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Maryland analysts outline modest state funding increases, enrollment gains and HBCU settlement reporting needs
Summary
Analysts told the Education and Economic Development Subcommittee that state support for public four‑year institutions would rise about 1.8% in FY2026, enrollment has returned toward pre-pandemic levels and the Department of Legislative Services asked for additional reporting on HBCU settlement spending and faculty workload.
Analysts from the Department of Legislative Services told the Education and Economic Development Subcommittee on a budget overview that state support for Maryland’s public four‑year institutions is projected to rise about 1.8%, or roughly $42.9 million, from fiscal 2025 to fiscal 2026, while total higher‑education funding would increase about 1.5% or $47.2 million.
The state analyst presentation framed the changes as largely driven by salary enhancements and uneven enrollment shifts. The analysts said state support for some University System of Maryland (USM) institutions falls once salary enhancements and other one‑time items are removed, and they requested narrative reporting from Historically Black Colleges and Universities (HBCUs) on planned uses of settlement funding for FY2026.
Analysts pointed to a broader national and state enrollment picture: Maryland’s total undergraduate enrollment rose about 3.6% in fall 2024, with community colleges up roughly 4.6% and public four‑year institutions up about 3.4%. The presentation noted that state and local spending per full‑time equivalent (FTE) student increased nationwide since 2013 but Maryland’s per‑FTE gains lag several competitor states.
“Turning to page 5, exhibit 1 shows state support for the public 4 year institutions,” the analyst said during the presentation. The materials show that when agricultural research and extension funding are excluded, St. Mary’s College of Maryland received the largest percentage increase shown (5.7% before adjusting for salary enhancements), and that HBCU settlement funding and salary adjustments materially change year‑to‑year comparisons.
Officials from the higher‑education sector described enrollment and program developments. Jay A. Perman, chancellor of the University System of Maryland, thanked the subcommittee for state support and highlighted systemwide gains: second straight year of enrollment growth, the system’s second‑largest first‑time, full‑time freshman class, HBCUs’ largest freshman class in 16 years and graduate enrollment up nearly 5% over the prior year. “Our HBCUs together have their largest freshman class in 16 years,” he said.
Leaders from other sectors emphasized institutional responses and priorities. Matt Power, president of the Maryland Independent College and University Association, said independent colleges appreciate level funding in FY2026 but urged eventual restoration of cuts taken in prior years. Saint Mary’s College leaders credited initiatives such as the LEAD curriculum and new program criteria for enrollment growth. Morgan State University’s president described rapid enrollment growth and rising research activity at his institution, and said the university is planning campus expansion to accommodate demand.
Several presenters underscored state policy goals. Analysts reviewed Maryland’s progress toward the 55% degree‑attainment objective (the share of adults with a postsecondary credential), noting that including short‑term credentials puts the state above 55% but excluding them yields a rate below the target. The analysts said Maryland will need sustained gains in student progression and reengagement of those with some college and no credential to meet long‑term targets.
On HBCU settlement funds, the Department of Legislative Services requested narrative from the institutions about FY2026 plans. The materials show that the settlement distribution cannot fall below a $9 million floor and that individual institutions’ shares reflect opening fall enrollment. The analysts also recommended the subcommittee request an annual report on instructional faculty workload for public four‑year institutions.
The session included discussion of policy responses to enrollment trends: speakers described early college programs aimed at first‑generation and low‑income students, reengagement strategies for students who stopped out, and workforce‑aligned program approvals.
The subcommittee did not take formal votes during the overview; the hearing transitioned to the Governor’s Office for Children after questions and institutional remarks.
