Supplemental Budgets Fund Addiction Treatment, Law Enforcement, Relief to Schools
As this year’s budget process nears its conclusion, Gov. Hogan has released two supplemental budgets to address needs not covered by his original January proposal. The first supplement included new funding for law enforcement equipment and technology projects, measures to address the opioid addiction crisis, and resolving other issues that have come up during legislative review of the governor’s budget proposal. The second included additional funding for schools in Baltimore City and 10 other districts where declining enrollment and long-term underinvestment have caused funding shortfalls. Together, the two supplements include $95 million in new spending.
The first supplemental budget includes $31 million in new spending authority for fiscal year 2018, which begins July 1. The largest piece is a $10 million payment into the newly created Opioid Crisis Fund, the first installment in a five-year plan the governor announced earlier this month that aims to address growing problems with overdoses and addiction to heroin and prescription opiates. Another $9 million will fund law enforcement-related equipment and technology projects—$7 million in IT projects and $2 million for equipment to assist the Baltimore City Police Department in complying with the federal consent decree that resulted from the Justice Department review of city police following the death of Freddie Gray. Smaller funding bumps would go toward conservation, economic development, and community colleges. This supplement also added funding for the current fiscal year to cover higher-than-anticipated costs as well as lower-than-expected gambling revenue.
The second supplemental budget added $28 million for fiscal year 2018 to be distributed to 11 school districts where student enrollment is declining. This funding is necessary partly because many of the fixed costs schools face—such as maintaining school buildings—do not go away when enrollment falls. Most of the funding authorized by the second supplemental budget would go to Baltimore City schools, where a $130 million deficit jeopardizes up to 1,000 jobs, including teachers. Districts in western Maryland and on the Eastern Shore also receive significant additional funding.
The supplemental funding for schools was released as part of a deal in which legislative leaders agreed to pass a modified version of the manufacturing tax break package Gov. Hogan proposed at the start of this year’s legislative session. The state has also made an agreement with Baltimore City in which they would together contribute an additional $60 million in state and local dollars to Baltimore schools in each of the next three years. The school system must also undergo additional annual audits of its financial management.
The additional school funding contained in the supplemental budget meets an urgent short-term need, and the General Assembly should approve it. At the same time, significant problems remain in Maryland’s school funding system, which the Department of Legislative Services has reported is currently underfunded to the tune of $1 billion per year. Making matters worse, a recent MDCEP report found that this underinvestment falls hardest on the districts with the greatest needs. Ultimately, a comprehensive solution is needed to ensure that students in every part of Maryland can obtain a first-rate public education.
