[{"_1":2,"_112":-5,"_113":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6332163,"mediaKeyId","2308725-cf07d2c79c81234aec30ca8367189941","parentId",2308725,"title","FAFSA changes, rising need and underspent scholarships focus of MHEC student‑aid briefing","audioSeconds",3410,"startMs",3800000,"endMs",7210000,"viewUrl","/Search/View?dp=1&key=2308725-cf07d2c79c81234aec30ca8367189941&start=3800&end=7210","thumbnailUrl","https://assets.pipeline.soar.com/2308725-cf07d2c79c81234aec30ca8367189941/thumbnail_3800000.jpg","articleUrl","/articles/6332163/Maryland/FAFSA-changes-rising-need-and-underspent-scholarships-focus-of-MHEC-studentaid-briefing","mediaUrl","https://secure.pipeline.soar.com/6332163-9fbdc0286d53bb9065fb5307990b257a/orig.mp4?Expires=1775702329&Signature=QnFeFu0oQ5cmS~6NNbf6GD3Apjs3K9jvxsRg1G-1GeTyWkGp5eP5NI5wjRKhVEltxTCkt-Sxf6EZEnlZ2UNeB1SX5eCrH2VM6kQ44Q34vNadZqMt7ss2-611Sp9yJniUTv1VVjKAArO9dTzyQdy2FjvbV66wKQZAKUZJpXVEcGXDeJJFavyFauIH-EGxDFWicarzPRgF2slO7-D49AKrDSQ3sHO-aUSLfG0s2Tm2ZBM1ZhuPcG-6V0qC9l2VlhDFvTom9~NpAQZ5jR23a4AttTzUtTYDU8KhKTsRLerU3p00nAp5VJSrz4M1k5V-l~5KUPzQJJuJiOUyUqFelCBmeQ__&Key-Pair-Id=KUT5TJCACFTXG","author","MGA - APP","date","2025-02-12T00:00:00Z","article","The Education and Economic Development Subcommittee reviewed the Maryland Higher Education Commission’s Office of Student Financial Assistance (OSFA) fiscal 2026 allowance, with DLS and OSFA explaining how FAFSA changes, program demand shifts and underspending in several scholarship programs affect the state's student‑aid budget.

DLS analysis and FAFSA impacts

Micah Richards of the Department of Legislative Services summarized the OSFA analysis. Richards said the FAFSA Simplification Act replaced the Expected Family Contribution (EFC) with the Student Aid Index (SAI), causing technical delays and an extended application deadline for the 2024–25 award year; Maryland’s FAFSA completion rate fell to roughly 50% (about 8 points below the prior year) but remained above the national average (transcript blocks starting at 3800.355). Richards reported substantial increases in guaranteed‑access initial awards (a 69% increase) and Educational Assistance initial applicants (146% increase for fiscal 25 initial applicants), and noted that statute requires GA awards be fulfilled before EA funds are allocated.

Program underspending and DLS recommendations

Richards and DLS highlighted consistent underspending in multiple programs that prompted DLS to recommend reductions: a $5,000,000 reduction to the Community College Promise Scholarship (from $15 million to $10 million mandated funding in BRFAA), and reductions of $4,000,000 proposed for the Teaching Fellows for Maryland Scholarship because the programs did not attract enough eligible applicants to expend full appropriations in recent years. The DLS report documented large closing balances in the Need‑Based Student Financial Assistance Fund and recommended releasing previously withheld funds after MHEC’s report compliance was confirmed.

OSFA and MHEC responses and outreach

Al Dorsett, executive director of OSFA, told the committee that MHEC had implemented several measures to respond to FAFSA changes, improve technology and expand outreach. OSFA is procuring a modern financial‑aid management system to replace MDcap, said Dorsett, with improved mobile access and data integration. Dorsett described outreach to law enforcement agencies and police/probation scholarship stakeholders, promotion via GovDelivery and social media, and in‑person outreach events; he also described vendor selection processes and said the procurement had faced bid protests now cleared for Board of Public Works consideration.

