[{"_1":2,"_100":-5,"_101":-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],{"_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",6314495,"mediaKeyId","2383677-fa7e49ed5bc591febcf050b84dd7ff67","parentId",2383677,"title","MSDE warns of childcare scholarship shortfall; plans enrollment freeze, lower provider rates","audioSeconds",547,"startMs",829000,"endMs",1376000,"viewUrl","/Search/View?dp=1&key=2383677-fa7e49ed5bc591febcf050b84dd7ff67&start=829&end=1376","thumbnailUrl","https://assets.pipeline.soar.com/2383677-fa7e49ed5bc591febcf050b84dd7ff67/thumbnail_829000.jpg","articleUrl","/articles/6314495/Maryland/MSDE-warns-of-childcare-scholarship-shortfall-plans-enrollment-freeze-lower-provider-rates","mediaUrl","https://secure.pipeline.soar.com/6314495-54e8390f4f2e5950dcc7d48a98bbfb3c/orig.mp4?Expires=1771202605&Signature=QFDMfeYhg9DN1NM6roSy-Uh~g8D7BUQC0RDEB7fgSQstMq4PeNxOI3RaSD~ByCGi3xpoviLAlQ~aSHvFO52JwuajOYJbtBLxaiivu4V2U7NoF6MzGk2wB9hzuP40anCMocm2uYQLd7MHIAxPhHdOEWdG0XhW32JdkZGLYh25HqChIiuHzMDHxl0N4NcRQTGCWm92ptsKFKU8HJYQvvL3CtENHRIS-NrH~lMUXSbGgUxDU-Xwk5CLdLpbIhYIIXyTFAKJVJ1p9~iWenhROejIjEfipfuyS-mbreaq4r3R~OAmdtE4mtinOXII18HsJ3M5fV6PMnuv3CUpEmLdDOZpKA__&Key-Pair-Id=KUT5TJCACFTXG","author","Maryland Legislature","date","2025-02-24T00:00:00Z","article","Natalie Andrade, a budget analyst with the Department of Legislative Services, told the Education, Business and Administration Subcommittee that the fiscal 2026 allowance for the Maryland State Department of Education's Division of Early Childhood decreases by $4,000,000, or about 0.5 percent, to $827,500,000.

That change masks large swings in the department's major early-childhood accounts: Andrade said $495 million is proposed for the childcare scholarship program, $199 million for publicly funded prekindergarten, and $48 million for the division of early childhood. She also reported that the childcare scholarship program provided financial assistance for 34,147 eligible children and more than 22,907 families per month on average in fiscal 2024 and that enrollment grew from 15,296 children in January 2021 to 42,478 in December 2024, a 178 percent increase.

Those enrollment and spending trends, Andrade said, have left the program operating beyond available federal funds. \"Due to the ongoing cost of programmatic changes, enrollment growth, and expiration of one-time ARPA support, childcare scholarship program expenses began exceeding available federal funds in fiscal '23,\" she said.

Why this matters: Rapid enrollment growth pushed the program into a deficit and prompted MSDE to notify the General Assembly of measures to control costs. The department's planned changes would limit immediate access for new applicants, alter provider payments, and could affect provider participation and program capacity.

MSDE's plan, as described to the committee, includes an enrollment freeze and new payment rules. MSDE notified the General Assembly on Jan. 31, 2025, of its plan to implement an enrollment freeze for the Child Care Scholarship program beginning May 1, 2025, and continuing through September 2025. Under the freeze, Andrade said, the department would manage the program within a new cap of approximately 40,000 children; once that cap is reached, new enrollees would be admitted only as children leave the program. DLS projected, assuming a 3.5 percent monthly attrition rate, enrollment declining to about 40,633 by Aug. 1, 2025.

MSDE also plans to change provider reimbursement rates to the 60th percentile of the 2024 market-rate survey, effective Sept. 1, 2025. In testimony, MSDE officials said those rates are incorporated in the fiscal 2026 allowance. Christian Tallor, deputy state superintendent for operations and finance, said the change \"is in alignment with the Maryland statute and governor's budget\" and that \"the change in reimbursement rates will not impact families' co-payments.\" Tallor added that the new rate structure, together with the cap, will enable the department to operate within the proposed budget and serve roughly 40,000 children.

Advocates and providers objected to the pause and the lower reimbursement rate. Beth Morrow, director of public policy at Maryland Family Network, said the cap \"will restrict families' access to quality childcare\" and urged lawmakers to sustain investments. Chris Push, executive director of the Maryland State Child Care Association, called the omission of funding for the Maryland Child Care Credential program from the fiscal 2026 budget \"deeply concerning\" and said the workforce bonuses and training dollars required by law should be restored so credentialing can reopen July 1, 2025.

