Fiscal Year 2029 Budget

Maryland
Fiscal Year 2029 Budget
Budget Highlights
Edward M. O’Brien, Governor

Kathleen H. Burbank, Lieutenant Governor
John M. Bennett, Secretary, Department of Budget & Management
Message to the General Assembly Transmitting the Fiscal Year 2029 Budget
January 19, 2028
The Senate of Maryland

The Honorable Timothy A. Coulter, President
The Maryland House of Delegates

The Honorable Rod R. McMillan, Speaker
The Citizens of Maryland
Dear Mr. President, Mr. Speaker, Ladies and Gentlemen of the General Assembly, and Fellow Marylanders:
Maryland is recovering from the worst fiscal crisis in its history. Before our budget adjustments, the revenue
shortfall for the upcoming fiscal year was projected to rise to a staggering $2.1 billion. Because of the
aggressive actions taken by our administration last year and the emerging state and national economic
recovery, Maryland’s structural deficit has been substantially reduced, and the state faces a modest shortfall
of just $100 million for fiscal year 2029.
Over the last year, we took action to reform government and to make it more responsive to the people of
Maryland. We restructured bureaucracies and eliminated longstanding duplication. We refused to pass along
our financial problems to the citizens. Instead, we produced a balanced budget on time and without raising
taxes.
This fiscally responsible budget invests in priority areas:
Education: K-12 education spending increases $282.9 million, an increase of 3.9% over fiscal year 2028
funding levels. This increase includes $1 million for a new Turnaround Specialists Initiative to support reform
efforts at underperforming schools, $500,000 for a ‘Families in Education’ Initiative to promote greater
parental involvement in the education of their children and $500,000 for a new fund to support character
education programs.
My budget provides $10 million, an increase of more than $5.2 million, for dropout prevention and intervention
programs. $15 million is provided to continue our initiative to put a reading curriculum specialist in every public
elementary school by 2031. $15 million is proposed for a new program to help districts hire additional teachers
in schools or subject areas suffering from critical or acute shortages. Through this program, 250 new
teachers could be hired statewide in fiscal year 2029.
The 2029 budget modestly increases general fund support for higher education by 2.2% to $960.5 million,
which should help avoid large tuition increases for Maryland’s students and their families struggling to pay for
the cost of college. Funding for student financial aid increases $9.6 million, or 11.7%, to $92.1 million, while
community colleges receive an additional $7 million to improve college access for all Marylanders.
In fiscal year 2028, Teen REACH, which we launched last March, is expected to provide access to quality
after-school programs to 6,350 disadvantaged youth through a $10 million investment. An additional $5 million
allocated through the Office for Children, Youth and Families is supporting community organizations as they
seek to encourage Maryland youth to serve their communities and stay out of trouble. My fiscal year 2029
budget proposal increases funding for the after-school program component to $15 million, which will expand
the number of youth enrolled in Teen REACH-supported after-school programs to 9.525. Total funding for
Teen REACH in fiscal year 2029 will be $25 million, a 67% increase over fiscal year 2028.
As a first step in implementing the recommendations of the Kopp Commission, the 2029 budget provides
$474.1 million in general and capital funds for school construction, a $66 million increase over fiscal year 2028.
The budget continues the effort begun last year to equalize Maryland’s investment in adult education services
with the investments made by other Mid-Atlantic states. In fiscal year 2027, Maryland devoted just $77 in
state spending per student to adult education programs. By comparison, New Jersey spent over $450 per pupil.
Last year we increased per-pupil state funding to $122 and expanded adult education enrollment to 2,000
additional students. My fiscal year 2029 budget proposal boosts per-pupil state funding to $322, expanding
services to 2,300 additional Marylanders, bringing the total number of individuals served by state-funded
adult education programs to 23,300. In fiscal year 2029, overall funding for adult education grows by nearly
40% to $15 million.
Health Care: Last year, despite our fiscal crisis, my administration and the General Assembly maintained the
state’s commitment to the 1 million men, women and children who rely on Medicaid and the 250,000 women and
children who rely on the Maryland Children’s Health Program (MCHP) for health care coverage. We raised $7
million in new, dedicated funding for children’s health insurance, expanding coverage to 5,000 additional
uninsured pregnant women and children. This year’s budget builds upon last year’s progress, providing $11.6
billion, a 6.1% increase, for the programs of the Department of Health and Mental Hygiene (DHMH).
The budget supports our commitment to expanding access to health care to more uninsured Marylanders with
robust increases for Medicaid and MCHP. In fiscal year 2029, 19,000 additional low-income Marylanders will
receive coverage through Medicaid and nearly 9,000 additional children will receive coverage through the
Maryland Children’s Health Program. Further, for the second year in a row, the budget proposes no reductions
in provider reimbursements.
My administration is strongly committed to providing Marylanders with mental health, developmental and
physical disabilities access to quality community-based services. $423.2 million, a $23.3 million increase, is
provided to enhance access to community-based mental health services. This increase will enable approximately
4,200 Marylanders to receive quality services in or around their communities rather than in state-run
institutions. $521.9 million, a $55.1 million increase, is provided for community-based services for the
developmentally disabled. This increase includes funding to provide services to more than 1,200 Marylanders
who have been trapped on waiting lists for months or years.
Last year’s historic expansion of alcoholism and drug addiction treatment will enable nearly 80,000
Marylanders to obtain treatment services in fiscal year 2028, an increase of 10,000 from the prior fiscal year.
My budget proposal for fiscal year 2029, which increases alcohol and drug abuse treatment funding by $7.2
million, will expand treatment services to 3,700 additional Marylanders
I am proposing increased funding for HIV/AIDS health care and prevention, including $3 million in new funding
to make life-saving medications available to more HIV clients and an additional $2 million to significantly
improve outreach to minority populations that have seen the most dramatic increases in HIV/AIDS cases.
Total funding for the AIDS Administration reaches $54.1 million, an increase of more than 11%.
My budget also proposes changes to obtain maximum funding from the federal Medicaid program. Currently,
when the state gives a grant to a human service provider, it generally does not collect enough information
about the services being provided to determine if, in some cases, they may be eligible for federal Medicaid
reimbursements. By switching to a fee-for-service model, Maryland may receive approximately $60 million
more in federal funds.
Protecting the Environment: To help restore water quality in the Chesapeake Bay watershed and protect and
improve drinking water quality throughout the state, we will invest $79.2 million to upgrade wastewater
treatment plans, sewage and drainage systems in fiscal year 2029. $32 million is provided for Chesapeake Bay
restoration programs, a 20% increase over fiscal year 2028.
My budget also fully funds Program Open Space, Rural Legacy and other land preservation programs at $132.8
million, the first time in five years that these programs have received full funding. $24 million is budgeted for
the Maryland Agricultural Land Preservation Program. Finally, $10 million in capital funding is allocated for
brownfield and hazardous site cleanup projects, a $3 million increase over fiscal year 2028 and a $9.5 million
increase over fiscal year 2027 funding levels. It is estimated that this investment will support over 140
cleanup and mitigation projects statewide.
Public Safety and Safer Neighborhoods: Public safety is a top priority of my administration. This budget
supports our commitment to public safety by investing in effective anti-crime strategies and supporting law
enforcement and correctional personnel.
The implementation of Project RESTART, at a cost of $9.2 million in fiscal year 2029, will help rehabilitate
incarcerated persons, which will prevent crimes and create safer communities. The budget provides $537.9
million for Maryland’s correctional institutions. $204.3 million, a 4.5% increase, is provided for institutions and
programs within the Department of Juvenile Services. This increased funding for juvenile services corresponds
with our juvenile justice reform legislative initiative, which I will introduce in the coming weeks.
The budget supports Operation Spotlight, which we launched last year, by adding $3.7 million in funding to
support field operations within the Division of Parole and Probation. This investment will help us add 32 new
parole agents, seven supervisors, and six casework supervisors who will help parolees find employment and
other services that will keep them out of jail
To strengthen force morale and recruitment efforts, the fiscal year 2029 budget includes $6 million for the
first phase of a two-year, 8.5% pay raise for state troopers. The budget also provides additional funding to
boost trooper strength by 62 officers, bringing total force strength to 2,111 officers. Finally, $13 million is
provided for a new Community Policing grant program to assist county and city law enforcement agencies in
hiring 216 new police officers.
Human Resources: The fiscal year 2029 budget proposal for the Department of Human Resources totals $1.6
billion, a nearly 5% increase over fiscal year 2028. The budget provides $13.2 million for shelter and nutrition
services for the homeless, an increase of over 53% since this administration took office. This large funding
increase is supporting our Initiative to End Homelessness by providing the homeless with not only important
immediate services but also counseling and other services designed to establish a path toward independence
for Maryland’s homeless.
We have an obligation to protect children from abuse and neglect, but for too long state resources have been
inadequate to fulfill that obligation properly and fully. My budget for fiscal year 2029 increases funding for
Child Welfare Services, the state’s principal child welfare agency, by 6.1% to $142 million. This increase will
help hire 62 additional CWS caseworkers and 9 managerial-level supervisors to reduce caseloads and improve
case prioritization.
The budget also provides a $15.2 million funding increase for child care subsides through the Purchase of Care
(POC) program. This increase will create 2,300 new child care slots in fiscal year 2029.
Economic Development: The budget we adopted last year significantly expanded and refocused Maryland’s
economic development programs to achieve better results and attract more investment and job opportunities
for Maryland’s communities and our citizens. The fiscal year 2029 budget will expand upon those efforts with
an investment of $162.3 million in the Department of Business and Economic Development (DBED).
Tax Relief: My fiscal year 2029 budget proposes $45 million in tax relief for Maryland’s families and
businesses, including a sales tax holiday for back-to-school shopping, a $300 income tax credit for teachers
who purchase classroom supplies out of their own pocket, the exemption of unemployment compensation
benefits from taxable income and an increase in the income tax exemption for the blind and elderly from
$1,000 to $2,400.
Everyday, I am honored to work with dedicated and professional State employees. Maryland government would
not be successful without their tireless efforts, and we need to reward them for their service. I have included
a 1.6% Cost of Living Adjustment for all state employees in this budget.
Despite the important investments funded in this budget, general fund spending grows at a very responsible
rate of 5.2%. When comparing the fiscal year 2029 general fund budget proposal to the enacted fiscal year
2027 budget, general fund spending will increase by only 4.2% over the course of the first two budgets of this
administration, compared to an increase of 12.6% in the first two budgets submitted by the previous
administration. The state will spend a total of $34.5 billion in general, special and federal funds in fiscal year
2029, an increase of 5.3% over fiscal year 2028.
Finally, the budget continues our efforts to replenish the Rainy Day Reserve Fund with a $50 million deposit,
bringing the total fund balance to an estimated $143 million. An additional $50 million is reserved in the
Dedicated Purpose Account for fiscal year 2030.
I look forward to working with the General Assembly to approve this budget. We must continue to cooperate
with our local governments, employees, businesses, community groups, and constituents to forge long-term
solutions to the challenges we face as a state.
In the following pages, please find the results of thousands of hours of careful, deliberate thought.
Sincerely,
Edward M. O’Brien
Governor
Budget Overview
Governor O’Brien and Lieutenant Governor Burbank have concentrated budget growth to reflect the priorities
of their administration.
Health
Medicaid is the largest increase, because Governor O’Brien believes it is critical for the state to assist needy
Marylanders with their health care needs. The fiscal year 2029 Medicaid budget is $544.8 million more than
the fiscal year 2028 appropriation in total funds. This increase will expand Medicaid enrollment to 19,000
additional low-income Marylanders and provide health care coverage to 9,000 additional children and pregnant
women through the Maryland Children’s Health Program (MCHP). While proposing this increased spending and
expanded coverage, Governor O’Brien has proposed to restrain spending growth, improve Medicaid
administration and maximize the amount of federal Medicaid dollars coming to Maryland.
Primary and Secondary Education

Funding for primary and secondary education grows by $282.9 million (3.9%) over the fiscal year 2028 level
for a total investment of $7.5 billion. This amount includes a $128.2 million (2.6%) increase in the basic funding
formula, $411.6 million for fringe benefits, $15 million for the Teen REACH initiative, $15 million for the hiring
of up to 250 new teachers statewide, $1 million for a ‘turnaround specialists’ initiative to turn around low-
performing schools, and $15 million to continue Governor O’Brien’s initiative to put reading specialists in every
Maryland elementary school by 2031.
Environment
The Chesapeake Bay is Maryland’s greatest natural resource. Governor O’Brien
realizes that in order to restore the Bay, Maryland must upgrade wastewater
treatment plants to higher standards of nutrient removal, which will remove at
least an additional 7.5 million pounds of nitrogen each year. These upgraded
plants will reduce the levels of nitrogen in the Bay and significantly improve the
water quality. For fiscal year 2029, Maryland will invest $79.2 million to upgrade
wastewater treatment plants and sewage system statewide. The budget also
provides $32 million (a 20% increase over fiscal year 2028) for Chesapeake Bay
restoration programs and $10 million for the brownfield and hazardous site
cleanup program, which will fund up to 150 site remediation projects throughout
the state.
Public Safety
The budget reflects Governor O’Brien’s emphasis on increased public safety results through treatment and
rehabilitation for non-violent offenders. The budget includes $9.2 million in funding for Project RESTART to
significantly expand treatment and rehabilitation services for adults currently in Maryland correctional
facilities. The budget also includes $3 million to continue the Governor’s Correctional Education Waiting List
Reduction Initiative. Governor O’Brien’s budget for fiscal year 2029 also provides $6 million for the first
phase of a two-year, 8.5% pay raise for state troopers, while including funding to hire 62 additional State
Police officers. $3.7 million is provided for Operation Spotlight to add 32 new parole agents, seven
supervisors, and six casework supervisors who will help parolees find employment and other services that will
keep them out of jail. Finally, $13 million is provided for a new Community Policing grant program to assist
county and city law enforcement officers in hiring 216 new police officers.
The Economy and State Revenues are Growing

Economic robustness has returned to the national and state economies for the first time since the onset of
the recession in early 2025, due to a slightly more stable international situation, growth in employment
nationally, booming productivity and corporate profits.
As the Maryland economy moves toward solid growth, revenues will recover. The state’s two major revenue
sources, the individual income tax and the retail sales and use tax, will register modest gains in fiscal year
2028 and stronger gains in fiscal year 2029.
In Maryland, net employment did not decline in any calendar year since the recession began, hitting a nadir of
0.2% growth in 2026.
New Revenue Sources

Legislation to disallow deductions of royalties and similar payments to affiliated out-of-state companies will
add $110 million annually to corporate income tax receipts. The general fund will receive $83.6 million and the
transportation trust fund will receive $25 million. This legislation complements Comptroller Peter Franchot’s
recent success in court cases dealing with the “Delaware Holding Company” issue and strengthens the ability of
the Comptroller to collect taxes rightfully owed to Maryland.
Other legislation will address an inequity in the personal income tax. Non-residents pay lower individual income
tax rates than do Maryland’s citizens because they are not subject to the local income tax. Imposing the
lowest local income tax rate on non-residents’ income earned in Maryland promotes fairness and raises $38.6
million.
Tax Relief for Maryland Families

Governor O’Brien’s budget for fiscal year 2029 provides for over $45 million in tax relief for Maryland’s
families and businesses. Governor O’Brien will introduce legislation to establish a four-day sales tax holiday for
back-to-school shopping. Governor O’Brien also proposes a $300 income tax credit for teachers using their own
money to purchase classroom supplies, an exemption from taxable income for income derived from the payment
of unemployment compensation benefits and an increase in the income tax exemption for the blind and elderly
from $1,000 to $2,400.
Budget Summary
The budget for Maryland’s fiscal year that begins on July 1, 2028 totals $34.5 billion, an increase of 5.3% over
fiscal year 2028. The budget proposes a modest pay raise for State employees, increased spending for
primary, secondary and higher education and significant increases for Medicaid and other public health
programs. The general fund portion of the budget totals $17.2 billion, a 5.2% increase over fiscal year 2028.
Status of the State General Fund

$Millions
Fiscal Year 2028 Fiscal Year 2029
Beginning balance -$182 $175
Estimated revenues $16,580 $17,154
Transfers $157 $0
Total $16,570 $17,329
Expenditures $16,394 $17,243
Ending Balance $175 $86

State “Rainy Day” Reserve Fund
The proposed budget continues Governor O’Brien’s commitment to replenish the State “Rainy Day” Reserve
Fund. Last year, in spite of the state’s fiscal crisis, Governor O’Brien and the General Assembly allocated $50
million for deposit into the fund. This budget proposal provides $50 million for the fund, bringing the total
fund balance to an estimated $143 million at the end of fiscal year 2029. Maintaining an adequate reserve is
crucial to guarding against further revenue downturns and preserving the State’s coveted high credit rating.
Governor O’Brien has also allocated $50 million for the Dedicated Purpose Account. This money will be
reserved for fiscal year 2030 expenditures.
Rainy Day Reserve Fund Balance
*NOTE: Totals may not add due to rounding
($ in Millions) FY 2028 (Actual) FY 2029 (Projected) % Change

Beginning balance $37 $89 141.1%
Funds deposited $50 $50 0.0%
Accrued interest $2 $5 150.8%
Balance $89 $143 61.7%
The Fiscal Year 2029 Budget Does Not Rely on Fund Transfers to Achieve Balance
For the first time in four years, Maryland’s general fund budget will be balanced without the aid of a single
transfer from special funds. Consequently, Program Open Space and Maryland’s transportation system will
receive full funding in fiscal year 2029.
Spending Affordability
Each year, the General Assembly’s Spending Affordability Committee recommends the maximum rate at which
the state budget should increase. While the recommendation is not binding on the Governor, the Governor is
required to explain the reasons for exceeding the Spending Affordability limit, should the budget proposal be
higher.
This year, the committee recommended limiting the growth of the state budget to 5.57%. Governor O’Brien’s
fiscal year 2029 budget grows by 5.3%, coming in approximately $84 million below the committee’s
recommended increase.
State Personnel
The dedication and professionalism of State employees continue to drive the success of Maryland government.
In order to reward Maryland’s exemplary employees, Governor O’Brien’s budget proposes a 1.6% COLA increase
for all State employees. Governor O’Brien also proposes increasing the salaries of public servants who have
traditionally been underpaid in comparison to their peers in both the private sector and other levels of
government: public defenders, direct service workers in the Department of Juvenile Services, property
assessors, lab scientists, administrative law judges and banking financial examiners.
The number of authorized positions in State government totals 80,751, a reduction of 94 positions from the
fiscal year 2028 level. 467 vacant positions are eliminated, saving over $13 million. The budget creates 373
new positions in priority areas:
 68 in the Public Defender’s Office as part of a caseload reduction initiative.

