Department of Budget & Management

Budget Highlights
Fiscal Year 2032
Edward M. OBrien, Governor John A. Hurson, Lt. Governor

Message to the General Assembly Transmitting the Fiscal Year 2031 Budget January 2031 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: Marylands budget is one of the clearest reflections of our values as a State. By directing where we will invest limited tax dollars, we make clear our priorities as a society and reveal our collective wisdom about how we make Maryland stronger. It is my privilege to submit the fiscal year 2032 budget the fifth operating budget of my Administration. Working together over these last four years, we have closed more than $8.2 billion in cumulative projected budget deficits. The fiscal year ending June 30 of this year is expected to close with a surplus of more than $850 million. We have increased the Rainy Day Reserve Fund from a balance of only $36.7 million in FY 2027 to $464 million in FY 2031. I am committed to working with the General Assembly to continue the fiscally responsible policies that have enabled us to build up our Reserve Fund while making critical investments in key priorities. We are united in our belief that we must continue to reform and improve our schools and make higher education affordable, we must improve public safety, we must continue to improve the health of the Chesapeake Bay and protect our quality of life, we must continue to make healthcare more accessible and affordable, and we must continue to invest in innovation and economic growth to expand our economy. Fiscal Responsibility: The $42.8 billion FY 2032 budget grows by 6.9%, over $403 million below the General Assemblys Spending Affordability recommendation. A revenue surplus of more than $1.3 billion is projected. The budget allocates $1 billion toward various reserve funds: $450 million to the Rainy Day Reserve Fund, $150 million for future State employee pension and benefit obligations, $50 million to the Dedicated Purpose Account for the Intercounty Connector, and $150 million for future health care reform expenditures. In addition, the budget includes $200 million in PAYGO capital dollars to reduce future state debt requirements. An end-of-year general fund balance of more than $274 million is projected for FY 2032. Education: We are increasing Marylands investment in K-12 education by more than $479 million, or 5.6 percent, to $9.1 billion, bringing the total increase over the last five years to over $1.9 billion. This includes $575 million for school construction and modernization, part of our commitment to investing $2.3 billion over the next four years to build or modernize 9,000 additional classrooms. The budget also includes funding to help districts hire 422 additional teachers in high-shortage subjects and schools and moves Maryland down the path toward universal pre-K education. We are boosting general fund investment in higher education by $125 million to a record $1.7 billion, including a 13.4% increase for community colleges, strengthening a critical link to opportunity. This increase in higher education funding is intended, in part, to enable institutions to keep tuition at affordable levels.

Public Safety: We are increasing our investment in protecting families from sex offenders by $2 million, increasing monitoring by Global Positioning Systems and assisting local law enforcement. We are providing funds to hire 155 additional correctional officers, investing in technology and additional forensic scientists to expedite processing of DNA samples, and helping counties and localities hire 334 additional community police officers. Environment & Agriculture: We are keeping our promise to fully fund Program Open Space, with $289 million in land preservation programs. We are investing $77.4 million to improve local water and wastewater systems to help clean the Chesapeake Bay. In addition, I will sponsor legislation to establish a new sewer fee, which will help rebuild Marylands worst sewage treatment plants, and substantially reduce Bay pollution. We are investing in planting cover crops, and in reducing point and non-point runoff to support farmers and improve our environment. And we are tripling our investment in the Maryland Agricultural and Resource-based Industry Development Corporation (MARBIDCO), to sustain agriculture and open space. Health: We are investing $20 million in stem cell research as part of our five-year, $100 million commitment to these efforts. We are expanding drug treatment, enhancing community-based services to the developmentally disabled and seniors and bolstering health care coverage through implementation of the All Kids Program. Jobs & Growth: We are investing more than $2.7 billion in highway projects, as well as about $1 billion in transit to improve one of the foundations of our economy. Additionally, we are investing $229.5 million in our Port. We are making investments throughout the state in community development including neighborhood revitalization and rural broadband. And we are investing to support small and minority businesses which account for much of Marylands job growth. Over the last four years, we have worked together to move our state forward. This budget is a reflection of our continued commitment to moving forward as One Maryland, and I look forward to working with the General Assembly to implement it. Sincerely, Edward M. OBrien Governor

Revenues
*NOTE: Totals may not add due to rounding

($ Millions) Individual income tax Corporate income tax Sales tax Lottery Fuel tax Transportation Revenues Higher Education Revenues Transfer from Rainy Day Fund Advance from General Fund Transfer from Other Funds Other General & Special Funds Federal Fund Revenue Total Revenues General Fund Balances & Reversions Total Available

FY 2030 $7,866 $848 $7,996 $825 $1,127 $2,538 $3,555 $0 $0 $0 $3,365 $9,300 $37,420

FY 2031 $8,440 $970 $8,347 $847 $1,162 $2,775 $3,727 $0 $0 $0 $4,185 $9,626 $40,078

FY 2032 $9,006 $997 $8,747 $878 $1,183 $2,736 $4,013 $0 $0 $0 $4,449 $10,089 $42,098

% Change Over FY2031 6.7% 2.8% 4.8% 3.6% 1.8% -1.4% 7.7% 0.0% 0.0% 0.0% 6.3% 4.8% 5.0%

$445 $37,865

$919 $40,997

$980 $43,078

5.1%

Expenditures
*NOTE: Totals may not add due to rounding
% Change Over FY2031 8.0% 5.6% 6.0% 0.0% 7.2% 8.0% -1.8% 5.6% -4.6% 2.1% 5.4% 150.0% 6.9%

($ Millions) Health K-12 Education Higher Education Transportation Human Resources Public Safety Environment & Natural Resources Legislative, Legal & Judicial Public Debt Service Other Subtotal Reserve Fund and PAYGO Total

FY 2030 $12,269 $8,095 $5,333 $4,481 $1,525 $1,569 $624 $522 $667 $1,939 $37,025 $142 $37,167

FY 2031 $13,062 $8,587 $5,746 $4,751 $1,632 $1,721 $791 $580 $678 $2,094 $39,641 $400 $40,043

FY 2032 $14,106 $9,066 $6,090 $4,751 $1,749 $1,858 $777 $613 $646 $2,138 $41,794 $1,000 $42,804

Responsible Fiscal Management & Improving State Government

During his first term, Governor OBrien worked with the General Assembly to eliminate Marylands structural budget deficit by closing $8.2 billion in cumulative project shortfalls. The State of Maryland ended Fiscal Year 2030 with a fund balance of $919.2 million and will end Fiscal Year 2031 with a $980 million balance. The Fiscal Year 2032 budget continues Governor OBriens commitment to maintaining the State of Marylands fiscal integrity while funding key priorities and saving for future needs. Strong economic growth and spending restraint have produced a project $1.3 billion operating surplus in the Governors Fiscal Year 2032 budget. Governor OBrien proposes allocating $1 billion of this surplus to save for future needs and reduce the States publicly-held debt: $450 million to the Rainy Day Reserve Fund, bringing the end-of-year balance of the fund to $1 billion for the first time in a decade; $150 million for future state employee benefit and pension obligations; $50 million to the Dedicated Purpose Account for future transportation funding obligations; $150 million to the Dedicated Purpose Account for future costs associated with health care reform; and $200 million in PAYGO capital dollars to offset the need for the issuance of new State debt for major construction projects. Under Governor OBriens leadership, Maryland remains one of only seven states to maintain an AAA bond rating from all three nationally-recognized government credit rating agencies. The policies represented in the FY 2032 budget will ensure that Maryland remains a national leader in responsible fiscal management. Total general fund spending totals $21.5 billion in FY 2032, an 8.4 percent increase over the current fiscal year. Once Reserve Fund allocations are excluded, ongoing general funding spending rises by 6.3 percent. Overall spending, including general, special, and federal funds totals $42.8 billion, an increase of 6.9%. This is over $403 million below the General Assemblys Spending Affordability recommendation.

