Analyst: Maryland FY26 capital plan larger than FY25 but relies on debt and one‑time revenues

Summary

Matthew Klein told the Capital Budget Subcommittee the proposed FY26 capital program is roughly $3.07 billion — about $293 million more than FY25 — but said the increase reflects shifts in how projects are financed, greater use of debt for school construction and reduced federal funding compared with the prior year.

Matthew Klein, the capital budget fiscal analyst, told the Capital Budget Subcommittee that the proposed fiscal 2026 capital program totals about $3,068,000,000, roughly $293,000,000 more than fiscal 2025.

Klein said the headline increase masks important financing changes: state fund sources, bond premiums, general obligation bond funds and recycled funds are “almost exactly on par” with FY25, while the Built to Learn issuance and other revenue‑stream accounting explain most of the year‑over‑year variation. “This is principally because the state's broadband initiative… expired in fiscal 2025,” Klein said, adding that federal funds are down from the prior year because some federally supported programs — funded through IIJA and ARPA — have ended.

Klein told the committee the administration plans roughly $1.7 billion in debt for the Built to Learn (often called “Bill to learn” in the briefing) revenue bonds and that the…

Analyst: Maryland FY26 capital plan larger than FY25 but relies on debt and one‑time revenues

Summary

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