DLS analysis recommends diverting Program Open Space funds; DNR, stakeholders warn of broad program cuts

The Department of Legislative Services (DLS) presented a fiscal 2026 review of the Department of Natural Resources (DNR) budget during the House Appropriations Committee Transportation and the Environment Subcommittee hearing, recommending the diversion of Program Open Space (POS) transfer‑tax receipts to the state general fund to help address near‑term fiscal stress. DLS analyst Andrew Gray said the overall DNR operating allowance “increases $26,100,000 or 6.4% to $435,600,000 in fiscal 20 26.”

The recommendation to shift POS and related special‑fund resources would, DLS explained, reduce funding flowing to local POS accounts by half, suspend funding for the Maryland Agricultural Land Preservation Foundation (MALPF) and the Rural Legacy program for fiscal 2026 through 2029, and expand use of the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund as a possible source for general‑fund relief. Gray later clarified the budget reconciliation proposal as approximately $48.8 million in fiscal 2026 rising to about $115.8 million in fiscal 2029 as part of the fiscal‑stability package presented to the subcommittee.

DNR Secretary Josh Kurtz and agency staff told the committee the DLS recommendations would have widespread effects beyond DNR programs. “If these fund reductions were adopted,” Kurtz said, the state would not meet several statutory or policy goals and core programs — including the Whole Watershed Act implementation, cover‑crop support, and local non‑point‑source pollution projects supported through the trust fund — would be directly affected. Kurtz said the department had placed a $10.5 million operating request from the Chesapeake and Atlantic Coastal Bays trust fund into the BRFAA (budget reconciliation) submission to help cover Maryland Park Service operations.

Why it matters: Program Open Space and the Chesapeake/Atlantic Coastal Bays trust fund support land acquisition, agricultural easements, park development and non‑point‑source pollution projects across every county. Witnesses from land trusts and conservation groups told lawmakers that diverting these funds would disrupt long pipelines of projects — including easements, park acquisitions and local resilience work — and would reduce leverage of federal and nonprofit matching funds.

What was said and shown - DLS analyst Andrew Gray outlined DNR program trends, noting declines in some recreational licensing and concerns about fisheries indicators. He framed the transfer proposals as discretionary options for the committee in a difficult budget year and listed specific programs that would be affected if POS and trust fund balances were tapped for general fund purposes. - Gray: “the revenues being about $64 60 5 million dollars per year,” (as presented in the analysis) and later stated the BRFAA transfer estimates as “$48,800,000 or so in fiscal 20 26, growing to around $115,800,000 in fiscal 20 29.” - Secretary Josh Kurtz described specific program impacts: Maryland Department of Agriculture (MDA) would lose an estimated $23.1 million from the trust fund; MALPF would lose $21.6 million annually from POS; Maryland Department of the Environment (MDE) would lose $1.09 million that supports matching for the Whole Watershed Act. Kurtz noted the trust fund closing balance for the current fiscal year as about $33,960,000 and projected the balance would drop in FY26 if proposed projects are funded. - Local impact: DLS and DNR staff said POS local payments total about $25,400,000 in the current fiscal year; under the DLS recommendation local jurisdictions could receive roughly half of their usual POS local allocation.

Stakeholder testimony and committee concerns Conservation and local‑land stakeholders delivered consistent testimony opposing the DLS diversion proposal: - Kristen Kirkwood, executive director of Harford Land Trust and board chair of Forever Maryland, warned treaty‑level farmland and large easement opportunities would be lost if MALPF and Rural Legacy funding stopped. Kirkwood testified landowners prepared to apply for easement programs would likely subdivide properties absent program funding. - Nicholas Redding of Preservation Maryland, Bill Crouch of The Conservation Fund, and other witnesses described specific recent projects — Harriet Tubman‑area easements, the Patapsco Valley State Park work, Cars Beach acquisition, and other locally important parcels — that relied on POS or trust‑fund resources and would be jeopardized without continued revenue flows. - Tim Casey of Friends of Maryland State Parks urged approval of the governor’s BRFAA provision that would appropriate $16.4 million from POS to Maryland Park Service operating needs for FY26.

Committee members pressed DLS and DNR on several technical and timing points: whether the transfer tax statute requires payback, how the proposed cuts would affect projects already in the pipeline, and the degree to which the Trust Fund and POS balances could legally be repurposed without legislative change. Gray and DNR agreed funds already distributed to local governments would not be clawed back, while future allocations could be reduced.

Discussion vs. formal action The hearing covered DLS options and the department’s testimony; committee members did not vote on the DLS recommendations during the session. Several legislative items and bills were referenced as part of fiscal planning — notably HB 717 (an administration bill DNR said would authorize affiliated foundations for the Maryland Park Service and two other mechanisms to help stabilize park operations) — but no committee action or recorded votes were taken on HB 717 or the BRFAA provisions during this hearing.

