimore City, means “original assessable base” as defined in 1
288	288	Article II, § 62 of the Charter of Baltimore City. 2
289	289
290	290	[(o)] (P) “Personal property” means all property classified as personal property 3
291	291	under § 8–101(c) of the Tax – Property Article. 4
292	292
293	293	[(p)] (Q) “Real property” means all property classified as real property under § 5
294	294	8–101(b) of the Tax – Property Article. 6
295	295
296	296	[(q)] (R) “State share of the foundation program” means, rounded to the nearest 7
297	297	whole dollar, the greater of: 8
298	298
299	299	(1) The difference between the foundation program and the local share of 9
300	300	the foundation program; and 10
301	301
302	302	(2) The result obtained by multiplying the target per pupil foundation 11
303	303	amount by the county’s enrollment count, and multiplying this product by 0.15 in fiscal 12
304	304	year 2008 and each fiscal year thereafter. 13
305	305
306	306	[(r)] (S) “Statewide wealth per pupil” means the sum of the wealth of all 14
307	307	counties divided by the statewide full–time equivalent enrollment. 15
308	308
309	309	[(s)] (T) “Target per pupil foundation amount” means: 16
310	310
311	311	(1) For fiscal year 2022, $7,991; 17
312	312
313	313	(2) For fiscal year 2023, $8,310; 18
314	314
315	315	(3) For fiscal year 2024, $8,642; 19
316	316
317	317	(4) For fiscal year 2025, $8,789; 20
318	318
319	319	(5) For fiscal year 2026, $9,226; 21
320	320
321	321	(6) For fiscal year 2027, $9,732; 22
322	322
323	323	(7) For fiscal year 2028, $10,138; 23
324	324
325	325	(8) For fiscal year 2029, $10,564; 24
326	326
327	327	(9) For fiscal year 2030, $11,004; 25
328	328
329	329	(10) For fiscal year 2031, $11,442; 26
330	330
331	331	(11) For fiscal year 2032, $11,898; 27
332	332	8 SENATE BILL 385
333	333
334	334
335	335	(12) For fiscal year 2033, $12,365; and 1
336	336
337	337	(13) For subsequent fiscal years, the target per pupil foundation amount for 2
338	338	the prior fiscal year increased by the inflation adjustment rounded to the nearest whole 3
339	339	dollar. 4
340	340
341	341	[(t)] (U) (1) Except as provided in paragraph (2) of this subsection, “3–year 5
342	342	moving average enrollment” means the average of the full–time equivalent enrollment in 6
343	343	the 3 prior school years. 7
344	344
345	345	(2) If the 3 prior school years includes the 2020–2021 school year, “3–year 8
346	346	moving average enrollment” means: 9
347	347
348	348	(i) The sum of the full–time equivalent enrollment for the 4 prior 10
349	349	school years minus the 2020–2021 school year full–time equivalent enrollment; divided by 11
350	350
351	351	(ii) Three. 12
352	352
353	353	[(u)] (V) “Wealth” means the sum of: 13
354	354
355	355	(1) Net taxable income; 14
356	356
357	357	(2) 100 percent of the assessed value of the operating real property of public 15
358	358	utilities; 16
359	359
360	360	(3) 40 percent of the assessed value of all other real property; and 17
361	361
362	362	(4) 50 percent of assessed value of personal property. 18
363	363
364	364	5–239. 19
365	365
366	366	(b) (1) (v) “Major education aid” has the meaning stated in [§ 5–201(l)] § 20
367	367	5–201(M) of this subtitle minus item (9) of [§ 5–201(l)] § 5–201(M) of this subtitle. 21
368	368
369	369	(d) Subject to the limitation in subsection (a) of this section, the local share of 22
370	370	major education aid shall be reduced by: 23
371	371
372	372	(1) The sum of the amount of State funds provided to a county board in a 24
373	373	county that is eligible for the minimum State funding under the foundation program as 25
374	374	defined in [§ 5–201(q)(2)] § 5–201(R)(2) of this subtitle and the difference between the 26
375	375	local share of the foundation program and the foundation program; and 27
376	376
377	377	(2) The amount by which the sum of the State share and local share of the 28
378	378	at–promise programs as defined in § 5–221(c)(2) of this subtitle exceeds the total program 29
379	379	amount as defined in § 5–221(e) of this subtitle for each program. 30
380	380
381	381	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 31 SENATE BILL 385 9
382	382
383	383
384	384	1, 2024. 1
385	385