Promise, Next Generation Scholars and program reporting

DLS recommended a $5,000,000 reduction to the Promise Scholarship due to previous underspending, but MHEC opposed immediate reduction and asked for a two‑year transition because the program had been decentralized to campuses and early spending may not yet be visible in aggregated reports. MHEC also reported on Next Generation Scholars and other committee narrative requests and said some reports had been submitted to the legislative library and to DLS. On mandated appropriations for police‑and‑probation scholarships and loan‑repayment programs, Richards reported mandated levels and earlier underspending; MHEC described outreach efforts and that some program applications remain open.

Ending

No votes were taken during the briefing. DLS recommended several budget adjustments and committee narratives; MHEC and OSFA urged the committee to consider implementation timing and to allow time for decentralized program changes to show in spending data before cutting mandated appropriations.","mediaType","Video","parentTitle","EED Committee Session, 2/12/2025 #1","oneSentenceSummary","The Education and Economic Development Subcommittee reviewed the Maryland Higher Education Commission’s Office of Student Financial Assistance fiscal 2026 allowance, focusing on FAFSA changes, program demand shifts, and underspending that prompted DLS to recommend reductions in some scholarship lines.","taxTitle","Education and Economic Development Subcommittee, Appropriations Committee, HOUSE OF REPRESENTATIVES, Committees, Legislative, Maryland","taxId",78563,"location","Maryland","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6332166,"Higher-education budget hearing puts Sellinger formula cuts at center of debate",502,748000,1250000,"/Search/View?dp=1&key=2308725-cf07d2c79c81234aec30ca8367189941&start=748&end=1250","https://assets.pipeline.soar.com/2308725-cf07d2c79c81234aec30ca8367189941/thumbnail_748000.jpg","/articles/6332166/Maryland/Higher-education-budget-hearing-puts-Sellinger-formula-cuts-at-center-of-debate","https://secure.pipeline.soar.com/6332166-367e0aa1b076088de37b2488c10cde05/orig.mp4?Expires=1775702329&Signature=EY1ijbfAnPkxKqZ9uWCnJ9Z1pzVhLizUWEMpHxF7FSCjHVZ6sqZK47sUO73z-tMYhqJ5q9B4LRRuw5Xhh1DIzScRVtOYII1xA0TQnT4NUbadI6OosqzAWLY7NSohO4zvLiCv3ff7izxx1u2Ly9iH5yolh5WE6oXnfKieBWQYNUvDxRSWc9YdzWubPdc57uAWlGYT8ZVeeWbZ6WPsH5wxL5bzWI9ROsb~OCVXJ75rve4dVLrLWBoFCUA0U5voyxEzp5N8DKJq7hCcSk0ygSfZBIxR4TYHbTsKRGCcjm8ntfAUfGXlr823UU9-f3EZH03YXB5s8sanIcvXuxcbldJzyA__&Key-Pair-Id=KUT5TJCACFTXG","The Education and Economic Development Subcommittee heard competing proposals on the future of the Sellinger funding formula and other higher-education budget changes during a Maryland Higher Education Commission (MHEC) budget briefing and panel of university and association representatives.

The Department of Legislative Services (DLS) analyst Sarah Baker summarized fiscal recommendations and data, saying the DLS recommended reducing Sellinger-related funding by 50% and restricting the remaining $36,700,000 for a grant program to be administered by MHEC; DLS also recommended amending statute to permanently eliminate the Sellinger formula and replace it with a competitive grant program (DLS presentation, transcript blocks starting at 748.485). MHEC Secretary Sanjay Rai and multiple independent-college leaders opposed the recommended change.

Why it matters: Sellinger funding has historically provided an annual, predictable allocation to independent nonprofit institutions in Maryland and is frequently used by those institutions to provide student financial aid. Speakers said steep cuts or a shift to a competitive, needs-based grant would reduce predictable aid for Maryland students, force institutions to carve into other operating areas, and could weaken smaller campuses critical to local economies.