Clarifying details extracted from the hearing - POS local allocations (current year): approximately $25,400,000 (Secretary Kurtz cited this as the local side number). - DLS BRFAA transfer estimate (DLS revised): ~$48,800,000 in FY26, rising to ~$115,800,000 in FY29 (DLS analyst). - Chesapeake & Atlantic Coastal Bays trust fund closing balance (as presented by DNR): ~$33,960,000 projected to decline in FY26 if budgeted commitments proceed. - Anticipated acreage impacts if Rural Legacy and MALPF are fully curtailed in FY26–29: DNR estimated ~16,000 acres of rural legacy easement loss and ~40,000 acres of MALPF easement loss across the window discussed.

Authorities referenced - Great Maryland Outdoors Act, ch. 39 (2020) — referenced by DLS/DNR in discussing land acquisition staffing and land‑to‑staff ratios. - Program Open Space (transfer tax) — state special fund and statutory allocation formula discussed by DLS and DNR. - Chesapeake and Atlantic Coastal Bays 2010 Trust Fund — statutory trust fund that funds many restoration and resilience projects.

Speakers (attributed in this article) - Andrew Hatchett Gray, Budget Analyst, Department of Legislative Services (DLS) — presented the fiscal 2026 DNR operating budget analysis. - Joshua (Josh) Kurtz, Secretary, Maryland Department of Natural Resources — testified on program impacts and legislative proposals (HB 717). - Julia Solomon, Assistant Secretary, DNR — present with the secretary for questioning. - Lauren Buckmaster, Director of Fiscal and Administrative Services, DNR — present with the secretary. - Delegate Kevin Mangione, Delegate Gabriel Edelson, Delegate Dahlia Spiegel and other subcommittee members — questioned the analyst and the secretary about impacts and statutory constraints. - Kristen Kirkwood, Executive Director, Harford Land Trust; Board Chair, Forever Maryland — testified for land trusts. - Nicholas Redding, President & CEO, Preservation Maryland — testified about heritage tourism and heritage area funding. - Bill Crouch, Maryland State Director, The Conservation Fund — testified about conservation transactions enabled by POS. - Marissa (Marissa Olszewski), Environmental Policy Manager — testified supporting the governor’s proposed budget. - Tim Casey, Friends of Maryland State Parks — testified in favor of the governor’s BRFAA proposal for park operations. - Hamna Sharif, The Nature Conservancy — testified on ecological and adaptation impacts. - Ann Jones, land‑conservation advocate (Harriet Tubman/Bridal Legacy area) — testified regarding regional preservation impacts.

Actions (formal and proposed) - Action 1 (proposed budget reconciliation): DLS recommended that a portion of Program Open Space transfer tax receipts be transferred to the state general fund for fiscal 2026–2029 to support near‑term fiscal stability; DLS estimated ~$48.8M in FY26 growing to ~$115.8M by FY29. Outcome: discussion/committee review only; no committee vote recorded in the hearing. (referenced_by: "dnr-budget-program-open-space-diversion") - Action 2 (administration bill): HB 717 — DNR testified the bill would authorize park‑service affiliated foundations, permit a rollover of state land acquisition balances above $80M to operating for Maryland Park Service in deficit years, and request one staff position per 400 acres acquired under the Great Maryland Outdoors Act. Outcome: bill referenced; no committee action recorded at this hearing. (referenced_by: "dnr-budget-program-open-space-diversion") - Action 3 (BRFAA operating proposal): Administration included a $10.5M operating coverage request from the Chesapeake & Atlantic Coastal Bays 2010 trust fund for Maryland Park Service in the BRFAA; DNR emphasized this would be used to sustain operations pending stable funding. Outcome: proposed in BRFAA; no vote recorded at this hearing. (referenced_by: "dnr-budget-program-open-space-diversion")

Clarifying_details [{"category":"pos_local_allocation","detail":"current local Program Open Space allocation","value":25400000,"units":"USD","approximate":true,"source_speaker":"Josh Kurtz"},{"category":"dls_brfaa_estimate","detail":"DLS BRFAA transfer estimate for POS and related funds","value":48800000,"units":"USD","approximate":true,"source_speaker":"Andrew Hatchett Gray"},{"category":"dls_brfaa_estimate_2029","detail":"DLS BRFAA transfer estimate for FY29","value":115800000,"units":"USD","approximate":true,"source_speaker":"Andrew Hatchett Gray"},{"category":"trust_fund_balance","detail":"Chesapeake & Atlantic Coastal Bays 2010 Trust Fund closing balance (DNR presented)","value":33960000,"units":"USD","approximate":true,"source_speaker":"Josh Kurtz"},{"category":"easement_acreage_loss_estimate","detail":"DNR estimate of MALPF and rural legacy acreage that could be unprotected FY26–29","value":56000,"units":"acres","approximate":true,"source_speaker":"Josh Kurtz"}]

