The Board of Trustees shall prepare and implement both a capital and operating budget for the management of the College. In order to ensure a stable and predictable level of funding, the Governor shall include in the annual budget submission a General Fund grant to St. Mary’s College of Maryland. For fiscal year 1993, the grant shall be as provided for in the State fiscal year 1993 appropriation. For fiscal year 1994 and each year thereafter, the proposed grant shall be equal to the grant of the prior year augmented by funds required to offset inflation as indicated by the implicit price deflator for State and local government. Beginning in fiscal year 2019, if the College’s 6–year graduation rate as reported by the Maryland Higher Education Commission is 82% or greater in the second preceding fiscal year, the proposed grant for the upcoming fiscal year shall be increased by 0.25%. Beginning in fiscal year 2019, in addition to the grant provided under paragraph (2) of this subsection, the College shall receive the amounts specified under this paragraph. For each fiscal year, the State shall provide to the College funds to pay for the increase in State–supported health insurance costs of the College. For each fiscal year in which the State provides a cost–of–living adjustment for State employees, the State shall provide to the College 100% of the cost–of–living adjustment wage increase for State–supported employees of the College. For each fiscal year in which the State provides funds to other public senior higher education institutions to moderate undergraduate resident tuition increases, it is the intent of the General Assembly that the State shall provide to the College funds for the same purpose. Funding provided under paragraph (3) of this subsection: May not be included in the calculation of the proposed grant under paragraph (2) of this subsection for any following fiscal year; and Shall be provided in the same amount in each following fiscal year. The State shall pay the General Fund grants under this subsection to the College on a quarterly basis. Nothing in this subsection may be construed to restrict the budgetary power of the General Assembly. Except as provided in paragraph (3) of this subsection, the College shall support all operating costs, including personnel and retirement costs, from its General Fund grant and the other revenue sources of the College. Subject to the approval of the Board of Public Works, the Board may acquire, lease, encumber, sell, or otherwise dispose of real property held by the State for the use of St. Mary’s College of Maryland. The Board may acquire, lease, encumber, sell, or otherwise dispose of personal property. The title to any land acquired by St. Mary’s College of Maryland shall be held by the State of Maryland for the use of St. Mary’s College of Maryland. The Board may borrow money for the purposes and on the terms that the Board determines. The Board may secure a loan with property acquired by the Board or with revenues derived from the property. A loan under this section does not: Create or constitute a debt or obligation of the State or any unit of the State other than the College; or Create or constitute a debt or obligation contracted by the General Assembly or pledge the faith and credit of the State within the meaning of Article III, § 34 of the Maryland Constitution. The income of the College shall be deposited in the State Treasury or as the State Treasurer directs. The State Treasurer shall invest the funds and credit to the College any interest or other income from the investment of the funds. The College may spend or encumber, within the fiscal year they are received, revenues received in excess of those estimated for any fiscal year. Any unexpended or unencumbered balances of the College’s revenues shall not revert to the General Fund of the State at the end of each fiscal year. Except as provided in § 11–203(e) of the State Finance and Procurement Article, the College is exempt from Division II of the State Finance and Procurement Article. Subject to review and approval by the Board of Public Works and the Administrative, Executive, and Legislative Review Committee of the General Assembly, the Board of Trustees shall develop policies and procedures governing procurements by the College. The policies and procedures developed under subparagraph (i) of this paragraph shall promote the purposes of the State procurement law as set forth in § 11–201 of the State Finance and Procurement Article.