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 and administrative costs in the Concentration of Poverty Program. Hyde noted DLS recommended reducing the fiscal 2026 Blueprint allowance by $3,200,000 to level-fund the leadership academy at $3,000,000 and requested MSDE comment on these changes.

- Teacher retention of color: Hyde highlighted the retention goal adopted by the Accountability and Implementation Board (AIB): “a retention goal of 75%.” She said Maryland’s retention of teachers of color dipped slightly from 2023 to 2024 but MSDE projected improvement in fiscal 2025 and 2026 and possible on-track progress for Asian and Hispanic/Latino teachers. Committee members pressed MSDE for specific strategies to raise retention for Black teachers, which several lawmakers identified as lagging.

- Literacy policy timeline and spending: Hyde described the department’s draft literacy policy tied to Chapter 512 of 2019 (the Ready to Read Act) and its science-of-reading components. Hyde said MSDE planned to implement components “by school year 2027–28” and asked MSDE to report on the policy’s status and associated expenditures, including federal and nonprofit grant use.

- School safety and Safe Schools Fund: Hyde summarized that $66,800,000 was allocated to school safety programs in the Maryland Center for School Safety budget for fiscal 2024–26 and that the Safe Schools Fund balance was estimated at $18,800,000 at the end of fiscal 2025 and $10,800,000 at the end of fiscal 2026 after proposed withdrawals. DLS asked MSDE to explain underspending in SRO grants and the reasons for the fund balance changes.

- Personnel and vacancies: Hyde said MSDE headquarters gained 37 positions and one contractual FTE from 2025 to 2026 and flagged a high number of long‑term vacancies. Hyde recorded a DLS recommendation to remove five positions because of persistent vacancies; MSDE disagreed. Deputy superintendent Krishna Kallur told the committee MSDE’s vacancy rate had fallen from about 18.7% in January 2023 to under 7% and that the department opposed deleting positions tied to literacy, math, community schools and early learning implementation.

MSDE response and context

State Superintendent Carrie Wright framed the department’s recent activity as a rapid implementation phase, stressing partnerships, professional learning and assessment changes. She said MSDE has pursued philanthropic and university partnerships to expand professional learning in the science of reading and math tutoring and described a task force on assessment and a technical advisory committee to guide a new assessment procurement. Wright said, “We have seen significant investments in the science of reading and math through strategic philanthropic partnerships,” and noted rising NAEP results as evidence of progress.

Deputy State Superintendent Krishna Kallur outlined MSDE’s programmatic responses to DLS questions, including plans to expand outreach and training to help Division of Rehabilitation Services achieve competitive integrated employment goals and MSDE’s objection to the DLS recommendation to cut $3.2 million in Blueprint funds for the leadership academy.

Public and staff comments

Jamiesha Fawcett Williams, a DORS counselor and president of ASME Local 3644, testified in support of the governor’s proposed budget and said progress in filling vacancies had been “notable,” while cautioning that staffing challenges remained in some units, including disability determination services, DORS, and childcare licensing.

What was not decided

No formal vote or budget adoption occurred during the hearing; the session was for analysis and Q&A. MSDE recorded disagreements with DLS recommendations to delete positions and to reduce Blueprint funds and said it would provide written responses and reports requested by the committee.

Next steps

Committee staff requested additional MSDE reporting on literacy policy implementation, detailed accountings of Blueprint special fund uses, explanations for SRO underspending, and updates on vacancy reductions. MSDE said it would provide the requested materials and stand ready for follow-up questions.