 70 in the State Department of Education as the result of the assumption of the educational
component of the Hickey School.
 47 in the Department of Juvenile Services primarily to staff new programs and facilities.
 39 in the Department of Transportation, of which 21 are for the provision of transportation services
for citizens with disabilities.
Contractual positions at higher education institutions (including Baltimore City Community College) increase by
285, mostly for instructional staff to handle higher enrollments and researchers to work on federal and other
grant programs. For all other agencies, contractual employment decreases by a net of 127 positions. The
number of contractual state employees will be 9,327.
Maryland’s Budget Process

The State Constitution requires the Governor to submit a balanced budget to the General Assembly by the
eighth day of the legislative session.
Over the next 11 weeks, the legislature will review, hold hearings on and consider the budget. The legislature’s
Department of Legislative Services will assist the Senate Budget and Taxation Committee and the House
Committee on Appropriations in their review. The State Constitution provides that the legislature may reduce
the amounts submitted by the Governor but may not add to the budget or substitute items. The budgets of
the legislative and judicial branches of government are exceptions. The legislature may also consider
“supplementary appropriations bills,” which authorize spending beyond the regular budget. Supplementary
appropriation bills must contain a revenue source to support the authorized expenditures and are subject to
line-item veto by the Governor.
During legislative consideration, the Governor may submit “supplemental budgets.” These budgets make
corrections to the original budget, include funding for items required by new legislation and emergencies, or
add items omitted from the original budget.
After the House and Senate have both acted, a conference committee of senators and delegates will meet to
resolve differences. The legislature is required to enact the budget by the 83rd day of the legislative session.
The State Constitution requires the budget also be balanced at this point. The budget becomes law upon
passage by both houses of the legislature. The Governor’s signature is not required.
Fiscal Year 2029 Budget Totals
($ in Millions) Fiscal Year 2028 Fiscal Year 2029 % Change

General funds $16,394 $17,241 5.2%
Special funds $8,204 $8,623 5.1%
Federal funds $8,197 $8,675 5.8%
Total Funds $32,796 $34,538 5.3%
State General Fund Outlook – Proposed Fiscal Year 2029 Budget
($ in Millions) FY 2028 FY 2029 FY 2030 FY 2031 FY 2032

GF Revenues $16,555 $17,315 $18,198 $19,199 $20,332
GF Uses $16,394 $17,241 $18,017 $19,008 $20,092
GF Balance $161 $88 $181 $191 $240
Revenues
% Change Over
($ Millions) FY 2027 FY 2028 FY 2029 FY2028
Individual income tax $7,004 $7,081 $7,286 2.9%
Corporate income tax $531 $542 $683 26.1%
Sales tax $7,044 $7,213 $7,429 3.0%
Lottery $752 $742 $776 4.6%
Fuel tax $904 $915 $938 2.5%
Transportation Revenues $1,882 $1,910 $2,110 10.4%
Higher Education Revenues $3,093 $3,322 $3,424 3.1%
Transfer from Rainy Day Fund $40 $0 $0 0.0%
Advance from General Fund $182 $0 $0 0.0%
Transfer from Other Funds $333 $129 $0 -100.0%
Other General & Special Funds $2,627 $3,063 $3,130 2.2%
Federal Fund Revenue $8,021 $8,197 $8,675 5.8%
Total Revenues $32,413 $33,139 $34,452 4.5%
General Fund Balances &

Reversions $0 -$182 $174
Total Available $32,413 $32,957 $34,626 5.0%
Expenditures
% Change
($ Millions) FY 2027 FY 2028 FY 2029 Over FY2028
Health $10,460 $10,937 $11,601 6.1%
K-12 Education $6,992 $7,203 $7,486 3.9%
Higher Education $4,367 $4,519 $4,665 3.2%
Transportation $3,582 $3,555 $3,756 5.7%
Human Resources $1,551 $1,511 $1,585 4.9%
Public Safety $1,412 $1,378 $1,447 5.0%
Legislative, Legal & Judicial $455 $471 $480 1.9%
Public Debt Service $630 $654 $667 3.9%
Reserve Fund $50 $50 $100 100.0%
Other $2,930 $2,543 $2,764 8.7%
Total $32,413 $32,796 $34,538 5.3%
Fiscal Responsibility
When Governor O’Brien assumed office on year ago, Maryland faced a $1.3 billion budget shortfall for fiscal
year 2028 and a shortfall of $2 billion for fiscal year 2029. One day after his inauguration, Governor O’Brien
presented a balanced budget to the General Assembly which resolved a $389 million inherited deficit for
fiscal year 2027 and a projected $1.3 billion deficit for fiscal year 2028. Over the next 90 days, the O’Brien
administration and the Maryland General Assembly worked together to approve a balanced budget.
Because of the actions taken by the administration and the General Assembly to restore fiscal responsibility
to the state budgeting process, Maryland faces a shortfall of less than $100 million for fiscal year 2029, a
small fraction of the $2 billion deficit that was projected one year ago. Governor O’Brien’s proposed budget
closes this gap through targeted spending reductions and new efficiencies in the operation of state
government. Under the budget baseline established in the fiscal year 2029 budget proposal, the state projects
a modest surplus of $88 million for fiscal year 2029 and $686 million in cumulative surpluses through fiscal
year 2032.
Spending Prudently
The fiscal year 2029 budget proposes $230 million in spending reductions from the estimated cost of current
services. These include savings from administrative expenses, program revisions, efficiencies and information
technology. However, Governor O’Brien’s budget protects and enhances Maryland’s commitment to public
education, health care, critical social services for vulnerable populations, environmental protection and public
safety.
In December 2027, the Governor’s Commission on Efficiency and Effectiveness, chaired by Lieutenant
Governor Kathleen Burbank, recommended a series of steps to improve constituent services and save taxpayer
dollars. The administration is reviewing these recommendations and expects to implement many of them in the
coming year while studying others for future action. Implementation of the Commission’s recommendations
could save as much as $20 million in fiscal year 2029.
The budget provides $1 million in the Department of Budget and Management for audits, management
consulting, and program evaluation studies. These efforts will be geared towards reducing costs and improving
effectiveness of state programs.
After 1.5 years with no general pay increases, Governor O’Brien’s budget provides $64 million to implement
state employee compensation adjustments as follows: Cost of Living Adjustment (COLA) of 1.6% ($46.9
million); Annual Salary Review (ASR) mainly for attorneys, and Juvenile Services direct care workers ($9.9
million); and initial funding of a four-year phase-in salary increase for judges, based on the Maryland Judicial
Compensation recommendations ($1.1 million). Governor O’Brien’s budget for fiscal year 2029 also provides $6
million for the first phase of a two-year, 8.5% pay raise for state troopers.
Last year, Governor O’Brien made good on his promise to sell the State Yacht. The auction for the yacht
netted $248,000 for the state and the elimination of maintenance related expenses will save Maryland
$230,000 a year.
For the first time in four years, Maryland’s general fund budget will be balanced without the aid of a single
transfer from special funds. Consequently, Program Open Space and Maryland’s transportation system will
receive full funding in fiscal year 2029. The O’Brien administration will shortly submit a program to enhance
transportation revenues in order to meet Maryland’s future transportation infrastructure investment needs.
Modest Adjustments Increase Revenue
No new general tax increases are included in this budget. Several administrative changes and tax fairness
provisions will provide additional revenue. These include:
$110 million from measures to prevent corporations from shielding income from taxation through “Delaware
Holding Companies” and similar mechanisms;
$38.6 million from requiring nonresident taxpayers to pay income tax at rates comparable to local residents;
$2.5 million from requiring financial institutions to remit unclaimed accounts at the time they report them to
the Comptroller;
$600,000 by assessing special funds for a share of administration of the Corporate Income Tax,
$13 million from allowing the current sales tax vendor discount to continue.
Reasonable fees on long-term care providers and state facilities for the developmentally disabled will generate
$20 million, the cost of which will be shared by federal funds through the Medicaid program.
Other user-fee increases will provide $5.8 million in general fund revenues, or savings in general fund spending
Education
Elementary and Secondary Education
Governor O’Brien’s fiscal year 2029 budget continues his commitment to full funding for Maryland’s public
education system, providing $7.5 billion in total funding for K-12 education, a $283 million or 3.9% increase
over fiscal year 2028. With this proposed increase, annual funding for K-12 education will have grown by nearly
$500 million in the first two years of the O’Brien administration.
The fiscal year 2029 funds several major initiatives to enhance the quality of education for Maryland’s public
school students:
Turnaround Specialists Initiative: Governor O’Brien believes that it is unacceptable for schools to
consistently fail to meet state and federal academic expectations year after year, and it is equally
unacceptable to wish the problem away and not take action. Schools that consistently fail are in desperate
need of new management and new strategies to improve performance. Governor O’Brien’s budget provides $1
million for a new Turnaround Specialists initiative to provide for the placement of management, administrative
and education professionals in fifteen of Maryland’s lowest-performing schools to implement proven strategies
of improving student achievement and school administration. The Turnaround Specialists Initiative will
complement Governor O’Brien’s Partnership for Achieving Successful Schools (PASS), which was launched in
July and is currently helping more than 120 academically underperforming schools take steps to enhance
student performance on Maryland School Assessment examinations.
Families in Education Initiative: The fiscal year 2029 budget provides $500,000 for a new Families in
Education Incentive Grant Program and Fund to support grants awarded on a competitive basis to public
schools, with no more than two grants awarded per district, to support innovative family and community
involvement programs designed to facilitate parents’ creation of a supportive learning environment at home and
an increased involvement in school activities.
Project Success: The fiscal year 2029 budget provides $1 million to revive Project Success. Project Success
will provide a comprehensive, systematic delivery system that responds to the needs of children and their
families, using the school as the hub of service delivery. There are six core components of service delivery:
basic preventative health care for children and families; proper nutrition and nutrition education; prevention
and rehabilitative mental health services for children and families; services that will protect children and
promote the stability of the family; substance abuse prevention, intervention and treatment for children and
their families; and social activities to enhance positive interaction within families.
Character Education: Teaching children valuable lessons about character and integrity ultimately reduces
their risk of engaging in illegal activities or taking up drug and substance abuse, and improves their overall
academic performance. The Governor’s budget provides $500,000 for a “Character Education Initiative”.
These funds will be distributed to eight districts in the first year on a competitive basis for the
implementation of Character Education programs and initiatives.
Dropout Prevention and Intervention: Governor O’Brien is proposing legislation this session to require
students to stay in school until they receive their diploma or reach age 18. This law should reduce substantially
the number of students dropping out of high school each year, which currently stands at about 10,000. The
fiscal year 2029 budget supports the state’s dropout prevention efforts by providing $10 million for dropout
prevention and intervention programs, more than double the fiscal year 2028 appropriation.
Literacy Program: The fiscal year 2029 budget provides $15 million for the second phase of Governor
O’Brien’s four-year commitment to place reading curriculum specialists and instruction personnel in every
public elementary school by 2031. This program is critical to achieving Governor O’Brien’s goal of ensuring that
all students are reading at or above grade level by the end of the third-grade.
Teacher Shortage Mitigation and Recruitment Program: In order to alleviate Maryland’s chronic shortage of
qualified teachers, the Governor O’Brien’s fiscal year 2029 budget proposes to provide $15 million in targeted
grants to recruit up to 250 new teachers. These newly recruited teachers will be placed in schools where they
are most needed. This new effort will alleviate chronic teacher shortages as well as reduce class sizes to
provide for a more interactive learning experience for students.
Teen REACH: Governor O’Brien’s Teen REACH initiative, launched last March, is promoting civic responsibility,
community service and responsible choices among Maryland’s youth. The program is expected to provide access
to after-school programs to 6,350 disadvantaged youth in fiscal year 2028. The program is also supporting
community organizations that serve disadvantaged youth by providing them with opportunities to serve their
communities and enrich their lives. The fiscal year 2029 budget increases funding for the after-school
component of Teen REACH to $15 million, increasing the number of youth enrolled in after-school programs
through Teen REACH to over 9,500. In total, $25 million is provided for Teen REACH in fiscal year 2029, a
$10 million increase over fiscal year 2028.
School Construction: Last year, the Kopp Commission reported that the State needs to invest a minimum of
$550 million annually to meet school construction and expansion demands. Governor O’Brien’s fiscal year 2029
budget takes a significant step forward in implementing the Kopp Commission’s recommendations by providing
$474.1 million in general and capital funds for school construction, a $66 million increase over fiscal year 2028.
Governor O’Brien will work with the General Assembly to develop a feasible means of fulfilling the Kopp
Commission’s funding recommendations.
Higher Education
The fiscal year 2029 budget increases general fund support for higher education by 2.2% to $960.5 million,
which should mitigate the need for large tuition increases for Maryland’s college students. The overall higher
education budget totals $4.7 billion, a $146 million or 3.2% increase over fiscal year 2028.
Governor O’Brien is committed to improving and upgrading facilities at the State’s higher education
institutions. To this end, Governor O’Brien’s capital budget includes $181.9 million for construction at
Maryland’s public colleges and universities. Major projects include: $56 million for University of Maryland
College Park’s new Biological Sciences Research building, $19 million for University of Maryland Baltimore’s
Dental School, $18.6 million for St. Mary’s College of Maryland’s new academic building and $17.5 million for
Bowie State University’s new Center for Business and Graduate Studies. $38.9 million is provided for capital
projects at Maryland’s community college and $8.1 million is allocated to support the expansion of Montgomery
College’s Takoma Park Campus.
Funding for student financial aid increases $10.6 million, or 12.9%, to $93.1 million. The Educational Excellence
Awards (EEA) program, the State’s primary need-based award program, and the Part-Time Grant program total
$67.7 million in fiscal year 2029, an 11.3% increase over fiscal year 2028. The allowance also includes an
additional $1 million for the Loan Assistance Repayment Program for teachers and nurses.
Governor O’Brien’s budget proposes $3 million to fund Scholarships for Academic Achievement, a new merit-
based program to award 5,000 scholarships each year to Maryland’s top students who attend a college or
university in the state. The top 1,000 students would receive $1,000 a year for four years, while 4,000
academically-talented students would receive $500 a year for four years. Scholarships will be allocated to
counties and high schools throughout the state based on the number of high school graduates compared to the
statewide total.
Direct aid to community colleges, excluding fringe benefits, totals $208.1 million, an increase of 2.7% in fiscal
year 2029. In addition, aid to community colleges fringe benefits totals $25.3 million.
Historically Black Colleges and Universities

Despite the tight fiscal picture, the fiscal year 2029 allowance includes a total of $12 million for the
Historically Black Colleges and Universities (HBCUs) broken down as $6 million for Access and Success grants
and $6 million for HBCU Enhancement grants. These grants are designed to meet HBCU special needs by
developing and implementing “best practices” as well as supporting the debt service on planned capital projects,
especially at Coppin State College. In addition, MHEC’s pass-thru grants include $500,000 for implementing
some of the more pressing recommendations of the Toll Report on the revitalization of Coppin and its
surrounding area.
Adult Education
The fiscal year 2029 builds upon last year’s investment to equalize Maryland’s funding for adult education
programs with the national average. In fiscal year 2027, for example, Maryland devoted just $77 in state
spending per pupil for adult education services. By comparison, New Jersey spent over $450 per pupil. The
fiscal year 2028 enacted budget increased state per-pupil spending to $122 and expanded adult education
services to 2,000 additional Marylanders. Governor O’Brien’s fiscal year 2029 proposal increases per-pupil
funding to a record $322 and expands service to 2,300 more individuals, bringing the total number of
Marylanders served by state-supported adult education programs to 23,300. Governor O’Brien’s fiscal year
2029 budget increases overall funding for adult education by nearly 40% to $15 million.
Health & the Environment
Health
Governor O’Brien is determined to improve healthcare access for Marylanders, especially those with limited
access to health insurance. The fiscal year 2029 budget builds upon Governor O’Brien’s commitment to meeting
Maryland’s health care needs by providing $11.6 billion, a 6.1% increase, for health programs.
Medicaid and the Maryland Children’s Health Program

Last year, in spite of the austere fiscal picture, Governor O’Brien and the General Assembly provided $7
million in new funding for children’s health insurance coverage, allowing 5,000 additional children to receive
insurance through the Maryland Children’s Health Program (MCHP). At the same time, the enacted fiscal year
2028 budget protected health care services for the 1 million Marylanders who rely on Medicaid as their soul
source for health care coverage.
The fiscal year 2029 allowance provides $9 billion, a $517 million increase, for Medicaid. This increase will
meet current program costs while expanding coverage to nearly 19,000 additional beneficiaries. $410.1 million
is provided for the Maryland Children’s Health Program (MCHP). This allowance will expand health insurance
coverage to nearly 8,000 additional children, bringing the total number of additional uninsured children served
by MCHP since Governor O’Brien took office to more than 13,000.
Additionally, the Department of Health and Mental Hygiene will introduce several new management initiatives
to achieve significant savings: $2.6 million by enrolling more developmentally disabled individuals in Medicaid;
$2.4 million by updating Medicaid eligibility records more frequently; $5 million by changing the manner in
which services are provided for children in the Rare and Expensive Case Management program (over a two-year
period).
Substance Abuse Treatment

The budget contains $157.2 million for alcohol and drug abuse treatment, a $7.2 million (4.8%) increase over
fiscal year 2028, including $4 million to fund Governor O’Brien’s initiative for residential treatment in lieu of
incarceration for adult and adolescent criminal justice clients. Increased treatment beds will serve an
additional 310 adolescents and 98 adults annually. With this funding increase, total funding for alcohol and
drug abuse treatment services will have grown by more than 20% in just the first two years of the O’Brien
administration, with an additional 13,500 Marylanders receiving treatment on an annual basis.
Mental Health Services

The community services budget includes an increase of $24.7 million in fiscal year 2029, bringing total funding
to $530 million. With this increase, funding for community mental health services will have grown by 17% in
the first two years of the O’Brien administration.
The fiscal year 2029 budget reflects consolidation of the largest residential psychiatric facilities by moving
patients and staff from Crownsville Hospital Center to Spring Grove Hospital and Springfield Hospital, saving
$12 million in operating funds. The Carter Center will also become part of the University of Maryland Medical
System (UMMS). The transfer of Carter Center employees to UMMS and the closure of Crownsville will free
up 267 State-funded positions by the end of fiscal year 2029.
Developmental Disabilities Services

Funding for community services for Marylanders with developmental disabilities increases by $55.1 million, or
11.8%, to $521.9 million. This increase includes $17.8 million to boost salaries paid to direct care staff of
community providers and $25.6 million to expand community services. More than 17,390 developmentally
disabled individuals will receive community-based services in 2029, including 1,200 individuals who have been on
the waiting list for more than one year.
New Focus on Disability Services

During the 2028 legislative session, Governor O’Brien will introduce legislation to create a new “Department of
Disabilities.” Close to $1 million in additional funding is added to the budget to create the new department,
elevating the State’s capacity to address the needs of the disability community in Maryland.
Healthy Start for Infants

In order to provide a healthy start for children born in Maryland, Governor O’Brien proposes to place a
renewed emphasis on preventative measures that will ensure that children will enjoy happy, healthy lives. The
Centers for Disease Control and Prevention (CDC) recommends that women of childbearing age take specified
vitamin supplements in order to reduce the risks of children being born with neurological defects. The
Governor proposes the creation of a $2.8 million Prenatal Dietary Supplement Program. The program proposed
by the Governor will distribute prenatal multivitamins and mineral dietary supplements containing the
recommended level of folic acid to women of childbearing age (15-45) who qualify for the federal Special
Supplemental Nutrition Program for Women, Infants and Children (WIC). Local health departments must
distribute the supplements and provide counseling and written information regarding the proper use of the
supplements.
HIV/AIDS
Governor O’Brien’s fiscal year 2029 budget provides $54.1 million for HIV/AIDS, an increase of more than
$5.6 million or 11.5% over fiscal year 2028 funding levels. This increased funding will expand the provision of
quality health care and support services for Marylanders diagnosed with HIV/AIDS.
Environmental Efforts
Governor O’Brien will focus his administration’s environmental efforts on three areas to restore the health of
the Chesapeake Bay: oyster restoration; Bay grasses; and nutrient reduction. Governor O’Brien will continue his
efforts to increase federal funding for these restoration projects while seeking new sources of revenue here
in Maryland.
Governor O’Brien continues to support recovery of native oyster populations with more than $6 million in
projects. These actions will provide much needed filtration of Bay waters and support local oyster industries.
In addition to supplementing populations of native oysters, the State is also studying a disease-resistant, non-
native oyster to evaluate the benefits and risks of its possible introduction into Bay waters.
The fiscal year 2029 budget contains over $600,000 in federal funds to support Governor O’Brien’s goal of
planting 1,000 acres of bay grasses by 2035. With cooperation from federal partners, DNR can study large-
scale bay grass restoration techniques in the Lower Potomac and Patuxent Rivers.
Governor O’Brien is focusing his nutrient reduction programs in three areas: land preservation, cover crops,
and upgrading waste water treatment plants. The fiscal year 2029 fully funds Program Open Space, Rural
Legacy and other land preservation programs at $132.8 million, the first time in five years that these
programs have received full funding. $24 million is budgeted for the Maryland Agricultural Land Preservation
Program.
To reduce nutrient runoff from farms, Governor O’Brien has increased funding for cover crops to $1.9 million
and has continued to fund cost sharing of capital improvements to farms at $6.0 million.
The budget allowance for fiscal year 2029 provides $79.2 million for drinking water and wastewater
infrastructure improvements. This investment will significantly reduce the largest source of pollution to the
Bay.
Last year, Governor O’Brien and the General Assembly worked to enact major reform of Maryland’s
brownfields programs and increased annual capital funding for brownfield cleanup and remediation from
$500,000 to $7 million. The fiscal year 2029 budget provides $10 million, a $3 million increase, for brownfield
projects. It is estimated that this investment will support over 140 cleanup and mitigation projects statewide.
To complement these efforts, Governor O’Brien will introduce legislation providing the Maryland Department
of the Environment with greater enforcement power over contaminated properties around the State. Governor
O’Brien will also submit an Administration bill to encourage more voluntary brownfield cleanups by developers
and property owners.
Public Safety & Safer Neighborhoods
Governor O’Brien remains firmly committed to making Maryland communities safe. The first step is more
comprehensive criminal prevention programs, the guarantee for a fair and speedy adjudication system, and
effective punishment and rehabilitation in all Maryland correctional facilities. Through fair and diligent law
enforcement, and through the presence of effective discipline and treatment within our juvenile and adult
detention facilities, the fiscal year 2029 budget recognizes the State’s duty to protect its citizens by
providing $1.45 billion, a 5.0% increase, for public safety programs.
State Police Efforts

