# Education (GED) ## Title 5. Financing ### Subtitle 2. Aid to Education #### Section 5-201 (a) In this subtitle, except as otherwise provided, the following words have the meanings indicated. (b) "Assessable base" has the meaning stated in: (1) Sec. 12-201 of the Economic Development Article; or (2) For Baltimore City, Article II, Sec. 62 of the Charter of Baltimore City. (c) "Assessed value of personal property" means the most recent estimate by the State Department of Assessments and Taxation before the annual State budget is submitted to the General Assembly of the assessed value for county purposes of personal property as of July 1 of the first completed fiscal year before the school year for which the calculation is made under this section. (d) (1) Subject to paragraph (2) of this subsection, "assessed value of real property" means the most recent estimate made by the State Department of Assessments and Taxation before the annual State budget is submitted to the General Assembly of the assessed value of real property for State purposes as of July 1 of the first completed fiscal year before the school year for which the calculation of State aid is made under this section. (2) (i) Subject to subparagraphs (ii), (iii), and (iv) of this paragraph, for counties that qualify for a disparity grant under Sec. 16-501 of the Local Government Article and that established a development district under Title 12, Subtitle 2 of the Economic Development Article or Article II, Sec. 62 of the Charter of Baltimore City after May 1, 2016, and is still in effect, using the assessed value of real property as of July 1 of the second completed fiscal year before the school year for which the calculation of State aid is made under this section, "assessed value of real property" does not include the lesser of: (1) The difference between the original base and the assessable base of all real property in a development district that is subject to tax increment financing under Title 12, Subtitle 2 of the Economic Development Article or Article II, Sec. 62 of the Charter of Baltimore City as certified by the State Department of Assessments and Taxation; or (2) The quotient of the annual debt service for a tax increment financing bond in a development district divided by the county's real property tax rate pledged to the tax increment financing bond multiplied by 100. (ii) If the result of items 1 or 2 of subparagraph (i) of this paragraph is a negative number, then the result shall be $0. (iii) The calculations under this paragraph shall be made separately for each development district in a county. (iv) For Baltimore City, if the result of item 1 or 2 of subparagraph (i) of this paragraph is a positive number, then the amount is required to be appropriated by the Mayor and City Council of Baltimore City to the Baltimore City Board of School Commissioners. (e) "Enrollment count" means the greater of: (1) The full-time equivalent enrollment; or (2) The 3-year moving average enrollment. (f) "Foundation program" means the product of the annual per pupil foundation amount and a county's enrollment count. (g) "Full-time equivalent enrollment" means the sum of: (1) The number of students enrolled in kindergarten through grade 12 or their equivalent in regular day school programs on September 30 of the prior school year; (2) The number of full-time equivalent students, as determined by a regulation of the Department, enrolled in evening high school programs during the prior school year; and (3) The number of P-TECH students, as provided in Sec. 7-1804(b) of this article. (h) (1) Subject to paragraph (2) of this subsection, "inflation adjustment" means a percentage, rounded to the nearest two decimal places, that is the lesser of: (i) The increase in the implicit price deflator for State and local government expenditures for the second prior fiscal year; (ii) The Consumer Price Index for All Urban Consumers for the Washington Metropolitan Area, or any successor index, for the second prior fiscal year; or (iii) 5%. (2) If there is no increase in the implicit price deflator for State and local government expenditures for the second prior fiscal year or in the Consumer Price Index for All Urban Consumers for the Washington Metropolitan Area, or any successor index, for the second prior fiscal year, then "inflation adjustment" means 0%. (i) "Local contribution rate" means the figure that is calculated as follows: (1) Multiply the statewide full-time equivalent enrollment by the target per pupil amount and by 0.50; divided by (2) The sum of the wealth of all of the counties in this State; and (3) Round the result obtained in paragraph (2) of this subsection to seven decimal places and express as a percent with five decimal places. (j) "Local share of the foundation program" means the product of the local contribution rate and a county's wealth rounded to the nearest whole dollar. (k) "Local wealth per pupil" means a county's wealth divided by the county's full-time equivalent enrollment. (l) "Major education aid" means the sum of the State and local share of the following: (1) Foundation program under Sec. 5-213 of this subtitle; (2) Transportation aid under Sec. 5-218 of this subtitle; (3) Compensatory education under Sec. 5-222 of this subtitle; (4) English learner program under Sec. 5-224 of this subtitle; (5) Special education under Sec. 5-225 of this subtitle; (6) Guaranteed tax base program under Sec. 5-214 of this subtitle; (7) Comparable wage index grant under Sec. 5-216 of this subtitle; (8) Post college and career readiness pathways under Sec. 5-217 of this subtitle; (9) Concentration of poverty under Sec. 5-223 of this subtitle; (10) Transitional supplemental instruction under Sec. 5-226 of this subtitle; (11) Publicly funded prekindergarten under Sec. 5-229 of this subtitle; and (12) Career ladder for educators under Sec. 6-1009 of this article. (m) "Net taxable income" means the amount certified by the State Comptroller for the second completed calendar year before the school year for which the calculation of State aid under this section is made, based on tax returns filed on or before November 1 after the current calendar year. (n) "Original base": (1) Has the meaning stated in Sec. 12-201 of the Economic Development Article; or (2) For Baltimore City, means "original assessable base" as defined in Article II, Sec. 62 of the Charter of Baltimore City. (o) "Personal property" means all property classified as personal property under Sec. 8-101(c) of the Tax - Property Article. (p) "Real property" means all property classified as real property under Sec. 8-101(b) of the Tax - Property Article. (q) "State share of the foundation program" means, rounded to the nearest whole dollar, the greater of: (1) The difference between the foundation program and the local share of the foundation program; and (2) The result obtained by multiplying the target per pupil foundation amount by the county's enrollment count, and multiplying this product by 0.15 in fiscal year 2008 and each fiscal year thereafter. (r) "Statewide wealth per pupil" means the sum of the wealth of all counties divided by the statewide full-time equivalent enrollment. (s) "Target per pupil foundation amount" means: (1) For fiscal year 2022, $7,991; (2) For fiscal year 2023, $8,310; (3) For fiscal year 2024, $8,642; (4) For fiscal year 2025, $8,789; (5) For fiscal year 2026, $9,226; (6) For fiscal year 2027, $9,561; (7) For fiscal year 2028, $9,789; (8) For fiscal year 2029, $10,200; (9) For fiscal year 2030, $10,625; (10) For fiscal year 2031, $11,047; (11) For fiscal year 2032, $11,483; (12) For fiscal year 2033, $11,931; (13) For fiscal year 2034, $12,381; (14) For fiscal year 2035, $12,843; and (15) For subsequent fiscal years, the target per pupil foundation amount for the prior fiscal year increased by the inflation adjustment rounded to the nearest whole dollar. (t) (1) Except as provided in paragraph (2) of this subsection, "3-year moving average enrollment" means the average of the full-time equivalent enrollment in the 3 prior school years. (2) If the 3 prior school years includes the 2020-2021 school year, "3-year moving average enrollment" means: (i) The sum of the full-time equivalent enrollment for the 4 prior school years minus the 2020-2021 school year full-time equivalent enrollment; divided by (ii) Three. (u) "Wealth" means the sum of: (1) Net taxable income; (2) 100 percent of the assessed value of the operating real property of public utilities; (3) 40 percent of the assessed value of all other real property; and (4) 50 percent of assessed value of personal property. #### Section 5-202 On or before December 1, 2021, and each December 1 thereafter, the Department shall submit to the Department of Budget and Management and the Department of Legislative Services the enrollment counts and other data necessary to calculate the funding formulas to implement the Blueprint for Maryland's Future for the upcoming fiscal year. #### Section 5-204 (a) (1) Except for money appropriated for the purposes of Sec. 5-301(b) through (j) of this title, all money appropriated by the General Assembly to aid in support of public schools constitutes the General State School Fund. (2) Money in the General State School Fund may be spent only as appropriated in the annual budget bill. (3) (i) The Department shall notify the Senate Budget and Taxation Committee and the House Committee on Appropriations of any intent to transfer funds from budget program R00A02, Aid to Education, to any other budgetary unit. (ii) The Senate Budget and Taxation Committee and the House Committee on Appropriations shall have 45 days to review and comment on the planned transfer prior to its effect. (b) Money in the General State School Fund may be appropriated by the General Assembly to the Annuity Bond Fund, as provided in the State budget, and shall be used for principal and interest payments on State debt incurred for public school construction or public school capital improvements. #### Section 5-205 (a) Except as provided in subsections (e) and (f) of this section, 10 days before the end of July, September, November, January, March, and May, the State Superintendent shall certify to the State Comptroller the amount due at the end of each of these months to each county board for the annual State share of major education aid. (b) Amounts due shall be made in equal payments once every 2 months. (c) Within 5 days before the end of each of these months, the State Comptroller shall draw the Comptroller's warrant on the State Treasurer for the amount due to the treasurer of each county board. (d) On receipt of the warrant of the State Comptroller, the State Treasurer immediately shall pay the amount due to the treasurer of each county board. (e) After notification from the State Superintendent that a county board is not complying with the provisions of the State program of public education, the State Comptroller shall withhold any installment due the county board from the General State School Fund. (f) After notification is received under Sec. 5-405 of this title, the State Superintendent shall certify to the Comptroller the amount to be released or withheld. #### Section 5-206 (a) In this section, "Fund" means the Blueprint for Maryland's Future Fund. (b) There is the Blueprint for Maryland's Future Fund. (c) The purpose of the Fund is to assist in providing adequate funding for early childhood education and primary and secondary education to provide a world-class education to students so they are prepared for college and a career in the global economy of the 21st century, based on the recommendations of the Commission on Innovation and Excellence in Education. (d) The Department shall administer the Fund. (e) (1) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (f) The Fund consists of: (1) Revenue distributed to the Fund under Title 9, Subtitles 1D and 1E of the State Government Article and Sec.Sec. 2-4A-02, 2-605.1, and 2-1303 of the Tax - General Article; (2) Money appropriated in the State budget for the Fund; (3) Interest earned by the Academic Excellence Fund established under Sec. 6-1105 of this article; and (4) Any other money from any other source accepted for the benefit of the Fund. (g) (1) The Fund may be used only to assist in providing adequate funding for: (i) Early childhood education, primary and secondary education, and other programs, based on the recommendations of the Commission on Innovation and Excellence in Education, including revised education funding formulas; (ii) Maryland prekindergarten expansion grants; and (iii) Early childhood education, primary and secondary education, and other programs for costs associated with the Coronavirus Disease 2019 (COVID-19), including: (1) One-time primary and secondary education aid grants provided in fiscal year 2022 to: (A) Address enrollment declines related to the COVID-19 pandemic; and (B) Ensure that every county board receives an increase in State education aid over the amount of State education aid the county board received in fiscal year 2021; and (2) Grants provided in fiscal years 2021 and 2022 for: (A) Summer school programs, tutoring, and other supplemental instruction programs to address student learning loss; (B) Identification of and support for students dealing with trauma or behavioral health issues; and (C) Schools to safely reopen for in-person instruction. (2) (i) The Fund may not be used for school construction under Subtitle 3 of this title. (ii) The Fund may not be used to fund the Academic Excellence Program established under Title 6, Subtitle 11 of this article. (h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any interest earnings of the Fund shall be credited to the Fund. (i) Expenditures from the Fund may be made only in accordance with the State budget. #### Section 5-207 If a final court judgment requires the State to include in the budget bill money to satisfy a judgment against the county board of education, the State may deduct that amount from any other State funds that would otherwise be paid to the county board of education under this subtitle in the following fiscal year. #### Section 5-208 Any employer Social Security contributions required by federal law for any employee of a county board or local school system shall remain the obligation of the employer. #### Section 5-209 (a) The Montgomery County Board shall provide from the Montgomery County