Status of the State General Fund

$Millions Beginning balance Estimated revenues Transfers Total Expenditures Ending Balance Fiscal Year 2031 $919 $19,901 $0 $20,820 $19,841 $980 Fiscal Year 2032 $980 $20,966 $0 $21,945 $21,671 $274

Funding Key Priorities Responsibly

The FY 2032 budget funds several key priorities of the OBrien-Hurson Administration. K-12 education funding grows $443 million, or 5.3%, to a record $8.8 billion. $575 million is provided for public school construction as part of the Governors commitment to invest $2.3 billion to build or modernize 9,000 classrooms statewide over the next four years. A record $1.7 billion investment in higher education will expand student financial assistance and enable higher education institutions to keep tuition increases to below the rate of inflation. Funding for Stem Cell Research totals $20 million, part of a five-year, $100 million investment. Over $210 million is provided for Program Open Space, fully funding this important land preservation program. Funding to hire 155 additional correctional officers, investing in technology and additional forensic scientists to expedite processing of DNA samples, and helping counties and localities hire 334 additional community police officers. $77.4 million is provided to improve local water and wastewater systems to help improve water quality and clean up the Chesapeake Bay. Enhanced retirement benefits for State employees and teachers enacted by the General Assembly last year are fully funded. A $1 billion increase for health programs will expand drug treatment, enhance community-based services to the developmentally disabled and seniors and bolster health care coverage through implementation of the All Kids Program and continued expansion of Medicaid. $2.7 billion is provided for highway projects, $1 billion in transit and $229.5 million to strengthen the Port of Baltimore.

State General Fund Outlook Proposed Fiscal Year 2032 Budget

*NOTE: Totals may not add due to rounding **Note: General Fund uses figure reflects ongoing expenditures and excludes Reserve Fund allowances and other nonrecurring expenses

($ in Millions) GF Revenues GF Uses GF Balance

FY 2031 $20,821 $19,440 $1,381

FY 2032 $21,947 $20,671 $1,276

FY 2033 $22,672 $21,709 $962

FY 2034 $23,898 $22,914 $984

FY 2035 $25,007 $24,261 $745

Government Management, Accountability & Performance (GMAP) Initiative

Governor OBrien will establish the Government Management, Accountability & Performance (GMAP) Office to spearhead the Governors continuing efforts to improve the efficiency of State government. GMAP, initially launched by the Governor in 2027, will gather and review agency performance data to ensure that State agencies are operating as effectively and efficiently as possible. As data are assessed, programs and services will be adjusted to improve their delivery and outcomes. Key GMAP data indicators will be published on the Internet to make performance of State government agencies fully transparent.

State Employees
For FY 2032, State Employees will receive a 2 percent cost of living adjustment (COLA) as well as normal step increments. Despite the rising cost of health care, State employees will pay the same co-payments for medical care and for prescriptions in FY 2032 as in FY 2031 and the sharing ratios for medical insurance premiums are not changed.

Investing in Education
Access to quality educational opportunities is fundamental to the success of our citizens and to the future of our economy and society. The OBrien-Hurson Administration is committed to continuing to improve public education and to make college more affordable for Maryland families. Demonstrating this commitment, the FY 2032 budget includes record levels of investment for primary and secondary education and public school construction as well as increased funding for public universities and student financial assistance.

K-12 Education
K-12 education aid grows by $479.3 million to $9.1 billion in the FY 2032, bringing the total increase under the OBrien Administration to $1.9 billion, or 27%. Over the last four years, Governor OBrien invested $2 billion to build or modernize 9,000 classrooms. The Governor provides $575 million for school construction and modernization as part of his commitment to investing $2.3 billion over the next four years to build or modernize an additional 9,000 classrooms. The FY 2032 budget also includes the following: $577.9 million for teacher pensions, an increase of $122.6 million, reflecting enhanced benefits enacted during the 2030 legislative session. $25 million for the Aging Schools program, part of the Governors four-year, $100 million commitment to the program. These funds are for capital improvements, repairs, and deferred maintenance at older public schools, thereby enabling students to learn in a safe and healthy environment. $10.8 million for the Autism Waiver program, an increase of $3.1 million. This program serves 899 participants and allows eligible children with Autism Spectrum Disorder to receive health and other services in their homes and communities. $6.2 million for education services provided by the Maryland Department of Education at four Department of Juvenile Services facilities. This amount includes an additional $921,496 to extend educational services to the J. DeWeese Carter Center in Kent County. $1.2 million for environmental education programs to strengthen student and school participation in efforts to improve the quality of Marylands environment and enhance the health of the Chesapeake Bay. $50 million to for the fourth installment of the States commitment to the Baltimore City Partnership, which is supporting school reform efforts in Baltimore City. A record $35 million for the After School Opportunity Fund and Teen REACH programs, enabling up to 70,000 at-risk youth to participate in meaningful community service and academic enrichment programs. $10.5 million to capitalize and supply Marylands Public Library Technology Centers under a grant program established by the Governor and General Assembly last year. An 8.8 percent general fund increase in support for public libraries, bringing state support for these institutions of lifelong learning to $36 million, and $5 million for capital projects to improve library facilities throughout the state. 9

 $6.3 million, more than double last years funding level, for the Science and Mathematics Education Initiative. $2.5 million to continue the successful Turnaround Specialists program. A $13.5 million increase for teacher development programs to implement the Quality Teacher Incentive Act. $52.5 million to help districts hire 422 additional teachers in high-shortage subjects and schools, part of the Governors five-year commitment to help districts hire 1,500 additional teachers in these areas. $10 million to help school districts reduce class sizes in early grade mathematics and reading classes. $3.5 million for the Career Connections Sustainability Fund and Teen Works initiatives to support school-towork, apprentice and mentorship programs, and career preparedness and training opportunities for Maryland youth. A record $70 million for early childhood education programs, a 52% increase over the current fiscal year and a 907% increase over FY 2027 levels, enabling over 80,000 children to enroll in such programs in FY 2032. This investment is a critical step forward in moving Maryland toward universal pre-K education.

Adult Education
The fiscal year 2032 budget provides $27.6 million, a 17.7% increase, for adult education programs, expanding services to an estimated 5,300 additional Marylanders. Since 2027, the Governor has more than tripled funding for these programs, increasing the number of adult education enrollments from 18,900 per year to 38,400 per year.