Governor O’Brien will provide Maryland’s uniformed officers with the funding, training and protection they
need to properly enforce Maryland’s laws and preserve the privacy of its law abiding citizens.
The newly created Homeland Security and Intelligence Bureau with the Department of State Police provides
coordinated criminal enforcement under a single command structure to reduce bureaucracy and increase
effectiveness and efficiency. The Bureau operates 24 hours a day, 7 days a week and has partnered law
enforcement agencies and private and public organizations in order to reduce crime and minimize the threat of
potential terrorist attacks.
The Vehicle Theft Prevention Council in the Department of State Police has also implemented 36 initiatives to
reduce vehicle theft in high vehicle theft areas.
The Maryland Fire Prevention Commission and Fire Marshal helps to free communities from the crime of arson.
The Fire Prevention Commission and Fire Marshal provide $10 million annually to counties, Baltimore City,
municipal corporations, and local fire rescue and/or ambulance companies through the Senator William H.
Amoss Fund. The budget also includes an additional $350,000 and four new positions for the bomb squad.
Governor O’Brien’s budget for fiscal year 2029 also provides $6 million for the first phase of a two-year, 8.5%
pay raise for state troopers, while including funding to hire 62 additional State Police officers.
Effective Juvenile Services

The fiscal year 2029 budget will provide increased funding for the Department of Juvenile Services to
implement Governor O’Brien’s vision of comprehensive and results-based solutions to the problem of juvenile
crime.
The Department of Juvenile Services will expand mental health and substance abuse services to youth in
custody so that comprehensive plans, appropriate to each youth, can be implemented to treat the factors in
each young person’s life that induce them to criminal activity. Implementation of these plans will be monitored
and modified as necessary to ensure that the desired results are achieved. To this end, the budget includes
$7.3 million to provide services such as mental health and substance abuse counseling and to help local
subdivisions implement drug court initiatives.
The fiscal year 2029 budget also includes a number of new detention alternatives, designed to move youths
away from secure detention facilities and into more effective and less costly community-based programming.
An additional $1.4 million is provided in the 2029 budget for the department to initiate a day and evening
reporting center in Baltimore City and an evening reporting center in Prince George’s County. The two new
centers will enable youths to remain in the community and receive education and other services while awaiting
their trials.
The Department of Juvenile Services is responsible for the care and custody of youth in its State operated
and contractual operated facilities. The budget for Residential Operations totals $79.4 million for 2029, an
increase of 5.1% over the 2028 appropriation. The increase is largely due to the recent opening of three new
detention facilities that will help relieve pressure from other facilities and provide for improved living
conditions and enhanced treatment services for youths.
Access to Justice
The administration is committed to ensuring that all citizens, regardless of race, gender, creed, sexual
orientation or income, have access to a fair trial through legal representation. The operating budget for the
Office of the Public Defender (OPD) increases $2.4 million over the 2028 appropriation, primarily reflecting
the addition of 68.5 new positions that will provide critical relief for attorneys with excessive caseloads. The
allowance enables OPD to provide effective counsel to all indigent adult and juvenile defendants statewide. The
fiscal year 2029 budget also provides a two-grade salary increase for public defenders to provide pay parity.
Community Policing
Governor O’Brien’s budget provides $13 million for a new Community Policing grant program to assist county
and city law enforcement offices in hiring 216 new police officers. These new officers will embrace community
policing-oriented law enforcement strategies and adopt a results-oriented approach to combating crime that
stresses innovative, localized strategies. A stronger police presence in Maryland’s high-crime communities will
ensure the success of the various steps that the administration is taking, in cooperation with county and local
law enforcement groups, to combat crime and violence in Maryland’s communities.
Strengthened Oversight of Parolees

The fiscal year 2029 supports Operation Spotlight, which we launched last year, by adding $3.7 million in
funding to support field operations within the Division of Parole and Probation. This investment will help the
Division add 32 new parole agents, seven supervisors, and six casework supervisors who will help parolees find
employment and other services.
Keeping the Public Safe

The adult population of Maryland State correctional institutions continues to grow to an average projection of
28,350 in fiscal 2029. Governor O’Brien maintains funding for the operation of Maryland’s correctional
institutions.
Last year, more than 15,000 inmates were released from Maryland prisons and returned to their home
communities. With no changes to the current correctional system, it would be expected that more than half
would eventually be convicted for new crimes. To counteract this situation, Governor O’Brien is committed to
developing new forms of treatment services for inmates to instill a sense of renewed community belonging and
accomplishment upon release. Project RESTART (Reentry, Enforcement and Services Targeting Addiction,
Rehabilitation and Treatment), a $9.2 million initiative, will support the expansion of treatment and
rehabilitation services to adults currently in Maryland correctional facilities.
Providing inmates with drug treatment and job training will return inmates to their homes equipped to become
productive members of society, which will then result in saving lives and safer communities. The program adds
9,800 new treatment slots and will create approximately 200 new positions over the next three years to
provide for the counseling of inmates.
Governor O’Brien has proposed $5 million for Collaborative Supervision and Focused Enforcement (CSAFE), to
support the public safety needs of crime-ridden jurisdictions. A partnership of far-reaching public safety
agents that include policing, juvenile outreach, probation and treatment services will assist vulnerable
communities. The integration of these services into a unified law enforcement tool will strengthen Maryland’s
efforts to reduce recidivism and violent crime in these areas. CSAFE, by design, will also grant communities
the freedom to rearrange their resources and information sharing assets to better adapt to an ever-changing
criminal environment.
Governor O’Brien’s budget proposes $8.5 million for substance abuse treatment. Included is a $1.9 million
substance abuse initiative, in cooperation with the Department of Health and Mental Hygiene, to provide
substance abuse peer counseling to inmates.
Commerce
The O’Brien-Burbank administration embraces sensible, productive, professional relations between government
and businesses; sound physical infrastructure including transportation and technology; and using the State’s
resources to leverage private investment and help the economy remain strong.
Helping Businesses Grow and Make Jobs

The budget includes $113.2 million in operating and capital funding for business development programs in the
Department of Business and Economic Development, an $11.4 million increase over fiscal year 2028 an a $36
million increase over fiscal year 2027. These programs are focused on assisting small and minority businesses
and in promoting technology-based businesses and other fields of strength for Maryland.
Invigorating Communities
The capital budget includes $31.1 million for community revitalization projects. These include Baltimore City
West Side redevelopment, a new biotechnology park in East Baltimore, Rockville Town Center, and the
statewide Neighborhood Business Development program in the Department of Housing and Community
Development.
Rebuilding our Transportation Infrastructure

This budget begins a serious effort to restore Maryland’s highway infrastructure. National statistics show
that Maryland’s interstates are the second most congested in the nation. In order to help solve Maryland’s
transportation problems, Governor O’Brien recognizes the need to ensure the fiscal integrity of the
Transportation Trust Fund. Governor O’Brien’s fiscal year 2029 budget does not transfer any money from the
Transportation Trust Fund, the first time in five years that the fund has received full funding.
During the 2028 session, the administration will introduce an expanded financing package to move important
projects forward and initiate others required to increase safety, reduce congestion, and to foster economic
development opportunities.
The fiscal year 2029 budget provides $1.1 billion for highway construction, $291.2 million for highway
maintenance, $14 million for highway safety and $591.2 million for counties and municipalities.
The budget includes over $219.8 million for airport and seaport operations. BWI airport and the Port of
Baltimore are both critical to Maryland’s economic vitality. Airport passengers are projected to increase 10%
in 2029 while Port tonnage will increase modestly.
Making the Most of our History and Culture

Maryland’s rich history is also part of its economic future. Initiatives in several agencies take advantage of
Maryland’s cultural and historical resources. Tourism promotion will focus on various aspects of history-related
tourism, including African-American history, the Civil War, and the historic National Road.
$1 million is granted to Maryland’s nine “Heritage Areas” to encourage and coordinate heritage tourism
opportunities, historic preservation efforts, and historic research, education and recreation programs.
Building on these efforts, the Maryland Higher Education Commission includes $100,000 as the first step in
strengthening heritage-related higher education programs in a coordinated manner. The resulting consortium,
called the Institute for Museum, Preservation, and Archaeology Research & Training (IMPART), includes
institutions of higher education, state agencies, and state museums. Academic programs involved include
archeology, architecture, museum science and history.
Funding for support of the Arts is maintained at $11.7 million. Another $1 million will be devoted to attracting
television and film productions into Maryland.
Encouraging Heritage-Related Development

Governor O’Brien will propose extending the tax credit for renovation and restoration projects for historic
properties. These projects promote historic preservation while helping to revitalize older communities.
Building Technology Infrastructure

The budget includes $3.6 million for operating networkMaryland, Maryland’s digital communication backbone.
The build-out schedule for networkMaryland, is being accelerated, with a Point of Presence established in
every jurisdiction in the next 12- 15 months. Already, the University System and Johns Hopkins are using the
network to share extremely large research files and attract additional grant money.
Governor O’Brien worked with the nine Eastern Shore counties, the Eastern Shore regional councils to address
the need for affordable high-speed Internet access on the Eastern Shore. In October, the administration
announced the extension of DSL broadband service to 26 Eastern Shore communities as part of a larger
strategy to extend Digital Subscribe Line (DSL) coverage in other rural areas of the State. Governor
O’Brien and his administration not only brought broadband service to Maryland’s rural counties, but also,
through negotiation, eliminated the cost penalty rural business had felt. These actions will allow rural Maryland
businesses to receive broadband service at the same costs as urban Maryland businesses.
Maryland’s Capital Budget
Governor O’Brien’s capital budgets total approximately $3.3 billion. This includes $1.3 billion for state-owned
capital projects, grants and loans to local governments, as well as private and non-profit sectors for projects
supporting Governor O’Brien’s policy objectives such as restoring the Chesapeake Bay. The remaining, $2.0
billion, is directed to highway projects, mass transit and other transportation improvements.
The general construction portion of Governor O’Brien’s five-year capital improvement program focuses on
improving educational facilities, protecting the environment, augmenting public safety, strengthening and
revitalizing communities, and creating and retaining high-wage jobs.
Education
The capital budget provides $715.5 million to construct new facilities and to improve existing facilities for
Maryland’s elementary, secondary and post-secondary students. Of this amount, $181.9 million will fund
improvements to academic and research facilities at four-year institutions of higher education; $474.4 million
will fund new and improved elementary and secondary school facilities; and $47.0 million will improve academic
facilities on 15 community college campuses.
Public Colleges and Universities: Funding to improve academic and research facilities at public four-year
institutions of higher education totals $181.9 million. Major projects include: $55.8 million to construct a new
Biological Sciences Research Building at the University of Maryland, College Park; $19 million to continue
funding of a new dental school at the University of Maryland, Baltimore; $18.6 million to construct a new
academic building at St. Mary’s College of Maryland; and $17.6 to construct the New Center for Business and
Graduate Studies at Bowie State University. The remainder of the capital budget in this area includes funds to
improve utility systems and design and equip facilities at various University System of Maryland institutions,
Morgan State University, and at St. Mary’s College of Maryland.
Historically Black Colleges and Universities (HBCUs): Of the $181.9 million provided to the State’s four-year
public institutions of higher education, $50.3 million is provided to improve facilities at the State’s historically
black colleges and universities: Bowie State University, the University of Maryland, Eastern Shore, Coppin
State College, and Morgan State University. The State will also provide an additional $62 million in capital
funding over the next three years to complete the University System of Maryland’s and Maryland Higher
Education Commission’s $75 million capital funding commitment to the State’s HBCUs.
Elementary and Secondary Education Facilities: Grants to local school systems to expand and improve
educational facilities in each of Maryland’s 23 counties and Baltimore City total $474.4 million. An additional
$1.1 million has been included to design improvements to facilities at the Columbia and Frederick campuses of
the Maryland School for the Deaf.
Community College Facilities: Governor O’Brien has allocated an additional $9.2 million over planned funding to
provide a total of $58.8 million to improve academic facilities on 15 community college campuses. Major
projects include: $14.7 million to renovate the main building on the Liberty campus of Baltimore City
Community College; $11.5 million to construct a new High Technology Center at Prince George’s Community
College; $7.1 million to construct a new Student Services Building on the Takoma Park campus of Montgomery
College; and $2.8 million to construct a new Learning Resource Center at Garrett Community College. The
remainder of the capital funding for the community colleges will improve aging facilities and building systems.
Private College and University Facilities: Private colleges and universities receive $12.5 million to improve
academic and research facilities. Specifically, funding has been provided for: a new library at Columbia Union
College in Takoma Park; a new library storage facility for the Johns Hopkins University; a new academic and
administration building at Sojourner-Douglass College in downtown Baltimore; and a new academic building for
Villa Julie College.
Health and the Environment

$365.4 million of capital funding for health and environmental programs reflects Governor O’Brien’s
objectives: improving water quality by upgrading water and wastewater infrastructure; reducing the impact of
and directing suburban growth by preserving agricultural lands, sensitive plant and wildlife habitat and open
space; restoring the Chesapeake Bay ecosystem; and improving hospitals and community health centers across
the State.
Hospitals and Community Health Centers: $33.9 million is provided for health-related capital projects
including: new and improved facilities for the University of Maryland Hospital and private hospitals; new and
improved primary care facilities in medically underserved areas through the newly created Federally Qualified
Health Centers Grant Program; and new and improved community facilities for the care and treatment of
physically, mentally and emotionally disabled individuals, individuals recovering from substance abuse, and the
elderly.
Water and Wastewater Infrastructure: $79.2 million for the improvement of local drinking water systems
and wastewater treatment plants. These improvements will assist State agencies and local governments to
ensure that water quality standards are met.
Land Preservation Programs: $181.8 million, including: $132.8 million, full funding, for Program Open Space;
$10 million for community parks projects; $15 million for the Rural Legacy Program; and $24.0 million for the
preservation of an estimated 10,500 acres of productive farmland through the Agricultural Land Preservation
Program.
Chesapeake Bay Restoration Programs: $34 million will reduce the amount of point and nonpoint source
nitrogen and phosphorous runoff entering the Chesapeake Bay. Of this amount, $17 million has been provided
for the Biological Nutrient Removal Program. In addition, $6 million will be used to reduce nitrogen and
phosphorous runoff from urban, suburban and agricultural lands. $6 million is provided for the Agricultural
Cost Share Program to help farmers adopt nutrient management practices that reduce discharge into the
water supply and the Chesapeake Bay. The remaining $3 million will be used to restore the Bay’s once vibrant
oyster population.
Shore Erosion Control and Waterway Access Projects: $21.6 million for waterway improvements and to
control shore erosion.
Brownfields: Governor O’Brien’s capital budget provides $10 million for the redevelopment of brownfields and
cleanup of hazardous waste sites, with over 140 ongoing or planned projects slated to receive funding.
Public Safety and Safer Neighborhoods

Capital projects to improve the safety of neighborhoods consist of State and local correctional facilities, new
and improved court facilities, treatment and detention facilities for at-risk youth and modern facilities for the
State Police. The capital budget totals $55.8 million for the safety of Maryland’s neighborhoods.
State and Local Correctional Facilities: $43.7 million. Major projects include: $15.3 million for improvements
to local correctional facilities, including $10 million for the expansion of the Baltimore County Detention
Center; $8.5 million to renovate support facilities at the Brockbridge Correctional Facility in Anne Arundel
County; and $3.3 million for the construction of a new air system at the Women’s Detention Center in
downtown Baltimore.
Juvenile Facilities: $3.3 million is provided to construct and renovate community facilities serving at-risk
youth.
State Police Facilities: $1.1 million to equip the new Crime Lab and the new police barrack in Easton.
Public Safety Communications System: $5.0 million is allocated to continue the development of a Statewide
wireless communication system for State and local public safety agencies.
Commerce
The capital budget contains $116.3 million to improve the State’s economy, focusing on three objectives:
business attraction and retention, revitalization of economically distressed areas, and improvements to the
State’s major tourist attractions.
Business Attraction and Retention Activities: $82.1 million is provided for economic development financing
programs.
Economic Revitalization Activities: The budget includes $27.0 million to revitalize economically distressed
areas through the Neighborhood Business Development Program and individual grants to improve the West
Side of Baltimore City, to develop a biotechnology park in East Baltimore, and to redevelop the City of
Rockville’s town center.
Improving Tourist Attractions: $6.5 million is provided to improve major tourist and cultural attractions
across the State including the National Aquarium in Baltimore, the Maryland Science Center, the B&O Railroad
Museum, and the Baltimore Zoo.
Other Projects
The capital budget funds other important projects, including grants to local governments and non-profit
organizations for projects that will provide affordable housing and encourage homeownership; grants for
improvements to community facilities in neighborhoods throughout the State; and State government
infrastructure construction, maintenance and renovation projects.
Housing Programs: $48.7 million will be spent on grants and loans to local governments and non-profit
organizations for projects that will provide affordable housing and encourage homeownership. Of this amount:
$17.8 million has been provided for rental housing programs; $11.6 million for homeownership programs; $14.6
million for the Community Legacy Program; and $4 million to assist families in need of temporary transitional
housing.
General Capital Improvement Program Fiscal Year 2029
($ Millions)
EDUCATION GO Bonds General & Other Funds Total

Public Colleges & Universities $181.9 $0.0 $181.9
Public School Construction $157.1 $317.0 $474.1
Community Colleges $47.8 $0.0 $47.0
Private Education Facilities $12.5 $0.0 $12.5
Subtotal $398.5 $317.0 $715.5
HEALTH & THE ENVIRONMENT

Land Preservation $24.3 $156.8 $181.1
Water and Wastewater Infrastructure $0.0 $82.2 $82.2
Chesapeake Bay Restoration $26.0 $6.0 $32.0
Hazardous Site Cleanup $0.0 $10.0 $10.0
Waterway Improvements $0.0 $12.0 $12.0
Shore Erosion Control $0.0 $1.7 $1.7
Ocean City Beach Maintenance $0.0 $2.0 $2.0
Critical Maintenance Projects, DNR $0.0 $3.5 $3.5
State Park Improvements $3.6 $0.0 $3.6
Maryland Environmental Service $3.3 $0.0 $3.3
Hospitals & Community Health Ctrs. $33.9 $0.0 $33.9
Other $0.0 $0.1 $0.1
Subtotal $91.1 $274.3 $365.4
PUBLIC SAFETY & LAW ENFORCEMENT

Public Safety & Corrections $43.7 $0.0 $43.7
State Police $1.1 $0.0 $1.1
Juvenile Services $3.3 $0.0 $3.3
Public Safety Communications $5.0 $0.0 $5.0
District Courts $2.7 $0.0 $2.7
Subtotal $55.8 $0.0 $55.8
COMMUNITY INVESTMENT & ECONOMIC DEVELOPMENT

Economic Development Programs $11.5 $104.8 $116.3
Subtotal $11.5 $104.8 $116.3
OTHER PROJECTS AND PROGRAMS

Housing $25.7 $23.0 $48.7
Aging – Senior Centers $2.0 $0.0 $2.0
All Other Projects $31.4 $8.5 $39.9
Subtotal $59.1 $31.5 $90.6
TOTAL $616.0 $727.6 $1,343.6
Net New General Obligation Bonds Issued: $616.0 Million

General Assembly Capital Debt Affordability Limit: $675.0 Million
Totals may not add due to rounding.