Public Schools Employees' Pension System Trust the supplemental retirement allowance required under subsection (b) of this section. (b) (1) The Montgomery County Board, through the Montgomery County Public Schools Employees' Pension System Trust, shall pay a supplemental retirement allowance to an employee of the county board who retires on or after July 1, 1999, as a member of the Teachers' Pension System of the State of Maryland. (2) The supplemental retirement allowance shall equal the product of the member's years of creditable service earned in the Montgomery County Public Schools Employees' Pension System times the sum of: (i) (0) 08% of the retiree's average final compensation that does not exceed the Social Security integration level; and (ii) (0) 15% of the retiree's average final compensation that exceeds the Social Security integration level. #### Section 5-210 (a) (1) In this section the following words have the meanings indicated. (2) "Blueprint for Maryland's Future Fund estimate" means the estimate of revenues to be distributed to the Blueprint for Maryland's Future Fund established under Sec. 5-206 of this subtitle by the Board of Revenue Estimates as required by Sec. 6-106 of the State Finance and Procurement Article. (3) "General Fund estimate" means the estimate of General Fund revenues by the Board of Revenue Estimates as required by Sec. 6-106 of the State Finance and Procurement Article. (b) Beginning December 1, 2024, and each December 1 thereafter, for fiscal year 2026 and each fiscal year thereafter, if there is a cumulative reduction in the December General Fund estimate and the Blueprint for Maryland's Future Fund estimate in the December Board of Revenue Estimates report for that fiscal year that is at least 3.75% below the March General Fund estimate and the Blueprint for Maryland's Future Fund estimate in the March Board of Revenue Estimates report for that fiscal year, notwithstanding any other provision of law: (1) Per pupil formula increases in major education aid required under this subtitle shall be 0%; and (2) Any additional funding increases required under this subtitle shall be limited to 0%. (c) The Governor shall include the limitation on increases required under subsection (b) of this section in the annual budget bill in the General Assembly session immediately following the December Board of Revenue Estimates report. #### Section 5-212 (a) The target per pupil foundation amount includes costs associated with implementing the Blueprint for Maryland's Future including: (1) Increasing salaries; (2) Additional teachers to provide professional learning and collaborative time for teachers; (3) Career counseling; (4) Behavioral health; (5) Instructional opportunities for students who are college and career ready and those who are not; (6) Maintenance and operation of schools; (7) Supplies and materials for teachers; and (8) Educational technology including digital devices, broadband connectivity, and information technology staff. (b) Schools may use funds provided under this section to provide the programs required under COMAR 13A.04.16.01. (c) (1) County boards of education and schools shall prioritize the purchase of digital devices for using funds under subsection (a)(8) of this section. (2) Additional funds provided in the target per pupil foundation amount for educational technology are intended to supplement and not supplant existing funding provided for educational technology. (3) (i) On or before November 15 each year, each county board shall submit a report to the Department detailing, for the previous fiscal year: (1) The amount spent by the local school system on technology disaggregated by digital devices, connectivity, and information technology staff; and (2) The percentage of students, teachers, and staff with digital devices and adequate connectivity in their homes in accordance with the Federal Communications Commission standards for broadband. (ii) On or before December 15 each year, the Department shall submit to the General Assembly, in accordance with Sec. 2-1257 of the State Government Article, a compilation of the reports submitted to the Department under subparagraph (i) of this paragraph. (iii) On or before September 1, 2021, the Department shall establish uniform reporting requirements, including definitions to ensure that consistent and comparable reports are submitted under subparagraph (i) of this paragraph. #### Section 5-213 (a) Each fiscal year, the State shall distribute the State share of the foundation program to each county board. (b) Except as provided in subsections (c) and (d) of this section, each fiscal year, the county board shall distribute to each school the minimum school funding amount for the foundation program calculated under Sec. 5-234 of this subtitle. (c) (1) Each county board shall distribute to the local workforce development board for the county the following amount multiplied by the enrollment count in the county: (i) For fiscal year 2024, $62; and (ii) For fiscal years 2025 through 2028, the prior fiscal year amount increased by the inflation adjustment. (2) The funds distributed under paragraph (1) of this subsection shall be used to support the Career Counseling Program for Middle and High School Students established under Sec. 7-127 of this article that is provided collaboratively by the workforce development board, the school, any other relevant State or local agencies, and employers. (3) On or before June 30, 2024, and in each of the next 4 fiscal years, the local workforce development board, in collaboration with the county board and any other relevant State or local agencies, shall report to the Accountability and Implementation Board established under Subtitle 4 of this title on the use of the funds and the impact of the funds on providing career counseling. (4) On or before January 1, 2027, the Accountability and Implementation Board shall report to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly on the effectiveness of the Career Counseling Program for Middle and High School Students, including: (i) Whether career counseling services have adequately prepared students for post-college and career readiness pathways, including: (1) Percentage of students who completed a career readiness assessment; (2) Student self-reported confidence levels in career readiness; (3) Number of students participating in career counseling sessions and completing a 6-year career plan by the end of 8th grade; (4) Number of students who participated in career exploration activities, including field trips, college or training center visits, career fairs, or registered apprenticeship programs; (5) Number of students who identified post-college and career readiness pathway preferences; and (6) Percentage of students applying to postsecondary education, career training programs, or registered apprenticeships; (ii) Whether students have received high-quality career opportunities as a result of the Program, including: (1) Number of students participating in registered apprenticeships, internships, job shadowing, or other workplace opportunities facilitated by the Program; (2) Employer satisfaction ratings of student preparedness and performance; (3) Number of students securing a registered apprenticeship or part-time employment related to their field of interest after engaging with the Program before graduation; and (4) Number of new employer collaborations each year; and (iii) Identifying long-term metrics for the Program to determine the Program's effectiveness in guiding high school students toward satisfactory career paths after completing high school, including consideration of: (1) Employment rate of program graduates within 6 to 12 months post graduation; (2) Percentage of students employed in their field of interest or related industry within 1 year of graduation; (3) Student-reported job satisfaction and career alignment based on follow-up surveys; (4) College persistence and completion rates for students who participated in the Program; and (5) Reduction in the number of students who are unemployed or not participating in a postsecondary education program compared to pre-Program data. (d) (1) In this subsection, "collaborative time per pupil amount" means: (i) For fiscal year 2029, $334; (ii) For fiscal year 2030, $512; (iii) For fiscal year 2031, $698; (iv) For fiscal year 2032, $891; (v) For fiscal year 2033, $1,093; (vi) For fiscal year 2034, $1,306; (vii) For fiscal year 2035, $1,527; and (viii) For each fiscal year thereafter, the collaborative time per pupil amount in the prior fiscal year increased by the inflation adjustment. (2) The collaborative time per pupil amount multiplied by the enrollment count in each county shall be distributed to and expended by schools in each county in accordance with Title 6, Subtitle 10 of this article and the county's collaborative time implementation plan approved by the Accountability and Implementation Board. #### Section 5-214 (a) (1) In this section the following terms have the meanings indicated. (2) "Additional education appropriation" means the difference between a county's education appropriation for the prior fiscal year and the county's local share of the foundation program calculated under Sec. 5-201 of this subtitle. (3) "Additional education effort" means a county's additional education appropriation divided by the county's wealth, rounded to seven decimal places. (4) "Guaranteed tax base program per pupil amount" means the lesser of: (i) 20% of the annual per pupil foundation amount; and (ii) The product of a county's additional education effort and the difference between guaranteed wealth per pupil and local wealth per pupil. (5) "Guaranteed wealth per pupil" means 80% of the statewide wealth per pupil. (b) For fiscal year 2005 and each fiscal year thereafter, the State shall distribute guaranteed tax base grants to county boards as provided in this section. (c) A county board is eligible to receive a guaranteed tax base grant if the county's: (1) Additional education effort is greater than zero; and (2) Local wealth per pupil is less than the guaranteed wealth per pupil. (d) The amount of the guaranteed tax base grant shall be equal to the product of the county's guaranteed tax base program per pupil amount and the county's enrollment count. #### Section 5-215 (a) Subject to subsection (b) of this section, for each of fiscal years 2022 through 2029, the State shall distribute to each county board the following Blueprint Transition Grant amounts: (1) Allegany County....................................................... $10,348 (2) Baltimore City.................................................... $18,669,201 (3) Baltimore County.................................................. $2,953,950 (4) Caroline County...................................................... $966,820 (5) Cecil County............................................................. $49,060 (6) Dorchester County................................................ $1,321,515 (7) Garrett County..................................................... $1,201,160 (8) Howard County......................................................... $41,743 (9) Kent County......................................................... $1,005,090 (10) Montgomery County.............................................. $7,712,745 (11) Prince George's County....................................... $20,505,652; and (12) St. Mary's County................................................ $3,251,181. (b) For fiscal years 2025 through 2030, the State shall distribute the following proportion of the Blueprint Transition Grant amount under subsection (a) of this section to each county board: (1) For fiscal year 2025, 85%; (2) For fiscal year 2026, 65%; (3) For fiscal year 2027, 50%; (4) For fiscal year 2028, 35%; (5) For fiscal year 2029, 20%; and (6) For fiscal year 2030 and each fiscal year thereafter, 0%. #### Section 5-216 (a) In this subsection, "comparable wage index (CWI) adjustment" means, for each county, the foundation program multiplied by: (1) (0) 000 in Allegany; (2) (0) 109 in Anne Arundel; (3) (0) 066 in Baltimore City; (4) (0) 065 in Baltimore; (5) (0) 079 in Calvert; (6) (0) 000 in Caroline; (7) (0) 000 in Carroll; (8) (0) 000 in Cecil; (9) (0) 055 in Charles; (10) (0) 000 in Dorchester; (11) (0) 047 in Frederick; (12) (0) 000 in Garrett; (13) (0) 073 in Harford; (14) (0) 131 in Howard; (15) (0) 000 in Kent; (16) (0) 166 in Montgomery; (17) (0) 129 in Prince George's; (18) (0) 000 in Queen Anne's; (19) (0) 079 in St. Mary's; (20) (0) 000 in Somerset; (21) (0) 000 in Talbot; (22) (0) 000 in Washington; (23) (0) 000 in Wicomico; and (24) (0) 000 in Worcester. (b) (1) For fiscal year 2024 and each fiscal year thereafter, in addition to the foundation program each county shall receive a grant to reflect the regional differences of the cost to hire personnel that are due to factors outside of the control of the local jurisdiction. (2) The amount of the grant under this section shall equal, for each county, the product of the CWI adjustment and: (i) 49% in fiscal year 2024; (ii) 49% in fiscal year 2025; (iii) 47% in fiscal year 2026; (iv) 46% in fiscal year 2027; (v) 45% in fiscal year 2028; (vi) 44% in fiscal year 2029; (vii) 43% in fiscal year 2030; (viii) 42% in fiscal year 2031; (ix) 42% in fiscal year 2032; and (x) 41% in fiscal year 2033 and each fiscal year thereafter. (3) Subject to subsection (c) of this section, the State share and local share of the grant calculated under paragraph (2) of this subsection shall be calculated in the same manner as the State share and local share of the foundation program. (c) Each fiscal year the county board shall distribute to each school the minimum school funding amount for the grant calculated under Sec. 5-234 of this subtitle. #### Section 5-217 (a) (1) In this section the following words have the meanings indicated. (2) "CCR per pupil amount" means: (i) For fiscal year 2022, $517; and (ii) For each fiscal year thereafter, the CCR per pupil amount in the prior fiscal year increased by the inflation adjustment. (3) "CCR program amount" means, for each county, the product of the total number of CCR students in the prior school year and the CCR per pupil amount. (4) "CCR student" means a student who is college and career ready, as demonstrated by having met the college and career readiness standard adopted by the State Board under Sec. 7-205.1 