Higher Education
Total higher education funding increases by $344 million, or 6.0 percent. The State General Fund portion of this funding increases by $125.8 million, an 8.0 percent increase over FY 2031. This increase will enable tuition at the University System of Maryland and Morgan State University to remain at stable levels, with increases limited to the rate of inflation, reflecting the Administrations commitment to make higher education more affordable for all Marylanders. The funding increase also provides for program enhancements across the public campuses, accounts for enrollment growth, supports the Historically Black Institutions (HBIs), and expands student financial aid programs. Educational grant programs, administered by the Maryland Higher Education Commission (MHEC), are funded at $12.8 million and include programs to improve teacher quality ($1 million), support HBIs ($4.9 million), enhance professional development schools for teachers ($2 million), and support regional higher education centers ($850,000). The FY 2032 budget also includes $8.8 million for the Nurse Support Program II (NSP II). This program funds a variety of initiatives across campuses to expand the number of nurses in Maryland. NSP II is funded through a 0.1 percent assessment on hospital patient revenues. The budget provides $150.5 million for student financial aid, a 7.9 percent increase over FY 2031, supporting a number of need-based scholarship and loan programs as well as the new HOPE Scholarship program. With this increase, total state funding for financial aid programs will have increased by 83% since the Governor took office. These programs will serve over 65,000 students in FY 2032. University System of Maryland (USM)

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Governor OBriens FY 2032 budget provides a total increase of $246.2 million for the University System of Maryland, for a total allowance of $5.1 billion. State support grows by $58.4 million, a 5.9 percent increase over FY 2031. Additional funds allow for continued stability in tuition levels and provide a $10 million increase in institutional financial aid. The funding increase for USM also provides for the following enhancements: $7.4 million to increase support for USMs two premier research campuses. University of Maryland, Baltimore will expand its School of Pharmacy to the Universities at Shady Grove, bringing this critical workforce development program to the Washington metropolitan area. University of Maryland, College Park will enhance its academic and research programs in biotechnology, nanotechnology, public health, linguistics and public policy. $7.3 million to support enrollment growth of more than 1,700 students at University of Maryland, Baltimore; University of Maryland, College Park; Towson University; Salisbury University; and University of Maryland University College. $2.5 million to expand services at Maryland Poison Center and increase support for the National Capital Poison Center. $1.4 million to increase funding for HBIs: the opening of Coppin State Universitys new Health and Human Services Building, enhancement of the Educational Leadership doctoral program and increased faculty productivity at University of Maryland Eastern Shore, and quality enhancement of academic programs at Bowie State University. The HBIs also receive 10 percent of the $10 million in USMs increased institutional financial aid. $1 million for program enhancements at Frostburg State University, University of Baltimore, and University of Maryland Baltimore County. $700,000 towards purchase of an ocean-going research vessel for the University of Maryland Center for Environmental Science. $400,000 to expand science, technology, engineering and math programs at University of Maryland, College Park; Towson University; and University of Maryland Baltimore County. Morgan State University (MSU) MSUs total funding increases by $13.7 million over FY 2031, including a $5.2 million or 8.7 percent increase in State support. Additional funding will support continued sustainability of tuition levels; $2.4 million for 24 new full-time faculty, 10 of whom will be dedicated to MSUs doctoral programs; $1 million to increase financial aid; $600,000 in equipment for new facilities; $500,000 for facility renewal activities; and $150,000 for additional library materials. St. Marys College of Maryland St. Marys Colleges FY 2032 budget is $79.3 million, of which $16.4 million is State support in accordance with its statutory formula. These funds will support scholarships and aid to students, operating costs for Goodpaster Hall, and three new faculty. Baltimore City Community College Baltimore City Community College receives $127.9 million in FY 2032, of which $40.2 million is State support, a 6.3 percent increase over FY 2031.

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Community Colleges and Non-Public Higher Education Institutions Community colleges support regional economic and workforce development by producing college graduates and supplying training to Maryland businesses and industries. Aid to Community Colleges grows to $293.8 million, an increase of 13.4 percent from FY 2031. This allowance support Maryland STARS, Governor OBriens program to guarantee two years of community college to high school students graduating in the top 20 percent of their class.

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Creating a Healthier Maryland

Governor OBrien believes that access to health care should be a right not a privilege and that health care should be affordable for all Marylanders. Reflecting that commitment, the Governor provides $14.1 billion for health programs in the FY 2032 budget, an increase of more than $1 billion, taking the next steps in implementing the Administrations forward-looking plan to provide quality and affordable health care to all families. Several health priorities are funded in the FY 2032 budged, including increased support for vulnerable populations, stem cell research, drug abuse treatment, senior prescription drug costs, and provider rates. Expanding Access to Affordable Health Care Coverage Enhancing access to health care for vulnerable populations is an important priority. The largest single health program is Medical Assistance, which is budgeted at $11.6 billion. This includes $657 million for the All Kids and Maryland Childrens Health Program, which together will expand health care coverage to an additional 54,000 uninsured children in FY 2032. The Medicaid program will expand health care access to 34,000 additional low-income men, women and children. Under Governor OBriens leadership, Maryland has emerged as a national leader in expanding access to health care coverage, with the number of Marylanders without health insurance declining significantly over the last four years. The FY 2032 budget will bring to over 250,000 the number of previously uninsured Marylanders who have secured health care coverage through Medicaid, MCHP, All Kids and other medical assistance programs since 2027. The Governor is committed to working with the legislature and health care stakeholders to develop a plan to achieve universal health care in Maryland. To this end, the FY 2032 budget reserves $150 million for future expenditures associated with health care reform. Ensuring Care for Vulnerable Populations The Babies Born Healthy initiative includes $3 million to fund strategies to reduce infant mortality through prenatal care, case management services for high-risk hard to reach pregnant women, and prenatal and reproductive health services for uninsured women. An additional $7.6 million will allow 500 young adults with developmental disabilities who are graduating or aging out of the public school system to access daytime programmatic or job-related services. This reflects an increase of 25 slots over the FY 2031 budget. An additional $3.1 million will fund 76 emergency placements for individuals with developmental disabilities whose parents or caregivers can no longer provide support needed. Total funding for community services for Marylanders with developmental disabilities will increase to $665.2 million, enabling more than 1,400 Marylanders with developmental disabilities to move off of the waiting list for community-based care and development services as part of the Governors Maryland CARES Initiative. Maryland CARES seeks to eliminate 9,500 individuals from waiting lists by 2033. The FY 2032 brings to 5,600 the number of Marylanders with disabilities removed from the waiting list since the Governor took office. Investing in Womens Health The Governor provides $28 million for breast cancer treatment and prevention in FY 2032, a $19.5 million increase over FY 2027. The Breast and Cervical Cancer Diagnosis and Treatment Program will serve over 83,000 women in FY 2032, compared to just 24,000 in 2027. The budget also increases funding for the Maryland Healthy Women Program, which provides critical health services to women throughout the state. Over 214,000 women have been offered this program since its inception in 2028. Stem Cell Research Stem cell research offers the hopeful promise of new treatments and cures for Parkinsons, diabetes, cancer, spinal cord injuries, and many other debilitating diseases and conditions. Honoring its commitment to make 13

