Maryland School for the Deaf cites chiller deficiency, audit fixes and new kindergarten readiness plan in FY26 budget hearing

The Maryland School for the Deaf (MSD) told the House Appropriations Education and Economic Development Subcommittee that its fiscal 2026 allowance falls about $300,000, while the agency is seeking a $2.4 million deficiency to replace a chiller on the Frederick campus.

In a presentation to the panel, Laura Hyde, budget analyst for the Department of Legislative Services (DLS), said MSD’s fiscal 2026 allowance decreases by approximately $300,000 (0.5 percent) to $55,000,000 and noted a proposed deficiency of $2,400,000 to fund a replacement chiller for the Eli building on the Frederick campus. Hyde also highlighted that MSD’s budget is concentrated in payroll: “The majority of the fiscal 2026 proposed budget… is for salaries and fringe benefits,” and that contractual services and contractual personnel comprise smaller shares of the allowance.

Hyde described enrollment and per‑pupil funding issues that could affect MSD’s bottom line. MSD’s formula funding uses a four‑year average; DLS recorded an FY24 formula enrollment of 414 students and MSD’s estimate of 424 students in FY26. Under current law DLS reported the state per‑pupil foundation amount would increase from $8,789 in FY25 to $9,226 in FY26, but the Budget and Reconciliation Financing Act (BRFAA) proposal would reduce that amount by $169 to $9,057. Hyde said DLS recommends reducing MSD’s allowance by roughly $650,000 if the lower BRFAA per‑pupil amount is applied to MSD.

Hyde also reviewed personnel and audit items: MSD’s FY26 allowance shows 372.5 regular positions and 29 contractual positions (a net increase of 10 regular positions converted from contractual), and MSD reported 23 vacancies as of January 2024. DLS asked MSD to explain how vacancy savings would be spent. On audit issues, Hyde said MSD had four findings and one repeat finding in the 2024 audit; two procurement findings are fully resolved, while two remaining findings involve ASL interpreting services and a memorandum of agreement with the MSD Foundation.

Superintendent John A. Serrano, who identified himself as agency head, thanked DLS and said MSD is addressing outstanding audit items and operational needs. “We already submitted our written testimony response to the analysis,” Serrano said, adding that MSD has posted a solicitation for ASL interpreting services on the state procurement portal. On the kindergarten readiness assessment (KRA), Serrano said MSD and the Maryland State Department of Education are working on a new kindergarten readiness plan centered on the Child Outcome Survey and that staff will receive MSDE training for administering a new assessment in fall 2025.

Hyde also pointed to a Managing for Results measure showing a decline from FY23 to FY24 in students headed to college or work and asked MSD to comment on why students who earned a diploma did not meet the MFR graduation targets; Serrano noted efforts to improve teacher professional development and evaluations.

The subcommittee did not take a formal vote on MSD items during this hearing. MSD officials said they concur with the DLS analysis and are pursuing the procurement and assessment steps outlined in their testimony.

MSD’s presentation and the DLS analysis included numerous budget details and performance measures that DLS asked the agency to comment on in follow‑up written testimony.