of this article. (5) "Local share" means, for each county, the result of the CCR program amount minus the State share rounded to the nearest whole dollar. (6) "State share" means, for each county, the result, rounded to the nearest whole dollar, of the following calculation multiplied by 0.5: (i) Multiply the CCR per pupil amount by the number of CCR students; (ii) Divide the result calculated under item (i) of this paragraph by the ratio, rounded to seven decimal places, of local wealth per pupil to statewide wealth per pupil; and (iii) Multiply the result calculated under item (ii) of this paragraph by the result, rounded to seven decimal places, that results from dividing the total program amount by the sum of all of the results calculated under item (ii) of this paragraph for all counties. (7) "Total program amount" means the product of the CCR per pupil amount and the number of CCR students in the State. (b) (1) Each fiscal year, the State shall distribute the State share of the CCR program amount to each county board. (2) Each fiscal year, the county board shall distribute to each school the minimum school funding amount for college and career readiness calculated under Sec. 5-234 of this subtitle. #### Section 5-218 (a) The State shall distribute grants as provided under this section to the county boards to provide transportation services for public school students and disabled children for whom transportation is to be provided under Sec. 8-410 of this article. Appropriations for student transportation shall be budgeted in a separate budget category as provided in Sec. 5-101 of this title. If the amount that is appropriated to a county under this section in a fiscal year is more than the actual cost of providing student transportation services in that county, a county board may apply any excess funds to costs of pupil transportation in subsequent years. None of these funds may be paid to or claimed by any subdivision, nor may any of these funds be reverted to any subdivision. A county board may not transfer State revenues from the student transportation category to any other category as a result of this section. (b) For the purpose of calculating the 2004 base grants for student transportation to county boards, the following amounts shall be used as the fiscal year 2003 base grant amounts: (1) Allegany $2,838,327 (2) Anne Arundel $12,716,216 (3) Baltimore City $10,303,967 (4) Baltimore $15,715,504 (5) Calvert $3,294,141 (6) Caroline $1,580,176 (7) Carroll $5,738,454 (8) Cecil $2,997,774 (9) Charles $5,813,595 (10) Dorchester $1,465,299 (11) Frederick $6,620,447 (12) Garrett $1,886,605 (13) Harford $7,277,627 (14) Howard $8,460,292 (15) Kent $985,359 (16) Montgomery $18,663,456 (17) Prince George's $21,018,217 (18) Queen Anne's $1,952,856 (19) St. Mary's $3,673,545 (20) Somerset $1,143,107 (21) Talbot $981,334 (22) Washington $3,784,100 (23) Wicomico $3,001,531 (24) Worcester $1,856,978 (c) (1) In this subsection, "full-time equivalent enrollment" has the meaning stated in Sec. 5-202 of this subtitle. (2) Subject to the limitations under paragraph (3) of this subsection, for fiscal year 2004 and every year thereafter the amount of a county's base grant for student transportation shall be equal to the amount of the county's base grant for student transportation for the previous year increased by the same percentage as the increase in the private transportation category of the Consumer Price Index for All Urban Consumers, for the Washington Metropolitan Area, as of July of the fiscal year preceding the year for which the amount is being calculated, plus an additional amount equal to the product of: (i) The total amount of funds distributed by the State as base grants for student transportation for the previous fiscal year divided by the statewide full-time equivalent enrollment for the previous fiscal year; and (ii) The difference between the full-time equivalent enrollment in a county for the current fiscal year and the full-time equivalent enrollment in the county for the previous fiscal year, or, if the full-time equivalent enrollment in a county for the current fiscal year is less than the full-time equivalent enrollment in the county for the previous fiscal year, zero. (3) (i) Except as provided in subparagraphs (ii) and (iii) of this paragraph, the increase in the amount of a base grant for student transportation that is based on the increase in the private transportation category of the Consumer Price Index may not be less than 1 percent nor more than 8 percent of the amount of the grant for the previous year. (ii) For fiscal year 2011, the increase in the amount of a base grant for student transportation that is based on the increase in the private transportation category of the Consumer Price Index shall be 1 percent of the amount of the grant for the previous year. (iii) For each of fiscal years 2012 through 2015, the increase in the amount of a base grant for student transportation that is based on the increase in the private transportation category of the Consumer Price Index may not be more than 1 percent of the amount of the grant for the previous year. (d) For each fiscal year, in addition to the base grant for student transportation provided under subsection (c) of this section, a disabled student transportation grant shall be distributed to each county board. The amount of the grant to each board shall be equal to the product of the number of disabled students requiring special transportation services who are transported by the county board in the previous fiscal year and: (1) $600 in fiscal year 2004; (2) $700 in fiscal year 2005; (3) $800 in fiscal year 2006; (4) $900 in fiscal year 2007; and (5) $1,000 in fiscal year 2008 and each fiscal year thereafter. (e) For the purposes of determining the amount of the grant provided under subsection (d) of this section, the State Board shall develop a procedure and adopt regulations for determining the number of disabled students transported in each jurisdiction in the previous fiscal year. (f) The State Board shall adopt rules and regulations that provide for the safe operation of the student transportation system of each county board of education. #### Section 5-219 For the regional cost differences of providing education services, the State shall distribute in fiscal year 2022 and 2023 the following amounts to the following county boards: County Board Fiscal Year 2022 Fiscal Year 2023 Anne Arundel $11,279,907 $11,648,498 Baltimore City $23,001,580 $23,399,130 Baltimore $6,714,151 $6,903,262 Calvert $2,441,896 $2,468,678 Carroll $2,581,183 $2,626,795 Charles $4,008,206 $4,119,541 Frederick $7,629,055 $7,829,066 Howard $6,541,811 $6,781,197 Kent $136,228 $137,449 Montgomery $41,131,349 $42,290,391 Prince George's $47,196,798 $48,807,990 Queen Anne's $615,392 $630,307 St. Mary's $259,366 $267,347 #### Section 5-221 (a) In this part the following words have the meanings indicated. (b) "Local share" means the county program amount for each county minus the result calculated under subsection (c)(1) of this section for each county rounded to the nearest whole dollar. (c) (1) Except as provided in paragraph (2) of this subsection, "State share" means, for each county, rounded to the nearest whole dollar, the greater of the following calculations multiplied by 0.5: (i) (1) Multiply the per pupil amount by the county's enrollment applicable under Sec. 5-222, Sec. 5-223, Sec. 5-224, Sec. 5-225, or Sec. 5-226 of this subtitle; (2) Divide the result calculated under item 1 of this item by the ratio, rounded to seven decimal places, of local wealth per pupil to statewide wealth per pupil; and (3) Multiply the result calculated under item 2 of this item by the result, rounded to seven decimal places, that results from dividing the total program amount by the sum of all of the results calculated under item 2 of this item for all counties; or (ii) The result obtained by multiplying the per pupil amount by the county's enrollment applicable under Sec. 5-222, Sec. 5-224, or Sec. 5-225 of this subtitle and by 0.8. (2) For the concentration of poverty per pupil grant under Sec. 5-223 of this subtitle and for transitional supplemental instruction under Sec. 5-226 of this subtitle, "State share" means the calculation under paragraph (1)(i) of this subsection. (d) (1) Except as provided in paragraph (2) of this subsection, "county program amount" means, for each county, the product of the per pupil amount and the county enrollment applicable under Sec. 5-222, Sec. 5-223, Sec. 5-224, Sec. 5-225, or Sec. 5-226 of this subtitle. (2) For the per pupil grant in the concentration of poverty program, "county program amount" has the same meaning as "per pupil grant amount" defined under Sec. 5-223 of this subtitle. (e) "Total program amount" means the sum of the county program amount for each county applicable under Sec. 5-222, Sec. 5-223, Sec. 5-224, Sec. 5-225, or Sec. 5-226 of this subtitle. #### Section 5-222 (a) (1) In this section the following words have the meanings indicated. (2) (i) "Compensatory education enrollment" means: (1) Except as provided in subparagraph (iii) of this paragraph, for fiscal years 2017 through 2028, the greater of: (A) The number of students eligible for free or reduced price meals for the prior fiscal year; (B) For county boards that participate, in whole or in part, in the United States Department of Agriculture community eligibility provision, the number of students equal to the greater of: (I) The sum of the number of students in participating schools identified by direct certification for the prior fiscal year, plus the number of students identified by the income information provided by the family to the school system on an alternative form developed by the Department for the prior fiscal year, plus the number of students eligible for free and reduced price meals from any schools not participating in the community eligibility provision for the prior fiscal year; or II. Subject to paragraph (3) of this subsection, the number of students eligible for free and reduced price meals at schools not participating in the community eligibility provision for the prior fiscal year, plus the product of the percentage of students eligible for free and reduced price meals at participating schools for the fiscal year prior to opting into the community eligibility provision multiplied by the prior fiscal year enrollment; or (C) The number of students directly certified and who are enrolled in a public school in the county in the prior fiscal year; and (2) For fiscal year 2029 and each fiscal year thereafter, the greater of: (A) The number of students eligible for free or reduced price meals using the United States Department of Agriculture count or the alternative State form for the prior fiscal year; or (B) The number of direct certification students who are enrolled in a public school in the county in the prior fiscal year. (ii) For the purpose of the calculation under subparagraph (i)1BII of this paragraph, the schools participating in the community eligibility provision during the pilot year may use the percentage of students identified for free and reduced price meals during the pilot year. (iii) For the purpose of the calculation under subparagraph (i)1 of this paragraph, direct certification multiplied by the multiplier may be used only for schools that did not exist prior to the year the school system opted into the United States Department of Agriculture community eligibility provision. (3) (i) For fiscal years 2022 through 2025, "compensatory education per pupil amount" means the following proportions of the target per pupil foundation amount: (1) For fiscal year 2022, 91%; (2) For fiscal year 2023, 89%; (3) For fiscal year 2024, 87%; and (4) For fiscal year 2025, 86%. (ii) Beginning in fiscal year 2026, "compensatory education per pupil amount" means: (1) For fiscal year 2026, $7,842; (2) For fiscal year 2027, $7,786; (3) For fiscal year 2028, $7,908; (4) For fiscal year 2029, $8,029; (5) For fiscal year 2030, $8,363; (6) For fiscal year 2031, $8,582; (7) For fiscal year 2032, $8,448; (8) For fiscal year 2033, $9,026; and (9) For subsequent fiscal years, the compensatory education per pupil amount for the prior fiscal year increased by the inflation adjustment rounded to the nearest whole dollar. (4) "Direct certification" means the certification of the income eligibility of a child under the following programs: (i) Supplemental Nutrition Assistance Program; (ii) Temporary Assistance for Needy Families; (iii) Foster care; (iv) Head Start; (v) Even Start; (vi) Migrant students; (vii) Homeless students; and (viii) Medicaid and the Maryland Children's Health Program, up to 189% of the federal poverty level. (5) "Eligible for free or reduced price meals" means eligible for free or reduced price meals based on eligibility requirements established by the United States Department of Agriculture. (b) (1) Each fiscal year, the State shall distribute the State share for compensatory education to each county board. (2) Each fiscal year, the county board shall distribute to each school the minimum school funding amount for compensatory education calculated under Sec. 5-234 of this subtitle. (c) (1) Subject to paragraph (3) of this subsection, the State alternative income eligibility form shall be collected by each school that is participating in the United States Department of Agriculture community eligibility provision and may be collected by all other schools. (2) The State alternative income eligibility form shall: (i) Be developed by the Department; (ii) Include a statement indicating that the income information requested on the form is used to determine local and State funding for education; and (iii) Be available in an electronic format and allow a family to opt out of returning the form to the collecting school. (3) A school under paragraph (1) of this subsection may not be required to collect the State alternative income eligibility form until the school year after the form has been adopted by the Department after a period of comment from local school systems. #### Section 5-223 (a) (1) In this section the following words have the meanings indicated. (2) "Community school" means a community school under Title 9.9 of this article. (3) (i) Except as provided in subparagraph (ii) of this paragraph, "concentration of poverty level" means the average percentage of eligible students of the school's