Secretary of State outlines FY26 budget increase, flags address‑confidentiality funding uncertainty

Micah Richards, an analyst with the Department of Legislative Services, told the Public Safety and Administration Subcommittee that the Secretary of State's fiscal 2026 budget "increases by around $123,000 to $5,700,000."

The account to which most attention was paid was the office's mix of revenue-generating services and targeted programs: Richards noted that the office generates fees that are split between the general fund and special funds and described changes to several grant lines and contract projects. "The largest spending increase of around $217,000 is for salaries due to fiscal 25 cost of living adjustments," he said, and he told the panel that a prior one-time grant for an international cultural project remains partly unspent.

Why it matters: the office performs a range of state functions beyond ceremonial duties, including regulating charities, commissioning notaries, managing the Maryland Register and operating the Address Confidentiality Program (ACP). Committee members pressed for details on service backlogs, contract transitions and the ACP's funding outlook.

Richards highlighted trends in the Charitable Enforcement Division: registered charities rose about 5% from fiscal 2023 to 2024 while delinquent charities fell by 0.7%. He said enforcement contacts rose 8% and that "the number of delinquencies resolved decreased by 26%," asking the secretary to explain the apparent discrepancy.

Susan Lee, Secretary of State, attributed the decline in delinquencies resolved to modernization of the office's online filing; she said the newer system sends automated notices prior to delinquency and does not mark an online filer as delinquent while filings await manual review. "These notifications were sent to the organizations prior to the organization becoming delinquent," she said, describing how the old paper process produced artificially high delinquency counts during busy filing periods.

On technology, the office is replacing the failing ELF (electronic filing) system and plans to launch a new platform developed by OpenLaw Library. The secretary said ELF 3.0 (also called L3.0 in the analysis) will be beta tested in February and "will have an operational Comar site in March," adding that the product emphasizes searchability, accessibility and a restored database. "The main benefits of this product are the searchability, the connection links to other code, accessibility to those visually impaired," she said.

The ACP drew focused questioning. The secretary described the program's scope — 1,867 active participants and more than 115 deeds shielded — and warned the committee that federal Victims of Crime Act (VOCA) funds that currently support two ACP staffers are ‘‘drying up." She told delegates the office's fiscal 26 allowance includes a state increase to compensate if federal funds are not available but said the federal support cannot be assumed. "This program actually saves lives and prevents injury, harm, or death to individuals that have been threatened with violence," she said.

Where things stand procedurally: DLS recommended the subcommittee concur with the governor's allowance. The secretary "concurred strongly with the governor's allowance," and promised follow-up material on ELF functionality and implementation timelines if the committee requested it.

The hearing included additional operational details: the office processed roughly 13,968 notary applications in FY24 and reported 59,000 documents certified for international use; a one-time decrease in an address‑confidentiality grant explained a roughly $232,000 reduction in one line from FY25 to FY26. The secretary said 75% of the office budget supports personnel costs and that the office currently reports zero vacant positions.

The subcommittee requested additional documentation and timeline details on the Comar/ELF replacement and on staffing funded by VOCA, and the secretary's office agreed to provide follow-up information.

Ending: Committee members thanked the secretary and moved to the next agenda items; no formal votes were taken during this presentation.