proper_names [{"name":"Program Open Space","type":"other"},{"name":"Maryland Agricultural Land Preservation Foundation","type":"program"},{"name":"Rural Legacy Program","type":"program"},{"name":"Chesapeake and Atlantic Coastal Bays 2010 Trust Fund","type":"other"},{"name":"Maryland Department of Natural Resources","type":"agency"},{"name":"Forever Maryland","type":"organization"},{"name":"Preservation Maryland","type":"organization"},{"name":"The Conservation Fund","type":"organization"},{"name":"Friends of Maryland State Parks","type":"organization"}]

discussion_decision {"discussion_points":["Revenue transfers from POS and trust funds could provide short‑term general fund relief","Potential impacts to MALPF, Rural Legacy, local POS development projects and Chesapeake Bay restoration if funds diverted","Questions about statutory payback provisions if POS funds are transferred to the general fund"],"directions":["DNR to provide additional detail on project pipelines and trust fund spend plans","Committee to consider technical and legal constraints on moving special fund balances"],"decisions":[]}

provenance":{"transcript_segments":[{"block_id":"block_3","local_start":0,"local_end":312,"evidence_excerpt":"Thank you Madam Chair. I'll now present the fiscal 20 26 operating budget analysis for the Department of Natural Resources or DNR. The budget increases $26,100,000 or 6.4% to $435,600,000 in fiscal 20 26...","reason_code":"topicintro"},{"block_id":"block_98","local_start":0,"local_end":120,"evidence_excerpt":"And I believe we do not have any other people here to in closing this part of the hearing. I will say that, I have a lot of confidence in this committee... That closes the DNR hearing and we're gonna move on to MVA now, the Motor Vehicle Administration.","reason_code":"topicfinish"}]},

searchable_tags:["program open space","DNR","Chesapeake Bay","land preservation","MALPF","BRFAA"],

salience:{"overall":0.86,"overall_justification":"The recommendation would reallocate major recurring conservation funding with statewide impact across land conservation, agriculture, park operations and Chesapeake Bay restoration, and generated extensive testimony from stakeholders and multiple legislators.","impact_scope":"regional","impact_scope_justification":"Funding changes would affect programs statewide in Maryland and multi‑state bay restoration partnerships.","attention_level":"high","attention_level_justification":"The proposal affects statutory funds, long pipeline projects, and has ripple effects across state agencies and local governments.","novelty":0.60,"novelty_justification":"The scale of diversion proposed for POS/trust funds is unusually large for recent practice, though not unprecedented in BRFAA processes.","timeliness_urgency":0.80,"timeliness_urgency_justification":"The recommendations are directly tied to the FY26 budget and require near‑term decisions in the legislative session.","legal_significance":0.62,"legal_significance_justification":"Changes would alter statutory fund uses and could trigger payback provisions in transfer tax law.","budgetary_significance":0.88,"budgetary_significance_justification":"The flagged transfers constitute multi‑million‑dollar shifts and alter multi‑year funding projections.","public_safety_risk":0.12,"public_safety_risk_justification":"Indirect public safety risks (e.g., park maintenance) are possible but not immediate.","environmental_impact":0.78,"environmental_impact_justification":"Cuts would reduce funding for non‑point source pollution projects, cover crops, and restoration work on the Chesapeake Bay.","affected_population_estimate":2000000,"affected_population_estimate_justification":"Local parks, farmers, waterfront landowners and residents statewide could be affected directly or indirectly; precise count not stated.","affected_population_confidence":0.5,"affected_population_confidence_justification":"Estimate based on statewide scope and number of programs; specific affected individuals not enumerated.","budget_total_usd":48800000,"budget_total_usd_justification":"DLS estimate for FY26 diversion (revised by DLS during hearing)."},

engagement_forecast:{"newsworthiness":{"national":0.05,"regional":0.55,"local":0.95,"justification":"Primary impact is state and local; regional (Chesapeake partners) interest is moderate; national interest low.","predicted_interest":{"national":0.05,"regional":0.55,"local":0.95,"justification":"Stakeholder testimony and local impacts increase local interest."},"predicted_click_through":0.60,"predicted_click_through_justification":"Budget‑relevant local story with concrete figures and direct implications for parks and farms."},

graph_signals:{"jurisdictions":["US-MD"],"ontology_topics":["budget","conservation","parks","agriculture"],"entities":[{"id":"dnr","name":"Maryland Department of Natural Resources","type":"agency"}]}},{