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DNR seeks bond swaps to replace transfer‑tax funding; oyster and Ocean City beach work flagged for review
Summary
DLS flagged a $159.2 million DNR FY27 authorization and recommended committee follow-up on Baltimore City direct grants, the Ocean City beach replenishment cost jump to $43 million and a potential timing conflict for Eastern Bay oyster funds before a planned five‑year evaluation.
Andrew Gray, the DLS analyst for the Department of Natural Resources, told the subcommittee the FY27 capital request totals $159.2 million with $84 million in general obligation bonds largely replacing transfer tax and waterway improvement funds. He said bonding replacements and fund repurposing are part of the governor’s budget balancing plan and flagged an apparent error in a figure for a local program (noted in the transcript).
Gray highlighted a jump in the Ocean City beach maintenance estimate from about $18 million to $43 million and said the U.S. Army Corps has $20 million in federal participation, which still leaves the state to reconcile what work can be done at the new funding level. He also raised a DLS question about Eastern Bay oyster funding in FY27: prior legislation envisioned a five‑year evaluation before new funding, and DLS asked DNR to clarify how FY27 oyster allocations align with that timeline.
Secretary Josh Kurtz said DNR will provide the Baltimore City direct‑grant spending spreadsheet requested by DLS and stressed two aquatic priorities: a refurbished Albert Powell hatchery that DNR projects will increase put‑and‑take fisheries by about 37% and a new mussel hatchery funded in large part by a Conowingo Dam settlement. Kurtz also said the Great Maryland Outdoors Act funds and procurement reforms have improved DNR’s ability to spend at the intended FY29 pace.
Public witnesses from conservation nonprofits and land‑trust coalitions urged the committee not to divert or cut program open space and rural legacy funding, requested continued funding certainty for oyster restoration and cited economic benefits from outdoor recreation. No formal votes were taken; DLS requested clarifications about program spreadsheets and timing of the Eastern Bay evaluation.
