EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*hb1436*
HOUSE BILL 1436
F1 5lr3240
By: Delegate Miller
Introduced and read first time: February 7, 2025
Assigned to: Appropriations
A BILL ENTITLED
AN ACT concerning 1
Public School Construction – Projections and Funding – Inflationary 2
Adjustments 3
FOR the purpose of requiring the Interagency Commission for School Construction to 4
include a certain inflation adjustment in projections of school construction and 5
capital improvement needs in its submission to the Capital Debt Affordability 6
Committee and the Governor; clarifying the intent of the General Assembly 7
regarding funding for public school construction; and generally relating to public 8
school construction projections and funding. 9
BY repealing and reenacting, with amendments, 10
Article – Education 11
Section 5–304(a)(1) 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2024 Supplement) 14
BY repealing and reenacting, without amendments, 15
Article – State Finance and Procurement 16
Section 8–108, 8–112(a), (b), and (c)(3), and 8–113 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2024 Supplement) 19
BY repealing and reenacting, with amendments, 20
Chapter 32 of the Acts of the General Assembly of 2022, as amended by Chapter 354 21
of the Acts of the General Assembly of 2024 22
Section 4 23
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
That the Laws of Maryland read as follows: 25
Article – Education 26 2 HOUSE BILL 1436
5–304. 1
(a) (1) (i) The Interagency Commission shall prepare projections of school 2
construction and capital improvement needs for submission to the Capital Debt 3
Affordability Committee under § 8–112(c)(3) of the State Finance and Procurement Article. 4
(ii) The projections shall be prepared in accordance with the 5
regulations adopted by the Interagency Commission under § 5–303 of this subtitle. 6
(III) 1. THE PROJECTIONS SHALL INCLUDE AN 7
INFLATIONARY ADJUSTM ENT USING A COST OF CONSTRUCTION INFLATI ON INDEX. 8
2. IN ADDITION TO PROVID ING THE PROJECTIONS TO 9
THE CAPITAL DEBT AFFORDABILITY COMMITTEE, THE INTERAGENCY COMMISSION 10
SHALL PROVIDE THE PR OJECTIONS TO THE GOVERNOR FOR CONSIDERATION WHEN 11
SETTING THE ANNUAL A LLOCATION OF SCHOOL CONSTRUCTION FUNDS I N THE 12
CAPITAL BUDGET . 13
Article – State Finance and Procurement 14
8–108. 15
There is a Capital Debt Affordability Committee in the Executive Department. 16
8–112. 17
(a) The Committee shall review on a continuing basis the size and condition of 18
the State tax supported debt as well as other debt of State units, including the University 19
System of Maryland, Morgan State University, St. Mary’s College of Maryland, and the 20
Baltimore City Community College. 21
(b) On or before October 20 of each year, the Committee shall submit to the 22
Governor and the General Assembly the Committee’s estimate of the total amount of new 23
State debt that prudently may be authorized for the next fiscal year. 24
(c) In making the estimate, the Committee shall consider: 25
(3) capital improvement and school construction needs during the next 5 26
fiscal years, as projected by the Interagency Commission on School Construction; 27
8–113. 28
On or before November 1 of each year, after considering the current estimate of the 29
Committee, the Governor shall determine: 30
HOUSE BILL 1436 3
(1) the total authorizations of new State debt that the Governor considers 1
advisable for the next fiscal year; and 2
(2) the preliminary allocation of new State debt for: 3
(i) general construction projects; 4
(ii) school construction projects; and 5
(iii) other special projects. 6
Chapter 32 of the Acts of 2022, as amended by Chapter 354 of the Acts of 2024 7
SECTION 4. AND BE IT FURTHER ENACTED, That it is the intent of the General 8
Assembly that: 9
(1) beginning in fiscal year 2023, within the current debt affordability 10
guidelines, the State should provide at least $450,000,000 each year for public school 11
construction in order to maintain a relatively stable number of funded projects in the 12
Capital Improvement Program; and 13
(2) the annual goal established under item (1) of this section: 14
(i) should be recalculated: 15
1. WITH AN INFLATIONARY ADJUSTMENT THAT USES A 16
COST OF CONSTRUCTION INFLATION INDEX ; AND 17
2. prior to the Public School Facilities Priority Fund being 18
funded; and 19
(ii) does not include funding provided for public school construction 20
through the Built to Learn Program. 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22
1, 2025. 23