1 | 1 | | |
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2 | 2 | | |
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3 | 3 | | EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW . |
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4 | 4 | | [Brackets] indicate matter deleted from existing law. |
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5 | 5 | | *hb1436* |
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6 | 6 | | |
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7 | 7 | | HOUSE BILL 1436 |
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8 | 8 | | F1 5lr3240 |
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9 | 9 | | |
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10 | 10 | | By: Delegate Miller |
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11 | 11 | | Introduced and read first time: February 7, 2025 |
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12 | 12 | | Assigned to: Appropriations |
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13 | 13 | | |
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14 | 14 | | A BILL ENTITLED |
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15 | 15 | | |
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16 | 16 | | AN ACT concerning 1 |
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17 | 17 | | |
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18 | 18 | | Public School Construction – Projections and Funding – Inflationary 2 |
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19 | 19 | | Adjustments 3 |
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20 | 20 | | |
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21 | 21 | | FOR the purpose of requiring the Interagency Commission for School Construction to 4 |
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22 | 22 | | include a certain inflation adjustment in projections of school construction and 5 |
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23 | 23 | | capital improvement needs in its submission to the Capital Debt Affordability 6 |
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24 | 24 | | Committee and the Governor; clarifying the intent of the General Assembly 7 |
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25 | 25 | | regarding funding for public school construction; and generally relating to public 8 |
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26 | 26 | | school construction projections and funding. 9 |
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27 | 27 | | |
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28 | 28 | | BY repealing and reenacting, with amendments, 10 |
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29 | 29 | | Article – Education 11 |
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30 | 30 | | Section 5–304(a)(1) 12 |
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31 | 31 | | Annotated Code of Maryland 13 |
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32 | 32 | | (2022 Replacement Volume and 2024 Supplement) 14 |
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33 | 33 | | |
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34 | 34 | | BY repealing and reenacting, without amendments, 15 |
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35 | 35 | | Article – State Finance and Procurement 16 |
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36 | 36 | | Section 8–108, 8–112(a), (b), and (c)(3), and 8–113 17 |
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37 | 37 | | Annotated Code of Maryland 18 |
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38 | 38 | | (2021 Replacement Volume and 2024 Supplement) 19 |
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39 | 39 | | |
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40 | 40 | | BY repealing and reenacting, with amendments, 20 |
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41 | 41 | | Chapter 32 of the Acts of the General Assembly of 2022, as amended by Chapter 354 21 |
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42 | 42 | | of the Acts of the General Assembly of 2024 22 |
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43 | 43 | | Section 4 23 |
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44 | 44 | | |
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45 | 45 | | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24 |
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46 | 46 | | That the Laws of Maryland read as follows: 25 |
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47 | 47 | | |
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48 | 48 | | Article – Education 26 2 HOUSE BILL 1436 |
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49 | 49 | | |
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50 | 50 | | |
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51 | 51 | | |
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52 | 52 | | 5–304. 1 |
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53 | 53 | | |
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54 | 54 | | (a) (1) (i) The Interagency Commission shall prepare projections of school 2 |
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55 | 55 | | construction and capital improvement needs for submission to the Capital Debt 3 |
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56 | 56 | | Affordability Committee under § 8–112(c)(3) of the State Finance and Procurement Article. 4 |
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57 | 57 | | |
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58 | 58 | | (ii) The projections shall be prepared in accordance with the 5 |
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59 | 59 | | regulations adopted by the Interagency Commission under § 5–303 of this subtitle. 6 |
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60 | 60 | | |
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61 | 61 | | (III) 1. THE PROJECTIONS SHALL INCLUDE AN 7 |
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62 | 62 | | INFLATIONARY ADJUSTM ENT USING A COST OF CONSTRUCTION INFLATI ON INDEX. 8 |
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63 | 63 | | |
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64 | 64 | | 2. IN ADDITION TO PROVID ING THE PROJECTIONS TO 9 |
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65 | 65 | | THE CAPITAL DEBT AFFORDABILITY COMMITTEE, THE INTERAGENCY COMMISSION 10 |
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66 | 66 | | SHALL PROVIDE THE PR OJECTIONS TO THE GOVERNOR FOR CONSIDERATION WHEN 11 |
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67 | 67 | | SETTING THE ANNUAL A LLOCATION OF SCHOOL CONSTRUCTION FUNDS I N THE 12 |
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68 | 68 | | CAPITAL BUDGET . 13 |
