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DLS fiscal briefing: governor’s proposed budget would shrink disparity and local health grants on Eastern Shore
Summary
Department of Legislative Services officials told the Eastern Shore delegation that the governor’s FY27 proposal and BRFAA would hold several programs at prior formula amounts, trimming disparity-grant and local health allocations and shifting some teacher retirement increases back to county governments. DLS will post county-specific briefings this week.
The Eastern Shore delegation heard a detailed fiscal briefing on Feb. 6 from the Department of Legislative Services that mapped how the governor’s proposed FY27 budget could alter state aid to local governments.
Hiram Burch, who led the DLS presentation, said the nine Eastern Shore counties are projected to receive about $935 million in state aid in FY27, of which roughly $850 million is direct aid to local units of government and school systems. "The numbers reflected in this report are based on the governor's proposed budget," Burch said, adding that the General Assembly could still change allocations before final adoption.
Burch emphasized three factors driving reductions for the four disparity-grant counties (Caroline, Dorchester, Somerset and Wicomico): the governor’s proposal to hold disparity grant funding at the FY26 formula level (about a $2.8…
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