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Bi-weekly updates on Initiatives at Maryland's Community Colleges
April 14, 2021 - 2021 Legislative Report #76

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IN A CRAB SHELL

With nearly half the undergraduate population of Maryland enrolled at 16 colleges, on 23 campuses and 1000+ locations, it can be challenging to capture and share all that’s happening at Maryland’s community colleges.
-- However, with In A Crab Shell, we try. --
Similar to the more well-known phrase in a nutshell, -- In A Crab Shell provides a concise, bi-weekly discussion of issues important to higher education and the
State of Maryland.
2021 Legislative Report

In the Shadow of COVID-19

Federal Stimulus Funds assist Maryland with Budget Shortfalls


The 2021 legislative session began just shy of the 1-year anniversary of the COVID-19 pandemic start. The pandemic has resulted in significant revenue declines. Revenue projections at the start of session pressured the Governor to use the BRFA* to reduce funding for community colleges.

However, as the session progressed, the federal government passed the American Rescue Plan Act of 2021 that provided $6.3 billion in funding to Maryland.  As a result, the General Assembly, along with the Governor, were able to fully fund the community colleges per the Cade formula. 

It is important to note that the federal funding is one-time funding and the state’s underlying fiscal pressures remain. 

As recovery from the pandemic progresses, it will be important for Maryland to remember its obligation to community colleges and community college students, and not let one-time federal stimulus funds result in state divestment that could harm long-term recovery efforts.

MACC thanks our Legislative Committee who worked with us to develop united positions on approximately 150 bills impacting our colleges, faculty and the students we serve. Many thanks also to the community college faculty and staff who took time to write and deliver testimony on bills impacting our college communities. 


*BRFA = Budget Reconciliation & Finance Act
HB 588 - Operating Budget
&
HB 589 - BRFA

State Aid to Community Colleges FY2022

At the beginning of every legislative session, the Governor releases his budget for the upcoming fiscal year (FY), which starts about six months later on July 1st.  Budget decisions made during the 2021 legislative session take effect on July 1, 2021, which is the beginning of FY22.

Here's what happened this year: 

  • The Governor released his budget, HB 588. As required by budget rules and in accordance with the Cade formula, it provided the community colleges with a funding increase of $40.4 million (16.2% more than last year),
  • BUT the Governor then used the BRFA* (HB 589) to reduce funding for community colleges by about one-third, 
    • The Governor also made an unprecedented decision to tie future community college funding to Maryland's annual general fund revenue growth.
  • BUT the General Assembly rejected the BRFA cuts to community colleges, restoring the $40.4 million funding increase. These funds mean the community colleges will receive 27% of the financial support the state provides to the public 4-year institutions per FTE.**
    • The General Assembly also deleted the BRFA language that would have linked future community college funding with a fluctuating state annual general revenue fund.

Baltimore City Community College, calculated separately, was funded per formula and received a $2.9 million increase over last year, or 8.1%.


*BRFA = Budget Reconciliation & Finance Act. Maryland law requires a balanced budget, so the Governor often uses BRFA legislation to reduce expenses. “BRFA” (pronounced “burfa.”) can reduce state contributions toward many items including community colleges. BRFA cuts to community colleges often result in increased tuition and fees and reduced program availability.
**FTE = Full Time Equivalency - a way to measure different forms of student enrollment in higher education.

HB 173 / SB 433 - Higher Education Funding

Institutions of Higher Education -
Funding Formula Clarification

Sponsors: Delegate Jessica Feldmark (Baltimore & Howard Co.) and
Senator Nancy King (Montgomery Co.)


These bills (HB 173 / SB 433clarify that state appropriations calculated under the following formulas:

  • Senator John A. Cade Funding Formula for community colleges,
  • Baltimore City Community College (BCCC) funding formula, and
  • Joseph A. Sellinger funding formula for the MICUA* institutions of higher education

include all appropriations, regardless of where they are budgeted, designated for the general operation of four-year public institutions of higher education, including personnel-related appropriations.
 
This legislation was amended to include MICUA institutions and to provide additional funding in FY23 - FY25 for the University of Maryland School of Medicine to provide specialized clinical care at rural hospitals. 
This bill will take effect July 1, 2021.


*MICUA = Maryland Independent College and University Association

HB 590 - Capital Budget
Capital Budget
Every year the community colleges' capital funding request follows the same process, and it starts years before the formal request is made.
  1. Colleges work at the county level to build support for capital project local matching funds. 
  2. Projects are prioritized in accordance with a formula established by the community college presidents, known as the MACC Prioritization List.
  3. Colleges submit a consolidated capital request to the General Assembly via MHEC.*
The MACC Capital Prioritization List for FY22 included 15 projects totaling $115.2 million. However, Governor's FY22 capital budget (HB 590) reduced the MACC request to $75.9, funding 11 projects and pre-authorized funding of $64.7 million for future year capital projects.

