Effect of the 2021 Legislative Program on the Financial Condition of the State
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Effect of the 2021 Legislative Program on the Financial Condition of the State DEPARTMENT OF LEGISLATIVE SERVICES 2021 Effect of the 2021 Legislative Program on the Financial Condition of the State Department of Legislative Services Office of Policy Analysis Annapolis, Maryland July 2021 For further information concerning this document contact: Library and Information Services Office of Policy Analysis Department of Legislative Services 90 State Circle Annapolis, Maryland 21401 Baltimore Area: 410-946-5400 ● Washington Area: 301-970-5400 Other Areas: 1-800-492-7122, Extension 5400 TTY: 410-946-5401 ● 301-970-5401 TTY users may also use the Maryland Relay Service to contact the General Assembly. E-mail: [email protected] Home Page: http://mgaleg.maryland.gov The Department of Legislative Services does not discriminate on the basis of age, ancestry, color, creed, marital status, national origin, race, religion, gender, gender identity, sexual orientation, or disability in the admission or access to its programs, services, or activities. The Department’s Information Officer has been designated to coordinate compliance with the nondiscrimination requirements contained in Section 35.107 of the Department of Justice Regulations. Requests for assistance should be directed to the Information Officer at the telephone numbers shown above. ii DEPARTMENT OF LEGISLATIVE SERVICES OFFICE OF POLICY ANALYSIS MARYLAND GENERAL ASSEMBLY Victoria L. Gruber Ryan Bishop Executive Director Director July 2021 The Honorable Bill Ferguson, President of the Senate The Honorable Adrienne A. Jones, Speaker of the House of Delegates Members of the Maryland General Assembly Ladies and Gentlemen: State law requires the Department of Legislative Services to annually prepare a report that summarizes the effect of the preceding legislative program on State and local governments. In accordance with this requirement, we are pleased to submit the following report, Effect of the 2021 Legislative Program on the Financial Condition of the State. This document is divided into five chapters. Chapter 1 highlights the major components of the fiscal 2022 operating budget (House Bill 588/Chapter 357). Chapter 2 summarizes the fiscal 2022 capital budget program, including the 2021 capital budget bill (House Bill 590/Chapter 63). Chapter 3 identifies enacted legislation from the 2021 session other than House Bill 588 and House Bill 590 that affects State revenues or expenditures. The revenue and expenditure effects of the legislation are summarized, as are the number of regular and contractual positions required to implement the legislation. Chapter 4 identifies enacted legislation from the 2021 session that affects local governments. This chapter also identifies State mandates on units of local government and provides an overview of State aid to local governments. Chapter 5 identifies 2021 bills vetoed by the Governor for policy reasons and the bills’ associated fiscal impact if they had been enacted. Legislative Services Building •90 State Circle • Annapolis, Maryland 21401-1991 410-946-5500 • FAX 410-946-5508 • TDD 410-946-5501 301-970-5500 • FAX 301-970-5508 • TDD 301-970-5401 Other areas in Maryland 1-800-492-7122 iii The Honorable Bill Ferguson, President of the Senate The Honorable Adrienne A. Jones, Speaker of the House of Delegates Members of the Maryland General Assembly July 2021 Page 2 This report is prepared by the staff of the Office of Policy Analysis. Jennifer Botts, Richard Duncan, Scott Gates, Ria Hartlein, Matthew Klein, Heather MacDonagh, Steven McCulloch, April Noren, Simon Powell, Rebecca Ruff, and Tonya Zimmerman each contributed to the content or editing of the report. The work was coordinated by Elizabeth Allison and reviewed by David Romans. We trust this report will be a useful source of information for you. If you have any questions concerning its contents, please do not hesitate to contact us. Sincerely, Victoria L. Gruber Ryan Bishop Executive Director Director VLG:RB/ajn iv Contents Transmittal Letter ......................................................................................................................... iii Abbreviations ............................................................................................................................... vii Fiscal Effects of the 2021 Legislative Program ........................................................................... 1 Chapter 1. Operating Budget.................................................................................................... 5 Overview .................................................................................................................................. 7 Legislative Consideration of the Budget .................................................................................. 9 Outlook for Future Budgets ...................................................................................................... 1 4 Budget Reconciliation and Financing Act ............................................................................... 1 8 Selected Budgetary Initiatives and Enhancements ................................................................... 22 By the Numbers ........................................................................................................................ 30 Chapter 2. State Capital Program ............................................................................................ 43 Fiscal 2022 Capital Program .................................................................................................... 45 Higher Education ...................................................................................................................... 9 2 Public School Construction ...................................................................................................... 9 3 Transfer Tax Funded and Other Environmental Programs ...................................................... 96 Chapter 3. Impact of Legislation on State Revenues and Expenditures ..............................101 Legislation Affecting State Revenues ......................................................................................103 Totals by Fund Type/Summary of Quantifiable Revenue Effects ...........................................123 Legislation Affecting State Expenditures ................................................................................124 Quantifiable Expenditures by Agency .....................................................................................1 67 Totals by Fund Type/Summary of Quantifiable Expenditure Effects ......................................172 Quantifiable Regular Positions Needed by Agency .................................................................1 73 Quantifiable Contractual Positions Needed by Agency ...........................................................1 75 v Chapter 4. Local Government .................................................................................................. 177 State Aid to Local Governments ..............................................................................................179 Summary of State Mandates .....................................................................................................199 Legislation Affecting Local Government Revenues ................................................................200 Legislation Affecting All/Multiple Local Jurisdictions ..................................................... 200 Legislation Affecting Local Governments by Subdivision ............................................... 207 Allegany County .............................................................................................................207 Anne Arundel County .....................................................................................................207 Baltimore City ................................................................................................................208 Baltimore County ...........................................................................................................208 Calvert County ................................................................................................................209 Carroll County ................................................................................................................209 Charles County ...............................................................................................................209 Frederick County ............................................................................................................209 Harford County ...............................................................................................................209 Howard County ..............................................................................................................210 Montgomery County ......................................................................................................210 Prince George’s County .................................................................................................210 St. Mary’s County ..........................................................................................................211 Washington County ........................................................................................................211 Wicomico County ...........................................................................................................212 Legislation