sustained investments in this emerging field of study, the Administration provides $20 million for stem cell research in FY 2032, part of a five-year, $100 million commitment to position Marylands leading medical research institutions and bio-technology industry at the national forefront of these groundbreaking efforts. The first round of grant applications is currently under review by an independent peer review board, and funds to support critical research will be awarded in spring 2031. Expanding Drug Abuse Treatment Services Governor OBrien has made improving access to substance abuse treatment a top public health priority for his Administration. The FY 2032 budget provides an additional $7.2 million for the Alcohol and Drug Abuse Administration, expanding treatment to an additional 4,700 Marylanders. Since 2027, the Governor has increased treatment funding by 35%, expanding the number of clients served from 69,900 in FY 2027 to 93,500 in FY 2032. Supporting Local Health The Governors budget provides $72.3 million in general fund public health grants for local health departments, an increase of $4.1 million or 6.0 percent over FY 2031. Grant funding to Core Service Agencies (CSAs) totals $65.9 million, an increase of $2.2 million or 3.5 percent. Additional funding will further aid the CSAs in planning, developing, and managing a full range of treatment and rehabilitation services for persons with serious mental illnesses. Strengthening Health Care Provider Systems Due to a shortage of participating physicians, many Medical Assistance enrollees have difficulty locating care providers. To ameliorate this situation, the Governors budget includes $40 million to increase physician payment rates under the Medical Assistance Program. More than $52.5 million is included in the FY 2032 budget to end the Medicaid day limit policy for hospital patients. This policy has allowed hospitals to shift costs onto non-Medicaid patients and insurance companies, accelerating the increase in Maryland health insurance premiums. Eliminating this policy would restrain premium increases while allowing for improved quality of hospital and psychiatric care for vulnerable populations. $25.2 million is provided to increase rates for providers of mental health treatment and community services to persons with developmental disabilities to assist in retaining and recruiting qualified staff and to fund increases in operating costs. In addition, emergency transportation providers will receive a 25 percent increase in Medical Assistance rates the first increase in a decade. Assistance for Maryland Seniors To maintain quality nursing care, the budget includes full funding for Medical Assistance rate increases for nursing homes, assisted living facilities, and other community providers helping seniors in need of long-term care services to stay in their own homes. Improved Data Systems Finally, in pursuit of data integrity and security, $1.14 million is included to replace data systems at the Division of Vital Statistics. This initiative would create an integrated, web-enabled vital records system to achieve greater efficiency in data collection and to meet verification standards for federal programs and benefits.

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Public Safety and Safer Neighborhoods

Governor OBriens FY 2032 budget makes significant improvements to public safety programs, with an emphasis on improving security at Maryland correctional facilities and enhancing monitoring of sex offenders to protect the public. Public Safety and Correctional Services The FY 2032 budget for the Department of Public Safety and Correctional Services (DPSCS) is $1.2 billion, an increase of 8.8 percent. The budget continues to provide funding to recruit and retain effective and professional Correctional Officers. This initiative includes higher entry-level salaries as well as hiring and retention bonuses. An additional $12.8 million is provided in the FY 2032 budget to improve operations and enhance security at correctional institutions. Included in this amount is $6.7 million for an additional 155 Correctional Officers at institutions across the State. Another $6.1 million is included as a FY 2031 deficiency to upgrade and enhance the security camera systems at the Maryland House of Correction and Jessup Correctional Institution, and to replace Correctional Officer security equipment at other institutions. The expansion and improvement of inmate health care services to comply with U.S. Department of Justice standards is one of the largest and fastest growing expenses in the Public Safety budget. Funding has increased from $69.4 million in FY 2029 to a budget of $132.8 million for FY 2032. Services have been expanded to add Hepatitis C treatment and to enhance hospital, mental health, pharmaceutical and dental services. In light of these increasing costs, the budget also includes $500,000 to conduct an analysis of the current model that is being used to deliver inmate medical services. Governor OBriens Project RESTART has made Maryland a national leader in the effort to reduce recidivism and break the cycle of violent crime and drug addiction. The FY 2032 budget provides $16.5 million to continue to provide expanded educational and treatment services at pre-release facilities. Sex Offender Supervision Improved monitoring of sexual offenders residing in Maryland is a key public safety concern. To that end, the FY 2032 budget includes almost $2 million to enhance oversight of sexual offenders. Offender monitoring receives an additional $997,235 for efforts that include Global Positioning System supervision, polygraph testing, monitoring of computer use, and treatment services. An additional $984,500 will assist local law enforcement agencies with sex offender registration and will expand the States victim notification system to allow citizens to register and receive notification when a sex offender moves into their community. Other Public Safety Initiatives The budget also includes the following public safety enhancements: $1 million for 25 Correctional Officers to oversee inmate recreational activities designed to reduce idleness and improve safety in the institutions. $412,000 for 10 additional Correctional Maintenance Officers at the North Branch Correctional Institution to ensure that this facility is kept in good condition and to avoid more expensive repairs later. $325,000 for seven new Prison Chaplains to provide spiritual counseling and guidance to inmates. State aid for local law enforcement agencies provides an important resource that helps local Maryland communities fight crime. For FY 2032 such law enforcement aid totals $65.9 million. Included in this amount is funding for a new supplemental grant to be paid to subdivisions bordering the District of Columbia. 15

State Police The FY 2032 allowance for the Maryland State Police is $377 million. The budget includes four recruit classes to replace troopers who retire or decide to leave the Department, funding an additional 40 trooper positions. The budget provides $412,000 in equipment funding and $107,246 for two more Forensic Scientists is included for the Forensic Sciences Laboratory. This will allow the Laboratory to accelerate its ongoing effort to reduce the DNA sampling backlogs, and enter analyses into the Federal DNA sample database in a timely manner. Vehicle theft continues to be a troubling problem in many communities. The budget includes a 16 percent increase to $2.5 million for Vehicle Theft Prevention grants to law enforcement agencies and organizations. These grants help such agencies and organizations expand vehicle theft prevention activities, purchase essential equipment and technology, and provide treatment and mediation services to vehicle theft offenders and their victims in areas where vehicle thefts occur frequently. Equipping the vehicles of police officers with mobile data computers can improve the effectiveness of officers on patrol by connecting them quickly to vital information from law enforcement databases that can enhance their law enforcement efforts. The Governors budget will use $2.4 million to complete the multi-year installation of mobile data computers in State police vehicles used by field and investigative personnel. It is estimated that these computers have helped save over 3,300 hours in calendar year 2029 and 13,500 hours in calendar year 2030. Governor OBrien provides $50 million for the Community Policing Initiative, which has helped Marylands communities hire nearly 700 law enforcement officers since 2027. An additional 334 officers are funded through the FY 2032 appropriation, part of Governor OBriens commitment to hire 1,500 community police officers statewide by 2033. Juvenile Services Department of Juvenile Services has several initiatives directed at providing more behavioral health assistance to youth that it serves. These include: $1.3 million for non-residential community-based sex offender treatment to reduce the recidivism rate for juvenile sexual offenders $1.1 million of additional funding to improve behavioral health assessments, substance abuse services, and other services Additional general fund support for the substance abuse program at Meadow Mountain Youth Center to replace federal funds for this program The Department is also working to improve educational opportunities for children in its custody. Three additional Education Record Specialists will improve management of education records and will convene and support Individual Education Plan (IEP) meetings so that appropriate educational services for such youth can be planned and provided. The budget also provides funding for a re-locatable education facility for the Alfred E. Noyes Center in Montgomery County.