Constitutional Agencies
MARYLAND GENERAL ASSEMBLY
The General Assembly is Maryland’s legislative authority. Its budget includes the Senate of Maryland, House
of Delegates and their staff agencies. The Governor is not permitted to alter the General Assembly’s proposed
budget.
Change
$ thousands FY 2027 FY 2028 FY 2029 FY 2028 - 2029
General Funds $86,308 $87,140 $88,740 1.8%
Change
Positions FY 2027 FY 2028 FY 2029 FY 2028 - 2029
Authorized 730.0 730.0 730.0 0.0
JUDICIARY OF MARYLAND
The Judiciary of Maryland consists of the Court of Appeals, Court of Special Appeals, District Court System
and judicial support functions. Circuit Court judges’ salaries are included in this budget, but other Circuit Court
costs are local expenses. The Governor is not permitted to alter the Judiciary’s proposed budget. Included in
the Department of Budget and Management’s budget is $1 million to implement the first year of a four-year,
phased-in salary increase for judges recommended by the Maryland Judicial Compensation Commission.
Change
General Funds $272,789 $284,723 $280,928 -1.3%
Special Funds $15,333 $15,498 $23,333 50.6%
Federal Funds $1,819 $1,915 $2,077 8.5%
Total $289,941 $302,136 $306,338 1.4%
Change
Positions FY 2027 FY 2028 FY 2029 FY 2028 -2029
Authorized 3,223.8 3,241.8 3,243.8 2.0
Contractual 390.0 372.0 371.0 -1.0
Total 3,613.8 3,613.8 3,614.8 1.0
OFFICE OF THE GOVERNOR

The Office of the Governor includes the Governor, Lieutenant Governor and their immediate staff.
Change
General Funds $8,829 $7,152 $7,139 -0.2%
Change
Authorized 84.5 75.0 73.0 -2.0
Contractual 3.5 3.5 3.5 0.0
Total 88.0 78.5 76.5 -2.0

SECRETARY OF STATE
The Secretary of State has numerous duties specified by the state constitution and state law. For example,
the Secretary of State is responsible for registering charities, supervising the Division of State Documents
and processing criminal extraditions.
Change
$ thousands FY 2027 FY 2028 FY 2029 FY 2028 – 2029
General Funds $2,684 $2,461 $2,436 -1.0%
Special Funds $479 $495 $486 -1.8%
Total $3,163 $2,956 $2,922 -1.2%
Change
Authorized 37.6 34.6 34.6 0.0
Contractual 2.1 2.6 1.4 -1.2
Total 39.7 37.2 36.0 -1.2
COMPTROLLER OF THE TREASURY

The Comptroller is a constitutional officer independently elected by the people. The office of the Comptroller
collects the state’s major revenues, keeps its financial accounts, manages its principal data center and provides
general supervision of fiscal affairs. Seventeen new positions to increase audit and collection efforts will
generate over $3 million in new revenue.
Change
General Funds $70,398 $67,921 $67,088 -1.2%
Special Funds $12,601 $12,666 $12,763 0.8%
Total $79,408 $77,024 $76,301 -0.9%
Change
Positions FY 2027 FY 2028 FY 2029 FY 2028 – 2029
Authorized 1,125.7 1,103.2 1,120.2 17.0
Contractual 28.6 25.4 29.9 4.5
Total 1,154.3 1,144.6 1,150.1 21.5
STATE TREASURER
The Treasurer is a constitutional officer appointed by the General Assembly. The Treasurer’s Office receives
and deposits funds, manages the state’s investments, manages issuance of state bonds and administers the
state’s commercial and self-insurance programs.
Change
General Funds $3,860 $3,753 $3,691 -1.7%
Special Funds $615 $619 $621 0.3%
Total $4,475 $4,372 $4,312 -1.4%
Change
Positions FY 2027 FY 2028 FY 2029 FY 2028 – 2029
Authorized 53.0 53.0 52.0 -1.0
Contractual 0.0 0.0 0.0 0.0
Total 53.0 53.0 52.0 -1.0

ATTORNEY GENERAL
The Attorney General is a constitutional officer independently elected by the people. The office of the
Attorney General provides legal assistance to all state agencies, represents the state in legal actions, and
enforces state antitrust, consumer protection and securities laws. Additional funding will enhance enforcement
of laws covering securities fraud and Medicaid abuse.
Change
General Funds $18,170 $17,855 $17,459 -2.2%
Special Funds $979 $602 $1,411 134.4%
Federal Funds $1,399 $1,428 $1,553 8.8%
Total $20,548 $19,885 $20,423 2.7%
Change
Authorized 247.5 245.0 242.5 -2.5

Department of Agriculture
Mission: To provide leadership and support to agriculture and the citizens of Maryland by conducting
regulatory, service and educational activities that assure consumer confidence, protect the environment and
promote agriculture.
The fiscal year 2029 budget allowance for the Department of Agriculture totals $73.3 million, an increase of
$2.8 million or 3.9% over the fiscal year 2028 appropriation. The budget provides for the elimination of 11
vacant positions within the Department. The allowance for MDA continues Maryland’s commitment to
maintaining and enhancing preservation of adequate productive farmland, stewardship and resource
conservation, maintaining animal and plant resources, providing consumer protection, and promoting the sale
and use of agricultural products.
The allowance includes $24.0 million in general, special and capital funds for the Maryland Agricultural Land
Preservation Foundation to promote the preservation of agricultural land and the incorporation of best
management practices. These activities are supported by a variety of funds including property tax transfers,
agricultural tax transfers, and federal farmland protection funding.
$14.1 million is allocated for the Office of Resource Conservation. This allowance includes a $500,000
enhancement for the Cover Crop Project. Cover Crops provide assistance to the agricultural community by
preserving the viability of agricultural land over the winter and are an effective method for reducing the flow
of nutrients into the Chesapeake Bay.
MDA provides both regulatory and promotional support for the horse industry in Maryland. Maryland has over
87,000 equine on over 685,000 acres. Proceeds from horse racing pari-mutuel activities provide $1.4 million to
support agricultural fairs statewide.
A fiscal year 2028 deficiency appropriation of $700,000 is being provided for mosquito control in order to
protect the public health of Maryland’s citizens.
The fiscal year 2029 allowance provides funding to hire 10 additional meat inspectors over the next two years
and three additional veterinarians, including two supervisory veterinarians and one additional Customer Safety
Officer.
Consistent with Governor O’Brien’s commitment to ensuring the safety and reliability of Maryland’s food
supply, the fiscal year 2029 budget will increase feed inspections and sampling by doubling the number of
inspections at the 16 feed facilities that regularly handle ruminant protein and by tripling sampling at the
remaining 20 feed retail outlets to ensure manufacturer compliance and product safety.
The fiscal year 2029 also continues the administration’s efforts to achieve budgetary savings by reducing or
eliminating nonessential items. The fiscal year 2029 budget eliminates funding for the removal of submerged
aquatic vegetation from the Potomac River and eliminates state matching funds for the equine breeders
program. These measures will save over $100,000 in fiscal year 2029. Additionally, Governor O’Brien’s budget
eliminates state funding for the Wine Promotion Program and the Plant Pest Detection Program, saving
$160,000.
BUDGET: $73.3 MILLION
POSITIONS: 469.8 LESS THAN 1% OF THE STATE BUDGET
THREE YEAR SUMMARY FY27 FY 28 FY 29 Change

Actual Approp. Allowance FY28-29
APPROPRIATIONS: (in millions of dollars)
General Funds $31.6 $27.0 $27.0 0.1%
Special Funds $35.3 $35.5 $39.1 10.0%
Federal Funds $2.4 $8.0 $7.2 -10.2%
Total $69.3 $70.5 $73.3 3.9%
EXPENDITURES: (in millions of dollars)

Office of the Secretary $33.0 $32.7 $35.8 9.3%
Office of Marketing, Animal Industries &
Consumer Services $11.1 $13.9 $12.5 -9.8%
Office of Plant Industries and Pest
Management $10.7 $10.4 $10.8 4.2%
Office of Resource Conservation $14.5 $13.5 $14.1 4.9%
Total $69.3 $70.5 $73.3 3.9%
POSITIONS:
Authorized 460.0 429.0 429.0 0.0
Contractual 45.5 50.7 40.8 -9.9
Total 505.5 479.7 469.8 -9.9
PERFORMANCE MEASURES FY 2027 FY 2028 FY 2029

Actual Estimated Projected
Agricultural Land Preservation Foundation

District Acreage 403,220 415,000 425,500
Easement Acreage 232,897 237,202 253,912
Nutrient Management Plans – acreage filed

with MDA 550,000 675,000 800,000
Gypsy Moths – acres treated 23,053 21,015 22,000
Mosquito Control – acres treated with

biological insecticide 95,355 75,000 75,000
Maryland Seafood Sales ($ millions) 277 282 287

Department of Budget and Management
Mission: The Department of Budget and Management helps the Governor, State agencies and their employees
provide effective, efficient and fiscally sound government to the citizens of Maryland. We support agency
efforts to achieve results by helping them obtain the fiscal, capital, personnel and information technology
resources needed to provide services to Maryland citizens. We are dedicated to providing advice and
assistance with professionalism, state of the art technology, modern management techniques and teamwork.
The Department of Budget and Management’s budget totals $103.1 million, including $46.9 million for
statewide employee salary increases. The operating budget for DBM totals $51 million, a 14.3% reduction from
the fiscal year 2028 appropriation. This reduction in operating expenditures reflects the transfer or
consolidation of DBM functions, the elimination of 19 vacant positions, reductions in information technology
costs and implementation of several management reforms recommended by the Governor’s Commission on
Efficiency and Effectiveness.
The allowance provides $37.0 million for oversight and coordination of state information technology projects,
FMIS accounting system support and telecommunications operations.
$9.7 million is budgeted to manage and administer the State’s personnel system, employee benefit programs
and to coordinate employee development and training.
One of Governor O’Brien’s priorities is a salary increase for state employees; after 1.5 years with no general
pay increases, this budget provides $57.9 million to implement State employee compensation adjustments as
follows: Cost of Living Adjustment (COLA) of 1.6% ($46.9 million); Annual Salary Review (ASR) mainly for
attorneys, and juvenile services direct care workers ($9.9 million); and initial funding of a four-year phased-in
salary increase for judges based on the Maryland Judicial Compensation recommendations ($1.1 million includes
offices of the Public Defender and State Prosecutor). The Department’s budget includes $46.9 million for
state-wide COLAs for state employees; the other salary enhancements are reflected in other departmental
and agency budgets.
The allowance includes $1.0 million to provide technical assistance to agencies that create opportunities to
increase revenues and/or reduce costs.
The Department’s fiscal year 2029 general fund budget, excluding statewide costs, reflects a reduction of
more than 16% from fiscal year 2028 funding levels. These savings have been achieved by management
improvement initiatives within DBM.
Special funds of $15.7 million for the Central Collection Unit are included to support costs of the collection of
applicable delinquent debts of the State and administration of the Telecommunications Access for Maryland
program that provides telecommunication relay service for hearing and speech impaired citizens.

General Funds $74.9 $42.4 $87.4 106.3%
Special Funds $18.2 $17.3 $15.7 -9.1%
Total $93.1 $59.6 $103.1 72.9%

Office of Personnel Services & Benefits $41.2 $8.6 $59.6 592.3%
Office of Information Technology $34.9 $34.7 $26.3 -24.1%
Office of Budget Analysis $2.1 $2.2 $2.0 -6.7%
Office of Capital Budgeting $1.5 $1.4 $1.4 -3.2%
Total $93.1 $59.6 $103.1 72.9%
POSITIONS:
Authorized 531.3 478.8 459.8 -19.0
Contractual 31.2 23.9 20.9 -3.0
Total 562.5 502.7 480.7 -22.0

State Operating Budget ($ billion) $32.4 $32.8 $34.5
State Capital Budget ($ million) $1,133.9 $1,166.9 $1,343.6
Statewide Authorized Positions 82,412 80,845 80,751
Statewide Contractual Positions 9,133 9,542 9,600
Employee Health Plan Enrollment 70,040 70,206 70,206
Monthly Average Maryland Relay Calls 129,785 178,156 221,000

Department of Business and Economic Development
Mission: To stimulate private investment, create jobs, attract new businesses, and encourage expansion and
retention of existing businesses in order to strengthen the State’s economy.
The Department of Business and Economic Development budget totals $162.3 million, an increase of $6.9
million (4.4%) above the fiscal year 2028 appropriation. While Maryland has felt the effects of the national
economic slump, DBED is well positioned to contribute to the State’s economic recovery.
The fiscal year 2029 budget provides $12.6 million, an increase of $1.8 million (16.9%), to promote Maryland as
a potential location for new businesses and to retain or expand existing businesses. Specifically, the
department is focused on attracting technology and biotechnology businesses.
$93.8 million is allocated to support grants, loans and working capital to businesses through financing
programs. The budget also includes $6.5 million in General Obligation Bonds for the Maryland Economic
Development Assistance Authority and Fund. The fiscal year 2029 budget’s robust support for Maryland’s
business and economic development programs will support Governor O’Brien’s continuing commitment to
revitalize Maryland’s economy.
$28.7 million is provided to support the Division of Tourism, Film and the Arts; the same level as the fiscal
year 2028 Appropriation. The fiscal year 2029 proposes the elimination of the Office of Tourism
Development’s cooperative advertising programs, saving $1.0 million.
$19.8 million is provided for the Division of Regional Development, a $2.3 million or 12.9% increase over fiscal
year 2028. $5.3 million is for workforce and training grants to businesses and $2.5 million is provided to
support to various councils, regional organizations, small business activities and the economic development of
Maryland’s military base communities.
The Governor’s Office of Business Advocacy has been created within DBED to increase services for small and
minority businesses. Governor O’Brien and Secretary Lappesse have also established the official position of
Manufacturing Advocate to centralize and improve the department’s efforts to strengthen Maryland’s
manufacturing sector.
Governor O’Brien is committed to improving efficiency at DBED to better serve Maryland’s taxpayers and
businesses. Consistent with the recommendations of the Governor’s Commission on Efficiency and
Effectiveness, the fiscal year 2029 budget will reduce funding for DBED’s in-house information technology
activities, reflecting implementation of Governor O’Brien’s new statewide Information Technology (IT) Reform
Initiative. Funding for any contracted IT support is eliminated, while services such as help desk and IT support
will be consolidated statewide along with purchases of software licenses.
The fiscal year 2029 budget includes $2.5 million to support Governor O’Brien’s commitment to establish 20
Entrepreneurship Centers throughout Maryland. These centers provide entrepreneurs with an array of crucial
services including recruiting, legal, financial, and other support all under one roof.
The fiscal year 2029 budget implements Governor O’Brien’s Opportunity Returns, an unprecedented plan to
strengthen economic opportunity throughout Maryland. Announced on September 20, Opportunity Returns
makes targeted investments in five regions across the state, all geared towards paying significant economic
dividends. DBED employees are based in each region implementing the plans. These regional teams enable the
state to closely track economic conditions and trends, rapidly respond to opportunities and challenges, and
customize regional development initiatives with greater precision.
A new investment of $1 million in general funds will support Governor O’Brien’s Small Business $mart Energy
Program, which will provide funding to conduct energy audits and to help train building designers, construction
workers, and others in the industry to make new and existing buildings more energy efficient.
$250,000 is provided to address start-up costs of the proposed Maryland Opportunity Fund, a private venture
capital fund designed to spur investment and create jobs in areas throughout the state where this type of
funding is almost non-existent.
The fiscal year 2029 budget for the State’s Economic Development Opportunities Fund (Sunny Day Fund)
includes $2 million for grants to be awarded by DBED. This funding is outside DBED’s budget, in the State
Reserve Fund.

General Funds $74.6 $85.7 $91.7 7.0%
Special Funds $56.8 $69.1 $70.0 1.4%
Federal Funds $0.5 $0.6 $0.6 -0.2%
Total $132.0 $155.4 $162.3 4.4%

Office of the Secretary $5.5 $4.0 $3.8 -4.1%
Division of Administration & IT $3.5 $3.2 $3.5 7.4%
Division of Business Development $9.2 $10.8 $12.6 16.9%
Division of Financing Programs $68.1 $91.0 $93.8 3.1%
Division of Tourism, Film & the Arts $31.2 $28.8 $28.7 -0.2%
Division of Regional Development $14.6 $17.5 $19.8 12.9%
Total $132.0 $155.4 $162.3 4.4%
POSITIONS:
Authorized 319.0 304.0 299.0 -5.0
Contractual 43.1 41.0 35.6 -5.4
Total 362.1 345.0 334.6 -10.4

Business Development:
Jobs Created 8,345 17,500 18,000
Jobs Retained 9,120 14,000 14,000
Export sales ($ million) $24.0 $75.0 $100.0
Capital Investment:
Total Project Cost ($ million) $497.0 $550.0 $400.0
Regulatory and Training Assistance:

Number of Business Assisted 1,159 1,310 1,310
Investment Grants/Technical Assistance $5.3 $5.6 $5.6
Tourism:
Total Travel Expenditures ($ billion) $10.3 $10.9 $11.5
Feature Film Productions 10 3 7
National Television Productions 6 3 3