MSDE also addressed other early-childhood issues raised by DLS. Carrie Wright, Maryland State Superintendent of Schools, said MSDE is moving away from the current Kindergarten Readiness Assessment (KRA) and plans to roll out a new KRA in fall 2025. \"MSDE is strongly committed to ensuring that all school and instructional staff administering the new kindergarten readiness assessment or KRA are highly qualified,\" Wright said, describing training, Spanish-language administration guidance and quality-assurance monitoring.

On childcare capacity, MSDE told the committee that licensed capacity dropped by 10,249 slots from July 2020 to July 2021 and has not returned to pre-pandemic levels. Wright said the department is supporting providers through initiatives such as advanced payment, presumptive eligibility, and provider portals, and that a statewide childcare supply-and-demand study is expected in early fall 2025.

DLS recommended statutory changes and reporting requirements to make prekindergarten expansion more sustainable. Andrade summarized DLS's recommendation to maintain the current 360 percent federal poverty guidelines eligibility cap through fiscal 2030 instead of expanding eligibility to 600 percent in fiscal 2027, and to moderate a scheduled per-pupil funding increase in fiscal 2027 to $17,211 instead of $19,950 to reduce near-term state aid growth. DLS also recommended committee narrative requiring quarterly reports on childcare scholarship enrollment, expenditures and wait-list data.

What's next: MSDE officials said they would provide the committee with more detailed information on enrollment, expenditures and any waiting list data and that the department supports quarterly reporting. The department's enrollment freeze is scheduled to begin May 1, 2025, and the new reimbursement rates are planned for Sept. 1, 2025.

","mediaType","Video","parentTitle","EBA Committee Session, 2/24/2025 #1","oneSentenceSummary","Natalie Andrade, a budget analyst with the Department of Legislative Services, told the Education, Business and Administration Subcommittee that the fiscal 2026 allowance for the Maryland State Department of Education's Division of Early Childhood decreases by $4,000,000, or about 0.5 percent, to $827,500,000.","taxTitle","Education, Business and Administration Subcommittee, Budget and Taxation Committee, SENATE, SENATE, Committees, Legislative, Maryland","taxId",78813,"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},6314485,"Frostburg reports structural deficit turned surplus after retrenchment and enrollment efforts",803,4577000,5380000,"/Search/View?dp=1&key=2383677-fa7e49ed5bc591febcf050b84dd7ff67&start=4577&end=5380","https://assets.pipeline.soar.com/2383677-fa7e49ed5bc591febcf050b84dd7ff67/thumbnail_4577000.jpg","/articles/6314485/Maryland/Frostburg-reports-structural-deficit-turned-surplus-after-retrenchment-and-enrollment-efforts","https://secure.pipeline.soar.com/6314485-fa6adb0946b95194f49f892ea1388e83/orig.mp4?Expires=1771202605&Signature=VbfaM2x39~DIPl7kkQr8wW8IQWXBYkx2dumEZQrp3QZj00NIe1XOZGXPRgoinMUPU0UG063RpN9KXY4bQgl-ZXCfqExC~swp3546xHEW4xJB5ljgBqBx4ZIEmmA3aoJPdSumASq2p6owxxgEoId9DeMMcOYqGWGcEOZTr1ytyPXBKW0ak6Jk9eTPA4mhPGR-Yi5FyDyroq82i3ld~mUru93aOzbPznVMyJYQo9f1Mi95u5XfyPbOdOcXfKCWGFS8FFEGHrAx4pY953wq~ZTzq1PLPv4JpkFMmqv9WGBRxHjoz1wgjSR4HVuM8Vb~ZDmnwg7EEwXBhbg2Bp9EgPqBGQ__&Key-Pair-Id=KUT5TJCACFTXG","Al Delia, interim president of Frostburg State University, told the committee that long-term enrollment declines created a fiscal structural deficit that the institution addressed through a combination of voluntary separations, program and administrative changes, and targeted enrollment investments.

Department of Legislative Services analyst Sarah Baker summarized the campus trends: since 2015 Frostburg has lost about one-third of its undergraduate population from a high of roughly 5,000 applicants and has seen degree production and health professions degrees decline. Baker noted state funding per full-time-equivalent student rose as enrollment fell.

Frostburg's response has included an Educational Market Alignment Plan (EMAP) that combined administrative reductions, program realignment and targeted recruiting. Delia told the committee that voluntary phase-retirement agreements and retirements produced larger-than-expected savings: 13 faculty reached voluntary separation agreements and four retired, producing significant salary relief. He said the university originally projected as many as 45 retrenchments in a worst-case scenario but achieved targets largely through voluntary measures and selective position eliminations.