enrollment for the 3 prior school years rounded to the nearest whole percent. (ii) If the 3 prior school years includes the 2020-2021 school year, "concentration of poverty level" means: (1) The sum of the percentage of eligible students of the school's enrollment for the 4 prior school years minus the 2020-2021 school year percentage of eligible students; divided by (2) Three; and (3) Rounded to the nearest whole percent. (4) (i) "Eligible school" means: (1) For the personnel grant, a public school, including a public charter school, with a concentration of poverty level of: (A) For fiscal year 2020, at least 80%; (B) For fiscal year 2021, at least 75%; (C) For fiscal year 2022, at least 70%; (D) For fiscal year 2023, at least 65%; (E) For fiscal year 2024, at least 60%; and (F) For fiscal year 2025, and each fiscal year thereafter, at least 55%; and (2) For the per pupil grant, a public school, including a public charter school, with a concentration of poverty level of: (A) For fiscal year 2022, at least 80%; (B) For fiscal year 2023, at least 75%; (C) For fiscal year 2024, at least 70%; (D) For fiscal year 2025, at least 65%; (E) For fiscal year 2026, at least 60%; and (F) For fiscal year 2027, and each fiscal year thereafter, at least 55%. (ii) "Eligible school" includes an alternative option program in the local school system if the students in the program are not included in the count of eligible students for another program or school to determine eligibility for the concentration of poverty grant. (iii) "Eligible school" does not include a school that is eligible to receive funding under this section but has closed. (5) "Eligible student" means the compensatory education enrollment as defined in Sec. 5-222 of this subtitle in the second prior fiscal year rounded to the nearest whole number. (6) "Locally funded county" means a county board that receives a compensatory education State share under Sec. 5-221(c)(1)(ii) of this subtitle. (7) "Needs assessment" means the assessment completed under Sec. 9.9-104 of this article. (8) "Per pupil grant amount" means, for all eligible schools in the county, the per pupil amount for each eligible school calculated under subsection (d) of this section multiplied by the number of eligible students in the school. (9) "Per pupil maximum amount" means: (i) For fiscal year 2022, $3,374.48; and (ii) For each subsequent fiscal year, the prior fiscal year amount increased by the inflation adjustment. (10) "Program" means the Concentration of Poverty School Grant Program established under this section. (11) "Sliding scale adjustment factor" means: (i) For fiscal year 2022, $7,422.33; and (ii) For each subsequent fiscal year, the prior fiscal year amount increased by the inflation adjustment. (12) "Sliding scale upper limit" means: (i) For fiscal year 2022, $13,495.15; and (ii) For each subsequent fiscal year, the prior fiscal year amount increased by the inflation adjustment. (13) "State funded county" means a county that is not a locally funded county. (14) "Wraparound services" includes the wraparound services defined under Sec. 9.9-101 of this article. (b) (1) There is a Concentration of Poverty School Grant Program in the State. (2) The purpose of the Program is to provide grants to eligible schools with a high concentration of eligible students. (3) The Program consists of the: (i) Personnel grant; and (ii) Per pupil grant. (c) (1) (i) For fiscal year 2022, the State shall distribute a personnel grant to each county board equal to $248,833 for each eligible school in the county. (ii) In each subsequent fiscal year, the personnel grant equals the personnel grant in the prior fiscal year increased by the inflation adjustment. (iii) Except as provided in subsection (g) of this section, each county board shall distribute directly to each eligible school the amount provided under paragraph (1)(i) and (ii) of this subsection. (2) (i) Each eligible school shall employ one community school coordinator staff position in the eligible school. (ii) (1) Each eligible school shall provide full-time coverage by at least one professional health care practitioner during school hours, including any extended learning time, who is a licensed physician, a licensed physician's assistant, or a licensed registered nurse, practicing within the scope of the health care practitioner's license. (2) A health care practitioner providing coverage under this subparagraph may work under a school health services program, a county health department, or a school-based health center. (3) This subparagraph may not be construed to: (A) Require that an eligible school hire a full-time health care practitioner staff position; or (B) Preclude the hiring of any other health care practitioners that meet the needs of the students. (3) Each eligible school shall use the personnel grant to fund the requirements under paragraph (2) of this subsection. (4) If the personnel grant provided to an eligible school exceeds the cost to employ the positions and provide the coverage required under paragraph (2) of this subsection, the eligible school may only use the excess funds to: (i) Provide wraparound services to the students enrolled in the eligible school; (ii) Complete the needs assessment; and (iii) In fiscal years 2021 through 2025, provide the requirements under COMAR Title 13A, Subtitle 04, including 13A.04.16.01. (5) (i) If an eligible school, prior to receiving a personnel grant, employs an individual in a position or has the coverage required under paragraph (2) of this subsection, at least the same amount of funds shall be provided to the eligible school to be used for those positions or coverage after receiving a personnel grant. (ii) If an eligible school satisfies subparagraph (i) of this paragraph, then the school shall use the personnel grant in accordance with paragraph (4) of this subsection. (6) The community school coordinator shall be subject to the requirements under Sec. 9.9-104 of this article. (7) A county that provides a school nurse, school health services, or community school services from funds outside of those made in the fiscal year 2019 local appropriation to the county board shall continue to provide at least the same resources to an eligible school through fiscal year 2030. (8) If an eligible school becomes ineligible, the school shall remain entitled to the personnel grant for two school years after the school loses eligibility but may not receive the per pupil grant. (9) The personnel and per pupil grant may be used to provide the programs required under COMAR Title 13A, Subtitle 04, including 13A.04.16.01. (d) (1) (i) (1) Eligible schools with a concentration of poverty level of at least 80% shall receive a per pupil grant beginning in fiscal year 2022. (2) All other eligible schools shall receive the per pupil grant 1 year after becoming eligible and on completion of the needs assessment required under Sec. 9.9-104 of this article. (ii) Except as provided in paragraph (3) of this subsection, each eligible school shall receive a per pupil grant each fiscal year equal to the product of the total number of eligible students in the school and the per pupil amount based on the sliding scale under paragraph (2) of this subsection. (2) (i) The sliding scale per pupil amount shall be calculated as provided in this paragraph. (ii) For schools with a concentration of poverty level less than or equal to 55%, the per pupil amount is $0. (iii) For schools with a concentration of poverty level greater than 55% but less than 80%, the per pupil amount is equal to the product of the concentration of poverty level and the sliding scale upper limit minus the sliding scale adjustment factor. (iv) For schools with a concentration of poverty level equal to or greater than 80% the per pupil amount is the maximum per pupil amount. (3) Except as provided in paragraph (4) of this subsection, each eligible school shall receive the following proportion of the per pupil grant calculated under paragraph (2) of this subsection rounded to the nearest whole dollar: (i) For the 1st year of eligibility, 16%; (ii) For the 2nd year of eligibility, 32%; (iii) For the 3rd year of eligibility, 37%; (iv) For the 4th year of eligibility, 55%; (v) For the 5th year of eligibility, 66%; (vi) For the 6th year of eligibility, 75%; and (vii) For the 7th year of eligibility and each year of eligibility thereafter, 100%. (4) Beginning in fiscal year 2030, each eligible school shall receive 100% of the per pupil grant calculated under paragraph (2) of this subsection rounded to the nearest whole dollar. (e) (1) For a locally funded county each fiscal year, the State shall distribute the State share of the per pupil grant amount to each county board. (2) For a State funded county: (i) The State shall distribute 100% of the per pupil grant amount to each county board; and (ii) There is no local share of the per pupil grant amount. (3) Each fiscal year, the county board shall distribute to each school the minimum school funding amount for the per pupil grant amount calculated under Sec. 5-234 of this subtitle. (f) (1) Except as provided in subsection (g) of this section, each eligible school shall use the per pupil grant to provide wraparound services and other programs and services identified in the eligible school's needs assessment plan. (2) A local school system may request flexibility in distributing funds through an appeals process established by the Department. (g) (1) Except as provided in paragraph (2) of this subsection, if a local school system has at least 10 eligible schools or if at least 35% of a local school system's schools are eligible schools: (i) The county board may, on behalf of the eligible schools, expend no more than 50% of the funds distributed for the Program, provided that a plan is developed in consultation with the eligible schools that ensures that the requirements of subsections (c)(2) through (8) and (f)(1) of this section are met and the plan, consistent with the requirements in Title 9.9 of this article, is submitted to the Department; and (ii) In expending funds on behalf of an eligible school a county board may spend funds distributed for the Program costs, that directly benefit an eligible school, including to: (1) Provide central support to effectively manage Program funds; (2) Enter into contracts with outside service providers that support at least 2 eligible schools; (3) Coordinate spending on behalf of eligible schools under subparagraph (i) of this paragraph; and (4) Any other administrative cost as defined by the Department through regulation. (2) Paragraph (1) of this subsection does not apply to a public charter school unless the public charter school chooses to participate in the plan. (3) A county board that expends funds on behalf of eligible schools in the county in accordance with this subsection shall provide to each eligible school: (i) An itemized list of services provided for students and their families that meet the needs identified in the needs assessment of the eligible school; (ii) The amount of funding spent on each service; and (iii) The amount of funding spent on central administrative support for services provided to the school. (4) (i) The Department may adopt policies and procedures to carry out this subsection. (ii) By July 1, 2026, the Department shall adopt regulations to carry out this subsection. (h) On or before October 1, 2021, and each October 1 thereafter, the Department shall submit to the Department of Budget and Management and the Department of Legislative Services the percentage and number of students at each school eligible for free or reduced price meals in the prior school year and each public school's eligibility for a grant under this program in the upcoming fiscal year. (i) (1) On or before August 15, 2025, and each August 15 thereafter, each community school coordinator of an eligible school shall submit to the Department an evaluation that provides for the immediately preceding school year for the community school coordinator's eligible school: (i) How funds provided under this section were allocated at the beginning of the school year compared to how the funds were actually used; (ii) The numbers of: (1) Students identified as needing wraparound services; (2) Students and families provided with wraparound services, categorized by the type of service as described under Sec. 9.9-101 of this article; and (3) Families, organizations, and community members who volunteered at the eligible school; (iii) The rates of: (1) Chronic absenteeism; and (2) Student disciplinary action; and (iv) Strategies for reducing the rate of chronic absenteeism identified under item (iii) of this paragraph. (2) Each community school coordinator shall use the evaluation form developed by the Director of Community Schools under Sec. 9.9-103 of this article. (3) The Department shall: (i) Transmit the final report to the Accountability and Implementation Board and make publicly available each evaluation submitted under this subsection; and (ii) On or before December 1, 2024, submit a report to the General Assembly, in accordance with Sec. 2-1257 of the State Government Article, on possible methods for ensuring that funds provided under this section are used appropriately and effectively. (4) (i) On or before December 1, 2028, the Department shall conduct a statewide evaluation of the Program. (ii) The Department shall summarize the results of the findings in a report that the Department shall: (1) Transmit to the Accountability and Implementation Board; (2) Submit to the General Assembly in accordance with Sec. 2-1257 of the State Government Article; and (3) Make publicly available. #### Section 5-224 (a) (1) In this section the following words have the meanings indicated. (2) "English learner enrollment" means the number of students with limited English proficiency in the prior fiscal year. (3) (i) For fiscal years 2022 through 2025, "English learner per pupil amount" means the following proportions of the target per pupil foundation amount: (1) For fiscal year 2022, 100%; (2) For fiscal year 2023, 100%; (3) For fiscal year 2024, 100%; and (4) For fiscal year 2025, 102%. (ii) Beginning in fiscal year 2026, "English learner per pupil amount" means: (1) For fiscal year 2026, $9,041; (2) For fiscal year 2027, $9,148; (3) For fiscal year 2028, $9,327; (4) For fiscal year 2029, $9,613; (5) For fiscal year 2030, $9,794; (6) For fiscal