Title 7. Appropriations — Subtitle 1. State Operating Budget
Statutes in effect as of October 1, 2026.
Md. Code Ann., State Fin. & Proc. § 7-101 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–101LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Proposed budget” means:
(1)
the budget bill; and
(2)
the budget books and other documents that support the budget bill.
(c)
“Secretary” means the Secretary of Budget and Management.
Md. Code Ann., State Fin. & Proc. § 7-102 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–102LinkCopy Citation
(a)
The General Assembly desires that, during preparation of a proposed budget, the Governor review, thoroughly and in detail, the recommendations of the Spending Affordability Committee.
(b)
To have the complete financial program of the Governor early in a regular session, the General Assembly desires that the Governor:
(1)
submit with the proposed budget for a fiscal year:
(i)
the Governor’s complete financial program for that fiscal year; and
(ii)
each bond or revenue bill proposed to carry out the program; and
(2)
use a supplemental budget amendment only to:
(i)
correct a mechanical error in the proposed budget; or
(ii)
provide funding for legislation enacted during the session.
Md. Code Ann., State Fin. & Proc. § 7-103 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–103LinkCopy Citation
(a)
(1)
The Secretary shall continually conduct studies on the needs of units of the Executive Branch of the State government and of private entities to which the State appropriates money.
(2)
To obtain the information that the Secretary wants in estimating the needs of the unit or entity, the Secretary may:
(i)
question any officer or employee of the unit or entity; and
(ii)
examine the records of the unit or entity.
(b)
The Secretary shall:
(1)
continually compare the needs of the units of the Executive Branch of the State government and of the private entities with the revenues that are collected;
(2)
prepare estimates of revenues that will be available for the State budget;
(3)
prepare any other estimates of revenues that the Governor requests;
(4)
study the revenue structure of the State;
(5)
evaluate the sources of State revenues; and
(6)
recommend to the Governor:
(i)
appropriate changes in the revenue structure of the State; and
(ii)
new sources of State revenues.
(c)
(1)
The studies of the units of the Executive Branch of the State government shall include:
(i)
program analyses; and
(ii)
careful consideration of the administration, organization, functions, and duties of the units, to identify duplication or overlap.
(2)
On the basis of the studies, the Secretary shall report to the Governor on changes that the Secretary believes would result in economy or efficiency or otherwise would be in the State’s best interest, including:
(i)
elimination or reduction of State programs;
(ii)
abolition of positions;
(iii)
changes in procedures; and
(iv)
reorganization or consolidation of units.
(3)
The Secretary shall send a copy of each report under this subsection, subject to § 2-1257 of the State Government Article, to the Executive Director of the Department of Legislative Services.
Md. Code Ann., State Fin. & Proc. § 7-104 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–104LinkCopy Citation
(a)
(1)
The Secretary shall prepare for the Governor a draft of the proposed budget.
(2)
The draft shall:
(i)
be comprehensive;
(ii)
eliminate duplication and conflict; and
(iii)
include each item that the Governor is required by law to include in a proposed budget.
(b)
The Secretary shall include in the draft items for capital improvements.
(c)
The Secretary may specify:
(1)
the form to be used by a unit of the Executive Branch of the State government or a private entity to request an appropriation from the State;
(2)
information that must be submitted with the form; and
(3)
the time for submission of the form.
Md. Code Ann., State Fin. & Proc. § 7-105 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–105LinkCopy Citation
Each proposed budget shall be classified as and in the form and with the detail that the Governor or law requires.
Md. Code Ann., State Fin. & Proc. § 7-106 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–106LinkCopy Citation
The Governor shall submit to the General Assembly by the third Wednesday in January each year, except in the case of a newly elected Governor, and then not later than 10 days after the convening of the General Assembly, each bond or revenue bill necessary to submit a balanced budget and to carry out the proposed budget for the next fiscal year.
Md. Code Ann., State Fin. & Proc. § 7-107 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–107LinkCopy Citation
The Secretary shall publish on the Department of Budget and Management’s website, in a machine–readable format, an itemized statement, linked to the proposed State budget, of revenues collected by the State that are dedicated by law to a special fund, including:
(1)
the name of each special fund;
(2)
a description of the purpose of the special fund;
(3)
the source of revenue for the special fund;
(4)
the amount deposited into the special fund in the previous fiscal year; and
(5)
the balance of revenues in the special fund at the close of the previous fiscal year.