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69 | 69 | | |
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70 | 70 | | Article – State Finance and Procurement 14 |
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71 | 71 | | |
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72 | 72 | | 8–108. 15 |
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73 | 73 | | |
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74 | 74 | | There is a Capital Debt Affordability Committee in the Executive Department. 16 |
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75 | 75 | | |
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76 | 76 | | 8–112. 17 |
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77 | 77 | | |
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78 | 78 | | (a) The Committee shall review on a continuing basis the size and condition of 18 |
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79 | 79 | | the State tax supported debt as well as other debt of State units, including the University 19 |
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80 | 80 | | System of Maryland, Morgan State University, St. Mary’s College of Maryland, and the 20 |
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81 | 81 | | Baltimore City Community College. 21 |
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82 | 82 | | |
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83 | 83 | | (b) On or before October 20 of each year, the Committee shall submit to the 22 |
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84 | 84 | | Governor and the General Assembly the Committee’s estimate of the total amount of new 23 |
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85 | 85 | | State debt that prudently may be authorized for the next fiscal year. 24 |
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86 | 86 | | |
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87 | 87 | | (c) In making the estimate, the Committee shall consider: 25 |
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88 | 88 | | |
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89 | 89 | | (3) capital improvement and school construction needs during the next 5 26 |
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90 | 90 | | fiscal years, as projected by the Interagency Commission on School Construction; 27 |
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91 | 91 | | |
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92 | 92 | | 8–113. 28 |
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93 | 93 | | |
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94 | 94 | | On or before November 1 of each year, after considering the current estimate of the 29 |
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95 | 95 | | Committee, the Governor shall determine: 30 |
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96 | 96 | | HOUSE BILL 1436 3 |
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97 | 97 | | |
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98 | 98 | | |
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99 | 99 | | (1) the total authorizations of new State debt that the Governor considers 1 |
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100 | 100 | | advisable for the next fiscal year; and 2 |
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101 | 101 | | |
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102 | 102 | | (2) the preliminary allocation of new State debt for: 3 |
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103 | 103 | | |
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104 | 104 | | (i) general construction projects; 4 |
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105 | 105 | | |
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106 | 106 | | (ii) school construction projects; and 5 |
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107 | 107 | | |
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108 | 108 | | (iii) other special projects. 6 |
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109 | 109 | | |
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110 | 110 | | Chapter 32 of the Acts of 2022, as amended by Chapter 354 of the Acts of 2024 7 |
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111 | 111 | | |
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112 | 112 | | SECTION 4. AND BE IT FURTHER ENACTED, That it is the intent of the General 8 |
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113 | 113 | | Assembly that: 9 |
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114 | 114 | | |
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115 | 115 | | (1) beginning in fiscal year 2023, within the current debt affordability 10 |
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116 | 116 | | guidelines, the State should provide at least $450,000,000 each year for public school 11 |
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117 | 117 | | construction in order to maintain a relatively stable number of funded projects in the 12 |
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118 | 118 | | Capital Improvement Program; and 13 |
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119 | 119 | | |
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120 | 120 | | (2) the annual goal established under item (1) of this section: 14 |
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121 | 121 | | |
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122 | 122 | | (i) should be recalculated: 15 |
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123 | 123 | | |
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124 | 124 | | 1. WITH AN INFLATIONARY ADJUSTMENT THAT USES A 16 |
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125 | 125 | | COST OF CONSTRUCTION INFLATION INDEX ; AND 17 |
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126 | 126 | | |
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127 | 127 | | 2. prior to the Public School Facilities Priority Fund being 18 |
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128 | 128 | | funded; and 19 |
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129 | 129 | | |
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130 | 130 | | (ii) does not include funding provided for public school construction 20 |
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131 | 131 | | through the Built to Learn Program. 21 |
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132 | 132 | | |
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133 | 133 | | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22 |
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134 | 134 | | 1, 2025. 23 |
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