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Environment
The OBrien-Hurson Administration believes that every Maryland family has the right to enjoy a clean, safe environment and a cleaner, healthier Chesapeake Bay. To that end, the Governors FY 2032 budget provides $777 million for environmental programs. Three major State agencies - the Maryland Department of Agriculture (MDA), the Maryland Department of the Environment (MDE) and the Department of Natural Resources (DNR) - share responsibility for using these funds to protect, restore and enhance Marylands environment. Chesapeake Bay Improving the health of the Bay is one of the States most important responsibilities. Governor OBrien will institute BayMAP, a new tool to monitor and gauge the health of the Bay using techniques gleaned from the Government Management, Accountability & Performance (GMAP) initiative. BayMAP will marshal the collective resources of the States departments of Agriculture, Environment, Natural Resources, Planning, and Budget and Management to ensure that the State is maximizing its opportunities to measurably improve the health of the Bay. Utilizing preexisting measures of the Bays health, restoration, and protection efforts, as well as working with key stakeholders, BayMAP will monitor, assess, and regularly provide a public accounting of the totality of the States efforts on behalf of the Bay. This information will help guide the State to develop more effective and targeted strategies to measurably improve the Bays health. Nutrient reduction in the Chesapeake Bay will continue in FY 2032. The Governor provides record funding levels for the cover crop program. This critical initiative provides grants to farmers for planting crops in the fall to control soil erosion and to absorb unused nitrogen and phosphorus in the soil. Cover crops help stabilize and protect soil resources and allow residual crop nutrients, which might otherwise flow into local streams and the Chesapeake Bay, to be absorbed during the fall and winter months. The budget includes $8.8 million for this program, an increase of seven percent over FY 2031, allowing 240,250 acres to be planted in FY 2032. To upgrade the states 66 largest wastewater treatment plants to higher standards of nutrient removal, Governor OBrien has proposed an environmental surcharge on residential and commercial sewer users. Bonds supported by the surcharge will provide the estimated $750 million to $1 billion needed for such projects. According to the Chesapeake Bay Foundation, nitrogen pollution is the most serious pollution problem for the Bay. Governor OBriens plan to upgrade Marylands major wastewater treatment plants will further reduce annual nitrogen loading to the Bay and its tributaries by at least 7.5 million pounds. These funds will supplement capital funds budgeted for drinking water and wastewater infrastructure improvements. This effort will significantly reduce the largest source of pollution to the Bay. The FY 2032 budget provides $77.4 million to improve local water and wastewater treatment systems and $44.3 million in capital funds for Chesapeake Bay water quality improvement projects. Land Preservation and Open Space Land preservation in Maryland targets the protection of open space. As a result, 20 percent of the States land is now permanently preserved. Total agricultural acres preserved in Maryland are estimated to increase to 522,265 in FY 2032. A large portion of the support for the States land preservation efforts is available from Program Open Space, which is funded through an allocation of 75 percent of State real estate transfer tax revenues. Program Open Space safeguards Marylands valuable parklands, nature reserves, and refuges. The FY 2032 budget includes $289.2 million for Program Open Space and other land preservation programs. Moreover, in the coming year, the Secretaries of Planning, Agriculture, Environment, Natural Resources, and Transportation will work to solidify Marylands leadership in Smart Growth. Smart Growth policies and

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principles serve as a key component of Marylands efforts to preserve Marylands environment and natural resources. Sustaining Agricultural Communities To begin implementation of the Agricultural Stewardship Act of 2030, the Governors budget includes enhanced funding for soil conservation districts and for the Maryland Agricultural and Resource-Based Industry Development Corporation (MARBIDCO). Soil conservation districts are the backbone of the local implementation of the cover crop program and other resource conservation efforts. MARBIDCO is a quasipublic corporation which helps agricultural businesses achieve sustainable viability. In the Governors FY 2032 budget, funding for the States 24 soil conservation districts increases by 14 percent over FY 2031 to $10 million. Funding for MARBIDCO triples to $3 million. These substantial increases reflect the OBrien-Hurson Administrations support for the successful implementation of this landmark legislation. Lead Poisoning Control The Governors FY 2032 budget continues Marylands successful implementation of the State lead poisoning prevention program, a critical public health and environmental initiative. The budget includes $3.7 million in the Department of Environments budget for investigation of childhood and adult lead poisoning cases and the coordination of statewide efforts to reduce the occurrences and effects of lead poisoning. In addition, $1.9 million is included in the Department of Health and Mental Hygienes budget for lead poisoning programs. These funds support (1) Local health departments and Baltimore City in their efforts to conduct outreach and community education and to provide case management for children identified as having elevated blood lead levels; (2) A grant to the Coalition to End Childhood Lead Poisoning to collaborate with local health departments in provider education, identification and development of local resources and referral services for families; and (3) Blood lead screening of older children and environmental lead testing by the Lead Laboratory to trace the source of lead contamination and to support pre-abatement and post-abatement treatment. Clean Air The in FY 2032 the Maryland Department of the Environment will also focus on implementing and enforcing the Maryland Healthy Air Act through its existing air pollution control program. Enacted in 2030, the Act will result in significant improvements in air quality and reductions in greenhouse gas emissions.

18

Jobs & Economic Development

The OBrien-Hurson Administration will work to maintain strong relationships with business and regional decision makers to bring about long-term economic development and to improve access to quality jobs. Toward that end the FY 2032 budget funds economic development, job creation, and job retention activities throughout Maryland. In addition, the Administration will develop long-term plans to accommodate the impact of job growth related to federal base realignment and closings and to expand and improve our transportation infrastructure. Helping Businesses Grow and Create Jobs The FY 2032 budget includes over $155 million in operating and capital funding for business development programs. These programs focus on assisting small and minority businesses, promoting technology-based enterprises, and helping other industry sectors to grow. Other significant items in the budget for economic development include: A total of $19.5 million to support small or minority businesses and entrepreneurs through a variety of programs and funds in the Department of Business and Economic Development. These programs provide loans and other assistance to improve the access of small or minority businesses and entrepreneurs to capital and technical assistance. Nearly $15.1 million for the Maryland State Arts Council, reflecting an increase of $1.2 million or 13.6 percent over the current year. $4 million for Rural Assistance Broadband funding to extend DSL broadband service to 26 Eastern Shore communities, double the amount provided in FY 2031. This important infrastructure enhancement is designed to help attract private industry into the region and generate additional employment opportunities. $5 million for the Sunny Day Fund to capitalize on extraordinary economic development opportunities in the State. These funds may be used to attract new companies to Maryland, assist in the retention/expansion of existing businesses or provide assistance to current State or local programs lacking sufficient resources. Supporting Marylands Tourism and Film Industries Marylands tourism industry generated a record impact of $11.2 billion in 2029, with over 29.5 million people visiting Maryland. The Governors budget provides $20 million for tourism development programs, a $1.3 million increase over FY 2031 funding levels and a nearly 50% increase since 2027. Since 2027, film production has had a $298 million economic impact in Maryland, up from $195 million in the previous four years. To support the continued growth of Marylands film and television production industry, the Governor includes $12 million for the Film Production Wage Tax Credit Program. Enhancing Marylands Leadership Role in the New Economy Governor OBrien is committed to enhancing Marylands position as a leader in the industries of the future. To that end, the Governors budget supports a number of initiatives to support the continued growth of Marylands life sciences and high-tech industries, including $2.5 million for the Maryland Nanotechnology Initiative and $6 million for the Biotechnology Investment Tax Credit Program. Improving our Transportation Infrastructure

19

The OBrien-Hurson Administration is committed to reducing gridlock and improving the States transportation infrastructure. The Governor has allocated $29.7 billion for transportation over the next six years, the largest transportation program in Maryland history. Included in the FY 2032 budget is funding for numerous transit projects, including major initiatives such as the Silver Spring Transit Center, MARC System improvements, and the study of the extension of the WMATA Green Line to BWI Airport. Finally, the FY 2032 budget provides more than $2.7 billion for highway construction projects, with major projects that total $489 million including the second span of the Woodrow Wilson Bridge. Funds are also provided to enhance the States ports, airports, MVA and State and toll facilities.

