Community colleges urge restoration of CADE ‘hold harmless’ after formula change; state aid rises 5%

Maryland community college leaders, the Maryland Association of Community Colleges and labor and higher‑education officials told the Education and Economic Development Subcommittee that aid to community colleges increased in the governor’s fiscal 2026 allowance but a statutory formula change and the removal of a hold‑harmless provision left some colleges facing cuts despite enrollment growth.

Kelly Norton, the committee’s budget analyst, summarized the aid package and performance metrics. Norton said the fiscal 2026 aid package for community colleges rose by $23,800,000, or 5%, from fiscal 2025, with the CADE (Senator John A. Cade funding) formula and retirement support the largest components of state funding. Norton reported fall 2024 enrollment of 107,245 students and a successful persistent rate of about 72.4% for the 2019 cohort.

Why it matters: community colleges are significant workforce and economic engines across Maryland; funding changes affect dual‑enrollment programs, workforce training capacity, student supports (food, childcare, tutoring), and the ability of colleges to hire and retain faculty and staff.

Main issues raised

- Hold harmless and formula calculations: Brad Phillips, executive director of the Maryland Association of Community Colleges, and college presidents said changes made in the fiscal 2025 calculation and the Budget Reconciliation and Financing Act (BRFAA) removed a hold‑harmless provision and altered FTE calculations. As a result, College of Southern Maryland and Community College of Baltimore County were forecast to receive $851,287 and $117,420 less, respectively, despite enrollment increases. College of Southern Maryland said the combined impact over two years exceeds $1.6 million when coupled with prior-year reductions.

- What colleges said they would lose: Yolanda Wilson, president of the College of Southern Maryland, listed likely impacts: reductions to student supports (food pantry, transportation, childcare), last‑dollar scholarships, tutoring and faculty development, as well as IT and equipment maintenance. Sandra Curtinitis, president of the Community College of Baltimore County, emphasized the sector’s economic return and urged restoration of the hold‑harmless protection.

- Student outcomes and remediation: Norton’s analysis showed a statewide persistent rate around 70–72% and highlighted the impact of developmental remediation. Colleges noted progress implementing co‑requisite models, curriculum redesign, embedded tutoring and better placement practices to improve persistence and graduation rates.

- Dual enrollment and equity: Norton’s exhibits showed dual‑enrollment participation skewed toward White students relative to the overall high‑school population and that most dually enrolled students attempt between half and one full college credit in high school. Testimony from faculty and unions stressed protecting dual‑enrollment programs and urged full funding so colleges can sustain those programs.

- Outsourcing and contracting concerns: Union witnesses raised concerns about colleges hiring out-of-state private firms for administrative functions and about decisions to privatize roles (for example, HR) that may cost millions and displace Maryland workers.

State and system response

Sanjay Rai, Secretary of the Maryland Higher Education Commission, and Jeff Newman, Assistant Secretary for Finance and Administration at MHEC, reaffirmed the state’s investment in community colleges and noted increases in state support, scholarships and capital funding. Community college leaders thanked the legislature for funding but asked reconsideration of the formula changes that produced unequal impacts.

What was not decided

The subcommittee did not change the statute or reinstate the hold‑harmless clause during the hearing. Several delegates signaled support for restoring hold harmless, but no formal vote or amendment was recorded.

Next steps and committee requests

College leaders requested legislative reconsideration of the formula change and urged the subcommittee to restore the hold‑harmless provision to prevent future unjustified cuts. The committee may consider technical fixes to the CADE calculation during budget reconciliation or future legislation.