Education and Economic Development subcommittee approves EED decision document with dozens of line-item adjustments

The Education and Economic Development Subcommittee adopted its full decision document Tuesday after considering numerous Department of Legislative Services (DLS) recommendations that modified or reduced funding across education and economic development programs.

The subcommittee chair opened the virtual hearing by warning members that this was "a very, very difficult year" for budgeting, thanked staff and members for their collaboration and emphasized the goal of finalizing a budget that "maintains the priorities of our values and what means the most to everyday Marylanders," the chair said.

The session proceeded through the draft decision document and supplemental (yellow) pages. Members voted on individual DLS recommendations and several agency requests. The panel adopted narrative requests for multiple status and closeout reports, approved targeted funding reductions and in several cases attached contingent language or directed reports before funds can be released.

Why it matters: the subcommittee’s votes affect FY 2026 appropriations and the implementation timeline for programs that include school construction and Blueprint for Maryland’s Future funding, higher education scholarship programs, economic development grants and race-track related funds.

Key votes and actions at a glance

- Governor’s Office for Children: Adopted the DLS recommendation to reduce a general fund contribution and planned expenditure for the “Enough” program special fund by $22,900,000 (DLS recommendation noted; agency disagreed). (Action adopted.)

- Status-report narrative requests: Adopted DLS narrative asking agencies to report on managing-for-results measures for the Governor’s Office for Children. (Adopted.)

- Baltimore City Children and Youth Fund: Modified the DLS recommendation to cut $3,500,000 and instead approved a $2,000,000 reduction. (Modified/adopted.)

- Annual out-of-home placements report: Adopted DLS language and modified the one‑day count reporting date to Oct. 15 (adopted).

- Maryland Stadium Authority: Approved multiple actions including a $250,000 debt-service reduction and a $2,500,000 reduction to the Maryland Sports and Entertainment Events Program Fund; rejected a $1,500,000 deficiency reduction tied to Preakness funding; restricted $1,650,000 so it may be used only for the CIA conference basketball championships; and approved a $17,000,000 reduction to the Racing and Community Development Financing Fund appropriation for 2026. (Mixed outcomes: several reductions adopted; one reduction rejected; one restriction adopted.)

- Maryland Thoroughbred Racetrack Operating Authority: Adopted DLS narrative requesting construction status reports. (Adopted.)

- Maryland State Department of Education (MSDE) and related school items: Adopted a range of narrative reports (accounting practices, federal stimulus closeout reports, science-of-reading policy and others); approved several special fund and blueprint adjustments, including a $3,200,000 reduction tied to the Maryland School Leadership Academy and other blueprint fund changes; adopted DLS recommendations on Grow Your Own and other program funding actions as recorded in the decision document and yellow pages. (Multiple adoptions and rejections as recorded on the record.)

- Department of Commerce: Adopted several DLS reductions and narrative requests including reductions to travel and multiple grant lines (including Ignite Capital and Industry 4 program adjustments), partial modifications to tourism-development funding, and adopted contingent committee narrative requesting reports from Commerce and the Board of Public Works on certain grant uses. (Actions adopted or modified as recorded.)

- Maryland Department of Labor: Rejected a DLS recommendation to restrict $250,000 pending corrective action but adopted a modified approach that added a report requirement to match higher-education enrollment records; deleted specified grants and positions in supplemental pages (including cyber workforce grants and new positions recommended for deletion). (Actions adopted/modified as recorded.)

- Maryland Public Broadcasting Commission: Adopted a $100,000 restriction pending a report on repeat audit findings. (Adopted.)

- Higher education and related items: The subcommittee adopted many DLS recommendations and narrative requests across public higher-education institutions, including Morgan State University, University System of Maryland institutions, community colleges and the Maryland Higher Education Commission actions; it modified reductions for the Maryland Community College Promise Scholarship Program (reductions were modified from $5,000,000 to $3,000,000 for FY25 and from $5,000,000 to $3,000,000 for FY26 in the recorded actions). (Actions modified/adopted.)

- Sunny Day Fund and other special funds: The subcommittee modified DLS’s recommended Sunny Day Fund reduction from $15,000,000 to $10,000,000 and attached contingent language to an appropriation of $15,000,000 tied to pending legislation (actions adopted/modified).

- Childcare capital support revolving loan fund: Adopted contingent language transferring $250,000 of the appropriation to the Maryland Health Benefit Exchange for outreach and a survey. (Adopted.)

- Multiple technical and supplemental actions in the yellow packet: The panel voted through many additional supplemental items (deleting positions, restoring or deleting annual language, and adding committee narrative) across agencies; the chair closed the yellow and white packet votes and moved to put forth the entire EED decision document which the subcommittee then advanced out of the panel. (Full decision document put forward and advanced.)

Discussion and dissent

A minority member announced an intention to vote against the package, arguing for more structural cuts rather than revenue, citing the state’s multi-billion dollar budget deficit and a policy difference over whether to prioritize cuts or revenue. The member thanked staff and colleagues while registering that dissent on the record.

What’s next

The subcommittee chair closed the hearing after members completed votes on the supplemental pages and the full decision document; the record shows the subcommittee advanced the EED decision document with the recorded modifications and narrative requests. Agencies captured on the record either concurred, disagreed, or requested date or scope changes for several reports; when agencies disagreed, the panel in most cases proceeded to adopt or modify DLS recommendations.

The transcript shows many individual line-item actions; the full decision document and the committee’s yellow pages contain the itemized text and contingent language the panel approved or rejected. Those documents and the committee reports will reflect the formal appropriation and narrative language the subcommittee forwarded.