DLS analysis and MHEC response

Sarah Baker (DLS analyst) walked the subcommittee through exhibits showing enrollment shifts, the student loan debt tax credit program, and the fiscal 2026 allowance. Baker noted DLS recommends reducing Sellinger formula funding by 15% in one proposal and, in a stronger recommendation, by 50% in another, with the restricted remaining funds used for grants awarded based on institutional financial need. The DLS paper also recommended amending statute to replace the formula with a grant program and cited projected state budget constraints in support of the change.

Secretary of Higher Education Sanjay Rai, appearing with MHEC staff, opposed eliminating the Sellinger formula and asked the General Assembly to fund the program at the governor’s allowance. Rai argued the per‑FTE allocation is an objective, predictable mechanism for distributing funds to independent nonprofit institutions and that a state-administered competitive needs assessment would be “extensive and burdensome” for MHEC to implement. Rai also emphasized the administration’s broader budget request to support statewide higher‑education priorities.

Independent colleges and university testimony

Representatives of the independent sector described the program as a long-standing compact between the state and private colleges that supports student aid and institutional stability.

- Maria Tilden, vice president for government, community and economic partnerships at Johns Hopkins University, told the committee that “the financial support that Sellinger grama provides is essential to that goal,” adding that Sellinger awards currently support aid packages that keep Maryland students in state, particularly during a period of federal funding uncertainty for research universities.

- Matt Power, president of the Maryland Independent College and University Association, said the sector has already absorbed a 50% reduction in the formula in the prior year and warned another 50% cut over two years would “result in a 73% reduction over the last 2 years” for independent colleges’ share of state higher‑education funding.

Institution leaders from St. John’s College, Notre Dame of Maryland University, Washington Adventist University and others described Sellinger dollars’ direct use for institutional financial aid: several presenters said institutions apply 70–89% of Sellinger funding to student financial assistance and that steep reductions would force layoffs, program cuts or reduced aid for Pell‑eligible and first‑generation students.

Johns Hopkins settlement and other fiscal items

Baker also summarized a separate, recent federal antitrust settlement in which Johns Hopkins University agreed to an $18.5 million settlement in a multi‑institution case alleging collusion over financial‑aid practices. The transcript records DLS noting the settlement and the underlying litigation (transcript blocks 1199.23–1205.325). MHEC and witnesses referenced that litigation as context but did not propose statutory change directly linked to that settlement at the hearing.

Outcome and next steps

No formal vote was taken by the subcommittee during the hearing. DLS recommendations remain part of the budget bill drafting process; MHEC and the independent college coalition asked lawmakers to reject the DLS proposal and fund Sellinger at the governor’s allowance for fiscal 2026. Committee staff signaled they had heard the testimony and would process the DLS-required releases of withheld funds where appropriate (DLS recommended release of $100,000 contingent reporting; DLS and MHEC concurred that the reporting requirement had been met).

Ending

The committee set no immediate decision during the hearing; members and MHEC staff signaled continuing negotiations as the budget bill language is finalized. The Sellinger proposal remains an open item for the General Assembly’s budget and policy decisions later in the session.","Analysts recommended steep cuts to the Sellinger formula and replacing it with a needs-based grant program; Maryland Higher Education Commission and independent colleges urged retaining the formula, warning cuts would reduce financial aid to Maryland students and strain small private campuses.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6332153,"Lottery and gaming agency projects steady revenues; sports wagering growth noted",650,9106000,9756000,"/Search/View?dp=1&key=2308725-cf07d2c79c81234aec30ca8367189941&start=9106&end=9756","https://assets.pipeline.soar.com/2308725-cf07d2c79c81234aec30ca8367189941/thumbnail_9106000.jpg","/articles/6332153/Maryland/Lottery-and-gaming-agency-projects-steady-revenues-sports-wagering-growth-noted","https://secure.pipeline.soar.com/6332153-cfa68e07a9422b17f7340d61bcc6954b/orig.mp4?Expires=1775702329&Signature=ajKmlQq-tu-AeI4RTHhjBu7smKkat~f-oEIh356UUFlnTw2Jndp~99D-iexNjq5XcsAXSdhEHOSAgP7Vgk7QP6nRp7uDCoxGVp6Q~W-UrS~kny2by1-BHpIk2FjTfjCRhvJ4udaiL~72RIKsUUetfV7J0HnHncNBrrAYVDqMCjjsXYNFnFSz8BQYNxeWfmey98~LKsAXNQZr~H1x2O8nuB~hfLz~6imm27J96TqCojj6XqgWG2t-M-xVQvBYvGewPr14-dnlAncYs5ut4ml5BeUtWOexMoyFoYuHdXdJfX80ABDXGIJ82I9S50yM8PG-n36rSgl8ACBA3JrKfhKpIg__&Key-Pair-Id=KUT5TJCACFTXG","The State Lottery and Gaming Control Agency presented its fiscal 2026 allowance to the Education and Economic Development Subcommittee, reporting largely stable lottery and casino revenues for fiscal 2024 and faster growth in sports wagering receipts.