Md. Code Ann., State Fin. & Proc. § 7-108 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–108LinkCopy Citation
(a)
In accordance with the Maryland Constitution and other law, the Governor shall include in each budget bill:
(1)
an appropriation to pay the principal of and interest on the State debt;
(2)
without revision, the appropriations requested for public schools, as certified by the State Superintendent of Schools;
(3)
without revision, the appropriations requested for the Legislative Branch of the State government, as certified by the presiding officers of the General Assembly;
(4)
without revision, the appropriations requested for the Judicial Branch of the State government, as certified by the Chief Justice of the Supreme Court of Maryland;
(5)
the appropriations requested by the Governor for the Executive Branch of the State government;
(6)
the appropriations required by law to be included with the appropriations for the Executive Branch;
(7)
appropriations for the salaries required by law to be paid by the State;
(8)
without revision, appropriations for the Accountability and Implementation Board, as jointly certified by the presiding officers of the General Assembly and the Governor; and
(9)
any other appropriations required by the Maryland Constitution or other law to be included in the budget bill.
(b)
The Governor shall use the current salary plan of the Secretary of Budget and Management as the basis for the appropriations to pay those salaries to which the plan applies.
Md. Code Ann., State Fin. & Proc. § 7-109 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–109LinkCopy Citation
(a)
Each budget bill shall contain a separate section that includes:
(1)
the proposed salary schedule for the executive pay plan established under Title 8, Subtitle 1 of the State Personnel and Pensions Article, which shall be in effect for that fiscal year; and
(2)
a listing of the job classification and title of each position in the executive pay plan, including the proposed salary grade for each position.
(b)
In addition to the separate section required under subsection (a) of this section, each budget bill shall contain a separate section that includes:
(1)
a listing, by the unit of State government, of the job classification of each position with flat rate or per diem compensation in excess of the minimum salary in the proposed executive pay plan. The listing shall include, but not be limited to, constitutional officers, positions for which salaries by law are determined by judicial salaries, and positions for which salaries are determined by an agency with independent salary setting authority that have not been included in the executive pay plan;
(2)
the number of positions in each of those job classifications; and
(3)
the amount of the salary proposed for each of those job classifications.
(c)
(1)
The salary schedule and proposed salary grade, as provided in accordance with subsection (a) of this section, shall be subject to approval by the General Assembly.
(2)
The proposed salary for job classifications, as provided in accordance with subsection (b) of this section, shall be subject to approval by the General Assembly.
Md. Code Ann., State Fin. & Proc. § 7-110 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–110LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Capital expenditure” means an expenditure made by the Department of Transportation for:
(i)
the construction, reconstruction, or rehabilitation of a transportation facility, as defined in § 3-101(l) of the Transportation Article; or
(ii)
capital equipment as defined by the Secretary of Transportation.
(3)
“Modal administration” has the meaning stated in § 1-101 of the Transportation Article.
(4)
“Operating expenditure” means an expenditure that is made by the Department of Transportation, including the Office of the Secretary or a modal administration, and that is not a capital expenditure.
(b)
(1)
Each budget bill shall set forth as part of the appropriation for the Office of the Secretary of Transportation and for each modal administration, separate items for:
(i)
capital expenditures; and
(ii)
operating expenditures.
(2)
The budget books shall set forth, for information, a summary of the capital expenditures and operating expenditures, as defined by the Secretary of Transportation, for the Maryland Transportation Authority.
(3)
The budget books for a fiscal year shall include the appropriation for the preceding fiscal year for each modal administration, as provided in the Consolidated Transportation Program.
(c)
On submission of the budget bill to the General Assembly, the Department of Transportation shall report to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the House Committee on Ways and Means, in accordance with § 2–1257 of the State Government Article, on the estimated costs for planning, engineering, right–of–way acquisition, and construction for all projects for which planning funds were added to the budget by the General Assembly during the previous three legislative sessions.