year 2031, $10,069; (7) For fiscal year 2032, $10,232; (8) For fiscal year 2033, $10,510; and (9) For subsequent fiscal years, the English learner per pupil amount for the prior fiscal year increased by the inflation adjustment rounded to the nearest whole dollar. (4) "Limited English proficiency" means non-English or limited English proficiency under the reporting requirements established by the Department for the Maryland Comprehensive Assessment Program (MCAP). (b) (1) Each fiscal year, the State shall distribute the State share for English learner education to each county board. (2) Each fiscal year, the county board shall distribute to each school the minimum school funding amount for English learners calculated under Sec. 5-234 of this subtitle. #### Section 5-225 (a) (1) In this section the following words have the meanings indicated. (2) (i) "Special education enrollment" means the number of students enrolled in a public school in the prior fiscal year who required special education services as defined in the federal Individuals with Disabilities Education Act. (ii) "Special education enrollment" includes special education students enrolled in a publicly funded prekindergarten program under Title 7, Subtitle 1A of this article. (iii) "Special education enrollment" does not include students who are enrolled in or attend: (1) The Maryland School for the Blind; (2) The Maryland School for the Deaf; or (3) An educational program operated by the State. (3) (i) For fiscal years 2022 through 2025, "special education per pupil amount" means the following proportions of the target per pupil foundation amount: (1) For fiscal year 2022, 86%; (2) For fiscal year 2023, 86%; (3) For fiscal year 2024, 92%; and (4) For fiscal year 2025, 99%. (ii) Beginning in fiscal year 2026, "special education per pupil amount" means: (1) For fiscal year 2026, $9,503; (2) For fiscal year 2027, $10,900; (3) For fiscal year 2028, $12,368; (4) For fiscal year 2029, $14,367; (5) For fiscal year 2030, $16,836; (6) For fiscal year 2031, $17,277; (7) For fiscal year 2032, $17,609; (8) For fiscal year 2033, $18,053; and (9) For subsequent fiscal years, the special education per pupil amount for the prior fiscal year increased by the inflation adjustment rounded to the nearest whole dollar. (b) Each school shall use the funds provided under this section to provide the services required by each student's individualized education program or 504 plans. (c) (1) Each fiscal year, the State shall distribute the State share for special education to each county board. (2) Each fiscal year, the county board shall distribute to each school or publicly funded prekindergarten program the minimum school funding amount for special education calculated under Sec. 5-234 of this subtitle. #### Section 5-226 (a) (1) In this section the following words have the meanings indicated. (2) (i) "Struggling learner" means a kindergarten through grade 3 student who, on the Maryland Comprehensive Assessment Program (MCAP) or on any successor assessment, in the prior fiscal year, scores the equivalent of a 1, 2, or 3 in English language arts or reading on the PARCC assessment. (ii) The number of grade 3 struggling learners shall be used as a proxy for the number of struggling learners in each of kindergarten, grade 1, and grade 2. (3) (i) "Transitional supplemental instruction" means additional academic support for struggling learners using evidence-based programs and strategies that meet the expectations of strong or moderate evidence as defined in the federal Every Student Succeeds Act. (ii) "Transitional supplemental instruction" includes: (1) One-on-one and small-group tutoring of not more than four students with a certified teacher, a teaching assistant, or any other trained professional; (2) Cross-age peer tutoring; and (3) Screening, identifying, and addressing literacy deficits. (4) "Transitional supplemental instruction per pupil amount" means: (i) For fiscal year 2022, $476; (ii) For fiscal year 2023, $665; (iii) For fiscal year 2024, $680; (iv) For fiscal year 2025, $522; (v) For fiscal year 2026, $356; and (vi) For fiscal year 2027 and each fiscal year thereafter, $0. (b) (1) Each school shall use the funds provided under this section to provide transitional supplemental instruction to struggling learners in kindergarten through grade 3. (2) (i) Subject to subparagraph (ii) of this paragraph, priority in providing transitional supplemental instruction shall be given to literacy. (ii) A school district or school may use the funds for additional mathematics instruction if it is determined that this is a priority for the students in the district or school. (3) A school district or school is encouraged to, on a pilot basis, experiment with new evidence-based means of screening, identifying, and addressing literacy deficits. (4) An individual who provides transitional supplemental instruction may be employed by the school district. (5) (i) Each student who receives transitional supplemental instruction shall receive a pre- and post-standardized assessment to evaluate the student's progress before and after receiving transitional supplemental instruction under this section. (ii) The requirement that a student receive a pre-standardized assessment for literacy in accordance with subparagraph (i) of this paragraph may be satisfied by conducting the reading screening established in Sec. 4-136 of this article. (c) (1) Each fiscal year, the State shall distribute the State share for transitional supplemental instruction to each county board. (2) Each fiscal year, the county board shall distribute to each school the minimum school funding amount for transitional supplemental instruction calculated under Sec. 5-234 of this subtitle. #### Section 5-229 (a) (1) In this section the following words have the meanings indicated. (2) "County program amount" means, for each county, the product of the per pupil amount and the prekindergarten enrollment. (3) "Family share" means the amount calculated under subsection (e) of this section rounded to the nearest whole dollar. (4) "Local share" means, for each county, the result of the county program amount minus the State share rounded to the nearest whole dollar. (5) "Per pupil amount" means: (i) In fiscal year 2023, $10,094; (ii) In fiscal year 2024, $11,594; (iii) In fiscal year 2025, $13,003; (iv) In fiscal year 2026, $14,473; (v) In fiscal year 2027, $19,950; (vi) In fiscal year 2028, $19,950; and (vii) In fiscal year 2029 and each fiscal year thereafter, the per pupil amount for the prior fiscal year increased by the inflation adjustment rounded to the nearest whole dollar. (6) "Prekindergarten enrollment" means: (i) Beginning in fiscal year 2023, the number of Tier I children enrolled with an eligible prekindergarten provider; and (ii) Beginning in fiscal year 2026, the number of Tier I and Tier II children enrolled with an eligible prekindergarten provider. (7) "State share" means, for each county, rounded to the nearest whole dollar, the following calculations multiplied by 0.5: (i) Multiply the per pupil amount by the county's prekindergarten enrollment; (ii) Divide the result calculated under item (i) of this paragraph by the ratio, rounded to seven decimal places, of local wealth per pupil to statewide wealth per pupil; and (iii) Multiply the result calculated under item (ii) of this paragraph by the result, rounded to seven decimal places, that results from dividing the total program amount by the sum of all of the results calculated under item (ii) of this paragraph for all counties. (8) "Tier I child" has the meaning stated in Sec. 7-1A-01 of this article. (9) "Tier II child" has the meaning stated in Sec. 7-1A-01 of this article. (10) "Tier III child" has the meaning stated in Sec. 7-1A-01 of this article. (11) "Total program amount" means the product of the per pupil amount and the statewide prekindergarten enrollment. (b) To be eligible for public funding, a prekindergarten provider shall comply with Title 7, Subtitle 1A of this article. (c) (1) (i) As calculated under subsection (d) of this section, there is a State share and local share of the per pupil amount for Tier I children. (ii) There is no family share for Tier I children. (2) As calculated under subsection (e) of this section and beginning in fiscal year 2026, there is a State share, local share, and family share of the per pupil amount for Tier II children. (3) Tier III children are not eligible for funding under this section. (d) (1) For public providers, each fiscal year: (i) The State shall distribute the State share to each county board; and (ii) The county board shall distribute to each public provider the minimum school funding amount for prekindergarten calculated under Sec. 5-234 of this subtitle. (2) For private providers, each fiscal year: (i) The State shall distribute the State share for private providers to the Department; (ii) The county shall distribute the local share for private providers to the Department; and (iii) The Department shall distribute the State and local share to the private providers. (e) (1) On or before July 1, 2022, the Department shall establish a sliding scale to calculate the family share required for Tier II children. (2) The sliding scale developed by the Department shall be increased on a linear basis with: (i) A lower limit of $0 per pupil for a family with an income that is 300% of the federal poverty level; and (ii) An upper limit of the per pupil amount for a family with an income that is more than 300% but less than 600% of the federal poverty level. (3) (i) Beginning in fiscal year 2026, the family shall pay the family share to the publicly funded prekindergarten provider. (ii) A county board may provide up to 100% of the family share on behalf of the family. (f) Income-eligible families shall have access to extended day services through the Child Care Scholarship Program under Title 9.5, Subtitle 9 of this article. (g) The Department, county boards, and eligible prekindergarten providers shall work together to address the transportation needs of children enrolled in eligible prekindergarten providers. (h) On or before November 1, 2021, the Department shall report to the Accountability and Implementation Board and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly on: (1) Plans for an income verification process to determine eligibility for Tier I, Tier II, or Tier III status of a child; (2) Administrative procedures for distributing the funds required under subsection (d) of this section; (3) (i) Providing families with the ability to indicate a preference for the public or private prekindergarten program in which to enroll the child; and (ii) Communicating with families that the ability to choose to enroll a child in a public provider outside the family's attendance area is available only for prekindergarten; (4) Recommendations for the methodology the Department will use to calculate the State, local, and family share for Tier II children under the sliding scale developed under subsection (e) of this section; and (5) Recommendations on whether to extend the prekindergarten supplemental grant provided under Sec. 5-232 of this subtitle. #### Section 5-230 (a) (1) In this section the following words have the meanings indicated. (2) "Accreditation" means the determination that a program meets quality standards defined by the accrediting agency beyond State child care regulations. (3) "Accrediting agency" means a State agency or national organization that has developed a recognized accrediting process. (4) "Credentialing" means the process through which an individual is awarded a professional certificate based on education and experience. (5) "Early Childhood Education Enhancement Grant" means a grant that is distributed under subsection (f) of this section. (6) "Full day" means a period of time during the day that: (i) Meets the needs of families; and (ii) Is not less than 7 hours or more than 12 hours per day. (7) "Judy Center" means a site where comprehensive early childhood education services are provided to young children and their families for the purpose of promoting school readiness through collaboration with participating agencies and programs. (8) "Judy Center Grant" means a grant that is distributed under subsection (d) of this section. (9) "Local management board" means a local management board as defined under Sec. 8-101(l) of the Human Services Article. (10) "Participating agencies and programs" includes: (i) Public prekindergarten and kindergarten programs; (ii) Head Start programs; (iii) Family literacy programs and services; (iv) Local infants and toddlers programs; (v) Child care centers and family child care homes; (vi) Family support centers; (vii) Healthy family sites; (viii) Parent involvement programs; (ix) Early childhood programs affiliated with institutions of higher education; and (x) Other home visiting, community health, family support services, and child care resource and referral agencies. (11) "Preschool Services Grant" means a grant that is distributed under subsection (e) of this section. (12) "Program" means the Judith P. Hoyer Early Childhood Education Enhancement Program established under this section. (b) (1) There is a Judith P. Hoyer Early Childhood Education Enhancement Program in the Department. (2) The purpose of the Program is to promote school readiness through the development and expansion of collaborative approaches to the delivery of high quality, comprehensive, full-day early childhood education programs and family support services. (c) (1) The Program shall be funded as provided in the State budget. (2) Funds that are allocated to the Program in the State budget may be used: (i) To cover the costs incurred by the Department in implementing and administering the Program; (ii) For Judy Center Grants: (1) As provided under subsection (d) of this section; and (2) If the Department awards multiyear funding under subsection (h) of this section, for planning and development of a Judy Center in the first year of multiyear funding; (iii) For Preschool Services Grants, as provided under subsection (e) of this section; (iv) For Early Childhood Education Enhancement Grants, as provided under subsection (f) of this section; and (v) To fund the statewide implementation of the Department's Early Childhood Assessment System, as provided under subsection (g) of this section. (3) (i) For each of fiscal years 2021 through 