Community colleges press legislature to restore 'hold harmless' after funding formula change cuts some rising campuses

Community college leaders, faculty unions and higher education officials urged the Education and Economic Development Subcommittee to restore a previously used "hold harmless" protection in the CADE funding formula after changes last year led to reduced state aid for some colleges even as those institutions saw enrollment increases.

The Department of Legislative Services analyst, Kelly Norton, briefed the committee on aid to community colleges and described a roughly $23.8 million (5%) fiscal 2026 increase in state support. Norton also reviewed student persistence, developmental education completion rates, dual-enrollment participation and county tuition comparisons.

Why it matters: Community colleges play a central role in workforce development and a variety of speakers told the panel funding stability is necessary to preserve growth in dual enrollment, technical training and supports for students needing remediation or noncredit workforce credentials.

Hold harmless provision and local impacts

Several presidents and executive directors — including Brad Phillips of the Maryland Association of Community Colleges, Sandra Kurtinitis of Community College of Baltimore County (CCBC), and Yolanda Wilson of College of Southern Maryland (CSM) — asked the legislature to reinstate the hold-harmless clause that insulated colleges from year-to-year formula declines. After the change, Norton explained, some colleges experienced lower CADE allocations even though local FTEs rose; CSM told the committee it faces a proposed state funding decrease of about $851,287 for fiscal 2026 despite recent enrollment gains.

"We have been on the rise," CSM President Yolanda Wilson said. "We have seen an average of 4.5% increase over the past 2 years," and she emphasized that cuts would limit supports for vulnerable students, including food pantry, transportation and childcare needs.

Persistence, remediation and outcomes

Norton summarized data showing Maryland community college persistence rates have held around 70 percent for the 2019 cohort. The analysis highlighted that developmental education completion significantly affects persistence: students who complete required developmental coursework have noticeably better outcomes than those who do not. Norton also noted that graduation and transfer rates remain below 20% for both remedial and college-ready cohorts in the four-year tracking window and recommended MAC comment on strategies to raise graduation rates.

Dual enrollment and equity concerns

The DLS exhibit on dual enrollment shows most dually enrolled students are 12th graders, and that white students are overrepresented in dual enrollment relative to their share of the overall high school population. Norton said approximately 72% of dually enrolled students who enroll in college choose Maryland public institutions after graduation.

Tuition, aid and student assistance

Norton reviewed tuition and fee levels that show Maryland community college tuition averages about $5,002 in 2024, roughly $562 above the national average. The analysis also outlined Pell and institutional aid distributions and recommended concurrence with the governor’s proposed budget.

Union testimony and procurement concerns

Union and faculty representatives asked the subcommittee about local spending choices and outsourced contracts. Austin Kingston (United Academics of Maryland / AFT-Maryland) urged reinstatement of the hold harmless protection and raised concerns about outsourcing administrative services to out-of-state vendors. Mitchell Tropen, SEIU Local 500, urged protecting dual enrollment programs and full CADE funding, citing the programs’ role in students’ college and workforce pathways.

What lawmakers asked for and next steps

Lawmakers asked colleges and the administration to provide additional details on how formula changes affected specific campuses and to explore options for smoothing year-to-year allocations. Several members expressed support for reinstating hold harmless protections to prevent disruption to growing or recovering campuses. The subcommittee did not take a vote; members requested follow-up briefings and written documentation from community colleges and the Maryland Higher Education Commission on formula calculations and the distributional effects of last year’s changes.

Ending note

College leaders argued full CADE funding plus a restored hold harmless clause would stabilize programs that serve working adults, dual-enrollment students and technical training pipelines. State higher education officials and several association leaders endorsed the governor's overall funding while urging lawmakers to consider adjustments to protect colleges that have regained enrollment.