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DLS tells Frederick County delegation $518.3 million proposed in state aid for fiscal 2027; pension and community college changes could shift costs locally
Summary
Department of Legislative Services briefed the delegation that Frederick County would receive $518.3 million in state aid in fiscal 2027, and highlighted proposals that could cut community college increases and shift half of retirement payment increases to local governments, estimating a $2 million local obligation under the governor's plan.
The Department of Legislative Services (DLS) told Frederick County delegation members the governor's introduced budget would provide Frederick County approximately $518,300,000 in state aid for fiscal 2027, consisting of $463.8 million in direct aid and $54.5 million for retirement payments, with the vast majority targeted to public schools.
Arnold Aja, presenting for DLS, said the school system would receive roughly $414.2 million in direct aid and that Frederick Community College would receive $24.6 million. Aja added that, under the governor's proposed calculations, a revised enrollment count for free and reduced-price meals increases statewide school funding but does not benefit Frederick County; the gains accrue primarily to Baltimore City, Montgomery and Prince George's counties.
DLS highlighted three policy changes of note: a revised free-and-reduced-meal enrollment count, a proposed 3% cap on year-over-year community college formula increases (which DLS says would reduce FCC funding by about $1.5 million in fiscal 2027 compared with a higher baseline), and a proposal to make local governments responsible for 50% of statewide increases in retirement payments for teachers, librarians and community college faculty. Aja said the retirement cost shift would require Frederick County to cover an estimated $2,000,000 under the proposal.
DLS also described changes to how local police aid enhancement funding is allocated and noted planned adjustments to highway user revenue distributions that could reduce county allocations in later years. DLS staff directed members to resources on the DLS website for detailed state aid charts and briefing exhibits and offered follow-up assistance.
Delegation members asked for more detailed briefings on how the pension and community college proposals would affect local budgets and school funding; delegates requested follow-up meetings and exhibits showing the distributional impacts and the mapping of free-and-reduced meal counts.