Department of Education
Mission: To provide leadership, support and accountability for effective systems of public education, library
services and rehabilitation services.
The highlight of Governor Edward M. O’Brien’s fiscal year 2029 budget is the Governor’s commitment to
Maryland’s schools. To adequately fund education and help those subdivisions in need, the allowance for the
Maryland State Department of Education (MSDE) totals $7.48 billion, an increase of $282.9 million (3.9%)
over the fiscal year 2028 appropriation.
A $128.2 million increase is recommended for current expense formula funding, the basic “Foundation Aid
Program” distributing $5.0 billion in state aid.
A $31.7 million increase is provided for the students with disabilities formula aid for students in need of
special education services for a total funding level of $672.4 million in fiscal year 2029.
An $8.5 million increase is proposed for transportation grants, reflecting inflation and increased enrollment.
In addition to direct aid increases, aid for local employee fringe benefits associated with teacher retirement
costs increases by $20 million.
The fiscal year 2029 provides support for a number of high-priority initiatives of the O’Brien-Burbank
administration:
$1 million is provided for a new Turnaround Specialists program to provide for the placement of management,
administrative and education professionals in fifteen of Maryland’s lowest-performing schools to implement
proven strategies of improving student achievement and school administration.
$500,000 is allocated for a new Families in Education Incentive Grant Program and Fund to support grants
awarded on a competitive basis to public schools, with no more than two grants awarded per district, to
support innovative family and community involvement programs designed to facilitate parents’ creation of a
supportive learning environment at home and an increased involvement in school activities.
$1 million is allocated for Project Success. Project Success will provide a comprehensive, systematic delivery
system that responds to the needs of children and their families, using the school as the hub of service
delivery. There are six core components of service delivery: basic preventative health care for children and
families; proper nutrition and nutrition education; prevention and rehabilitative mental health services for
children and families; services that will protect children and promote the stability of the family; substance
abuse prevention, intervention and treatment for children and their families; and social activities to enhance
positive interaction within families.
$500,000 is proposed for a Character Education Initiative. These funds will be distributed to eight districts
in the first year on a competitive basis for the implementation of Character Education programs and
initiatives.
$10 million, an increase of $5.2 million above fiscal year 2028, is provided for dropout prevention and
intervention programs, supporting Governor O’Brien’s historic efforts to reduce Maryland’s dropout rate and
help more of Maryland’s youth realize their full potential.
$15 million, a 50% increase, is provided for the Governor’s Literacy Program. This investment will fund the
second year of Governor O’Brien’s four-year commitment to place reading curriculum specialists and
instruction personnel in every public elementary school by 2031.
$15 million is provided for a new “Teacher Recruitment in High Priority Areas” grant program. This program
will help alleviate Maryland’s chronic shortage of qualified teachers by helping local districts recruit up to 250
new public school teachers in fiscal year 2029.
The fiscal year 2029 budget recommends $850,000 for teacher preparation programs, which include
development of a summer institute to provide intensive training to potential teachers choosing the alternate
route and grants to help teachers seeking National Board of Professional Teaching Standards certification.
Funding is recommended to support efforts to increase the retention rates of new teachers by funding the
Teacher Mentoring Program at $2.0 million in fiscal 2029. This program reimburses districts for the stipends
paid to experienced teachers to serve as mentors to new teachers.
The fiscal year 2029 budget recommends $1.5 million in funding to establish a comprehensive web-based
education data warehouse that will enable the State to determine the effectiveness and efficiency of its
public education system by providing essential information about educational performance of individual
students.
$15 million is provided within MSDE for the Governor’s Teen REACH initiative, a 50% increase over fiscal year
2028. The Teen REACH program will increase the number of students enrolled in after-school programs
through the initiative to over 9,500.
The fiscal year 2029 budget supports Governor O’Brien’s Partnership for Achieving Successful Schools
(PASS). The PASS initiative was launched to give special attention and assistance to Maryland’s at-risk schools
and create partnerships among parents, businesses, and the larger community that surrounds each child. The
budget provides nearly $1 million for PASS.
The fiscal year 2029 budget provides $3 million to continue Governor O’Brien’s Correctional Education Waiting
List Reduction Initiative.
The fiscal year 2029 budget also reflects Governor O’Brien’s commitment to school construction and
modernization. In its December 2027 report to Governor O’Brien and Superintendent Frey, the Kopp
Commission reported that the State needs to invest a minimum of $550 million annually to meet school
construction and expansion demands. Governor O’Brien’s fiscal year 2029 budget takes a significant step
forward in implementing the Kopp Commission’s recommendations by providing $474.1 million in general and
capital funds for school construction, a $66 million increase over fiscal year 2028.
$5.6 million is provided for the Hickey School Education Program. The Department is taking over the
responsibility from the Department of Juvenile Services for educating youth offenders.
The fiscal year 2029 continues an initiative launched last year to equalize Maryland’s investment in adult
education services with the investments made by neighboring states. The fiscal year 2029 budget proposal
boosts per-pupil state funding for adult education services to $322 and expands adult education services to
2,300 additional students. In fiscal year 2029, overall funding for adult education grows by nearly 40% to $15
million.
BUDGET: $7.5 BILLION
POSITIONS: 1,528.6 22% OF THE STATE BUDGET

General Funds $6,223.6 $6,303.5 $6,553.7 4.0%
Special Funds $18.3 $9.2 $9.3 0.4%
Federal Funds $750.9 $889.9 $922.5 3.7%
Total $6,992.5 $7,202.6 $7,485.6 3.9%

Headquarters $182.2 $197.5 $215.7 9.2%
Aid to Education $6,784.8 $6,981.7 $7,243.0 3.7%
Funding for Educational Organizations $25.5 $23.4 $26.9 14.8%
Total $6,992.5 $7,202.6 $7,485.6 3.9%
POSITIONS:
Authorized 1,439.5 1,407.8 1397.8 -10.0
Contractual 121.8 118.8 130.8 12.0
Total 1,561.3 1,526.6 1,528.6 2.0

Enrollment (Basic Current Expense) 810,502 821,984 825,941
Students with Disabilities (Total) 114,570 116,860 107,690
Correctional Education Enrollment 3,200 3,615 4,050
Rehabilitation Services Clients 15,050 15,200 15,450

Department of the Environment
Mission: To protect and restore the quality of Maryland’s air, water and land resources, while fostering
economic development, safe communities and quality environmental education for the benefit of the
environment, public health and future generations.
The fiscal year 2029 budget for the Maryland Department of the Environment totals $185.7 million, including
$92.1 million for capital programs. This allowance represents an increase of $8.1 million or 4.6% above the
fiscal year 2028 appropriation,. Excluding capital, the operating budget for MDE is $93.5 million, a reduction
of $2.3 million or 2.4% from the fiscal year 2028 appropriation.
The operating allowance includes $29.2 million for water quality, $10.3 million for air quality, and $26.8 million
for waste and hazardous materials control.
Monitoring, research, and special programs, including Chesapeake Bay programs are funded at $10.3 million, and
$16.9 million is provided for coordinating functions, such as Pollution Prevention, Environmental Justice,
management of capital programs for water quality improvement, and general administration.
Funds are provided to develop total maximum daily load (TMDL) standards for impaired streams and
waterbodies throughout the state. TMDLs are the maximum amount of a pollutant, such as nitrogen, that can
be added to a waterbody without degrading water quality.
One of Governor O’Brien’s environmental priorities is to clean up abandoned, polluted industrial sites called
brownfields. MDE’s budget contains $10 million in capital funding to remediate and redevelop brownfield sites
across the state, with up to 140 projects expected to receive funding in fiscal year 2029. The fiscal year 2029
budget also contains $150,000 to strengthen efforts to clean up brownfields sites across the State. Three
geologists and one Assistant Attorney General positions have been added to the Brownfields Remediation
Program within the Waste Management Administration to enhance the ability of the State to bring identified
Brownfields sites into the newly-created Voluntary Cleanup Program for restoration, and ultimately for
redevelopment.
Capital improvements to local drinking water systems and wastewater treatment plants are funded at $78.6
million. These improvements will assist State agencies and local governments to ensure that water quality
standards are met and will help restore the Chesapeake Bay.
The budget funds Governor O’Brien’s Safe and Healthy Schools Initiative, a comprehensive approach to
improve school environments through such programs as "Green Chemistry" and "Green Schools" workshops and
hazardous material collections, the Governor’s Clean School Bus Program, and multi-agency approaches to
energy efficiency and waste reduction. $1 million is provided in MDE’s budget for these efforts.
$750,000 is provided to develop and operate a pesticide sales and use database to make information available
to the public and support research efforts to determine the connection between pesticide use and the
incidence of breast cancer and other diseases.
The fiscal year 2029 budget continues Governor O’Brien’s commitment to streamline state government
operations to save taxpayer dollars and improve efficiency. The budget eliminates funding for the citizen
water quality monitoring grant program, saving $109,000.
In 2029, MDE expects to collect $61.3 million in special funds and expects to receive $61.5 million in federal
funds to supports its capital and operating programs.

General Funds $64.0 $54.7 $58.0 6.1%
Special Funds $104.7 $60.9 $61.3 0.5%
Federal Funds $28.3 $62.0 $61.5 -0.8%
Total $197.0 $177.6 $185.7 4.6%

Administrative & Employee Services Admin. $7.6 $7.4 $7.2 -3.6%
Water Management Administration $33.4 $29.6 $29.2 -1.2%
Technical and Regulatory Services Admin. $19.0 $16.2 $10.4 -35.9%
Waste Management Administration $29.5 $26.3 $26.8 2.0%
Air & Radiation Management Administration $11.0 $10.9 $10.3 -6.2%
Coordinating Offices $4.0 $3.3 $7.8 133.9%
Total $197.0 $177.6 $185.7 4.6%
POSITIONS:
Authorized 1,032.0 945.0 945.0 0.0
Contractual 47.6 43.1 43.0 -0.1
Total 1,079.6 988.1 988.0 -0.1

% of Marylanders Served by Public Water

Systems in Significant Compliance 99% 97% 97%
% of Total Shellfish Harvesting Acres

Approved or Conditionally Approved 93.8% 95% 95%
% of Lead-Tested Children with “Poisoned”

Levels 0.30% 0.27% 0.24%
% of State Population in Areas Not Meeting

Air Quality Standards 89% 89% 89%
Contaminated Site Cleanup and Redevelopment

Projects Funded 7 102 144

Department of General Services
Mission: The Department of General Services (DGS) serves Maryland and its citizens by supporting other
state agencies in achieving their missions. The department performs a variety of functions, including planning,
design, and construction management; facilities maintenance; procurement of goods and services; receipt and
distribution of excess property; and provision of real estate services. Through these activities, DGS
addresses the need for: facilities that are safe, secure and function as needed; buildings, materials and
services that help other state agencies achieve their objectives; and departmental actions that support social
and economic goals important to the state. In all our undertakings, timeliness and cost-effectiveness are
essential.
The fiscal year 2029 budget for the Department of General Service totals $53.6 million, a reduction of $0.9
million or 1.7% from the fiscal year 2028 appropriation.
The allowance includes:
$8.1 million for Facilities Security to provide for the safety and security of buildings and grounds under the
jurisdiction of DGS;
$8.9 million for the planning, budgeting, design, construction, and maintenance of State facilities;
$3.9 million for procurement, contracting and technical support services to using agencies;
$1.3 million for real estate services; and
$4.7 million for executive oversight and administrative functions.
$26.7 million to provide for the operation and maintenance of buildings and grounds under the control of the
Department. This includes management of contract services relating to the operations of the facilities.
$980,000 is budgeted in major information technology projects--outside this budget--to develop a new, more
secure, employee ID system.

General Funds $55.4 $52.3 $51.3 -1.9%
Special Funds $1.5 $1.5 $1.5 1.6%
Federal Funds $0.7 $0.8 $0.8 6.1%
Total $57.6 $54.5 $53.6 -1.7%

Office of Procurement & Logistics $4.2 $3.4 $3.9 -3.9%
Office of Facilities Security $8.3 $8.3 $8.1 -2.4%
Office of Facilities Operation & Management $29.0 $28.0 $26.7 -4.6%
Office of Real Estate $1.3 $1.4 $1.3 -9.9%
Office of Facilities Planning, Design &
Construction $9.8 $8.9 $8.9 0.2%
Total $57.6 $54.5 $53.6 -1.7%
POSITIONS:
Authorized 806.5 764.5 706.0 -58.5
Contractual 35.0 33.4 27.8 -5.6
Total 841.5 797.9 733.8 -64.1

Number of Buildings Maintained 55 56 56
% of Construction Projects Finished Within 20

Days of Schedule 63% 80% 80%
Number of Thefts at DGS Managed Facilities 98 95 91

Department of Health & Mental Hygiene

Mission: The Department of Health and Mental Hygiene promotes the health and quality of life of all Maryland
citizens by: providing health and support services; improving the quality of health care for all; providing
leadership in the development and implementation of responsible and progressive health care policy; and
advocating for public health initiatives and programs. Maryland’s public health is our business.
The fiscal year 2029 allowance for the Department of Health and Mental Hygiene totals $11.6 billion, an
increase of $664.9 million or 6.1% over the fiscal year 2028 appropriation
The Medicaid budget totals $9 billion, a $517 million increase over fiscal year 2028. This increase will meet
current program costs while expanding coverage to nearly 19,000 additional beneficiaries. $410.1 million is
provided for the Maryland Children’s Health Program (MCHP). This allowance will expand health insurance
coverage to nearly 8,000 additional children, bringing the total number of additional uninsured children served
by MCHP since Governor O’Brien took office to more than 13,000.
The community services budget includes an increase of $24.7 million in fiscal year 2029, bringing total funding
to $530 million. With this increase, funding for community mental health services will have grown by 17% in
the first two years of the O’Brien administration.
The fiscal year 2029 budget reflects consolidation of the largest residential psychiatric facilities by moving
patients and staff from Crownsville Hospital Center to Spring Grove Hospital and Springfield Hospital, saving
$12 million in operating funds. The Carter Center will also become part of the University of Maryland Medical
System (UMMS). The transfer of Carter Center employees to UMMS and the closure of Crownsville will free
up 267 State-funded positions by the end of fiscal year 2029.
Fiscal year 2029 funding for community services for Marylanders with developmental disabilities increases by
$55.1 million, or 11.8%, to $521.9 million. This increase includes $17.8 million to boost salaries paid to direct
care staff of community providers and $25.6 million to expand community services. More than 17,390
developmentally disabled individuals will receive community-based services in 2029, including 1,200 individuals
who have been on the waiting list for more than one year. The budget provides $5.1 million to respond to
emergencies faced by families in crisis, $6.8 million for the Transitioning Youth Program, $1 million to enhance
behavioral support intervention and assistance, and $2.3 million for placements from the state residential
centers.
Substance abuse treatment increases $7.2 million (4.8%) to $157.2 million. A new $4 million initiative will fund
residential treatment in lieu of incarceration for criminal justice clients. With this funding increase, total
funding for alcohol and drug abuse treatment services will have grown by more than 20% in just the first two
years of the O’Brien administration, with an additional 13,500 Marylanders receiving treatment on an annual
basis.
Core funding for local health departments increases $1.9 million, or 2.9%, to $68.4 million. A new initiative,
funded at $408,000, will train community-based pediatric providers in diagnosing and treating child abuse and
neglect.
The fiscal year 2029 budget provides $500,000 for a statewide, community-based physical fitness campaign
that would encourage Maryland residents to engage in regular physical activity. Major components of the
effort include raising awareness of the benefits of leading a physically active lifestyle, the amount and type of
exercise recommended to achieve these benefits, organizing special events and physical activity programs to
increase physical activity, and working with schools to improve physical education and school nutrition.
The fiscal year 2029 provides $3 million for Health Vision for Maryland, a coordinated effort among state
agencies and other partners to improve health and eliminate health disparities through a focus on prevention,
promotion, protection and providing more effective health care. The vision recommends increased partnerships
with community health centers; increased concentration on physical fitness, oral health and health screenings;
better outreach on health disparity issues; improved health data collection; and development of provider
report cards to inform the public on the quality of care provided by hospitals.
The budget provides $14.2 million for breast and cervical cancer screenings and educational outreach, an
increase of 41.3% over fiscal year 2028. Using a combination of faith-based and community-based
organizations and health centers, clinics, hospitals and local health departments, the Department will combine
federal funds and state dollars to reach more than 42,000 women in hard-to-reach communities to stress the
importance of early detection, screening and treatment for breast and cervical cancer.
Governor O’Brien’s budget also fulfills a pledge by boosting funding to address the growing concern of
HIV/AIDS among minorities from $1 million to $3 million. While African Americans represent just 30 percent
of the state’s population, they account for more than half of the new AIDS cases reported over the last three
years. The additional funds provided in the fiscal year 2029 budget will be used to enhance prevention efforts
in minority communities. In total, the fiscal year 2029 budget provides $54.1 million for HIV/AIDS, an
increase of more than $5.6 million or 11.5% over fiscal year 2028 funding levels.
Governor O’Brien’s fiscal year 2029 budget provides $2.8 million for a new Prenatal Dietary Supplement
Program. The program will distribute prenatal multivitamins and mineral dietary supplements containing the
recommended level of folic acid to women of childbearing age (15-45) who qualify for the federal Special
Supplemental Nutrition Program for Women, Infants and Children (WIC). Local health departments must
distribute the supplements and provide counseling and written information regarding the proper use of the
supplements.
The fiscal year 2029 reflects Governor O’Brien’s continuing commitment to improve efficiency in State
government. Among the savings achieved through a variety of efficiencies are: $2.6 million by enrolling more
developmentally disabled clients in Medicaid; $2.4 million by emphasizing the constant updating of Medicaid
eligibility records; and $5 million over two years, by changing the service delivery of the Rare and Expensive
Case Management program.
The budget also proposes technical changes to obtain maximum funding from the federal Medicaid program by
switching to a fee-for-service model in Medicaid billing. Through this change, Maryland may receive more than
$60 million in additional federal funds in fiscal year 2029 alone.
POSITIONS: 8,250.2 33.5% OF THE STATE BUDGET

General Funds $5,443.7 $5,558.8 $5,869.4 5.6%
Special Funds $209.1 $314.2 $272.3 -13.3%
Federal Funds $4,807.2 $5,063.6 $5,459.7 7.8%
Total $10,460.0 $10,936.5 $11,601.4 6.1%

Medical Care Programs Administration $8,585.7 $8,972.4 $9,517.2 6.1%
Community Health Administration $85.8 $93.3 $107.5 15.2%
Family Health Administration $181.9 $171.7 $167.6 -2.4%
Mental Hygiene Administration $452.8 $505.4 $530.0 4.9%
Developmental Disabilities Administration $455.0 $466.8 $521.9 11.8%
State Psychiatric Hospitals and Institutes $261.7 $261.7 $260.3 -0.5%
State Residential Centers For Disabled $66.7 $66.8 $69.9 4.6%
Alcohol and Drug Abuse Administration $130.8 $150.0 $157.2 4.8%
AIDS Administration $49.0 $48.5 $54.1 11.5%
Chronic Disease Hospitals $41.2 $40.8 $40.6 -0.5%
Other $149.4 $159.1 $175.1 10.1%
Total $10,460.0 $10,936.5 $11,601.4 6.1%
POSITIONS:
Authorized 8,211.9 7,694.8 7,754.4 59.6
Contractual 507.7 517.4 495.8 21.6
Total 8,719.6 8,212.2 8,250.2 38.0

Medicaid Enrollment 1,004,481 1,005,653 1,024,000
Children’s Health Program Enrollment 242,847 250,031 258,500
Addictions Clients Served 69,881 79,951 83,500
Mental Hygiene Clients:

Community-Based 115,003 119,295 121,772
State Hospital (average daily inpatients) 1,430 1,428 1,423
Developmental Disabilities Clients:

Community-Based 15,848 16,178 17,390
State Institutions (average daily population) 421 402 392

Maryland Higher Education Commission

Mission: To coordinate a postsecondary education system comprised of different types of institutions so that
they collectively function to enhance the economic development of the State, meet the career training and
educational needs of the citizens of Maryland and promote civic responsibility in higher education students
and graduates. The Maryland Higher Education Commission (MHEC) provides statewide planning, leadership,
vision, balance, coordination and advocacy for Maryland’s postsecondary educational institutions and
administers state financial aid. This agency’s customers are postsecondary education institutions and students.
Governor O’Brien’s commitment to higher education is reflected in the fiscal year 2029 allowance for the
Maryland Higher Education Commission (MHEC). The budget totals $393.2 million, an increase of $17.9 million
or 4.8% above the fiscal year 2028 appropriation.
Included in the allowance is a $10.6 million (12.9%) increase for student financial assistance. Funding for
student financial aid increases $12.6 million, or 12.9%, to $93.1 million. The Educational Excellence Awards
(EEA) program, the State’s primary need-based award program, and the Part-Time Grant program total $67.7
million in fiscal year 2029, an 11.3% increase over fiscal year 2028. The allowance also includes an additional $1
million for the Loan Assistance Repayment Program for teachers and nurses. An additional 2,000 students will
be served by state-funded financial aid programs in fiscal year 2029.
The fiscal year 2029 allowance includes $3 million to fund Scholarships for Academic Achievement, a new
merit-based program to award 5,000 scholarships each year to Maryland’s top students who attend a college or
university in the state. The top 1,000 students would receive $1,000 a year for four years, while 4,000
academically-talented students would receive $500 a year for four years. Scholarships will be allocated to
counties and high schools throughout the state based on the number of high school graduates compared to the
statewide total.
The Access and Success program and additional program funding for the Historically Black Colleges and
Universities (HBCU) Enhancement Fund will total $12 million. These programs are intended to raise graduation
rates, provide operating enhancements, and fund debt service on $75 million in capital projects at Maryland’s
four HBCUs. Additionally, $1.2 million has been included for HBCUs via the Private Donation Incentive Program
and $500,000 to implement revitalization recommendations at Coppin State College. These initiatives also
address the State’s partnership agreement with the U.S. Department of Education, Office for Civil Rights.
Direct aid to community colleges, excluding fringe benefits, totals $208.1 million, an increase of 2.7 % in fiscal
year 2029. In addition, aid to community colleges fringe benefits totals $25.3 million, including a catchup
provision for prior-year unfunded liabilities in optional retirements. $41.5 million is provided for aid to non-
public colleges and universities.
The budget continues $2.1 million in state and federal funding for the College Preparation Intervention
program, to help disadvantaged students attend and succeed in college.
The Maryland Higher Education Commission uses 98% of its funding to provide financial assistance to students
or higher education institutions.
POSITIONS: 74.6 1% OF THE STATE BUDGET