Delia said the university had a projected $7.7 million structural deficit in fiscal 2025 but had achieved a roughly $3.5 million structural surplus as of the most recent accounting, partly because of enrollment gains tied to EMAP and by achieving $4.873 million in annual savings toward a $4.875 million target. He said the university used one-time fund-balance dollars for recruitment contracts and other time-limited investments to grow enrollment.

Why this matters: Frostburg serves a regional population and has experienced enrollment declines that materially reduced tuition and auxiliary revenue; the university's plan altered faculty composition and used strategic one-time investments to stabilize finances.

Delia said Frostburg does not anticipate additional layoffs and will continue to pursue enrollment growth. He said faculty reductions were limited to a small number of tenure-track and tenured positions and that retrenchment followed University System of Maryland policy.

Next steps: Frostburg will continue EMAP implementation, pursue enrollment and retention initiatives and report back on progress as the university monitors any state funding adjustments.

","Frostburg State University told the committee that multi-year enrollment decline produced a structural deficit; the university executed a strategic enrollment and cost plan including voluntary retirements and retrenchment to produce a structural surplus.",{"_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},6314491,"Towson says enrollment momentum will blunt state funding cut; no layoffs planned",750,2880000,3630000,"/Search/View?dp=1&key=2383677-fa7e49ed5bc591febcf050b84dd7ff67&start=2880&end=3630","https://assets.pipeline.soar.com/2383677-fa7e49ed5bc591febcf050b84dd7ff67/thumbnail_2880000.jpg","/articles/6314491/Maryland/Towson-says-enrollment-momentum-will-blunt-state-funding-cut-no-layoffs-planned","https://secure.pipeline.soar.com/6314491-4feda5e036b6f4c6081d13d7afcfa963/orig.mp4?Expires=1771202605&Signature=of4vk1wwQiw7UTTfch~1S60tvvqO67n5qmYRePc9N2utwONp10gHIEPG~mfPKRubnkFhMxEt1VToTBABGpg3dwq2HFt99NKFoGbA2h6EBdCm0AilDISeVxdcDy7GWpWy2LdIuLRQOcu6pZSdYCKA73y1sM2Gjup7Xv1vw4MFL680Zua0FipaLNk5ggLv8bCAjqXtGpADoruTlo2RtuYETwT5HEivSmbs-39nL4FpnnMNrdqgc47e9a5MPVTEb2Xjla7gps83KGJ7lYPsj~jL5eInFCJwrdjqdqtEMcmACw8uYS5fswGpplyxOLvo9dMYpKjmi4q2UlUYXD1wqdC3iQ__&Key-Pair-Id=KUT5TJCACFTXG","Towson University President Mark Ginsberg told the Education, Business and Administration Subcommittee that Towson has seen rising application totals and expects to enroll roughly 200 additional first-year students next year as part of a strategy to offset a projected state funding reduction.

Ginsberg described recent institutional recognition and said the university will combine modest revenue growth, tighter hiring practices and expense reviews to meet an estimated $11 million budget challenge. \"We plan to pause, not freeze, but to pause hiring so that each and every vacant position can be critically evaluated,\" Ginsberg said. He told senators the university does not anticipate reductions in force or furloughs.

Why this matters: State funding for higher education is under pressure across Maryland. Towson's approach highlights a mix of revenue-side solutions (enrollment growth) and expense control, without immediate personnel cuts.

Legislative analyst Sarah Baker's presentation to the committee summarized enrollment and fiscal trends at Towson. She said fall 2024 undergraduate enrollment declined 1.5 percent, continuing a multi-year pattern, though first-time applications had increased to nearly 21,000 by fall 2024. Baker noted state funds decreased by about $14.8 million (7.1 percent) on the university's schedule when excluding general salary increases.

Ginsberg emphasized Towson's role as an in-state institution: roughly 90 percent of students come from Maryland, 60 percent identify as racial or ethnic minorities and nearly one-third receive federal Pell grants. He highlighted the university's workforce contributions, including educating more teachers and undergraduate health-care workers in Maryland than any other institution.

Committee members asked about dual-enrollment and transfer credit articulation. Ginsberg said the university co-chairs a statewide task force on transfer practices and is working to reduce lost credits and time for transfer students.

Next steps: Towson officials said they will continue to monitor application and yield data, pursue modest enrollment gains and evaluate vacant positions before hiring. The university asked the committee to view state support as an investment in student success and workforce development.

","Towson University officials told the Education Subcommittee they expect modest enrollment gains and will pause hiring to absorb a roughly $11 million budget pressure next year. The university emphasized recent rankings and student outcomes and said it will not pursue layoffs or furloughs.","actionData","errors"]

Article not found

MSDE warns of childcare scholarship shortfall; plans enrollment freeze, lower provider rates

Frostburg reports structural deficit turned surplus after retrenchment and enrollment efforts

Towson says enrollment momentum will blunt state funding cut; no layoffs planned