2025, the State shall provide funding for 9 additional Judy Centers per year. (ii) For each of fiscal years 2026 through 2030, the State shall provide funding for 18 additional Judy Centers per year. (iii) The Governor shall appropriate, in each of fiscal years 2021 through 2030, $330,000 for each additional Judy Center required under this paragraph. (iv) The State shall prioritize increasing the number of Judy Centers in communities with Title I schools. (d) The Department may distribute a Judy Center Grant to a county board if the county board submits an application to the Department that includes: (1) A memorandum of understanding between the county board, the participating agencies and programs, and, in the discretion of the county board, the local management board that includes: (i) The terms of the collaboration to be undertaken by the county board, the participating agencies and programs, and, if applicable, the local management board, including the roles and responsibilities of each of these entities; and (ii) A plan for establishing ongoing communication between private service providers and public school early education programs; and (2) Documentation that shows that: (i) The Department's Early Childhood Assessment System will be implemented at the Center; (ii) All participating agencies and programs that provide early childhood education services through the Center have voluntarily obtained accreditation or, by the date of the Grant application, have voluntarily initiated and are actively pursuing the process of obtaining accreditation; and (iii) The Center will provide comprehensive, full-day early childhood education services and family support services. (e) (1) The Department may distribute a Preschool Services Grant to be used to provide prekindergarten services for 4-year-old children whose birthdays fall on or before September 1 of the school year during which services will be provided and whose family income is below a level set by the Department. (2) Private providers that have voluntarily obtained accreditation or have voluntarily initiated and are actively pursuing accreditation by the date of the grant application must obtain accreditation before receiving a grant award. (f) The Department may distribute an Early Childhood Education Enhancement Grant to a private provider of early childhood education services to be used: (1) To assist the provider in voluntarily obtaining accreditation; or (2) For professional development activities leading to increased competency and appropriate credentialing that is related to early childhood education services. (g) The Department may distribute funds to a county board for the purpose of implementing the Department's Early Childhood Assessment System in the county's public schools. (h) (1) The Department shall: (i) Establish application procedures for obtaining Judy Center Grants, Preschool Services Grants, and Early Childhood Education Enhancement Grants as provided under this section; (ii) Supervise and monitor the use of Grant funds distributed under this section; and (iii) Evaluate whether Grant recipients are meeting annual benchmarks established by the Department. (2) For Judy Center Grants, the Department may award multiyear funding. (i) A county board that is selected to receive a Judy Center Grant or a private provider that has been selected for a Preschool Services Grant or an Early Childhood Education Enhancement Grant shall: (1) Administer the Grant award; (2) Submit fiscal and program reports as required by the Department; and (3) Coordinate the involvement of participating agencies and programs in any evaluation process conducted by the Department. (j) Grants awarded under this section may not be used: (1) To supplant existing funding for any services provided by participating agencies and programs; or (2) For capital improvements. (k) The Department shall conduct an evaluation process to measure the effectiveness of: (1) The Judy Centers; and (2) Early childhood education services and family support services that are purchased with funds from Preschool Services Grants and Early Childhood Education Enhancement Grants. (l) On or before November 1 each year, the Department shall submit to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly a report on the implementation of the Program and the participating agencies and programs, including a description of the Program's and the participating agencies' and programs' expenditures, enrollment, and statewide performance data, including school readiness data disaggregated by program and by jurisdiction. (m) The Department may adopt regulations as necessary to implement the Program. #### Section 5-231 (a) The Head Start Program in the State shall be referred to as the Ulysses Currie Head Start Program. (b) For each fiscal year, the Governor shall include in the annual State budget an appropriation of at least $3,000,000 for the Ulysses Currie Head Start Program. (c) A provider in the Ulysses Currie Head Start Program is eligible to receive full State funds under Sec. 5-229 of this subtitle even if the Program receives federal funds. #### Section 5-232 (a) (1) In this section the following words have the meanings indicated. (2) "Eligible child" means a child: (i) Whose parent or guardian enrolls the child in a public prekindergarten program; and (ii) Who is 4 years old on September 1 of the school year in which the parent or legal guardian enrolls the child in a public prekindergarten program. (3) "Eligible county board" means a county board that makes a full-day public prekindergarten program available for eligible children. (4) "State share of the per pupil foundation amount" means the quotient of the State share of the foundation program for a county divided by the full-time equivalent enrollment of the county. (b) For each of fiscal years 2018 through 2022, the State shall provide a supplemental prekindergarten grant to an eligible county board that equals the percentage of the State share of the per pupil foundation amount multiplied by the number of full-time equivalent eligible children enrolled in a public full-day prekindergarten program on September 30 of the previous school year: (1) For fiscal year 2018, 50%; (2) For fiscal year 2019, 75%; (3) For fiscal year 2020, 100%; and (4) For each of fiscal years 2021 and 2022, 100%. (c) The State shall distribute the supplemental prekindergarten grant at the same time the State distributes funds to county boards under this subtitle. #### Section 5-234 (a) (1) Except as provided by paragraph (2) of this subsection and subsections (e) and (f) of this section, for each of the following programs, "minimum school funding" means at least 75% of the per pupil amount applicable to each of the following programs: (i) The foundation program under Sec. 5-213 of this subtitle; (ii) The compensatory education program under Sec. 5-222 of this subtitle; (iii) The English learner education program under Sec. 5-224 of this subtitle; (iv) The special education program under Sec. 5-225 of this subtitle; (v) Public providers of prekindergarten under Sec. 5-229 of this subtitle; (vi) Transitional supplemental instruction under Sec. 5-226 of this subtitle; (vii) The comparable wage index grant under Sec. 5-216 of this subtitle; and (viii) The college and career readiness program under Sec. 5-217 of this subtitle. (2) Except as provided by subsection (e) of this section, for each of the following programs, "minimum school funding" means 100% of the per pupil amount applicable to each of the following programs: (i) Private providers of prekindergarten under Sec. 5-229 of this subtitle; and (ii) The per pupil grant under the concentration of poverty program under Sec. 5-223 of this subtitle. (b) (1) For each school, the county board shall distribute the minimum school funding amount for the applicable program multiplied by the school enrollment for the applicable program. (2) On or before July 1, 2024, for fiscal year 2025, and each July 1 thereafter, each county board shall report on the county board's compliance with this section to the Department and the Accountability and Implementation Board established under Subtitle 4 of this title. (3) A county board may request a waiver under Sec. 5-406 of this title from this provision for reasons including: (i) A significant shift in total school-level enrollment between the prior year and the current year; (ii) A significant shift in school-level enrollment of at-promise students between the prior year and the current year; and (iii) A significant difference in the amount of funding provided through the formula and the amount of expenditures necessary for a category of at-promise students. (c) On or before July 1, 2023, the Department shall, in collaboration with the Accountability and Implementation Board established under Subtitle 4 of this title: (1) Implement a financial management system and student data system capable of tracking and analyzing the requirements under this section and integrating local school system data; and (2) Update the "Financial Reporting Manual for Maryland Public Schools" to ensure uniformity in reporting expenditures for each school. (d) For fiscal years 2023 and 2024, each county board and the Department shall report to the Accountability and Implementation Board established under Subtitle 4 of this title expenditures for each school in accordance with the federal Every Student Succeeds Act requirements for reporting expenditures. (e) (1) A county board may exclude from the requirements of this section, countywide obligations and contracts for goods and services that cannot be allocated at the school level. (2) If a county board makes the exclusion under paragraph (1) of this subsection, the county board shall report the reason for the exclusion to the Department. (f) For the purposes of this section, subsection (a)(1)(iv) of this section may be reported in the aggregate for each county. #### Section 5-235 (a) (1) (i) Subject to subsection (o) of this section and beginning in fiscal year 2023, the county governing body shall levy and appropriate an annual tax sufficient to provide an amount of revenue for elementary and secondary public education purposes equal to the local share of major education aid as adjusted under Sec. 5-239 of this subtitle. (ii) For the purposes of calculating the local share of major education aid and regardless of the source of the funds, all funds that a county board, including the Baltimore City Board of School Commissioners, is authorized to expend for schools may be considered as levied by the county council, board of county commissioners, or the Mayor and City Council of Baltimore except for: (1) State appropriations; (2) Federal education aid payments; and (3) The amount of the expenditure authorized for debt service and capital outlay. (2) Subject to subsection (o) of this section and except as provided in subsection (a-1) of this section, the county governing body shall appropriate local funds to the school operating budget in an amount no less than the product of the county's enrollment count for the current fiscal year and the local appropriation on a per pupil basis for the prior fiscal year using enrollment count. (a-1) For fiscal year 2023, the county governing body shall appropriate to the school operating budget the greater of: (1) The local share of major education aid under subsection (a)(1) of this section; or (2) (i) For Allegany County, $31,854,912; (ii) For Anne Arundel County, $784,741,000; (iii) For Baltimore City, $275,513,758; (iv) For Baltimore County, $888,261,619; (v) For Calvert County, $134,705,250; (vi) For Caroline County, $16,080,832; (vii) For Carroll County, $204,617,860; (viii) For Cecil County, $89,196,266; (ix) For Charles County, $200,686,400; (x) For Dorchester County, $20,937,715; (xi) For Frederick County, $316,348,012; (xii) For Garrett County, $28,705,313; (xiii) For Harford County, $293,812,984; (xiv) For Howard County, $628,300,000; (xv) For Kent County, $18,559,629; (xvi) For Montgomery County, $1,752,662,235; (xvii) For Prince George's County, $766,762,200; (xviii) For Queen Anne's County, $62,559,389; (xix) For St. Mary's County, $114,540,490; (xx) For Somerset County, $10,490,432; (xxi) For Talbot County, $43,905,596; (xxii) For Washington County, $106,847,824; (xxiii) For Wicomico County, $49,135,024; and (xxiv) For Worcester County, $97,117,331. (b) (1) Except as provided in paragraph (2) of this subsection and subsection (c) of this section, for purposes of this section, the local appropriation on a per pupil basis for the prior fiscal year for a county is derived by dividing the county's highest local appropriation to its school operating budget for the prior fiscal year by the county's enrollment count for the prior fiscal year. For example, the calculation of the foundation aid for fiscal year 2003 shall be based on the highest local appropriation for the school operating budget for a county for fiscal year 2002. Program shifts between a county operating budget and a county school operating budget may not be used to artificially satisfy the requirements of this paragraph. (2) For fiscal year 2024, the following amounts shall be subtracted from the county's fiscal year 2023 highest local appropriation: (i) For Allegany County, $384,498; (ii) For Anne Arundel County, $10,291,149; (iii) For Baltimore County, $41,682,056; (iv) For Calvert County, $2,109,359; (v) For Carroll County, $7,549,762; (vi) For Charles County, $7,074,539; (vii) For Frederick County, $9,076,061; (viii) For Garrett County, $342,058; (ix) For Harford County, $19,512,731; (x) For Howard County, $23,479,884; (xi) For Kent County, $488,031; (xii) For Montgomery County, $30,992,076; (xiii) For Queen Anne's County, $406,525; and (xiv) For St. Mary's County, $6,110,337. (c) (1) For purposes of this subsection, the calculation of the county's highest local appropriation to its school operating budget for the prior fiscal year shall exclude: (i) A nonrecurring cost that is supplemental to the regular school operating budget, if the exclusion qualifies under regulations adopted by the State Board; (ii) A cost of a program that has been shifted from the county school operating budget to the county operating budget; (iii) The cost of debt service incurred for school construction projects; and (iv) For a county that shifts the recurring costs associated with providing retiree health benefits for current