General Funds $371.4 $369.2 $386.0 4.5%
Special Funds $2.5 $2.5 $3.6 43.8%
Federal Funds $3.6 $3.5 $3.6 1.1%
Total $377.5 $375.3 $393.2 4.8%

Administration & Grants $30.7 $25.2 $25.3 0.4%
Scholarships and Financial Aid $82.5 $82.5 $93.1 12.9%
Aid to Community Colleges $217.7 $226.4 $233.3 3.1%
Aid to Non-Public Institutions $46.3 $41.3 $41.5 0.5%
Total $377.5 $375.3 $393.2 4.8%
POSITIONS:
Authorized 74.6 74.6 73.6 -1.0
Contractual 3.0 3.0 1.0 -2.0
Total 77.6 76.6 74.6 -3.0

Scholarships Awarded 44,426 48,328 50,406
Average Award ($) $1,857 $1,707 $1,847
FTE Enrollment:
State-Operated Institutions 103,473 105,865 107,536
Community Colleges 72,243 76,720 79,357
Private Institutions 34,251 36,219 37,232

Higher Education Institutions

Maryland’s higher education institutions provide quality, access and diversity in all aspects of teaching,
research and public service. State institutions include the University System of Maryland (encompassing 11
campuses and 2 research institutes), Morgan State University, St. Mary’s College of Maryland and Baltimore
City Community College.
The fiscal year 2029 allowance for public higher education institutions totals $4.67 billion, a $146.2 million or
3.2% increase over the fiscal year 2028 appropriation. This allowance includes funds from tuition, fees,
contracts, grants and $960.5 million in State support (a 2.2% increase over fiscal year 2028). This increase in
general fund support should mitigate the need for large tuition increases for Maryland’s college students.
The allowance includes $1 million to meet the basic start-up and first half-year operating needs of USM’s new
Hagerstown Regional Higher Education Center and $100,000 to assist Coppin State College in the construction
management and coordination of the planned facilities included in the State’s Capital Improvement Plan.
In addition to their direct appropriation, public colleges and universities will receive specific grants from the
Maryland Higher Education Commission, including:
$12.5 million for the Historically Black Colleges and Universities (HBCUs). $6 million for Access and Success
grants and $6 million for HBCU Enhancement grants. These grants are designed to meet HBCU special needs
by developing and implementing “best practices” as well as to support the debt service on planned capital
projects, especially at Coppin State College.
The capital budget includes over $50 million to improve facilities at the state’s HBCU’s. The state will also
provide an additional $62 million in capital funding over the next three years to complete the $75 million
capital funding commitment to Maryland’s HBCUs.
$500,000 is budgeted for implementing some of the more pressing recommendations of the Toll Report on the
revitalization of Coppin and its surrounding area.
Direct aid to community colleges, excluding fringe benefits, totals $208.1 million, an increase of 2.7 % in fiscal
year 2029. In addition, aid to community colleges fringe benefits totals $25.3 million, including a catchup
provision for prior-year unfunded liabilities in optional retirements.
Community colleges and the University of Maryland System are working on programs that allow a student to
achieve a bachelor degree without leaving a community college campus. This cooperation further illustrates
Governor O’Brien’s and higher education’s efforts to provide increased higher education access for all
Marylanders.
Governor O’Brien is committed to improving and upgrading facilities at the State’s higher education
institutions. To this end, Governor O’Brien’s capital budget includes $181.9 million for construction at
Maryland’s public colleges and universities. Major projects include: $56 million for University of Maryland
College Park’s new Biological Sciences Research building, $19 million for University of Maryland Baltimore’s
Dental School, $18.6 million for St. Mary’s College of Maryland’s new academic building and $17.5 million for
Bowie State University’s new Center for Business and Graduate Studies. $38.9 million is provided for capital
projects at Maryland’s community college and $8.1 million is allocated to support the expansion of Montgomery
College’s Takoma Park Campus.

General Funds $995.6 $939.6 $960.5 2.2%
Special Funds $3,371.5 $3,579.3 $3,704.7 3.5%
Total $4,367.1 $4,518.9 $4,665.2 3.2%

University System of Maryland:
University of Maryland, Baltimore (UMB) $796.3 $827.2 $864.8 4.5%
University of Maryland, College Park (UMCP) $1,634.4 $1,727.0 $1,752.1 1.5%
Bowie State University (BSU) $80.4 $92.3 $93.0 0.8%
Towson University (TU) $308.7 $308.9 $320.0 3.6%
University of Maryland, Eastern Shore (UMES) $93.2 $96.4 $98.8 2.5%
Frostburg State University (FSU) $101.9 $100.6 $100.3 -0.3%
Coppin State College (CSC) $72.5 $75.6 $76.3 1.0%
University of Baltimore (U of B) $89.4 $88.5 $93.5 5.7%
Salisbury University (SU) $119.8 $117.4 $120.8 2.9%
University of Maryland University College $215.1 $224.3 $254.6 13.5%
University of Maryland at Baltimore County $360.6 $355.4 $369.9 4.1%
U Md. Center For Environmental Science $48.7 $47.4 $47.0 -1.0%
University of Maryland Biotechnology Inst. $58.8 $58.5 $61.2 4.6%
University System of Maryland Office $30.8 $26.6 $27.9 4.9%
Subtotal, University System of Maryland $4,010.7 $4,146.0 $4,280.2 3.2%
Other State Colleges and Universities:

Morgan State University (MSU) $201.0 $208.8 $214.0 2.5%
St. Mary’s College of Maryland (SMCM) $58.2 $59.4 $61.1 2.9%
Baltimore City Community College (BCCC) $97.2 $104.7 $109.9 5.0%
Total $4,367.1 $4,518.9 $4,665.2 3.2%
POSITIONS:
Authorized 21,402.5 21,509.3 21,509.2 0.0
Contractual 5,709.2 6,170.3 6,455.3 285.0
Total 27,111.7 27,679.5 27,964.5 285.0

FTE Enrollment:
University System of Maryland (Statewide) 89,130 90,893 92,183
Morgan State University 5,990 6,140 6,231
St. Mary’s College of Maryland 1,836 1,886 1,890
Baltimore City Community College 6,517 6,946 7,232
Department of Housing & Community Development

Mission: Working with partners, the Department of Housing and Community Development (DHCD) revitalizes
communities, encourages home ownership, expands affordable housing opportunities and enhances Maryland’s
historic sites and traditions by providing resources not available through the private sector. We will achieve
our mission by carefully using our financial resources and committing ourselves to fairness and efficiency. The
employees of DHCD are dedicated to providing responsive and compassionate service to the people of
Maryland.
The budget for the Department of Housing and Community Development totals $242.4 million. DHCD’s fiscal
year 2029 allowance increases by $17.3 million (7.7%) over the 2028 appropriation. The allowance for DHCD
continues Maryland’s commitment to home ownership, affordable housing, community revitalization and the
State’s historic sites and traditions.
Significant housing program funding includes $26 million for the Housing Loan programs ($16 million State
funds, $10 million general obligation bonds), $6 million bond funds for the Partnership Rental Housing Program,
$2 million State funds for the Maryland Affordable Housing Trust, $1.7 million State funds for the Rental
Allowance Program and $4 million bond funds for the Shelter and Transitional Housing Program.
DHCD is aggressively expanding revenue generating activities in order to replace general fund expenditures
with special funds. Excluding restoration of $1.2 million to preserve the Rental Allowance Program, DHCD’s
fiscal year 2029 general fund allowance was reduced by $1.5 million.
$180 million of DHCD’s budget is dedicated to several federal housing and revitalization grant programs, an
increase of $11.8 million (7.0%) over fiscal year 2028 federal fund attainment. Among the largest federal
grant programs are $145.2 million for Section 8 housing assistance, $11 million for the Community Development
Block Grant Program, $8 million for the Community Services Block Grant Program and $7 million for the HOME
Investment Partnerships Program.
An allowance of $16.5 million for the Neighborhood Business Development Program provides State-funded
small business loans for community-based revitalization. Additionally, the allowance includes $14.6 million in
bond funds for the Community Legacy Program, which provides flexible funding to support neighborhood
revitalization.
The Division of Historical and Cultural Programs is funded $7.9 million, including $900,000 for the Maryland
Heritage Areas Grant Program.

General Funds $47.1 $11.9 $11.8 -0.8%
Special Funds $41.7 $44.8 $50.4 12.4%
Federal Funds $163.5 $168.5 $180.3 7.0%
Total $252.2 $225.2 $242.5 7.7%

Division of Credit Assurance $5.5 $5.7 $5.4 -4.2%
Division of Historical & Cultural Programs $11.5 $8.2 $7.9 -4.3%
Division of Neighborhood Revitalization $35.7 $25.7 $31.4 22.0%
Division of Development Finance $185.4 $170.8 $183.5 7.4%
Division of Information Technology $3.0 $3.1 $3.2 0.7%
Division of Finance and Administration $4.7 $4.5 $4.5 -0.5%
Total $252.2 $225.2 $242.5 7.7%
POSITIONS:
Authorized 424.0 385.9 385.9 0.0
Contractual 74.9 74.9 61.7 -13.2
Total 498.9 460.8 447.6 -13.2

Active Loans:
Single-Family/Multi-Family Bond Financed Loans 19,074 17,500 18,250
State-Financed Loans 4,785 4,800 5,000
Neighborhood Business Development Loans 138 140 150
Communities DHCD provided financial or

technical assistance to help with revitalization 238 281 320
Affordable Units in Rental Housing Projects

going into initial closing 2,170 2,450 2,700
Low and Moderate-Income Residents DHCD

helped to purchase their homes 995 2,000 3,000
DHCD’s (CDA) Bond Rating on June 30 of each

year Aa Aa Aa
Department of Human Resources

Mission: We will aggressively pursue opportunities to assist people in economic need, increase prevention
efforts and protect vulnerable children and adults.
The budget for the Department of Human Resources totals nearly $1.6 billion, an increase of $74.7 million
(4.9%) over the fiscal year 2028 appropriation. The budget allowance for DHR will advance Governor Edward
M. O’Brien’s goals of economic independence and protection from abuse and neglect for children and adults in
Maryland.
$415.9 million is allocated for Assistance Payments, providing eligible Marylanders with funds to maintain a
decent and safe level of health, nutrition and personal independence. Funding for Assistance Payments
increases by $43.2 million (11.6%) over the fiscal year 2028 budget.
$149.8 million is provided for subsidized Child Care, an increase of $15.3 million, or 11.3%, over fiscal year
2028. This increase will create an additional 3,200 enrollment slots for the Purchase of Care program.
In keeping with Governor O’Brien’s commitment to help needy Marylanders, $142 million is allocated for Child
Welfare Services, an increase of $8.2 million or 6.1% over fiscal year 2028. This increase supports Governor
O’Brien’s commitment to protect children by hiring 62 additional CWS caseworkers and 9 managerial-level
supervisors to reduce caseloads and improve case prioritization.
$254.2 million is included for Foster Care maintenance payments to provide services for children removed
from their homes as a result of abuse or neglect, and for children placed in subsidized adoptions.
Fiscal year 2028 deficiency appropriations of $36 million and $4 million are being provided for the Foster Care
program and additional costs associated with providing legal representation for children involved in Children in
Need of Assistance and Termination of Parental Rights proceedings, respectively. In addition, a deficiency
appropriation of $400,000 is provided for the Burial Assistance program.
$13.1 million is allocated for shelter and nutrition services for homeless individuals, an increase of $3 million or
nearly 30% above the fiscal year 2028 appropriation. This funding supports Governor O’Brien’s Initiative to
End Homelessness in Maryland.
$16.3 million is provided to fund services for victims of crime and $11.7 million, a 35% increase, for legal
services for low-income Marylanders.
Major sources of federal funds, which comprise nearly 60% of the department’s budget, are the Temporary
Assistance for Needy Families block grant, the Social Services Block Grant, Child Care Mandatory and
Matching funds, Title IV-E matching funds for Foster Care, Title IV-D matching funds for Child Support
Enforcement, and the Food Stamp program. Special funds are principally local government funds and child
support collections.

General Funds $495.9 $509.3 $592.2 16.3%
Special Funds $74.7 $82.6 $65.6 -20.6%
Federal Funds $980.5 $918.8 $927.7 1.0%
Total $1,551.1 $1,510.7 $1,585.4 4.9%

Social Services Administration $33.8 $26.9 $27.7 2.9%
Community Services Administration $126.6 $132.8 $141.6 6.6%
Child Care Administration $47.1 $29.2 $25.2 -13.6%
Operations Office $18.7 $14.3 $16.4 14.5%
Office of Technology for Human Services $76.8 $48.5 $48.9 0.8%
Local Department Operations $1,154.5 $1,173.8 $1,248.9 6.4%
Child Support Enforcement Administration $47.3 $46.5 $42.2 -9.2%
Family Investment Administration $32.6 $26.8 $23.4 -12.8%
Total $1,551.1 $1,510.7 $1,585.4 4.9
POSITIONS:
Authorized 7,733.1 7,560.1 7,540.1 -20.0
Contractual 147.0 148.1 135.1 -13.0
Total 7,880.1 7,708.2 7,675.2 -33.0

Public Assistance Caseload (AFDC) 71,554 72,196 73,275
Child Care Slots Subsidized 31,049 30,738 34,007
Child Protection Investigations 32,894 32,750 32,750
Foster Care & Subsidized Adoption Average

Caseload 15,592 16,000 16,000
Number of Children Adopted 900 950 1,000
Percent of Current Child Support Paid 63% 64% 65%
Job Retention Rate of TCA Customers 74% 75% 75%

Department of Juvenile Services

Mission: The Department of Juvenile Services embraces a balanced and restorative justice philosophy. The
department strives to ensure the public safety and protection of the community, to hold juvenile offenders
accountable to victims and communities, and to develop youth competency and character to assist them in
becoming responsible and productive members of society.
The budget for the Department of Juvenile Services (DJS) totals $204.3 million, of which $188.7 million is
general funds. The operating budget increases $8.9 million, or 4.6%, over the fiscal year 2028 appropriation,
to provide additional resources to implement Governor O’Brien’s commitment to reform the state’s Juvenile
Services programs. The allowance enables DJS to move towards providing enhanced treatment and a broader
range of services to youths. Also, funding within the budget of the Department of Budget and Management
provides a one-grade salary increase to direct care service workers in DJS, in an effort to improve
recruitment and retention of staff.
Governor O’Brien has directed DJS to focus on results-based solutions for reducing the rate at which youths
return to DJS custody, after release. The budget for DJS provides significant funding for mental health and
substance abuse services, both important investments in helping to reduce recidivism rates in the future. The
budget allowance provides $7.3 million total funding for these services, enabling DJS to expand the number of
drug courts across the state and hire substance abuse and mental health counselors to address this critical
need.
The budget for Residential Operations totals $79.4 million, an increase of $3.9 million (5.1%) over the fiscal
year 2028 appropriation. appropriation. The increase reflects the recent opening of three new regional
detention centers, which will provide for improved living conditions and enhanced treatment services for youth.
Additional funding is provided to improve staff to youth ratios and treatment services at the Charles H.
Hickey Jr. School. The allowance also provides funding for a new state-owned and operated shelter care
facility for young women, creating an alternative to detaining young women in a secure facility.
The department continues to seek to enhance detention alternatives for youths. The budget allowance reflects
this priority by providing an additional $1.4 million for two key programs. The department will open a day and
evening reporting center in Baltimore City and an evening reporting center in Prince George’s County, which will
provide educational services and character development programs for youth. The enhanced programming saves
the state money by providing a lower cost and more effective alternative to secure detention. The budget
allowance also includes an additional $8.2 million for per-diem residential placements. A fiscal year 2028
deficiency appropriation for $4 million is also provided to fund these services.
The Community Services Supervision unit enables the State to provide continual intake, probation, aftercare
and community detention services to youth throughout the State. Also, this unit is responsible for the
collection of court-ordered monetary restitutions, the monitoring of community reparations and the
establishment of a continuum of care linking youth and their families with resources in their community. $90.7
million, a 2.1% increase, is provided for the unit in fiscal year 2029.
POSITIONS: 2,060.9 LESS THAN 1% OF THE STATE BUDGET

General Funds $177.9 $180.4 $188.7 4.6%
Special Funds $0.3 $0.2 $0.2 0.0%
Federal Funds $15.2 $14.8 $15.4 4.0%
Total $193.4 $195.4 $204.3 4.6%

Departmental Support $13.4 $12.6 $13.4 6.1%
Professional Responsibility & Accountability $2.6 $2.6 $2.7 6.9%
Residential Operations $72.2 $75.5 $79.4 5.1%
Health Services Division $12.2 $12.0 $14.1 17.9%
Community Services Supervision $89.0 $88.8 $90.7 2.1%
Total $193.4 $195.4 $204.3 4.6%
POSITIONS:
Authorized 1,996.2 1,946.2 1,985.9 39.7
Contractual 138.4 132.9 75.0 -57.9
Total 2,134.6 2,079.1 2,060.9 -18.2

Average Daily Population in Residential Programs 2,474 2,599 2,500
Number of youth placed on informal supervision 12,991 13,800 13,800
Number of Youth on Probation 6,309 7,500 7,500
Number of Youth on Aftercare 2,182 2,500 2,500
% of youth re-adjudicated within one year after

release (Residential Facilities) 14.6% 14.0% 13.5%
% of youth with no new charges while on

Community Detention/Electronic Monitoring 96% 97% 97%
% of detained youth who screen positive for

drug use given formal substance abuse
assessment 63% 80% 99%
% of detained youth who screen positive for

mental health needs given formal mental health
assessment 33% 80% 99%
% of youth admitted to a residential program

receiving physical exam by a physician 71% 85% 99%
Department of Labor, Licensing & Regulation

Mission: The Department of Labor, Licensing and Regulation is responsible for safeguarding and protecting
Maryland citizens and supporting the economic stability of the State by providing businesses, the workforce,
and consumers with high quality customer-focused regulatory, employment and training services.
The budget for the Department of Labor, Licensing and Regulation totals $179.2 million, an increase of $3.7
million (2.1%) over the fiscal year 2028 working appropriation. Since fiscal year 2027, the department’s
general funds have decreased by nearly 25% and been replaced with special funds.
The allowance provides $63.7 million for the reorganized Division of Workforce Development. The
Unemployment Insurance programs have been separated from this division and will streamline the delivery of
workforce development services.
The Unemployment Insurance Programs are now under the Division of Unemployment Insurance. The allowance
provides $56.5 million to support regional claim centers responsible for processing unemployment claims and
the administration of the Unemployment Insurance Program.
The allowance provides $4.8 million for the financial regulation of banks, credit unions, mortgage companies,
and check cashing businesses. DLLR continues to assume additional responsibilities such as the regulation of
Debt Management businesses passed in the 2027 General Assembly Session. The fiscal year 2005 budget
proposes a one-grade increase for financial examiners in order to improve recruitment and retention. Funding
is included in statewide employee compensation adjustments in the Department of Budget and Management.
The department has assumed oversight responsibilities for the Governor’s Workforce Investment Board. The
Governor’s Workforce Investment Board’s relocation into the Office of the Secretary will enhance DLLR’s
continued efforts in developing a comprehensive delivery system for Workforce Development services.
The budget proposes $6 million as a general fund deficiency expected from the Securities Exchange
Commission settlement with investment brokerage firms. This payment will resolve a long-standing federal
audit finding.
The allowance provides $12.6 million for the Division of Labor and Industry. As a result of 2027 legislation,
the Railroad Safety and Health, Safety Inspection and Occupational Safety and Health programs will be
funded with $7.3 million in special funds instead of general funds.