Budget and major cost drivers

DLS analyst Elizabeth Bridal summarized the agency’s budget; the fiscal 2026 allowance totals roughly $133 million (about a 7% increase), mostly from special funds tied to gaming revenues. Bridal said roughly 42% of the agency’s budget covers central monitoring and control contracts (ticket printing/distribution, instant‑ticket equipment, and casino monitoring); personnel costs account for about 31% and advertising about 15%. She noted vendor fees can rise and fall with gaming revenues, and that the agency requested one new lottery sales representative while reducing five contractual FTEs.

Revenues and distributions

Agency director John Martin and CFO Paula Yocom said the agency contributed nearly $1.6 billion for state “good causes” across lottery, casinos and sports wagering in fiscal 2024, with lottery ticket sales of $2.7 billion and a general‑fund transfer of about $655 million in that fiscal year. Casino gaming (slots and table games) generated nearly $2 billion in gaming revenue in fiscal 2024 and contributed to a range of statutorily directed recipients including the Education Trust Fund; table‑game and mobile‑sports wagering tax proposals were discussed as potential BRFAA changes but those tax proposals would need separate legislative action and would not immediately change the agency’s FY26 operating allowance.

Sports wagering

Bridal and agency staff noted rapid growth in sports wagering: in fiscal 2024 sports wagering and fantasy competitions produced about $60.3 million for the Blueprint Fund and were on pace for further growth in FY25. Agency staff highlighted responsible‑gaming initiatives, collaboration with the University of Maryland Center of Excellence on Problem Gambling, and interjurisdictional coordination on illegal gaming markets.

Outcome

DLS recommended concurrence with the governor’s allowance; agency staff requested committee approval of the fiscal 2026 budget as submitted. No legislative action or votes were recorded during the hearing.","The Maryland Lottery and Gaming Control Agency said fiscal 2024 contributions to state ‘good causes’ remained strong while the fiscal 2026 allowance reflects increases in vendor, personnel and advertising costs; sports wagering revenue growth was highlighted as a rapidly expanding source of state contributions.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6332158,"Baltimore City Community College cites enrollment rebound, facility fire and staffing gaps in budget hearing",1102,7980000,9082000,"/Search/View?dp=1&key=2308725-cf07d2c79c81234aec30ca8367189941&start=7980&end=9082","https://assets.pipeline.soar.com/2308725-cf07d2c79c81234aec30ca8367189941/thumbnail_7980000.jpg","/articles/6332158/Maryland/Baltimore-City-Community-College-cites-enrollment-rebound-facility-fire-and-staffing-gaps-in-budget-hearing","https://secure.pipeline.soar.com/6332158-23e76c40999550e7483ec1f0657a0818/orig.mp4?Expires=1775702329&Signature=eiCmHCBvXPExTc4W9R1NuBbvw6Hj0cws6mEiTbFF6ryXU06YNjBjxNa8UZxZ2sMlQPDjKrWuL87woLqWgs0HYsH31hIRrOSJ2MJuf-ZDtx1tV2hnruD84lZnwb36L8IC7Ft3bfGMT7suvS0KnHzfSH64f2MjUFzu4M6P6TJoDvPkJCs9xnSYqY83n0jpwLYgbEOeSA77YtfHsZmVkcOWmLpVbQs7usiTNu~VplrSXbroI1myeSryWcpa-THmSII5AZgXaV9EVqRnrFM1ac-VvnXHO9yQwCzDQO1eEOxivqxD15LxcV9lpUnXpNO3gTxypN1YYIMgbcoReyQ2FPT2bQ__&Key-Pair-Id=KUT5TJCACFTXG","Baltimore City Community College (BCCC) officials told the Education and Economic Development Subcommittee the institution has seen multi‑term enrollment increases, recent accreditation reaffirmations, and operational setbacks including a major fire in its Life Science Building that took classrooms and labs offline.