retirees to the county board, any reduction in those retiree health costs from the amount the county was required to appropriate in the previous year. (2) For purposes of the adjustment required under subsection (a)(2)(ii) of this section, a county that dedicates to public school construction any additional State funds received from recurring retiree health costs shifted to the county board may exclude those retiree health costs from the highest local appropriation on a per pupil basis. (d) The county board must present satisfactory evidence to the county government that any appropriation under subsection (c)(1) of this section is used only for the purpose designated by the county government in its request for approval. (e) Any appropriation that is not excluded under subsection (c)(1) of this section as a qualifying nonrecurring cost shall be included in calculating the county's highest local appropriation to its school operating budget. (f) Qualifying nonrecurring costs, as defined in regulations adopted by the State Board, shall include but are not limited to: (1) Computer laboratories; (2) Technology enhancement; (3) New instructional program start-up costs; and (4) Books other than classroom textbooks. (g) (1) Subject to paragraph (2) of this subsection, if a county's ability to fund the maintenance of effort requirement in subsection (a) of this section is impeded, the county shall apply under subsection (h) of this section to the State Board for a waiver. (2) If a county fails to apply to the State Board for a waiver from the maintenance of effort requirement and fails to meet the maintenance of effort requirement: (i) The county shall be assessed in accordance with subsection (o) of this section; and (ii) The minimum appropriation of local funds required under this section for the next fiscal year shall be calculated based on the per pupil local appropriation for the prior fiscal year in which the county met the maintenance of effort requirement under subsection (a) of this section. (h) (1) The maintenance of effort requirement in subsection (a) of this section does not apply to a county if the county requests and is granted a waiver from the requirement by the State Board based on: (i) A determination under this subsection that the county's fiscal condition significantly impedes the county's ability to fund the maintenance of effort requirement; (ii) Subject to subsection (i) of this section, an agreement between the county and the county board to reduce recurring costs; (iii) Subject to subsection (j) of this section, a determination that a county's ability to meet the maintenance of effort requirement is permanently impeded; or (iv) Subject to subsection (k) of this section, a determination that lease payments were made by the county board to a county revenue authority or private entity holding title to property used as a public school by a county board in accordance with Sec. 4-114(c)(1) or (d) of this article. (2) In order to qualify for a waiver for a fiscal year, a county shall make a request for a waiver to the State Board by the earlier of the seventh day following the end of the legislative regular session or April 20 of the prior fiscal year. (3) The State Superintendent shall provide a preliminary assessment of a waiver request to the State Board before a public hearing held in accordance with paragraph (4) of this subsection. (4) Before acting on a request for a waiver, the State Board shall hold a public hearing in accordance with regulations adopted by the State Board. (5) Except as provided in subsection (i) of this section, when considering whether to grant a county's waiver request, the State Board shall consider the following factors: (i) External environmental factors such as a loss of a major employer or industry affecting a county or a broad economic downturn affecting more than one county; (ii) A county's tax base; (iii) Rate of inflation relative to growth of student population in a county; (iv) Maintenance of effort requirement relative to a county's statutory ability to raise revenues; (v) A county's history of exceeding the required maintenance of effort amount under subsection (a)(2) of this section; (vi) An agreement between a county and a county board that a waiver should be granted; (vii) Significant reductions in State aid to a county and municipalities of the county for the fiscal year for which a waiver is requested; (viii) The number of waivers a county has received in the past 5 years; and (ix) The history of compensation adjustments for employees of the county board and county government. (6) The State Board shall inform the county whether the waiver for a fiscal year is approved or denied in whole or in part no later than 30 days after receipt of an application or May 20 of the prior fiscal year, whichever is earlier. (7) Except as provided in subsections (i) and (j) of this section, if a county is granted a waiver from the provisions of this section by either the State Board or the General Assembly for any fiscal year, the minimum appropriation of local funds required under this section for the next fiscal year shall be calculated based on the per pupil local appropriation for the prior fiscal year in which the county met the maintenance of effort requirement under subsection (a) of this section. (i) (1) This subsection applies to a county that requests a waiver under subsection (h)(1)(ii) of this section. (2) (i) The State Board shall grant a waiver request in the amount that has been agreed on by the county and county board that is attributable to reductions in recurring costs. (ii) If the reduction in recurring costs includes reductions in personnel or personnel costs, then the State Board shall grant a waiver request in the amount that has been mutually agreed on by the county, county board, and exclusive employee representative. (3) The amount of the agreed on waiver may be less than the entire amount of the reduction in recurring costs. (4) The amount of the agreed on waiver may not: (i) Exceed the entire amount of the reduction in recurring costs; or (ii) Reduce a county's education appropriation below the amount required in subsection (a)(1) of this section. (5) The minimum appropriation of local funds required under this section for the next fiscal year shall be calculated based on the per pupil local appropriation for the current fiscal year approved by the State Board under this subsection. (j) (1) (i) In this subsection the following terms have the meanings indicated. (ii) "Education appropriation" includes any money redirected to a county board under subsection (o) of this section. (iii) "Education effort" means a county's education appropriation divided by the county's wealth. (iv) "5-year moving average" means the average of the 5 years before the waiver year. (v) "Waiver year" means the fiscal year for which a waiver from the maintenance of effort requirement in subsection (a) of this section is requested. (2) This subsection applies to a county that has: (i) Received a waiver under subsection (h)(1)(i) of this section from the maintenance of effort requirement; and (ii) A required county education appropriation under subsection (a) of this section for the waiver year that exceeds 100% of the statewide 5-year moving average of education effort times a county's local wealth. (3) A county that satisfies the requirements under paragraph (2) of this subsection may request a rebasing waiver from the State Board. (4) When considering whether to grant a county's waiver request under this subsection, the State Board shall consider the following factors: (i) Whether a county has submitted sufficient evidence that the factors in subsection (h)(5) of this section will affect a county's ongoing ability to meet the maintenance of effort requirement; (ii) Whether a county is at its maximum taxing authority under the law; (iii) Whether a county's education appropriation is commensurate with a county's wealth; (iv) Whether a county's history of exceeding the required maintenance of effort has made meeting the maintenance of effort requirement in future years unsustainable; and (v) Whether a county has received a rebasing waiver in the past 5 years. (5) If the State Board grants a rebasing waiver under this subsection, the amount of the waiver for any fiscal year is limited to the lesser of: (i) An amount that would result in a county's education effort for the waiver year falling below the level established in paragraph (2)(ii) of this subsection; or (ii) (1) For a county with a 5-year moving average for education effort that is less than or equal to 110% of the statewide 5-year moving average of education effort, 1% of the county's required maintenance of effort requirement; (2) For a county with a 5-year moving average for education effort that is more than 110% and less than or equal to 120% of the statewide 5-year moving average of education effort, 2% of the county's required maintenance of effort requirement; or (3) For a county with a 5-year moving average for education effort that is more than 120% of the 5-year moving statewide average of education effort, 3% of the county's required maintenance of effort requirement. (6) (i) If the State Board grants a rebasing waiver under this subsection, the minimum appropriation of local funds required under this section for the next fiscal year shall be calculated based on the per pupil local appropriation for the current fiscal year approved by the State Board under this subsection. (ii) If the State Board grants a rebasing waiver to be implemented over a multiyear period, which may not exceed 3 years, in each year the minimum appropriation of local funds required under this section for the next fiscal year shall be calculated based on the per pupil local appropriation for the current fiscal year approved by the State Board under this subsection. (7) If the State Board does not grant a waiver under this subsection, the minimum appropriation of local funds required under this section for the next fiscal year shall be calculated based on the per pupil local appropriation for the prior fiscal year in which the county met the maintenance of effort requirement under subsection (a) of this section. (8) Nothing in this subsection precludes a county from also requesting a waiver from the maintenance of effort requirement under subsection (i) of this section for the same fiscal year as the waiver requested under this subsection. (k) (1) This subsection applies to a county that requests a waiver under subsection (h)(1)(iv) of this section. (2) (i) The State Board shall grant a waiver request in the amount that has been agreed on by the county and the county board that is attributable to the amount of the lease payment. (ii) The amount of the agreed-on waiver may be less than the entire amount of the lease payment. (iii) The amount of the agreed-on waiver may not: (1) Exceed the entire amount of the lease payment; or (2) Reduce a county's education appropriation below the amount required in subsection (a)(1) of this section. (3) If the county and county board have not agreed on an amount, the State Board may grant a waiver on a determination that the lease payments are comparable to the amount of debt service that would otherwise be required if the alternative financing had not been used. (4) If the State Board grants a waiver under this subsection, the State Board shall determine the number of fiscal years for which the waiver is applicable and the minimum appropriation of local funds required under this section for the fiscal year after the expiration of the waiver. (l) In making the calculations required under this section, the Department shall consult with the Department of Budget and Management and the Department of Legislative Services. (m) (1) A county shall submit to the Superintendent the county's approved budget no later than 7 days after approval of the budget or June 30, whichever is earlier. (2) No later than 15 days after receipt of the county's approved budget the Superintendent shall certify whether the county has met the funding requirements established under this section and shall notify the county and county board of that certification. (n) On or before December 31 of each year the Department shall report to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly, on all waiver requests, maintenance of effort calculations made by the Department and the county, the Department's decisions regarding waiver requests, the Department's certification of whether a county has met the requirement, and any other information relating to a county's request for a waiver and the Department's maintenance of effort decisions. (o) (1) If the Superintendent finds that a county is not complying with the provisions of subsection (a) of this section, the Superintendent shall notify the county of such noncompliance. (2) If a county disputes the finding within 15 days after the issuance of a notice under paragraph (1) of this subsection, the dispute shall be referred promptly to the State Board for a final determination. (3) (i) Within 15 days of receipt of certification of noncompliance by the Superintendent or the State Board and subject to subparagraph (ii) of this paragraph, the Comptroller shall, under Sec. 2-608 of the Tax - General Article, withhold income tax revenue from the county so that the total amount withheld is equal to the amount by which a county failed to meet the requirements in subsection (a) of this section. (ii) The Comptroller shall distribute the amount withheld under subparagraph (i) of this paragraph directly to the county board. #### Section 5-236 (a) (1) The State Board may accept for the State: (i) Any appropriation of money for educational purposes and subsidized or free feeding programs for the public schools that is made out of the federal treasury by an act of Congress; and (ii) Any additional funds directed to the State Board by an act of Congress or federal regulation. (2) The State Board is the educational authority for the expenditure and administration of these funds. (b) (1) All of these funds received by the State shall be received into the State Treasury. (2) On warrant of the State Comptroller, the State Treasurer may: (i) Receive and provide for the proper custody of these funds; and (ii) Make disbursements on the order of the State Board according to the procedure established for the State Treasurer. #### Section 5-237 (a) The State