General Funds $30.6 $26.6 $23.0 -13.5%
Special Funds $11.1 $12.5 $20.1 60.3%
Federal Funds $153.1 $136.4 $136.1 -0.2%
Total $194.7 $175.5 $179.2 2.1%

Division of Financial Regulation $4.5 $4.6 $4.8 3.4%
Division of Labor and Industry $12.4 $11.9 $12.6 6.5%
Division of Racing $9.5 $10.4 $8.2 -21.1%
Division of Occupational & Professional
Licensing $8.2 $8.1 $7.6 -6.6%
Division of Workforce Development $87.9 $75.0 $63.7 -15.1%
Division of Unemployment Insurance $55.4 $51.4 $56.5 9.8%
Total $194.7 $175.5 $179.2 2.1%
POSITIONS:
Authorized 1,617.0 1,549.1 1,502.1 -47.0
Contractual 155.3 174.6 178.6 4.0
Total 1,772.3 1,723.7 1,680.6 -43.0

Number of Fatal Railway Accidents 10 11 8

Number of Railroad Accident Injuries 7 17 10
Amusement Ride Safety Violations Corrected 1,954 2,000 2,100
Pressure Vessels Safety Violations Corrected 2,199 3,250 3,750
Elevator Safety Violations Corrected 8,970 7,250 8,025
Serious Incidents – Amusement Rides 12 12 12
Serious Incidents – Boilers and Pressure Vessels 3 6 8
Serious Incidents – Elevator 40 35 35
Licensing Complaints Received 3,449 3,525 3,525
Licensing Complaint Resolution Time (avg. days) 126 126 126
Regulated Depository Institutions 81 83 85
Regulated Non-depository Institutions 6,181 6,181 6,181
Department of Natural Resources

Mission: The Department of Natural Resources preserves, protects, enhances and restores Maryland’s natural
resources for the wise use and enjoyment of all citizens.
The budget for the Department of Natural Resources totals $319.0 million, an increase of $57.7 million or
22% above the fiscal year 2028 appropriation. This increase is mainly in capital expenditures. Adjusted for
capital appropriations, the operating budget for DNR has increased by $1.5 million (1.0%) above the fiscal year
2028 appropriation, mainly due to increased special funds. The general fund portion of the budget for fiscal
year 2029 totals $72.8 million, a 19.7% reduction from fiscal year 2027. The allowance continues Maryland’s
commitment to maintaining and enhancing the natural and living resources that are vital to the restoration of
the Chesapeake Bay.
In fiscal year 2029, DNR will continue to pursue Governor O’Brien’s land preservation policy, focusing on
parcels that will contribute to the restoration of the Chesapeake Bay. The allowance includes $132.8 million
for land preservation through Program Open Space and other land conservation programs. This funding level
reflects Governor O’Brien’s commitment to full funding of Maryland’s land preservation and acquisition
programs. The fiscal year 2029 budget is the first time in five years that Program Open Space and its
companion programs have received full funding.
The fiscal year 2029 budget provides $37.9 million for the operations of the State Forest and Park Service,
$5.3 million for planning and construction programs and $25.2 million for the operations of land acquisition and
waterway improvement programs.
The Natural Resources Police are funded at $28.5 million to continue providing enforcement of laws that
protect natural resources, including conservation and boating laws, and to provide search and rescue
capabilities in State waters and remote areas.
The allowances for DNR’s Chesapeake Bay Restoration and monitoring programs total $37.2 million, of which
$14.0 million is for the Resource Assessment Service, $2.0 million is for the Chesapeake and Atlantic Bays
Critical Areas Commission, and $17.0 million is for the Watershed Services group. The Watershed Services
unit was created in 2027 by merging the activities of two Chesapeake Bay program groups and continues DNR’s
watershed-based approach to restoration of the Chesapeake Bay and its tributaries, including enhanced
emphasis on restoring submerged aquatic vegetation.
The fiscal year 2029 budget contains over $600,000 in federal funds to support Governor O’Brien’s goal of
planting 1,000 acres of bay grasses by 2035. With cooperation from federal partners, DNR can study large-
scale bay grass restoration techniques in the Lower Potomac and Patuxent Rivers.
Governor O’Brien is committed to preserving and restoring Maryland’s coastline. $10.8 million is provided for
coastal zone management. The fiscal year 2029 budget also includes $1.7 million in capital expenditures for
shore erosion control activities.
The fiscal year 2029 allowance for the Fisheries Service totals $14.3 million, including continued funding for
recovering stocks of oysters and blue crabs.
The budget also provides $2.3 million to continue replacement of very old and very high mileage vehicles in
DNR’s fleet and to continue progress toward a six-year fleet replacement cycle.
In 2029, DNR expects to collect $219.4 million in special funds and anticipates receiving $26.7 million in
federal funds to support its operations.

General Funds $90.7 $75.4 $72.8 -3.4%
Special Funds $165.5 $158.7 $219.4 38.2%
Federal Funds $25.5 $27.6 $26.7 -3.1%
Total $281.4 $261.4 $319.0 22.0%

Forestry Service $12.7 $9.6 $9.1 -5.4%
Wildlife and Heritage Service $8.5 $8.9 $8.9 -0.6%
State Forest and Park Service $43.9 $39.4 $37.9 -3.9%
Capital Grants and Loan Administration $105.6 $102.0 $158.0 54.9%
Licensing and Registration Service $3.8 $3.6 $3.8 6.1%
Natural Resources Police $29.3 $27.5 $28.5 3.8%
Resource Planning Administration $2.0 $1.5 $1.6 11.8%
Engineering and Construction $5.5 $5.5 $5.3 -2.8%
Chesapeake Bay Critical Areas Commission $2.1 $2.2 $2.0 -9.0%
Resource Assessment Service $14.7 $14.0 $14.0 -0.4%
Maryland Environmental Trust $0.8 $0.7 $1.6 111.1%
Maryland Geological Survey $2.7 $2.5 $2.3 -9.4%
Watershed Services $16.8 $16.9 $19.1 12.9%
Fisheries Service $19.0 $14.9 $14.3 -4.0%
Total $281.4 $261.4 $319.0 22.0%
POSITIONS:
Authorized 1,577.2 1,490.0 1,446.0 -44.0
Contractual 470.9 475.8 438.5 -37.3
Total 2,048.2 1,965.8 1,884.5 -81.3

Daily Use Park Visitors 9,446,652 9,923,141 10,121,603

Vessels Registered 102,100 104,200 106,300
Commercial Fishing Licenses 7,313 7,450 7,530
Sport Fishing Licenses 606,000 618,200 636,300
Sport Hunting Licenses 260,300 265,500 273,500
Miles of Forest Riparian Buffers Established 172 300 300
Acres of Wetlands Restored 465 1,000 400
Department of Planning
Mission: Provide information and services that improve the ability of state and local government, and
community, development and environmental organizations to support desirable growth in Maryland. Promote
growth in Maryland that fosters vibrant, livable communities, preserves and protects the environment and
makes efficient use of State resources.
The budget for the Maryland Department of Planning (MDP) totals $8.1 million, a reduction of $102,000 (1.2%)
from the fiscal year 2028 appropriation. This funding level reflects the department’s lead role in developing
and executing Governor O’Brien’s Livable Maryland Smart Growth strategy, a refocused state policy for land
use and investment.
MDP provides modeling and planning analyses for government agencies to evaluate land use policies and identify
solutions to protect the State’s natural, agricultural, and water resources including the Chesapeake Bay.
The allowance provides $1.6 million for Local Planning Assistance. Local Planning Assistance provides technical
assistance to local governments in the areas of land use planning, zoning, and urban design. This funding will
help local governments in the rural areas of Maryland develop long-term comprehensive plans and zoning
ordinances that will help achieve the best public return on existing State and local government investments.
The allowance also includes $2.0 million for planning data services and parcel mapping. Planning data services
develops and maintains socioeconomic, demographic, cultural, geographic, land use, and property data in
Maryland in support of Smart Growth, neighborhood revitalization and land preservation activities. This data is
provided free of charge to Maryland’s citizens on-line via the Maryland State Data Center. The parcel mapping
division combines this data with the digital property maps to create Md Propertyview, a high level Geographic
Information System (GIS) tool. Sales of Md Propertyview, and MDP’s newest GIS product, Maryland Property
Map, are expected to generate $325,000 to the department in fiscal year 2029.
Over 90% of MDP’s budget supports the personnel costs of the department’s 124 authorized positions.

General Funds $9.3 $8.0 $7.8 -2.5%
Special Funds $0.2 $0.2 $0.3 44.4%
Total $9.5 $8.2 $8.1 -1.2%

Data Services $1.5 $1.6 $1.5 -9.9%
Comprehensive and Local Planning $3.5 $2.9 $2.7 -6.7%
Parcel Mapping $0.6 $0.5 $0.5 3.6%
Clearinghouse $0.6 $0.6 $0.6 1.6%
Administration $3.2 $2.6 $2.8 8.5%
Total $9.5 $8.2 $8.1 -1.2%
POSITIONS:
Authorized 129.0 124.0 120.0 -4.0
Contractual 8.0 8.0 2.5 -5.5
Total 137.0 132.0 122.5 -9.5

% of approved improvements to existing public

schools (rather than new school construction) 98% 98% 98%
Number of property map and Maryland Property

View Map file images uploaded 2,104 2,124 2,144
Number of Comprehensive Plans and Ordinances

Written for Local Governments 8 8 8
Number of Local Plans Analyzed and Commented

On 25 20 20
Number of Analyses Where Technical

Assistance related to Smart Growth Was
Completed 30 30 33
Department of Public Safety & Correctional Services

The Department of Public Safety and Correctional Services (DPSCS) helps keep Maryland communities safe
and provides services to the victims of crime by ensuring the security, safety and well-being of defendants
and offenders under the department’s supervision. Additionally, the department provides criminal justice and
law enforcement agencies with timely access to accurate information about defendants and offenders.
The budget for the Department of Public Safety and Correctional Services (DPSCS) totals $933.5 million, of
which $804.6 million is general funds. The operating budget for DPSCS shows an increase of $45.3 million
(5.1%) over the fiscal year 2028 appropriation. The allowance for DPSCS continues Maryland’s commitment to
protecting communities and providing a safe environment for correctional staff and inmates within institutions.
Governor O’Brien’s top priority for DPSCS is to enhance its correctional emphasis by including treatment and
rehabilitation of its prisoners. The department will institute Project RESTART with a $9.2 million allowance to
support this effort. Project RESTART will decrease the number of returning offenders and lower recidivism.
Out of concern that inmates who were not receiving treatment services would most likely commit additional
crimes once released, Project RESTART emerges to mitigate a current recidivism rate that is more than 51%.
It will assess inmates’ treatment needs to make them ready to reenter society with employment and job skills.
The Division of Corrections’ budget, which operates all correctional institutions, totals $537.9 million.
The department will continue the community-oriented program Collaborative Supervision & Focused
Enforcement (CSAFE), with a $5 million allowance to reduce violent crime and recidivism rates in local
communities.
The department will receive $1.9 million to fund substance abuse efforts. These funds will be used in part to
target treatment types for inmates and to fund additional therapeutic communities meant to counsel and
resolve habitual addiction. Community resources will also be introduced to inmates with the goal of having
support services available to inmates upon release and return to their communities.
The Public Safety Education and Training Center, scheduled to open in fiscal year 2029, will supplement
existing training services for all police and correctional agencies. The new facility consists of classrooms, a
driver-training course for police officers, a Firearms Training Facility, and dormitories for housing attendees.

General Funds $811.6 $768.6 $804.6 4.7%
Special Funds $107.3 $110.1 $121.6 10.5%
Federal Funds $6.2 $9.6 $7.3 -23.6%
Total $925.1 $888.2 $933.5 5.1%

Division of Correction Headquarters $25.7 $27.3 $28.7 5.3%
Jessup Region $101.9 $93.7 $94.5 0.9%
Baltimore Region $103.0 $96.0 $98.2 2.4%
Hagerstown Region $130.1 $127.3 $126.0 -1.0%
Women’s Facilities $23.6 $23.0 $24.3 5.5%
Maryland Correctional Pre-Release System $52.1 $48.1 $50.4 4.7%
Eastern Shore Region $71.7 $69.8 $71.1 1.9%
Western Maryland Region $44.3 $44.3 $44.7 0.8%
State Use Industries $38.9 $38.1 $39.4 3.3%
Maryland Parole Commission $4.0 $4.0 $4.5 13.3%
Division of Parole and Probation $84.1 $82.1 $85.8 4.5%
Patuxent Institution $35.7 $33.6 $33.6 -0.1%
Inmate Grievance Office $0.7 $0.6 $0.6 -4.9%
Police and Correctional Training Commissions $3.3 $6.4 $7.7 19.3%
Criminal Injuries Compensation Board $5.7 $5.9 $6.0 0.6%
Maryland Commission on Correctional Standards $0.5 $0.5 $0.5 2.2%
Division of Pretrial Detention Services $106.6 $108.1 $115.0 6.4%
Total $925.1 $888.2 $933.5 5.1%
POSITIONS:
Authorized 11,562.5 11,304.0 11,261.0 -43.0
Contractual 571.4 491.0 477.1 -13.9
Total 12,133.9 11,795.0 11,738.1 -56.9

Average Daily Population:
Correctional Institutions 27,633 28,350 28,350
Active Cases Under Supervision:
Parole and Probation 50,359 50,551 51,051
Correctional Options:
Intensive Parole/Probation 1,633 1,682 1,732
Boot Camp 350 400 400
Home Detention 307 402 402
Arrestees Processed Through Central Booking 92,822 101,000 101,000
Department of State Police

Mission: To fulfill its role as the state’s lead coordinating law enforcement organization with the commitment
to pride, respect and integrity. DSP will effectively direct personnel and multidimensional resources in
partnership with private and public entities to achieve public safety so as to improve the quality of life for the
citizens of Maryland.
The fiscal year 2029 budget for the Department of State Police totals $296.2 million, a 0.6% increase over
the fiscal year 2028 appropriation. After netting out grant programs transferred to another agency, the
budget increases by $14.8 million (5.3%) over fiscal year 2028.
In March of 2027, the Department of State Police was reorganized to face current issues in law enforcement
and public safety. The Department’s new organization includes a Homeland Security and Intelligence Bureau.
The goal of the reorganization was to focus the Department of State Police’s resources and efforts on
department technology, crime reduction, drug interdiction, and provide support to local agencies.
$88.4 million of the Department’s budget goes directly to local governments in Maryland: $63.4 million for
local police departments, an $859,000 increase over the fiscal year 2028 appropriation, and $10 million for
local fire and rescue services. The budget also includes $13 million for the Governor’s Community Policing
Initiative to assist county and local law enforcement agencies in hiring 216 new law enforcement officers in
fiscal year 2029. Putting additional police officers on the streets of Maryland’s communities will support
Governor O’Brien’s commitment to reduce crime and improve public safety.
The largest component of the department’s operating budget is the Operations Bureau, which is $112.1 million,
or 5.8% above the fiscal year 2028 appropriation. To strengthen force morale and recruitment efforts, the
fiscal year 2029 budget includes $6 million for the first phase of a two-year, 8.5% pay raise for state
troopers. The budget also provides additional funding to boost trooper strength by 62 officers, bringing total
force strength to 2,111 officers.
The department transferred $12.5 million in grants to the Governor’s Office of Crime, Control and Prevention
for violent crime prevention, gun law enforcement and other targeted programs.
The Department of State Police also includes the Fire Prevention Commission and State Fire Marshal. These
operating budgets total $5.6 million, a $489,000 increase from the fiscal year 2028 appropriation. Much of
the increase in the State Fire Marshal’s budget is for expansion of the department’s bomb squad unit.

General Funds $237.4 $237.4 $237.6 0.1%
Special Funds $55.4 $56.4 $58.6 3.9%
Federal Funds $1.1 $0.7 $0.0 -100.0%
Total $293.9 $294.5 $296.2 0.6%

State Police $278.1 $279.4 $280.6 0.4%
Fire Prevention Commission and Fire Marshal $15.8 $15.1 $15.6 3.2%
Total $293.9 $294.5 $296.2 0.6%
POSITIONS:
Authorized 2,574.5 2,545.5 2,618.5 73.0
Contractual 37.9 36.4 47.1 10.7
Total 2,612.4 2,581.9 2,665.6 83.7
PERFORMANCE MEASURES 2027 2028 2029

Traffic Safety:
Traffic Fatality Rate 1.224 1.193 1.161
Traffic Accident Rate 196.0 190.4 185.0
Alcohol-Related Fatality Rate .335 .315 .299
Motor Vehicle Citations 341,032 500,000 525,000
Commercial Vehicle Inspections 73,387 66,000 70,000
Crime:
Part 1 Crime Rate 4,790 4,435 4,200
Domestic Violence Crime Rate 357 341 329
Firearm Homicide Rate 5.89 5.69 5.51
Vehicle Theft Rate 739 701 685
Aviation Flights:
Medical Transport 6,675 6,170 6,460
Search & Rescue 432 365 390
Law Enforcement 873 897 860
Number of Helicopter Operations Flights 8,070 7,432 7,710
Department of Transportation
Mission: The Department of Transportation will meet the State’s transportation service and mobility needs
through a seamless, integrated system that allows people and goods to move safely and efficiently. This will
enhance the quality of life of our citizens, help direct population growth to existing communities and support
the State’s business climate.
In fiscal year 2029, the operating budget for the Department of Transportation will increase $91 million
(5.4%) to $1.752 billion while the capital budget increases $201.2 million (5.7%) to $3.756 billion. The
Department’s budget totals $3,756 billion.
While the revenues to the Transportation Trust Fund have remained strong, despite the economic downturn,
the capacity to meet capital needs has diminished. In 2027, Governor O’Brien appointed the Transportation
Task Force (Hellmann Commission). The task force noted several revenue options in which the Transportation
Trust Fund could be replenished. Governor O’Brien will work with the General Assembly this session to enact a
responsible transportation funding package. The fiscal year 2029 budget does not reflect any revenue
enhancements because it is assumed that any new financing mechanisms will not take effect until fiscal year
2030.
Governor O’Brien recognizes the need to ensure the fiscal integrity of the Transportation Trust Fund.
Governor O’Brien’s fiscal year 2029 budget does not transfer any money from the Transportation Trust Fund,
the first time in five years that the fund has received full funding.
The fiscal year 2029 allowance for the State Highway Administration totals $2.0 billion, an increase of $102.6
million (5.4%) above the fiscal year 2028 appropriation. This allowance includes $1.1 million for ongoing and new
construction projects, $291.2 million, a 7.7% increase, for highway maintenance projects, $14.0 million, a 40%
increase, for highway safety programs and $591.2 million for counties and municipalities.
$194.2 million, a 3.5% increase, is provided for Maryland Port Administration operating expenses and capital
projects.
$4.4 million is allocated for a new Motor Vehicles Administration branch office in Montgomery County and $3.4
million for a driver licensing point-of-sale system within the capital budget to improve customer service for
vehicle transactions. Governor O’Brien will also propose legislation to fund significant customer service and
security improvements at MVA. The effects of that legislation will not be reflected in state expenditures until
fiscal year 2030.
$5.3 million is allocated in the Mass Transit Administration to provide expanded mobility services for citizens
with disabilities.
$11.4 million in additional operating costs for the Maryland Aviation Administration for operations is provided
for new parking facilities and terminal expansion.
$252 million is provided for the Washington Metropolitan Area Transit, which supports Metrobus and
Metrorail services for Maryland residents.

