MSDE headquarters budget increases as lawmakers press for details on teacher retention, literacy policy and school safety funds

The Maryland State Department of Education (MSDE) headquarters budget for fiscal 2026 increases by $14.9 million, or roughly 4%, to $388.1 million, the Education and Economic Development Subcommittee heard during a departmental budget briefing.

The Department of Legislative Services analyst, Laura Hyde, said the general fund allowance for MSDE falls by $5.0 million from fiscal 2025 but is offset by increases of $8.7 million in special funds and $11.7 million in federal funds. Hyde told the committee the Maryland LEADS federal set-aside comprises multiple programs and that $173.9 million has been designated for those learning-loss programs.

Why it matters: The spending changes tie to major state priorities — teacher recruitment and retention, literacy implementation, school safety and the Maryland School Leadership Academy — and lawmakers asked MSDE officials for more detail on how funds will be used and what outcomes the department expects.

MSDE response and program highlights

State Superintendent Carrie Wright told the subcommittee MSDE has focused on implementing Blueprint for Maryland’s Future policies and highlighted partnerships and assessment work. "The Maryland State Board of Education adopted a resolution to have Maryland among the top 10 in the nation in reading and math in the National Assessment of Educational Progress by 2027," Wright said, summarizing recent priorities and partnerships to expand professional learning and tutoring.

MSDE also outlined several spending and program items in the headquarters allowance. Hyde's written analysis notes MSDE plans to add $8.3 million in blueprint special funds for new programs and expenses, including $6.3 million for the Maryland School Leadership Academy and $2.0 million for teacher recruitment activities. Hyde flagged bolded committee language in the analysis asking MSDE to comment on those changes.

Teacher retention and workforce concerns

The subcommittee pressed MSDE on retention of teachers of color, one of the blueprint outcome measures. Hyde described the retention goal adopted by the Accountability and Implementation Board (AIB) and State Board of Education as 75 percent and noted retention of teachers of color dipped slightly from school year 2023 to 2024. MSDE said it projects improvements in fiscal 2025 and 2026 and expects to meet the 75 percent goal for Asian and Hispanic/Latino teachers by school year 2025–26.

Deputy State Superintendent for Finance and Operations Krishna Kallur emphasized department supports for recruitment and retention, including leadership training and a workforce dashboard, but rejected a staff recommendation to cut $3.2 million in blueprint special funds for leadership training. "These funds are necessary to support the re-envisioned approach to training for system leaders and school leaders," Kallur said.

Literacy policy and the science of reading

Hyde's analysis summarizes a proposed timeline for MSDE's literacy policy implementing the Ready to Read Act (chapter 512 of 2019). MSDE presented its most recent draft literacy policy to the State Board of Education in October 2024 and plans implementation steps through the 2027–28 school year. The bold language in the analysis asked MSDE to comment on status, expenditures and plans for use of federal and nonprofit grants tied to literacy implementation; MSDE's response materials indicate concurrence with requests for reporting on the policy and related expenditures.

School safety funding and Safe Schools Fund balance

Hyde reported that the Maryland Center for School Safety (MCSS) budget includes roughly $66.8 million for school safety programs and evaluations across fiscal 2024–26, and that many programs draw on the Safe Schools Fund. Hyde's analysis showed an estimated Safe Schools Fund balance of $18.8 million at the end of fiscal 2025, with proposed contingent reductions that would lower the balance to about $10.8 million at the end of fiscal 2026. The bold language asked MSDE to account for underspending in SRO grants and the changing fund balance.

Personnel, vacancies and service delivery

Hyde said MSDE headquarters gained 37 positions and one contractual full-time equivalent from fiscal 2025 to 2026; the analysis also recommends consideration of reducing five positions because of long-term vacancies. MSDE noted improvement in vacancy rates — from about 18.7% in January 2023 down to under 7% — and objected to deleting positions it said are needed to support literacy, math, community schools and early learning.

Other program metrics

Hyde summarized Division of Rehabilitation Services (DORS) outcomes, noting an increase in the number of individuals with disabilities achieving employment outcomes (1,009 in fiscal 2024) and an increase in pre-employment transition services (about 8,700 individuals). Hyde’s report also showed Maryland LEADS discretionary expenditures at roughly 90% spent as of January 2024 and recommended continued committee narrative tracking these funds.

What’s next

MSDE agreed to provide the committee additional detail in its response documents and during questioning. Lawmakers pressed MSDE to specify strategies for retaining Black educators — the largest nonwhite demographic in Maryland schools — and for clarifying how blueprint special funds will be spent on leadership training and the concentration of poverty program. The committee also requested reports explaining Safe Schools Fund balances and SRO grant underspending.

Ending note

MSDE officials said they would supply the requested reports and clarifications; the committee left the hearing seeking more specificity on retention strategies for Black teachers, the timeline and costs associated with the school leadership academy, and detailed accounting of federal stimulus and LEADS program expenditures.