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Lawmakers hear warnings that a proposed 3% cap could squeeze community colleges
Summary
Analysts and community college leaders told the Education and Economic Development Subcommittee that a BRFAA‑linked 3% cap and contingent reductions could cut CADE funding for some colleges, urging restoration of a hold‑harmless provision and reconsideration of retirement cost shifts.
Department of Legislative Services budget analyst David Proper told the Education and Economic Development Subcommittee that the fiscal 2027 Aid to Community Colleges allowance would be $518.1 million, a 2.6% increase, but that contingent BRFAA language would cap CADE formula growth at 3% and reduce funding by $21 million if triggered. He reported enrollment gains since 2022 and highlighted that eligible FTES remain materially below 2015 levels.
The 3% cap would limit year‑to‑year growth for each community college, DLS said, producing sizable nominal and percentage declines for some institutions; Prince George’s and Warwick were cited as affected colleges. DLS also presented a separate BRFAA provision that would shift 50% of the state share of retirement cost increases for community colleges to local jurisdictions and noted a DLS recommendation to shift 100% of the FY27 retirement increase to counties instead.
Brad Phillips, executive director of the Maryland Association of Community Colleges, told the subcommittee the cap would force colleges whose enrollment growth outpaces funding increases to "do more with less," urging lawmakers to remove the multiyear cap and restore a hold‑harmless element to the CADE formula. "When enrollment growth outstrips funding increase, it puts constraints on academic supports and workforce programs," Phillips said.
College presidents and labor representatives echoed that concern. Sandra Kirtanitis, president of the Community College of Baltimore County, described community colleges as a major workforce pipeline and urged removal of years 2 and 3 of the BRFAA cap. Travis Simon of SEIU Local 500 said funding instability and multi‑year caps make planning "unnecessarily difficult" and asked the subcommittee to reinstate the hold‑harmless provision.
Analysts noted other funding pressures: a one‑time $300,000 allocation for the College of Southern Maryland was incorporated into CADE payments under the statutory schedule; Pell grant awards to community college students had risen substantially (DLS estimated Pell comprised about 85% of total aid in FY25, ~$152 million). DLS’s exhibits showed per‑FTES funding growth varied by institution and that a number of colleges would see reduced CADE increases under the cap.
The session produced no formal votes. Lawmakers asked follow‑up questions and welcomed written responses; the subcommittee did not adopt an immediate amendment on the floor.
Next steps: the subcommittee may consider amendments to BRFAA language and is expected to review supplemental material from DLS and MAC as the budget moves through committee stages.