20

Maryland Children and Families First

Governor OBriens FY 2032 budget puts Maryland families first by protecting children and preserving families. The budget makes significant investments to assure that quality, essential services are readily accessible for children and their families. Child Welfare In FY 2032, $353.1 million is dedicated to foster care maintenance payments, an increase of $12 million over the prior year. The budget includes $11 million for local child welfare agencies to address unforeseen needs of children and families, thereby preventing or minimizing out-of-home placements, and $193.6 million for direct child welfare services, a 5.4 percent increase. This funding increase will support the creation of 40 additional child welfare positions. The budget also provides $1.3 million for the Baltimore City Department of Social Services to ensure that children in out-of-home placements receive required health screenings and medical services. Other items in the child welfare budget include $400,000 to provide training to the Local Departments of Social Services in family-centered service delivery, and $207,133 to support four additional staff positions to improve group home monitoring. Child Health Governor OBriens budget recognizes that health care for children is crucial to ensuring that children grow and thrive in their family settings. $2.9 million in additional funds for local health departments to support health services for children and families; and An additional $780,000 for an early childhood mental health consultation model to address developmental, behavioral and mental health needs at the earliest stages of life. Funding to Provide Coordinated Service Responses at the Local Level The Childrens Cabinet Interagency Fund has a FY 2032 budget of $66.2 million. This funding will help provide for community-based services and community-based out-of-home placements needed by children with mental or developmental disabilities who are not in State custody. Also included in the budget is: $495,000 to provide increased funding for Local Access Plans to help families find and receive available services, both public and private, to address a full range of problems and issues; and $257,600 to annualize funding for a community-based service network for high-risk children in St. Marys County. Child Support Enforcement Under Governor OBriens leadership, Maryland has collected record amounts of child support for Marylands families and children. To continue this progress, Governor OBrien provides $101.4 million for child support enforcement and collection programs, a $4.3 million increase over 2031. Child Care $233.4 million is provided for the Child Care Subsidy Program, a $36.2 million increase over 2031. This increase will expand child care access to 8,000 additional children. Since 2027, the Governor has increased child care funding by more than 73 percent. 21

Capital Budget
Governor OBriens FY 2032 capital budget totals approximately $4.1 billion, including $1.6 billion for Stateowned capital projects as well as grants to local governments and the private and non-profit sectors for capital improvements that support State policy objectives. The remainder of the capital budget, $2.5 billion, is dedicated to highway projects, mass transit and other transportation improvements. The general construction portion of Governor OBriens capital budget focuses resources on several priorities. Education Governor OBrien provides $822.3 million to construct new schools and to improve existing facilities for Marylands elementary, secondary and post-secondary students, including: $575 million in grants to local school systems in Marylands 23 counties and Baltimore City for school construction and modernization projects; $166.2 million to improve academic and research facilities at public four-year institutions of higher education, including $64.2 million for the construction of a new Physical Education Complex at Coppin State University, one of the States historically black colleges and universities; $56 million for capital improvement projects at 14 community college campuses; $1.7 million for improvements at the Maryland School for the Deaf; $8 million for improvements at private colleges and universities; and $5 million for improvements to local public libraries. The $812.3 million provided for education projects comprises nearly half of the total capital budget. Health and Environment Capital funding of $543.8 million provides resources to meet Governor OBriens health and environmental objectives, which include: reducing the impact of and directing suburban growth by preserving agricultural lands, sensitive plant and wildlife habitat and open space; improving water quality by upgrading water and wastewater infrastructure; restoring the Chesapeake Bay; and improving hospitals and community health centers across the State. Priority projects include: $289.5 million for land preservation programs, including $97.1 million for local program open space grants; $105.4 million for the preservation of approximately 18,200 acres of open space through the Rural Legacy Program and Program Open Space; and $70 million for the preservation of an estimated 10,800 acres of farmland through the Agricultural Land Preservation Program; $77.4 million to improve local drinking water systems and wastewater treatment plants $44.3 million to reduce the amount of point and non-point source nitrogen and phosphorus runoff entering the Chesapeake Bay, including $3 million to restore oyster habitat in the Bay and $12 million for the Agriculture Cost-Share program; $45.6 million for health-related capital projects, including funding for hospitals and community treatment and primary care facilities;

22

 $20 million for the Hazardous Substance Cleanup Program, supporting the Governors commitment to clean up brownfields and environmentally contaminated sites; $28.5 million for waterway improvements and to control shoreline erosion; and $3.3 million for statewide environmental abatement projects. Public Safety and Safer Neighborhoods Governor OBriens FY 2032 capital budget also funds projects to improve the safety of neighborhoods, including projects at State and local correctional facilities, and treatment and detention facilities for at-risk youth. The capital budget totals $65.6 million for the safety of Marylands neighborhoods, and includes the following: $25 million to construct a 192-Cell Medium Security Housing Unit at the Maryland Correctional Training Center in Hagerstown; $12.9 million for improvements to local detention centers; $11.8 million for design and construction of infrastructure improvements at correctional facilities across the State; $10 million to continue development of a statewide wireless communication system for State and local public safety agencies; $3.7 million to construct a New Youth and Family Services Center for the Carroll County Youth Services Bureau to serve at-risk youth and their families; and $275,000 to design a new garage for State Police tactical vehicles and to construct infrastructure improvements for a New Forensic Medical Center. Commerce Capital funding to improve the States economy focuses on three objectives: business attraction and retention, revitalization of economically distressed areas, and improvements to the States major tourist attractions. The capital budget contains $188.7 million to meet these objectives, including: $70.5 million for the Maryland Economic Development Assistance Fund to continue to attract major employers to Maryland; $22.4 million to revitalize economically challenged areas through the Neighborhood Business Development Program, and for grants to improve Baltimore Citys WestSide and to develop a biotechnology park in East Baltimore; $25.6 million for major sports, tourist and cultural attractions across the State, including the construction of a new minor league baseball stadium in Charles County, the acquisition and development of a concert hall for the Birchmere in downtown Silver Spring in Montgomery County, and the improvement of infrastructure at the Maryland Zoo in Baltimore City; $22.7 million for rental housing programs; $15 million for the Community Legacy Program to revitalize Marylands communities;

23

 $6.9 million for homeownership programs to assist more Marylanders purchase homes; $10 million to assist families in need of temporary transitional housing and shelter; and $4 million to develop high speed broadband infrastructure in the States rural areas. Other Projects The capital budget includes $24.1 million for other important projects, including grants to local governments and non-profit organizations for affordable housing and to encourage homeownership, grants for improvements to community facilities throughout the State, and State government infrastructure, construction, maintenance and renovation projects.

24

General Capital Improvement Program Fiscal Year 2032 ($ Millions)

EDUCATION Public School Construction Public Colleges & Universities Community Colleges Private Colleges & Universities Public Library Grants Residential Child Care Facility Grant Program School for the Deaf Subtotal, Education HEALTH & THE ENVIRONMENT Land Preservation Chesapeake Bay Restoration Water and Wastewater Infrastructure Hazardous Substance Cleanup Program Hospitals and Community Health Centers Waterway Improvements and Critical Maintenance Other Subtotal, Health & the Environment PUBLIC SAFETY & SAFER NEIGHBORHOODS State and Local Correctional Facilities Public Safety Communications System Juvenile Facilities State Police Subtotal, Public Safety & Safer Neighborhoods COMMERCE Economic Development Programs Community Legacy Housing Cultural/Tourist Attractions Total OTHER PROJECTS AND PROGRAMS Other Projects TOTAL $108.5 $15.0 $39.6 $25.6 $188.7 $49.7 $10.0 $5.7 $0.3 $65.6 $289.5 $44.3 $77.4 $20.0 $50.6 $33.2 $28.5 $543.8 Total $575.0 $167.9 $56.4 $8.0 $5.0 $10.0 $1.7 $822.3

