On February 28, 2024, Executive Director Michael Sanderson testified before the House Appropriations Committee in support of HB 909- Education- Local Share of Major Education Aid- Nonrecurring Costs Exclusion. This bill adds a second, later deadline for school systems to apply for nonrecurring cost waivers for one-time expenses to better align with the county government budget cycle.
Currently, in order for school systems to receive a waiver for one-time investments and nonrecurring costs, they have to apply to the state by March 31. These one-time expenses that the county and school system agree shouldn't perpetually be baked into the annual base school funding requirements (things like laptops, or CTE equipment, or a recent example: PPE during COVID).
That March 31 deadline is several months ahead of when most counties finish their budgets, and before they might know that, they have some extra funds in that year's budget for these kinds of one-time expenses. In HB 909, counties are asking for the State to consider a second date – June 1 -- closer to when counties have wrapped or are close to wrapping their budget processes as a second opportunity to file those exemption waivers.
From MACo Testimony:
This current process means that counties are potentially leaving money on the table that could otherwise go to Maryland schools. HB 909 seeks to remedy that by adding a second waiver application on June 1. Importantly, the bill does not replace or remove the March 31 deadline but simply adds a second, later deadline so counties and schools who agree upon a one-time set-aside may do so later in the budget process, once the full picture of the county budget is clearer.
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