Frostburg officials hear Annapolis update on FY26 budget, energy bills and George Edwards Fund

Frostburg City officials at a special mayor-and-council work session heard a legislative update from Rich Reinhart on the Maryland General Assembly’s session, the governor’s proposed FY26 budget and several bills that could affect energy policy, local capital funding and a regional economic-development fund.

Reinhart, who delivered the presentation and said, “We are currently in week 4 of session,” reviewed the volume of legislation in Annapolis, identified several bills the city is monitoring and described the governor’s FY26 proposed budget and its likely effects on Allegany County and Frostburg.

The briefing matters because the proposals discussed — including changes tied to energy generation, data centers, local tax options, and reauthorization of the George Edwards Fund — could affect state funding available to Frostburg and neighboring communities and the regulatory environment for municipal utility and capital projects.

Reinhart told the council that lawmakers have introduced roughly 1,300 bills so far and that the Senate adopted a rule limiting most senators to 20 individual bills, a change intended to reduce volume and improve deliberation. He said the two most important state-level issues this session are the budget and energy policy, including bills addressing generation, transmission and renewable-energy procurement.

On the budget, Reinhart described the governor’s Jan. 15 FY26 proposal as a $67 billion package put forward to reduce a roughly $3 billion structural deficit. He said the governor’s plan pursues about $2 billion in spending cuts and other measures while leaving roughly $1 billion in unresolved reductions to be addressed later in the session. Reinhart summarized several budget elements the administration emphasized, including targeted economic investments, continued funding for public safety and education, tax-code changes and a package of gambling- and cannabis-related revenue proposals the governor plans to use in part to offset tax reductions.

Reinhart said the governor’s capital budget includes a $10 million appropriation described in the budget documents for the George Edwards Fund (the Western Maryland Economic Future Investment Program). He explained that county leaders are discussing a reauthorization draft that would change the fund from a mandated annual $10 million line item to a discretionary fund under the governor’s authority; Reinhart said supporters view that change as a pragmatic step to preserve some funding during a tight fiscal year. “It makes it a little more palatable, yes,” he said when asked whether moving to discretionary authority could improve the fund’s chances of receiving money this year.

Council members discussed the need to lobby to preserve and protect the proposed $10 million allocation. Reinhart said he will draft a letter to the Appropriations Committee members on behalf of Cumberland and Frostburg, and that he will coordinate with the county delegation and Allegany County officials to press for the appropriation to be retained through committee deliberations.

Reinhart also reviewed equity between jurisdictions in the governor’s capital proposal and said Allegany County’s allocation is small compared with neighboring counties. He urged local leaders to raise the matter with the governor’s office and the Department of Budget and Management.

On other bills, Reinhart flagged: the Maryland Municipal League’s (MML) admissions and amusement tax proposal (divisive among municipalities); a speed-monitoring systems bill being tracked by MML; energy omnibus bills including one from Delegate Lorig Chikuteren called the Abundant Affordable Consumption of Energy Act and a governor-backed bill titled Energize; legislation and hearings related to data-center siting, transmission and procurement; and a Senate bill (identified in the meeting as SB461) that some attendees feared could expand eligible uses of the Water Quality Revolving Loan Fund in ways that would affect prioritization for Combined Sewer Overflow (CSO) projects.

Council members asked Reinhart to follow up with state lawmakers about SB461 and to coordinate a meeting with the bill sponsor to discuss local concerns. Reinhart said he will do preparatory work and seek meetings with the senator’s office if the bill progresses in the Senate.

Reinhart provided a status update on a separate ongoing issue involving the town of Lonaconing and water-system matters, saying state agencies and the governor’s office were expected to speak with Lonaconing’s mayor and that he expected follow-up in coming days. He asked the council and stakeholders to allow about two weeks for a further stakeholder meeting and pledged to report back with any material updates.

Reinhart said his office will keep sending weekly bill reports to the mayor and council and asked whether the current level of detail in those reports is useful; council members said they preferred the full reports. Reinhart also noted increased pressure from the Maryland Department of the Environment (MDE) for local completion of CSO projects, which, combined with constrained capital funding, adds urgency to local funding and prioritization decisions.

Votes at a glance: The council approved the minutes of the Dec. 17, 2024 closed session. The motion to approve was moved and seconded; members present voted aye and the minutes were approved.

The presentation concluded with Reinhart offering to draft letters and coordinate lobbying work with the mayor’s office and county partners; he said he would circulate bill-report summaries and an end-of-session report later in the legislative cycle.

The session included roll call and a brief approval of minutes; no public commenters spoke during the public-comment period that followed the presentation.

Looking ahead, Reinhart said he plans another update around the halfway point of the 90-day legislative session and a fuller briefing at the end of session.