MSDE headquarters budget edges up $14.9M; lawmakers press department on teacher retention, literacy rollout

Maryland State Department of Education (MSDE) headquarters officials told the Education and Economic Development Subcommittee that the agency’s fiscal 2026 operating budget rises $14,900,000, or 4%, to $388,100,000, and described program and personnel changes tied to Blueprint special funds and federal grants.

The increase and program details were presented by Laura Hyde, the committee’s budget analyst, who said, “the fiscal 26 budget for MSDE headquarters increases by $14,900,000 or 4% to $388,100,000. The general fund allowance decreases by $5,000,000 compared to the fiscal 25 working appropriation and this is offset by increases of $8,700,000 in special funds and $11,700,000 in federal funds.”

Why it matters: the mix of special, federal and general funds affects how MSDE can sustain new programs created under the Blueprint for Maryland’s Future, meet literacy and teacher-retention targets, and staff offices that support school safety and services to students with disabilities.

Key budget and program details

- Blueprint and special funds: Hyde identified $8,300,000 in new Blueprint special funds added to MSDE headquarters for programs and expenses in fiscal 2026. That includes $6,300,000 proposed for the Maryland School Leadership Academy (replacing a $3,000,000 Blueprint training line) and additional Blueprint funds for teacher recruitment…