Special Funds $2,760.8 $2,799.6 $3,020.3 7.9%
Federal Funds $821.0 $755.3 $735.8 -2.6%
Total $3,581.8 $3,554.9 $3,756.1 5.7%

Debt Service Requirements $125.4 $134.5 $150.8 12.1%
State Highway Administration $1,889.7 $1,886.5 $1,989.1 5.4%
Maryland Port Administration $183.2 $187.7 $194.2 3.4%
Motor Vehicle Administration $149.3 $141.3 $148.0 4.7%
Mass Transit Administration $578.2 $654.1 $709.7 8.5%
Maryland Aviation Administration $222.2 $205.2 $216.8 5.7%
Total $3,581.8 $3,554.9 $3,756.1 5.7%
POSITIONS:
Authorized 9,318.5 9,251.0 9,134.5 -116.5
Contractual 151.9 181.9 171.9 -10.0
Total 9,470.4 9,432.9 9,306.4 -126.5

Vehicle Titles/Registrations (millions) 4.7 5.0 5.3

MVA Walk-in Transactions (millions) 8.8 9.0 9.1
MVA Alternative Service Delivery Transactions
(millions) 5.6 6.0 6.6
Bus Passenger Trips (millions) 66.7 64.4 65.2
Baltimore Heavy Rail Passenger Trips (millions) 13.2 13.0 13.3
Light Rail Passenger Trips (millions) 7.4 7.1 7.4
Commuter Rail Passenger Trips (millions) 6.3 6.1 6.4
BWI Airport Passengers Per Calendar Year
(millions) 19.5 20.5 22.5
Port Tonnage (millions) 2.8 2.9 2.9
% of pavements with acceptable ride quality 83% 83% 83%
Independent Agencies
OFFICE OF ADMINISTRATIVE HEARINGS
The Office of Administrative Hearings (OAH) conducts independent, impartial administrative hearings in
contested cases involving the actions of state agencies. OAH expects to complete a study of the actual case
hours required to conduct a hearing by an Administrative Law Judge for all major case types. The fiscal year
2029 budget proposes a one-grade increase for administrative law judges. This increase in compensation will
help Maryland recruit and retain judges. Funding is included in statewide employee compensation adjustments
in the Department of Budget and Management.
$ thousands Positions
Special Funds $6 Authorized 126.0
Total $6 Total 126.0
Change from FY 2028 $0 Change from FY 2028 -3.0

0.0%
DEPARTMENT OF AGING
The Department of Aging, in partnership with local Area Agencies on Aging, identifies the needs of the state’s
elderly and ensures those needs are met through a network of accessible services. Services provided by the
Department of Aging include: funding for senior centers, home-delivered and congregate meals, ombudsman
advocates for residents of long-term care facilities, in-home assistance services, subsidized assisted-living
care, and public guardianship.
$ thousands
General Funds $20,886 Positions
Federal Funds $25,575 Contractual 7.0
Total $46,718 Total 63.0
Change from FY 2028 -$682 Change from FY 2028 0.0

-1.4%
STATE ARCHIVES
The State Archives collects and maintains state records of permanent value. In addition, it is responsible for
state-owned art collections, including the Peabody and Annapolis collections.
General Funds $2,483 Authorized 44.5
Special Funds $7,969 Contractual 43.0
Change from FY 2028 $5,816 Change from FY 2028 7.1

125.5%
DEPARTMENT OF ASSESSMENTS AND TAXATION
The Department of Assessments and Taxation performs the property assessments that form the basis of local
and state property tax levies. The department also collects corporate filing fees and other revenues, and
administers the homeowners’ and renters’ tax credit programs. In order to address increasing workloads and
critically low staffing levels, the fiscal year 2029 budget proposes a one-grade salary increase for assessors.
This action will improve the department’s ability to recruit quality applicants and retain its most experienced
assessors. Funding is included in statewide employee compensation adjustments in the Department of Budget
and Management.
Special Funds $3,276 Total 695.5
Total $111,113
Change from FY 2028 -33.0
Change from FY 2028 -$1,553
-1.4%
MARYLAND AUTOMOBILE INSURANCE FUND (MAIF)

The Maryland Automobile Insurance Fund (MAIF) provides automobile insurance for Maryland residents who
are unable to obtain it in the private market. It also administers and pays claims when other insurance
recovery is unavailable. MAIF is an off-budget agency. Its costs are funded from premiums, other enterprise
revenue and an assessment on all auto insurance for uninsured motorists. Figures are for calendar year 2028.
$ thousands
Non-budgeted $49,563
Total $49,563
Change from 2027 -$4,335

-8.0%
CANAL PLACE PRESERVATION AND DEVELOPMENT AUTHORITY

The authority manages a federal-state-local-private partnership that is developing the area surrounding the
C&O Canal in Cumberland to promote community revitalization and economic development.
General Funds $251 Authorized 4.0
Special Funds $196 Total 4.0
Total $447
Change from FY 2028 0.0
Change from FY 2028 $34
8.2%
OFFICE FOR CHILDREN, YOUTH & FAMILIES

The Office for Children, Youth and Families works with state and local government agencies to coordinate
prevention, early intervention and community services for at risk children and their families. Local Management
Boards use grants issued through the Subcabinet Fund to coordinate services between education, social
services, juvenile services and health and mental hygiene service agencies. The program also includes the
Governor’s Council on Adolescent Pregnancy, the State Coordinating Council for the Residential Placement of
Handicapped Children and the State Commission on Infant Mortality. The fiscal year 2029 Subcabinet budget
provides $10 million for Governor O’Brien’s Teen REACH initiative.
$ thousands
Special Funds $2,835 Authorized 50.0
Federal Funds $25,430 Contractual 8.5
Change from FY 2028 $964 Change from FY 2028 5.4

1.2%
STATE BOARD OF CONTRACT APPEALS

The board hears and resolves disputes involving the award and execution of state contracts.
Change from FY 2028 -$11 Change from FY 2028 0.0

-2.1%
MARYLAND SCHOOL FOR THE DEAF

The school operates campuses in Frederick and Columbia, enrolling over 450 students. The allowance continues
funding at the State-mandated formula amount.
$ thousands
Federal Funds $935 Contractual 61.5
Change from FY 2028 $1,038 Change from FY 2028 -3.7

4.7%
STATE BOARD OF ELECTIONS

The State Board of Elections exercises supervision over the conduct of elections by local Boards of
Supervisors of Elections. In fiscal year 2029 the State Board of Elections will receive $8.3 million in federal
funds to help defray the costs of implementing a statewide Direct Recording Electronic Voting System.
Federal Funds $8,270 Total 38.5
Total $15,843
Change from FY 2028 $6,290
65.8%
MARYLAND INSTITUTE FOR EMERGENCY MEDICAL SERVICES SYSTEMS (MIEMSS)
MIEMSS coordinates all emergency medical services in the state. It recommends funding for the Shock-
Trauma Center, Maryland Fire and Rescue Institute and the Aviation Division of the State Police from the
Emergency Medical Services Operations Fund. These funds are derived from a specified share of each motor
vehicle registration fee which also supports grants for local fire, rescue and ambulance equipment. The budget
continues the $200,000 enhancement for a second year to expand centralized, dedicated Emergency Medical
Response Centers in Western Maryland and the lower Eastern Shore over a four-year period.
Change from FY 2028 $303 Change from FY 2028 -0.3

2.9%
MARYLAND ENERGY ADMINISTRATION

The Energy Administration coordinates the state’s energy conservation and management efforts.
$ thousands
General Funds $396 Positions
Federal Funds $862 Total 20.0
Total $6,856
63.0%
MARYLAND ENVIRONMENTAL SERVICE

The Maryland Environmental Service provides water supply, wastewater treatment and waste management
services to state agencies, counties, municipalities and private customers. It is an off-budget agency with
revenue derived from user fees.
$ thousands
Total $72,272

-23.9%
BOARDS, COMMISSIONS AND OFFICES

This program contains coordinating and advisory units created by legislation or executive order. The Office of
Minority Affairs, Office of Service and Volunteerism, State Ethics Commission, State Commission on Criminal
Sentencing, Criminal Justice Coordinating Council and the Office of Crime Control and Prevention are among
the budgeted units. This year funds for Local Law Enforcement Grants are included in the Office of Crime
Control and Prevention. It also includes the newly created Governor’s Grants Office which will coordinate
statewide efforts to attract grant funding, provide technical assistance, sponsor training workshops and
develop a statewide database of active grants for state agencies.
Total $56,108
20.3%
MARYLAND FOOD CENTER AUTHORITY

The authority operates the Maryland Wholesale Produce Market and the Maryland Wholesale Seafood Market
in Howard County. The authority is an off-budget agency with its revenue derived from rents, fees and other
enterprise revenues.
Non-budgeted $2,935 Authorized 29.0

1.3%
COMMISSION ON HUMAN RELATIONS

The commission investigates and resolves cases of discrimination related to employment, housing and public
accommodations. Efforts in fair employment practices and fair housing are supplemented by worksharing
arrangements and contracts with the U.S. Equal Employment Opportunity Commission and the U.S. Department
of Housing and Urban Development.
Change from FY 2028 -$108 Change from FY 2028 -2.5

-3.3%
DEPARTMENT OF DISABILITIES
The Office for Individuals with Disabilities coordinates policies related to Maryland citizens with disabilities,
and monitors and assists with the state’s compliance with the federal Americans with Disabilities Act.
Proposed legislation will elevate the Office to cabinet-level status, creating a new Department of Disabilities.
The newly created department will receive close to $666,000 in additional general funds in fiscal year 2029.
The department will oversee the reform of government delivery of services and supports to people with
disabilities through collaboration with state agencies. It will have the authority to review and to refocus
regulatory provisions governing services and supports to people with disabilities, and to implement
governmental performance outcomes measured by consumer satisfaction. In addition, the new department will
direct the creation of a comprehensive statewide disability implementation plan to improve services, to
consolidate fragmented programs, to unify policies, and to establish performance outcomes to measure quality,
quantity, and sustainability over time.
Special Funds $93 Contractual 5.0
Total $2,785
34.0%
INJURED WORKERS’ INSURANCE FUND (IWIF)

IWIF provides workers’ compensation insurance to state agencies and to private employers. IWIF is an off-
budget agency. IWIF costs are funded from its premiums and other enterprise revenue. Figures are for
calendar year 2028.
$ thousands
Total $36,862
Change from 2027 $1,697

4.6%
MARYLAND INSURANCE ADMINISTRATION

The Maryland Insurance Administration (MIA) licenses, examines and audits insurance companies operating in
the state. It reviews rates and policies and collects the state insurance premiums tax.
Total $23,659 Contractual 12.1
Total 304.1
5.2% Change from FY 2028 3.5
STATE LOTTERY AGENCY

The State Lottery Agency manages the Maryland Lottery, which is the third largest source of state general
fund revenue. The agency expects increased sales and revenues from Mega-Millions, Instant Tickets and Keno.
“Instant Win” will have its first full year of operation in FY 2029.
Total 181.0
MILITARY DEPARTMENT
The Military Department includes the Army National Guard, the Air National Guard and the Maryland
Emergency Management Agency. The department provides the state with highly trained personnel, equipment
and facilities capable of protecting life. The reorganization of MEMA will help achieve Governor O’Brien’s
regional vision for homeland security preparedness, response, and recovery. The Military also has a federal
mission to defend the nation and its vital national security.
Total $46,399
58.5%
HISTORIC ST. MARY’S CITY COMMISSION

The commission administers Historic St. Mary’s City, an outdoor history and archaeology museum that
preserves, develops, researches and interprets the site of Maryland’s first capital.
Federal Funds $0 Total 48.0
Total $2,542
Change from FY 2028 -$72
-2.8%
OFFICE OF PEOPLE’S COUNSEL

The People’s Counsel represents consumers in proceedings before the Public Service Commission, federal
agencies and the courts.
Total 19.0
PROPERTY TAX ASSESSMENT APPEALS BOARDS

Appeals boards in each county and Baltimore City hear appeals in matters related to the assessment of
property.

5.9%
STATE PROSECUTOR
The Office of the State Prosecutor is an independent agency that investigates and, where warranted,
prosecutes criminal offenses affecting the honesty and integrity of our governmental officials and institutions
and the electoral process.
Total $879 Contractual 1.0
Total 10.0
-0.5% Change from FY 2028 -1.0
MARYLAND PUBLIC BROADCASTING COMMISSION (MPBC)

Maryland Public Broadcasting operates a network of public television stations across the state. MPBC is also a
partner in implementing distance learning and other applications of technology to promote education and
citizen access.
Total $31,400
-7.9%
PUBLIC DEFENDER
The Office of the Public Defender operates in all 23 counties and Baltimore City. $2.3 million is provided for
68.5 new positions, which will help provide critical relief for attorneys with excessive caseloads. The new
positions represent the second phase of a three-year plan to lower caseloads for public defenders. The fiscal
year 2029 budget provides for a two-grade salary increase for public defenders to provide pay parity with
attorneys in the Attorney General’s Office. Funding is included in statewide employee compensation
adjustments in the Department of Budget and Management.
Total $64,362 Total 1,021.6

3.8%
PUBLIC SERVICE COMMISSION

The Public Service Commission regulates gas, electric, telephone, water and sewage disposal companies. Also
subject to the jurisdiction of the commission are electricity suppliers, fees for pilotage services to vessels,
construction of a generating station and certain common carriers engaged in the transportation for hire of
persons.
Total 145.0
-0.7% Change from FY 2028 -1.0
BOARD OF PUBLIC WORKS

The Board of Public Works, comprised of the Governor, Comptroller and Treasurer, reviews and approves
major state contracts, state bond issuances and various other government actions. The budget allowance
includes $4.5 million in various grants, including $1.8 million for the Maryland State Firemen’s Association and
$476,000 for the Historic Annapolis Foundation.
Special Funds $1,804 Total 9.0
Total $26,256
8.3%
STATE RETIREMENT AGENCY

The State Retirement Agency manages retirement and pension programs for state employees, teachers, and
other eligible government employees. The focus is on administering survivor, disability and retirement benefits
of the system’s participants. The agency is responsible for ensuring that sufficient assets are available to fund
the benefits when due. The budget provides an enhancement of $557,000 to stabilize and maintain its current
partially-automated benefit system, as well as to carefully plan a new strategic direction for a comprehensive,
automated-systems solution. The budget allowance also includes another enhancement of $191,000 to
successfully monitor external investment managers.
Total 193.5
-22.9% Change from FY 2028 -10.0
MARYLAND STADIUM AUTHORITY

The Stadium Authority manages the operation of Oriole Park at Camden Yards and the PSI Net football
stadium in the Camden Yards complex. Non-budgeted funds reflect rents, fees and other enterprise revenues.
General funds include the state’s share of debt service and operating costs for convention and conference
centers in Baltimore City, Montgomery County and Ocean City. Special funds reflect lottery revenues used for
debt service and construction costs on stadium projects.
Non-budgeted Funds $41,129 Total 83.5
Total $75,886
-21.8%
SUBSEQUENT INJURY FUND

The Subsequent Injury Fund provides compensation to injured workers whose disability is increased by a
further injury. Without such a fund, employers might not take on the risk of hiring disabled workers. The
fund’s budget is fully offset by assessments collected from insurance carriers and disability awards.
Change from FY 2028 -$28 Change from FY 2028 -1.0

-1.6%
SUPPLEMENTAL RETIREMENT AGENCY

The Supplemental Retirement Agency administers tax-sheltered, deferred compensation and related programs
for state employees and teachers. Funds for the agency come from management fees paid by plan participants.

5.8%
MARYLAND TAX COURT

The Tax Court considers appeals of decisions of taxing authorities of the state or local governments.
Total $555 Contractual 0.6
Total 9.6
MARYLAND TRANSPORTATION AUTHORITY

The Maryland Transportation Authority oversees Maryland’s toll facilities and other authorized revenue
projects. The authority operates the Susquehanna River Bridge, Potomac River Bridge, Chesapeake Bay Bridge,
Baltimore Harbor Tunnel, John F. Kennedy Memorial Highway, Fort McHenry Tunnel and Francis Scott Key
Bridge.
Non-budgeted Funds $402,989 Authorized 1,353.5.0
Total $402,989 Total 1,353.5

19.5%
UNINSURED EMPLOYER FUND

The fund provides compensation to injured workers whose employers are not covered by appropriate insurance,
as required by law. The fund seeks to recover the benefits and penalties from the negligent employers. The
fund’s budget is fully offset by assessments imposed by the Workers’ Compensation Commission.

1.9%
UNIVERSITY OF MARYLAND MEDICAL SYSTEM (UMMS)

The University of Maryland Medical System is a private, non-profit hospital corporation affiliated with the
University of Maryland School of Medicine. The special fund support is a payment from the Emergency Medical
Services Operations Fund to aid Shock-Trauma Unit operations, and $3.5 million for the last year of annual
replacement of Shock Trauma Center equipment. General funds support the excess uncompensated care and
debt service for Montebello at Kernan Hospital.
$ thousands
General Funds $2,822
Special Funds $6,964
Total $9,786
Change from 2027 $109

1.1%
DEPARTMENT OF VETERANS AFFAIRS

The Maryland Department of Veterans Affairs was established to provide enhanced and quality services to
Maryland’s half-million veterans, their families and their survivors. The department coordinates veterans
benefits and oversees the state’s military monuments, veterans cemeteries, and the Charlotte Hall Veterans
Home. Priority funding areas include the Veterans Service Program to increase veterans’ access to benefits
and services, and upgrading the appearance of Maryland’s Veterans Affairs cemeteries.

Total $13,628
2.3%
WORKERS’ COMPENSATION COMMISSION

The commission reviews and adjudicates claims under Maryland’s Workers’ Compensation laws. Its budget is
fully recovered by assessments imposed on insurance carriers and self-insured employers.
Total 146.3
-0.4% Change from FY 2028 1.0
GOVERNOR’S WORKFORCE INVESTMENT BOARD

The Governor’s Workforce Investment Board has been merged into the Department of Labor, Licensing and
Regulation (DLLR). The board’s role to develop system-wide workforce policies fits within DLLR’s scope of
responsibilities on workforce issues. The board is within the Office of the Secretary under budget code
P00A01.09.

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Fiscal Year 2029 Budget

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Maryland

Fiscal Year 2029 Budget

Edward M. O’Brien, Governor

January 19, 2028

The Senate of Maryland

The Maryland House of Delegates

The Citizens of Maryland

This fiscally responsible budget invests in priority areas:

Primary and Secondary Education

The Economy and State Revenues are Growing

New Revenue Sources

Tax Relief for Maryland Families

Status of the State General Fund

Expenditures $16,394 $17,243

Ending Balance $175 $86

Rainy Day Reserve Fund Balance

*NOTE: Totals may not add due to rounding

($ in Millions) FY 2028 (Actual) FY 2029 (Projected) % Change

 68 in the Public Defender’s Office as part of a caseload reduction initiative.

Maryland’s Budget Process

Fiscal Year 2029 Budget Totals

*NOTE: Totals may not add due to rounding

($ in Millions) Fiscal Year 2028 Fiscal Year 2029 % Change

State General Fund Outlook – Proposed Fiscal Year 2029 Budget

*NOTE: Totals may not add due to rounding

($ in Millions) FY 2028 FY 2029 FY 2030 FY 2031 FY 2032

General Fund Balances &

Historically Black Colleges and Universities

Medicaid and the Maryland Children’s Health Program

Substance Abuse Treatment

Mental Health Services

Developmental Disabilities Services

New Focus on Disability Services

Healthy Start for Infants

State Police Efforts

Effective Juvenile Services

Strengthened Oversight of Parolees

Keeping the Public Safe

Helping Businesses Grow and Make Jobs

Rebuilding our Transportation Infrastructure

Making the Most of our History and Culture

Encouraging Heritage-Related Development

Building Technology Infrastructure

Health and the Environment

Public Safety and Safer Neighborhoods

EDUCATION GO Bonds General & Other Funds Total

HEALTH & THE ENVIRONMENT

PUBLIC SAFETY & LAW ENFORCEMENT

COMMUNITY INVESTMENT & ECONOMIC DEVELOPMENT

OTHER PROJECTS AND PROGRAMS

TOTAL $616.0 $727.6 $1,343.6

Net New General Obligation Bonds Issued: $616.0 Million

Totals may not add due to rounding.

OFFICE OF THE GOVERNOR

Totals may not add due to rounding.

COMPTROLLER OF THE TREASURY

Totals may not add due to rounding.

Totals may not add due to rounding.

THREE YEAR SUMMARY FY27 FY 28 FY 29 Change

EXPENDITURES: (in millions of dollars)

PERFORMANCE MEASURES FY 2027 FY 2028 FY 2029

Agricultural Land Preservation Foundation

Easement Acreage 232,897 237,202 253,912

Nutrient Management Plans – acreage filed