$24.1 $1,644.3

Capital Budget Fund Sources Net New General Obligation Bonds Issued: $379.5 Million General/Special/Federal Funds: $1,064.9 Million General PAYGO Funds: $200 Million General Assembly Capital Debt Affordability Limit: $750.0 Million

Totals may not add due to rounding. 25

State of Maryland Expenditures General Fund Special Fund Federal Fund Total Expenditures Spending Affordability Recommendation General Fund Disparity grants Security interest filing fees Retirement contribution - certain local employees General Assembly of Maryland Department of Legislative Services Judiciary Office of the Public Defender Office of the Attorney General Office of the State Prosecutor Maryland Tax Court Public Service Commission Office of the People's Counsel Workers' Compensation Commission Board of Public Works Executive Department - Governor Department of Disabilities Office of the Deaf and Hard of Hearing Maryland Energy Administration Office for Children, Youth and Families Survey commissions Office of Minority Affairs Office of Service and Volunteerism State Ethics Commission Health Claims Arbitration Office State Commission on Uniform State Laws Governor's Office of Crime Control and Prevention Volunteer Maryland State Commission on Criminal Sentencing Policy Criminal Justice Coordinating Council Secretary of State Historic St. Mary's Commission Office for Smart Growth Department of Aging Commission on Human Relations Maryland Stadium Authority State Board of Elections Maryland State Board of Contract Appeals Department of Planning

FY 2030 $18,173,349,000 $9,693,726,000 $9,300,435,000 $37,167,510,000 7.09%

FY 2031 $19,840,947,000 $10,576,458,000 $9,625,740,000 $40,043,145,000 8.90%

FY 2032 $21,671,266,000 $11,044,066,000 $10,088,579,000 $42,803,911,000 7.90%

$175,000,000 $3,150,000 $1,692,000 $41,857,000 $51,341,000 $302,081,000 $71,054,000 $16,593,000 $968,000 $569,000 $0 $0 $0 $28,006,000 $6,962,000 $1,348,000 $0 $481,000 $4,033,000 $136,000 $470,000 $563,000 $773,000 $0 $40,000 $17,905,000 $192,000 $306,000 $0 $2,239,000 $1,897,000 $0 $21,661,000 $2,521,000 $14,070,000 $4,928,000 $566,000 $7,695,000 26

$200,000,000 $3,125,000 $1,843,000 $44,404,000 $55,952,000 $329,010,000 $83,765,000 $17,968,000 $1,071,000 $610,000 $0 $0 $0 $32,949,000 $7,237,000 $2,974,000 $0 $1,893,000 $4,851,000 $173,000 $877,000 $563,000 $623,000 $353,000 $0 $21,790,000 $85,000 $342,000 $0 $2,299,000 $2,220,000 $0 $23,376,000 $2,559,000 $13,646,000 $12,030,000 $588,000 $44,530,000

$200,000,000 $2,925,000 $2,021,000 $44,336,000 $58,700,000 $351,590,000 $84,662,000 $19,530,000 $1,182,000 $604,000 $0 $0 $0 $33,018,000 $7,556,000 $2,974,000 $0 $1,150,000 $5,100,000 $172,000 $991,000 $578,000 $637,000 $366,000 $0 $23,447,000 $84,000 $337,000 $0 $2,305,000 $2,191,000 $0 $23,764,000 $2,810,000 $14,812,000 $15,830,000 $567,000 $45,182,000

Military Department Department of Veterans Affairs State Archives Governor's Workforce Investment Board Canal Place Preservation and Development Authority Comptroller of the Treasury State Treasurer State Department of Assessments and Taxation Property Tax Assessment Appeals Boards Registers of Wills Department of Budget and Management Department of General Services Department of Natural Resources Maryland Department of Agriculture Department of Health and Mental Hygiene Department of Human Resources Department of Labor, Licensing and Regulation Department of Public Safety and Correctional Services Maryland State Department of Education Subcabinet for Children, Youth and Families Morgan State University St. Marys College of Maryland Baltimore City Community College Maryland Public Broadcasting Commission University System of Maryland Aid to the University of Maryland Medical System Maryland School for the Deaf - Frederick Campus Maryland School for the Deaf - Columbia Campus Maryland Higher Education Commission Department of Housing and Community Development Department of Business and Economic Development Maryland Department of the Environment Department of Juvenile Services Maryland Department of State Police Public Debt - Redemption and Interest on State Bonds Revenue Stabilization Fund Reserve Account - Future Cost of State Retiree Health Benefits Dedicated Purpose Account PAYGO Capital Expenditures

$13,486,000 $6,571,000 $2,564,000 $150,000 $263,000 $66,072,000 $4,045,000 $110,108,000 $873,000 $25,000 $114,562,000 $49,822,000 $69,745,000 $23,654,000 $6,201,234,000 $528,846,000 $26,944,000 $846,823,000 $6,916,503,000 $52,520,000 $54,502,000 $14,593,000 $35,229,000 $9,956,000 $917,802,000 $5,124,000 $15,744,000 $7,544,000 $415,664,000 $30,520,000 $98,147,000 $57,645,000 $192,337,000 $266,197,000 $0 $100,000,000 $0 $42,000,000 $0 27

$15,277,000 $10,402,000 $3,396,000 $0 $321,000 $71,323,000 $4,555,000 $127,796,000 $908,000 $25,000 $155,977,000 $55,394,000 $83,929,000 $28,025,000 $6,548,582,000 $573,118,000 $26,733,000 $930,762,000 $7,381,064,000 $55,619,000 $59,818,000 $15,906,000 $37,823,000 $9,628,000 $994,481,000 $2,937,000 $16,930,000 $8,033,000 $467,104,000 $11,516,000 $139,101,000 $63,865,000 $238,459,000 $286,961,000 $26,715,000 $200,000,000 $100,000,000 $0 $100,000,000

$15,320,000 $11,041,000 $2,795,000 $0 $278,000 $72,554,000 $5,091,000 $127,319,000 931000 $0 $91,474,000 $61,599,000 $80,215,000 $32,837,000 $6,923,430,000 $607,724,000 $15,881,000 $1,017,719,000 $7,971,581,000 $50,688,000 $65,017,000 $16,367,000 $40,197,000 $9,852,000 $1,052,872,000 $3,054,000 $18,150,000 $9,059,000 $526,353,000 $17,140,000 $149,416,000 $68,329,000 $254,900,000 $305,852,000 $0 $450,000,000 $150,000,000 $200,000,000 $200,000,000

Catastrophic Event Acount Deficiency Appropriations Total, General Fund Reserve and One-Time PAYGO Expenditures (General Funds) Revenue Stabilization Fund Reserve Account - Future Cost of State Retiree Health Benefits Dedicated Purpose Account PAYGO Capital Expenditures Total General Fund Expenditures Less Reserve Deposits and PAYGO Expenditures Special Fund Judiciary Office of the Public Defender Office of the Attorney General Public Service Commission Office of the People's Counsel Subsequent Injury Fund Uninsured Employers' Fund Workers' Compensation Commission Board of Public Works Department of Disabilities Maryland Energy Administration Office for Children, Youth and Families Office of Service and Volunteerism State Ethics Commission Health Claims Arbitration Office Governor's Office of Crime Control and Prevention Volunteer Maryland Secretary of State Historic St. Mary's Commission Department of Aging Maryland Stadium Authority State Board of Elections Department of Planning Military Department Maryland Institute for Emergency Medical Services Systems Department of Veterans Affairs State Archives Maryland Insurance Administration Canal Place Preservation and Development Authority Office of Administrative Hearings Comptroller of the Treasury