Board shall distribute grants each year to organizations that: (1) Promote literacy at an early age during well child visits in a health care setting; and (2) Solicit the corporate community for funding for promoting literacy at an early age. (b) An organization that is awarded a grant by the State Board under this section shall use the grant to: (1) Purchase books to be distributed at well child visits in the health care setting; and (2) Train pediatricians and other health care providers on methods of promoting literacy to all Maryland children. (c) In fiscal year 2001 and every fiscal year thereafter, the Governor shall include funds in the State budget to implement this section. (d) The State Board may adopt regulations to implement this section. #### Section 5-239 (a) (1) Under this section a county may be eligible for a reduction in the local share of major education aid required under Sec. 5-235(a)(1) of this subtitle. (2) A reduction in the local share of major education aid under this section may not reduce the local share below the per pupil appropriation required under Sec. 5-235(a)(2) of this subtitle. (3) If a reduction in the local share of major education aid under this section would result in a local share that is less than the requirement under Sec. 5-235(a)(2) of this subtitle, the State distributions required under this section shall be reduced. (4) For the purposes of Sec. 5-205 of this subtitle, State distributions required under this section shall be included in the State share of major education aid. (b) (1) (i) In this subsection the following words have the meanings indicated. (ii) "Education effort adjustment" equals the local share of major education aid minus the maximum local share. (iii) "Education effort index" means local education effort divided by the State average education effort. (iv) "Local education effort" means, for each county, the county's local share of major education aid divided by the county's wealth and rounded to the nearest seven decimal places. (v) "Major education aid" has the meaning stated in Sec. 5-201(l) of this subtitle minus item (9) of Sec. 5-201(l) of this subtitle. (vi) "Maximum local share" equals the local wealth multiplied by the State average education effort. (vii) "State average education effort" equals the local share of major education aid for all counties divided by the wealth of all counties and rounded to the nearest seven decimal places. (2) (i) A county is eligible for the education effort adjustment if the education effort index is greater than 1 for 2 consecutive fiscal years. (ii) Subject to subsection (a) of this section, the required local share of major education aid is reduced by the amount provided by the State under this subsection. (3) For each county, if the education effort index is greater than 1 but less than 1.15, the State shall distribute to the county board the following proportion of the education effort adjustment and the county shall provide the remainder: (i) For fiscal year 2022, 10%; (ii) For fiscal year 2023, 15%; (iii) For fiscal year 2024, 20%; (iv) For fiscal year 2025, 25%; (v) For fiscal year 2026, 30%; (vi) For fiscal year 2027, 35%; (vii) For fiscal year 2028, 40%; (viii) For fiscal year 2029, 45%; and (ix) For fiscal year 2030 and each fiscal year thereafter, 50%. (4) For each county, if the education effort index is at least 1.15 but less than 1.27, the State shall distribute to the county board the following proportion of the education effort adjustment and the county shall provide the remainder: (i) For fiscal year 2022, 20%; (ii) For fiscal year 2023, 20%; (iii) For fiscal year 2024, 35%; (iv) For fiscal year 2025, 45%; (v) For fiscal year 2026, 55%; (vi) For fiscal year 2027, 65%; (vii) For fiscal year 2028, 75%; (viii) For fiscal year 2029, 85%; and (ix) For fiscal year 2030 and each fiscal year thereafter, 100%. (5) For each county, if the education effort index is at least 1.27, for fiscal year 2022 and each fiscal year thereafter, the State shall distribute to the county board 100% of the education effort adjustment. (c) (1) Except as provided in paragraph (2) of this subsection and subject to the limitation in subsection (a) of this section, the local share of major education aid shall be reduced by the amount of State funds provided to a county board under Sec. 5-214 of this subtitle. (2) For Baltimore City, the local share of major education aid may be reduced only by the amount by which the State funds provided under Sec. 5-214 of this subtitle exceeds $10,000,000. (d) Subject to the limitation in subsection (a) of this section, the local share of major education aid shall be reduced by: (1) The sum of the amount of State funds provided to a county board in a county that is eligible for the minimum State funding under the foundation program as defined in Sec. 5-201(q)(2) of this subtitle and the difference between the local share of the foundation program and the foundation program; and (2) The amount by which the sum of the State share and local share of the at-promise programs as defined in Sec. 5-221 of this subtitle exceeds the total program amount as defined in Sec. 5-221 of this subtitle for each program. (e) Subject to the limitation in subsection (a) of this section, the local share of major education aid for counties with an index of at least 0.130 under Sec. 5-216 of this subtitle shall be reduced by the amount equal to 50% of the local share calculated under Sec. 5-216 of this subtitle. #### Section 5-240 (a) (1) Beginning in fiscal year 2021, the Governor shall appropriate in the annual budget $6,500,000 to the Department for the purpose of providing grants to maintain or establish school-based health centers. (2) (i) (1) The Department shall designate a primary contact employee for school-based health centers. (2) The Department's primary contact employee shall: (A) Assist individuals involved in school-based health centers who interact with the Department; (B) Provide technical assistance to support the establishment and expansion of school-based health centers; and (C) Coordinate the Department's efforts with those of the Maryland Department of Health and other government agencies to build a robust network of school-based health centers in the State. (ii) (1) The Maryland Department of Health shall designate a primary contact employee for school-based health centers. (2) The Maryland Department of Health's primary contact employee shall: (A) Assist individuals involved in school-based health centers who interact with the Maryland Department of Health; (B) Provide technical assistance to support the establishment and expansion of school-based health centers; and (C) Coordinate the Maryland Department of Health's efforts with those of the Department and other government agencies to build a robust network of school-based health centers in the State. (b) The amount appropriated under subsection (a) of this section shall be in addition to the amount appropriated in fiscal year 2020. #### Section 5-241 The Governor shall include in the annual budget bill funding sufficient to carry out the Blueprint for Maryland's Future in accordance with the following sections: (1) Sec.Sec. 5-411 and 5-412 of this title; (2) Sec.Sec. 6-122, 6-124, 6-1008, and 6-1011 of this article; (3) Sec.Sec. 7-202.1, 7-205.1, and 7-446.1 of this article; and (4) Sec. 21-207 of this article. #### Section 5-242 (a) (1) In this section the following words have the meanings indicated. (2) "Initiative" means the Maryland Early Literacy Initiative. (3) "Interventionist" means a trained professional whose primary responsibility is to deliver evidence-based early literacy intervention. (4) "Literacy program" means a literacy program implemented by an interventionist. (5) "Nonprofit organization" means a nonprofit organization that: (i) Is based in the State; (ii) Is incorporated or registered under the laws of the State; (iii) Is exempt from federal income tax under Sec. 501(c)(3), (4), or (6) of the Internal Revenue Code; (iv) Is current in the payment of all tax obligations to the State or any unit or subdivision of the State; and (v) (1) Has been in active business for 3 years or more at the time of the application submitted under this section; or (2) Has a fiscal sponsor who can meet the requirements of this section. (6) "Participating student" means a student: (i) In prekindergarten through eighth grade; or (ii) Who performs below a certain score, as determined by the Department, on the assessment the Department uses to assess reading level. (7) "Qualifying school" means a public school categorized by the local school system as a Title I school. (b) (1) There is a Maryland Early Literacy Initiative in the Department. (2) The purpose of the Initiative is to assist up to 50 qualifying schools to implement an evidence-based literacy program in the school to work with participating students to meet literacy proficiency targets by the end of eighth grade or other literacy targets as determined by the Department. (3) The Initiative shall be established in at least three counties. (4) The Initiative shall be developed and administered by the Department. (c) (1) (i) For the 2018-2019 school year through the 2021-2022 school year, a qualifying school may apply to the Department to receive a grant for the qualifying school to develop a literacy program that is in furtherance of the purpose of the Initiative. (ii) A qualifying school may apply for a grant only if the county superintendent endorses the school's grant application. (iii) A qualifying school may coordinate and partner with other qualifying schools in the county to jointly apply for a grant to develop a literacy program among the partnering qualifying schools. (iv) A county board may apply on behalf of one or more qualifying schools in the county. (2) An application shall: (i) Identify whether the qualifying school will work in collaboration with a nonprofit organization or the county board to implement the literacy program; (ii) Provide the name and qualifications of the nonprofit organization, if the qualifying school will work in collaboration with a nonprofit organization; (iii) Include a description of: (1) The literacy program to be implemented at the qualifying school; (2) The training that will be provided to the interventionist to provide the services under this section; and (3) How the literacy program will meet the requirements under subsection (d) of this section; and (iv) Include any other information required by the Department. (3) If the number of applications exceeds the number of available grants, the Department shall give priority in awarding grants to a qualifying school serving a high concentration of students living in poverty in prekindergarten through third grade. (d) A literacy program developed under the Initiative shall: (1) Provide early literacy intervention services for participating students; (2) Require participating students to receive direct services at least twice a week; (3) Have clear literacy targets at each grade level for participating students; (4) Have benchmark assessments multiple times a year to identify students who need one-on-one interventions; and (5) Collect data on student progress at least monthly. (e) The literacy program developed at a qualifying school under the Initiative shall be implemented by staff hired and supervised by the collaborating nonprofit organization or the county board. (f) (1) (i) For fiscal years 2019 through 2022, the Governor shall include in the annual budget bill an appropriation of $2,500,000 to the Department for the Initiative. (ii) The Department may retain up to 3% of the appropriation required to be included in the annual budget bill under subparagraph (i) of this paragraph to hire staff necessary to administer the Initiative. (2) (i) The Department shall distribute up to 50 grants for a 2-year period. (ii) In awarding grants under the Initiative, the Department shall make every effort to ensure that qualifying schools use literacy programs that utilize various evidence-based approaches and methodologies for: (1) Comparison purposes; and (2) The collection of multiple data points for long-term review. (3) A grant made to each qualifying school may not exceed $75,000 each year. (4) A grant made under this section shall be renewed by the Department after a 2-year period if the qualifying school presents evidence that the qualifying school is: (i) In compliance with this section; and (ii) Meeting identified targets and benchmarks. (5) Each qualifying school may apply for and accept donations, grants, or other financial assistance from a governmental entity, a nonprofit organization, or any other private organization to benefit the literacy program. (g) On or before July 1, 2018, the Department shall adopt regulations necessary to carry out the provisions of this section. (h) On or before December 1, 2022, the Department shall submit an evidence-based report summarizing the status of efforts under the Initiative, including recommendations to increase the success of the Initiative, to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, the Senate Education, Health, and Environmental Affairs Committee and the House Committee on Ways and Means. #### Section 5-243 (a) In this section, "Fund" means the Maggie McIntosh School Arts Fund. (b) There is a Maggie McIntosh School Arts Fund. (c) The purpose of the Fund is to provide grants to public schools in Baltimore City to purchase art supplies for classrooms. (d) Arts Every Day shall administer the Fund. (e) (1) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (f) The Fund consists of: (1) Revenue distributed to the Fund under Sec. 9-120(b)(1)(viii) of the State Government Article; (2) Money appropriated in the State budget to the Fund; (3) Interest earnings or other income earned from the investment of any money from the Fund; and (4) Any other money from any other source accepted for the benefit of the Fund. (g) The Fund shall be used to expand the arts curriculum for students in public schools in Baltimore City with grants to: (1) Purchase art supplies for classrooms; and (2) Provide arts experiences. (h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any interest earnings of the Fund shall be credited to the Fund. (i) Expenditures from the Fund may be made only in accordance with the State budget. --- Md. Code Ann., Educ. (as displayed at mgaleg.maryland.gov, October 16, 2026)