Analyst findings and immediate problems

DLS analyst Kelly Norton reviewed enrollment and persistence exhibits and said BCCC’s fall 2024 headcount rose after pandemic declines: total enrollment increased 11.1% year over year and first‑time student population increased 25.5% for fall 2024. DLS noted the college’s fiscal 2026 formula funding would fall below prior levels without the hold‑harmless provision, and that the governor’s proposed BRFAA would set a specific funding floor for BCCC ($44,734,265 for FY26) and potentially reduce the general‑fund appropriation contingent on enactment (transcript blocks starting at 6075.125).

President’s overview: enrollment, accreditation, and a major facility disruption

President Deborah McCurdy said BCCC has made steady enrollment gains across terms, reporting multi‑term percentage increases (e.g., winter and spring growth) and confirmed Middle States accreditation reaffirmation in 2024. McCurdy described a significant fire in the campus Life Science Building that rendered some floors and 37 classrooms unusable, disrupted dental‑hygiene labs and other clinical programs, and will require substantial cleanup and repairs; she said initial cleanup costs approximate $1 million and that affected students will need make‑up lab time.

Retention, Mayor’s Scholars program and funding details

BCCC staff described the Mayor’s Scholars Program (MSP) as a last‑dollar scholarship with higher staff costs because the program historically provided intensive, year‑round supports to participating students. DLS and the college discussed the program’s cohort size fluctuations, second‑year retention improvements for recent cohorts and the institution’s intent to integrate MSP into core admissions, financial‑aid and advising operations rather than maintain a fully separate program structure. DLS requested a report on MSP enrollment and outcomes.

Staffing and contracting concerns raised by labor representatives

The college acknowledged a high vacancy rate (reported at roughly 32.5% in DLS exhibits) and said leadership is revamping hiring and onboarding systems and has posted positions with competitive salaries. Labor witnesses raised additional concerns:

- Nina Kaniewski, president of AFSCME Local 1870 at BCCC, testified about workplace conditions, delayed ADA accommodation processing, telework policy gaps, and conversion of long‑term contract employees to permanent roles.

- Todd Reynolds (AFT Maryland), appearing virtually for faculty unions, urged the legislature to reject state cuts to BCCC and flagged the college’s contract with an outside law firm for bargaining matters; Reynolds asked the committee to scrutinize spending for outsourced legal services given the institution’s limited resources.

Outcome and next steps

DLS recommended committee narrative and reporting on enrollment in the Mayor’s Scholars Program. No formal votes were taken during the hearing. BCCC asked the committee for continued support while noting fiscal pressures and the institution’s limited ability to absorb deep state funding cuts despite recent enrollment gains and accreditation progress.

Ending

The subcommittee concluded the BCCC presentation with requests for follow‑up on program enrollment reporting, vacancy mitigation plans, and details on the fire’s financial impact and remediation timeline.","College leaders described rising enrollment, accreditation reaffirmation, a life‑science building fire that displaced labs and classrooms, continuing vacancy rates, and plans to expand student supports through the Mayor’s Scholars program; union and faculty representatives raised workplace and contracting concerns.","actionData","errors"]

Article not found

FAFSA changes, rising need and underspent scholarships focus of MHEC student‑aid briefing

Higher-education budget hearing puts Sellinger formula cuts at center of debate

Lottery and gaming agency projects steady revenues; sports wagering growth noted

Baltimore City Community College cites enrollment rebound, facility fire and staffing gaps in budget hearing