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Senator Kagan urges creation of a Department of Commerce nonprofit navigator amid fiscal debate
Summary
Sen. Cheryl Kagan told the Health, Government and Operations Committee that creating a single nonprofit navigator at the Department of Commerce would help Maryland’s 41,000 nonprofits navigate grants and contracts. The proposal drew questions about its fiscal note and an amendment limiting service to nonprofits with executive compensation under $
Senator Cheryl Kagan pressed the Health, Government and Operations Committee on April 1 to approve a one‑person “nonprofit navigator” position in the Maryland Department of Commerce to help small nonprofit organizations apply for state grants and resolve problems with state contracting.
Kagan told the committee that Maryland has “more than 41,000 nonprofit organizations” and said a state employee who could answer basic questions — for example, whether a group is eligible for a grant or whom to contact about an unpaid state contract — would ease administrative burdens for small organizations.
The proposal, Senate Bill 3 65, drew questions about its fiscal note and a Senate amendment that would bar the navigator from assisting nonprofit organizations that pay any single employee more than $250,000 in annual compensation. A Department of Commerce position supporting the bill asked the committee to remove that restriction; Commerce told the committee it does not distinguish between organizations on the basis of executive compensation when providing nonfinancial assistance.
Fiscal details and staffing: Committee members noted the bill was not moved previously because of the fiscal note. During the hearing, figures cited included a Senate fiscal estimate of about $80,400 for an initial fiscal year and roughly $69,000 in a subsequent year; the sponsor also referred to the House’s $75,000 cap. Kagan said the position would be “a mid‑level person,” not a new office or agency, and described the cost as modest given the potential statewide benefit.
Lawmakers asked for additional data. Vice‑Chair Collison asked whether the committee could get an average nonprofit CEO salary to better understand how many organizations the $250,000 limit would affect. Kagan agreed to be available for a subcommittee and said she has discussed the bill with Budget and Taxation leadership in the Senate and with nonprofit stakeholders including Henry Bogdan of Maryland Nonprofits.
Why it matters: Supporters said a navigator could help smaller groups lacking grants staff identify funding opportunities, secure reimbursements and maintain essential social services at a time of federal funding changes. Opponents or cautious members raised concerns about the fiscal note and about whether the $250,000 salary threshold is an appropriate eligibility limiter.
Procedural status: The bill was referred to subcommittee for further work; the transcript records the sponsor offering to be available for subcommittee follow up but does not record final committee action.
