Maryland Department of Planning budget trims federal one‑time items, spotlights tax credit and SHINE grants

The Transportation and the Environment Subcommittee of Appropriations heard a review of the Maryland Department of Planning’s fiscal 2026 allowance and public testimony urging restoration of small operating grants for community cultural groups.

Department of Legislative Services analyst Ms. Weibel told the committee the fiscal 2026 allowance for the Department of Planning is $52,700,000, about $3,300,000 below the prior year, and that roughly 80% of the funding is general funds. “This is $1,800,000 in federal funds from the U.S. Department of Transportation to support a pilot program using drones to deliver health care resources between Crisfield and Smith Island on the Eastern Shore,” Ms. Weibel said, describing a one‑time award that boosted fiscal 2025 totals.

The presentation and the department’s testimony centered on three recurring items in the budget: contractual conversions and personnel changes at the Maryland Historic Trust and Jefferson Patterson Park; the Maryland 250 Commission; and the historic revitalization tax credit program. Rebecca Flores, Secretary of the Maryland Department of Planning, said contractual conversions will be phased in and are largely funded from special funds tied to those programs and sites. “The additional funds are providing us with the ability to make those conversions and they will be phased in over time,” Flores said.

The fiscal 2026 allowance keeps a $22,000,000 reserve to support the historic revitalization tax credit program. Department materials and DLS break that amount into a $20,000,000 competitive commercial program and a $2,000,000 small commercial program. DLS recommended reducing the competitive commercial component by $2,000,000 to $18,000,000 in fiscal 2026, citing prior year demand and the state’s fiscal situation. Secretary Flores said the program “has such high use and high leverage potential” and that every $2,000,000 in tax credits typically leverages about $8,000,000 in private investment.

Committee members pressed for more detail about the Maryland 250 Commission’s funding. Flores and Director Elizabeth Hughes of the Maryland Historic Trust said the commission has received roughly $800,000 in state funding, a $10,000 grant from America 250, and received an additional $1,500,000 in federal funds in December 2024 to support grant programs. The fiscal 2026 allowance includes $250,000 in general funds for the commission; DLS asked the department to explain whether the full $250,000 will be needed given the federal award.

Public testimony emphasized the value of the SHINE grant program, administered by Maryland Humanities. Lucille Walker, executive director of the Southern Maryland National Heritage Area and co‑chair of the Maryland Heritage Area Coalition, said a BRFAA provision that would allow $340,000 of program open space funding to be used for operating costs and a grant software procurement would reduce grant dollars available to heritage areas. “That goes from our granting ability — that is three capital grants and one major program grant that we will not be able to fund,” Walker said.

Lindsay Baker, chief executive officer of Maryland Humanities, described SHINE regrants as $10,000 general‑operating awards targeted to small organizations (applicants must have budgets of $500,000 or less). Baker said the SHINE program regranted $2,350,000 statewide across FY23–FY25 and that this year the program received roughly 183 applications and funded 90 organizations, leaving 93 unfunded applicants. Several small museums and heritage organizations testified they used $10,000 SHINE awards to pay rent, insurance and basic operating expenses.

Committee members also queried the department about grants clearinghouses, census preparations for 2030, and the drone pilot. Flores said the state is engaging on census planning and has begun ramping up outreach and that the department will follow up with the subcommittee about statewide grant‑opportunity clearinghouse efforts. Director Hughes said the $1,500,000 federal award was encumbered for small grants, a regional festival program and local commission support but cannot be used for operating costs.

The department will provide follow‑up responses to DLS questions about contractual conversions and to the subcommittee on the Maryland 250 Commission’s funding picture.

The subcommittee moved on after public testimony; no formal votes on the Department of Planning budget were recorded during the hearing.

The committee’s discussion makes clear the main decision points for the Department of Planning are (1) whether to adopt DLS’s recommended $2,000,000 reduction to the competitive commercial historic revitalization tax credit, (2) whether to allow the BRFAA provision to shift $340,000 from grants to software/operations and (3) the General Assembly’s choice about restoring or augmenting SHINE regrant funding for small cultural nonprofits.

Several witnesses asked legislators to preserve grant funding targeted to small, community‑based organizations as the committee continues consideration of the department’s allowance and related BRFAA language.