$2,000,000 $92,438,000 $18,173,349,000

$0 $74,758,000 $19,840,947,000

$0 $96,810,000 $21,671,266,000

$100,000,000 $0 $42,000,000 $0 $142,000,000 $18,021,349,000

$200,000,000 $100,000,000 $0 $100,000,000 $400,000,000 $19,440,947,000

$450,000,000 $150,000,000 $200,000,000 $200,000,000 $1,000,000,000 $20,671,266,000

$31,421,000 $182,000 $2,452,000 $11,561,000 $2,852,000 $1,775,000 $975,000 $12,169,000 $1,804,000 $7,380,000 $4,978,000 $132,000 $0 $128,000 $0 $1,510,000 $295,000 $436,000 $573,000 $316,000 $20,500,000 $5,708,000 $318,000 $175,000 $10,724,000 $267,000 $7,816,000 $24,291,000 $225,000 $6,000 $14,390,000 28

$40,395,000 $212,000 $2,387,000 $12,152,000 $2,658,000 $1,960,000 $1,080,000 $13,008,000 $0 $139,000 $4,909,000 $0 $0 $127,000 $35,000 $1,539,000 $267,000 $418,000 $575,000 $369,000 $21,000,000 $9,961,000 $4,285,000 $12,124,000 $11,168,000 $227,000 $7,702,000 $26,365,000 $200,000 $36,000 $17,359,000

$43,698,000 $219,000 $3,225,000 $12,853,000 $2,760,000 $1,847,000 $1,045,000 $13,137,000 $0 $196,000 $4,610,000 $0 $5,229,000 $131,000 $35,000 $1,559,000 $317,000 $455,000 $573,000 $324,000 $21,500,000 $8,934,000 $4,319,000 $12,124,000 $11,308,000 $627,000 $7,074,000 $24,799,000 $253,000 $48,000 $15,950,000

State Treasurer State Department of Assessments and Taxation State Lottery Agency Department of Budget and Management Maryland State Retirement Agency Teacher and Employee Supplemental Retirement Plans Department of General Services Maryland Department of Transportation Department of Natural Resources Maryland Department of Agriculture Department of Health and Mental Hygiene Department of Human Resources Department of Labor, Licensing and Regulation Department of Public Safety and Correctional Services Maryland State Department of Education Subcabinet for Children, Youth and Families Morgan State University St. Marys College of Maryland Baltimore City Community College Maryland Public Broadcasting Commission University System of Maryland Aid to the University of Maryland Medical System Maryland School for the Deaf - Frederick Campus Maryland School for the Deaf - Columbia Campus Maryland Higher Education Commission Department of Housing and Community Development Department of Business and Economic Development Maryland Department of the Environment Department of Juvenile Services Maryland Department of State Police Public Debt - Redemption and Interest on State Bonds Deficiency Appropriations Total, Special Fund Federal Fund Judiciary Office of the Attorney General Office of the State Prosecutor Office for Individuals with Disabilities Maryland Energy Administration

$785,000 $3,629,000 $72,225,000 $8,402,000 $20,097,000 $1,304,000 $1,334,000 $3,628,615,000 $261,641,000 $45,705,000 $297,282,000 $65,735,000 $19,397,000 $138,883,000 $144,310,000 $648,000 $170,982,000 $53,190,000 $78,826,000 $16,126,000 $3,588,687,000 $4,617,000 $97,000 $85,000 $1,812,000 $55,066,000 $62,712,000 $58,748,000 $253,000 $60,150,000 $667,024,000 $0 $9,693,726,000

$808,000 $4,214,000 $75,225,000 $31,913,000 $22,035,000 $1,364,000 $3,519,000 $3,899,891,000 $377,913,000 $59,692,000 $425,840,000 $68,366,000 $29,051,000 $138,947,000 $148,377,000 $949,000 $183,008,000 $57,236,000 $80,245,000 $15,564,000 $3,846,381,000 $6,700,000 $107,000 $85,000 $1,820,000 $51,979,000 $65,831,000 $77,229,000 $178,000 $58,056,000 $651,278,000 $0 $10,576,458,000

$1,727,000 $4,253,000 $73,299,000 $40,599,000 $22,280,000 $1,392,000 $1,780,000 $3,882,185,000 $332,728,000 $89,323,000 $543,762,000 $94,458,000 $37,911,000 $148,205,000 $157,088,000 $600,000 $191,461,000 $62,946,000 $87,671,000 $13,878,000 $4,034,258,000 $6,764,000 $115,000 $109,000 $10,598,000 $58,497,000 $65,771,000 $80,001,000 $203,000 $66,543,000 $646,409,000 $88,103,000 $11,044,066,000

$2,748,000 $1,660,000 $0 $3,713,000 $835,000 29

$3,168,000 $1,975,000 $0 $1,671,000 $844,000

$3,318,000 $2,006,000 $123,000 $1,413,000 $1,134,000

Office for Children, Youth and Families Office of Service and Volunteerism Governor's Office of Crime Control and Prevention Historic St. Mary's Commission Department of Aging Commission on Human Relations State Board of Elections Department of Planning Military Department Maryland Institute for Emergency Medical Services Systems Department of Veterans Affairs State Archives Department of General Services Maryland Department of Transportation Department of Natural Resources Maryland Department of Agriculture Department of Health and Mental Hygiene Department of Human Resources Department of Labor, Licensing and Regulation Department of Public Safety and Correctional Services Maryland State Department of Education Subcabinet for Children, Youth and Families Maryland Public Broadcasting Commission Maryland School for the Deaf - Frederick Campus Maryland School for the Deaf - Columbia Campus Maryland Higher Education Commission Department of Housing and Community Development Department of Business and Economic Development Maryland Department of the Environment Department of Juvenile Services Maryland Department of State Police Deficiency Appropriations Total, Federal Fund

$291,000 $4,456,000 $17,158,000 $0 $25,990,000 $799,000 $10,995,000 $0 $35,445,000 $350,000 $7,317,000 $89,000 $787,000 $852,002,000 $28,338,000 $9,319,000 $5,770,802,000 $931,116,000 $134,976,000 $10,974,000 $1,034,591,000 $23,694,000 $3,200,000 $568,000 $571,000 $2,259,000 $240,114,000 $585,000 $69,349,000 $16,896,000 $448,000 $58,000,000 $9,300,435,000

$250,000 $4,477,000 $15,571,000 $0 $25,642,000 $905,000 $3,521,000 $820,000 $38,047,000 $140,000 $15,805,000 $234,000 $812,000 $851,367,000 $28,367,000 $9,810,000 $6,087,897,000 $990,621,000 $136,202,000 $10,830,000 $1,057,525,000 $14,917,000 $4,200,000 $540,000 $540,000 $2,103,000 $235,794,000 $694,000 $62,146,000 $15,005,000 $3,300,000 $0 $9,625,740,000

$250,000 $5,229,000 $10,634,000 $0 $26,189,000 $732,000 $2,178,000 $937,000 $50,544,000 $700,000 $14,291,000 $152,000 $905,000 $869,500,000 $27,948,000 $6,899,000 $6,638,841,000 $1,047,134,000 $107,158,000 $10,137,000 $947,576,000 $14,917,000 $3,432,000 $475,000 $557,000 $2,096,000 $203,128,000 $644,000 $58,948,000 $14,684,000 $4,547,000 $9,223,000 $10,088,579,000

30