MHEC* = Maryland Higher Education Commission
Facilities Renewal Grant 
Facilities Renewal Grant
 
The community college Facilities Renewal Grant program was enacted in 2018. This grant program is related to, but separate from, the community college Capital Construction Grant. The Facilities Renewal Grant value is 5% of the Capital Construction Grant program.
In alternating years Renewal Grant monies are made available to 8 of the 16 colleges. The funds are capped at $500,000/college, so the total is no more than $4 million/year.
 
During FY20, due to pandemic-related projected budget shortfalls, the Board of Public Works (BPW) rescinded unspent funds in the program plus all funding for FY21.
These budget cuts left several colleges without the necessary funds for already contracted maintenance projects. MACC worked to obtain reinstatement of the funds in the FY22 budget. 

The resulting FY22 Facilities Renewal Grant allocates:
  • $6.8 million to cover cuts to the program during FY20 and FY21, and
  • $3.8 million for maintenance projects in the FY22 budget.
HB  460 / SB 886 – Transfer with Success Act
Transfer Success 
Sponsors: Delegate Jared Solomon (Montgomery Co.) and
Senator Sarah Elfreth (Anne Arundel Co.)

HB 460 / SB 886 require accountability for denied transfer credit and courses. MHEC* will be compelled to require a public institution of higher education that denies transfer of credit(s) or course(s) to an enrolled student to notify:
  • the sending public institution, and
  • the enrolled student,
as specified, including the rationale for the denial. The transfer coordinator or institutional designee of the sending institution must conduct a review, in conjunction with the receiving institution’s designee, within a time period MHEC determines appropriate.
 
Institutions of higher education must also submit an annual report to MHEC listing any denials of transfer of a credit or a course and the reasons for the denials. 
This bill takes effect July 1, 2021.


*MHEC = Maryland Higher Education Commission 
SB 664 - Financial Aid Outreach

Financial Aid – Outreach Plan and Reporting
Sponsor: Senator Arthur Ellis (Charles Co.)

Many students don't pursue college or career training after high school incorrectly thinking they can't afford it. SB 664 should increase awareness of federal and state financial aid available to Maryland high school students. 

College or career training after high school is increasingly important as low- and no-skill jobs shrink in the workforce. 

This legislation requires financial aid outreach programs be conducted by each county board of education to encourage and assist as many high school seniors as possible in completing and submitting a FAFSA* or MSFAA** before the March 1 financial aid deadline. 
This bill takes effect July 1, 2021.


*FAFSA = Free Application for Federal Student Aid
**MSFAA = Maryland Student Financial Aid Application

Broadband Enhancement - 2 bills
HB 97 / SB 66 
Sponsor: Delegate Brooke Lierman (Baltimore City) and
Senator Sarah Elfreth (Anne Arundel Co.) with support from MACo*

The purpose of this emergency legislation is to ensure that every Maryland resident is supported in the adoption of reliable, universal, high-quality broadband internet service at an affordable price, and has the tools necessary to use the internet and access resources.
 
The legislation establishes new offices with expanded responsibilities and requires the Governor to budget sufficient grant funds for local governments and nonprofits to increase access to high-speed Internet and to assist in developing affordable broadband Internet infrastructure.
 
Some of the provisions pertain directly to community colleges: “Collaborate with local education agencies and community colleges to ensure that students have the ability to connect to broadband internet that allows for full engagement in remote learning without disruptive lagging and periodic disconnection.”
 
This is emergency legislation that takes effect upon enactment, and terminates June 30, 2030.

*MACo = Maryland Association of Counties
HB 1328 / SB 824 - Building Out Broadband Act of 2021
Sponsor: Delegate Jessica Feldmark (Baltimore & Howard Co.) and
Senator Katie Hester (Carroll & Howard Co.)
 
This legislation creates requirements to encourage broadband development through new regulations, fee collection, fund creation, revised practices, revised policies and federal funds access. 
This legislation is effective July 1, 2021.
SB 308 - CC Promise Eligibility
Amendments to Community College Promise program

SB 308 removes the the GPA requirement for Community College Promise (CCP) first-time applicants who graduated high school 5+ years before applying for the CCP. 
These changes will take effect on July 1, 2021.
SB 787 – Digital Advertising Tax
Digital Advertising Tax - Amended 
Sponsor: Senator Bill Ferguson (Baltimore City) 

SB 787 was amended to exempt online education delivered by a public or private educational institution from being considered a taxable digital product. Concern that online educational services could be taxed arose after the General Assembly's override of the Governor's veto of HB 932, the 2020 digital tax legislation.

In response to this concern, a coalition quickly formed led by Delegate Eric Luedtke (Montgomery Co.), who worked with MACC to offer amendments. These amendments ensured there would be no tax charged for online education or other digital services utilized by students. 
This is emergency legislation and takes effect upon enactment.
HB 894 / SB 746 - Collective Bargaining
Collective Bargaining will be covered in depth in the next
"In A Crab Shell."
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ICYMI (in case you missed it) earlier versions of In A Crab Shell can be found here
 

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