Md. Code Ann., State Fin. & Proc. § 7-110.1 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–110.1LinkCopy Citation
If the U.S. General Services Administration applies to Prince George’s County or the State for a permit associated with the relocation of the Federal Bureau of Investigation Headquarters to Prince George’s County, the Governor shall include in the annual operating or capital budget bill an appropriation of at least $200,000,000 for site redevelopment and to improve transportation infrastructure for the Federal Bureau of Investigation Headquarters relocation project.
Md. Code Ann., State Fin. & Proc. § 7-111 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–111LinkCopy Citation
(a)
The Governor shall include in each budget bill a lump sum appropriation to the University College of the University of Maryland.
(b)
An appropriation under this section for a fiscal year shall equal the amount that University College estimates it will receive during the fiscal year from tuitions, fees, gifts, and grants and interest on those revenues.
(c)
(1)
The supporting documents for each budget bill shall include the annual financial information statement that University College prepares.
(2)
The supporting documents need not include any other information about the appropriation under this section.
Md. Code Ann., State Fin. & Proc. § 7-112 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–112LinkCopy Citation
(a)
Unless specifically authorized by law, the Governor may not submit a budget bill that changes a State statute.
(b)
Subject to the limitations in the Maryland Constitution, a statute that sets a salary is superseded by passage of a budget bill that alters the salary.
Md. Code Ann., State Fin. & Proc. § 7-113 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–113LinkCopy Citation
(a)
The purposes of this section are to:
(1)
carry out the purposes of the laws relating to motor vehicle licensing and motor vehicle fuel taxes; and
(2)
prevent diversions of revenues that those laws generate.
(b)
In a budget bill, the Governor may use the revenues that are generated by motor vehicle licensing and by motor vehicle fuel taxes, including fines and penalties, only to:
(1)
construct, reconstruct, and maintain bridges, highways, roads, and streets;
(2)
pay the interest on and principal of bonds that have been issued to finance the construction of bridges, highways, roads, and streets; or
(3)
enforce those laws.
Md. Code Ann., State Fin. & Proc. § 7-114 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–114LinkCopy Citation
(a)
(1)
In this section the following words have the meanings indicated.
(2)
“Cancer Program” means the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health – General Article.
(3)
“Tobacco Program” means the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health – General Article.
(b)
Each budget bill shall contain a separate section that includes the appropriation for:
(1)
each Component of the Tobacco Program;
(2)
each Component of the Cancer Program;
(3)
the Tri–County Council for Southern Maryland, in accordance with § 13–611 of the Economic Development Article; and
(4)
any other program that is funded with money from the Cigarette Restitution Fund established under § 7–317 of this title.
Md. Code Ann., State Fin. & Proc. § 7-114.1 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–114.1LinkCopy Citation
The costs of archaeological work incurred in a State project on a site of archaeological or historical significance shall be included in the budget bill of which the project is a part.
Md. Code Ann., State Fin. & Proc. § 7-114.2 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–114.2LinkCopy Citation
(a)
Except as provided in subsection (b) of this section, when a proposed budget includes expenditure reductions to be applied across multiple Executive Branch agencies, the budget bill shall specify how the savings will be achieved and with the exception of position abolitions and items requiring collective bargaining shall include a separate schedule for each reduction allocating the reduction for each agency in a level of detail not less than the 3–digit R*Stars financial agency code and by each fund type.
(b)
For fiscal year 2026 only, when a proposed budget includes expenditure reductions to be applied across multiple Executive Branch agencies, the budget bill may specify how the savings will be achieved and with the exception of position abolitions and items requiring collective bargaining may include a separate schedule for each reduction allocating the reduction for each agency in a level of detail not less than the 3–digit R*Stars financial agency code and by each fund type.
Md. Code Ann., State Fin. & Proc. § 7-114.3 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–114.3LinkCopy Citation
(a)
Except as provided in subsection (b) of this section, a proposed appropriation in the annual budget bill for a unit of State government that the General Assembly has struck or reduced may not be restored for the same purpose as originally proposed.
(b)
A proposed appropriation that the General Assembly has struck or reduced may be restored for the same purpose as originally proposed if the General Assembly, in striking or reducing the appropriation, expressly authorized the restoration.
Md. Code Ann., State Fin. & Proc. § 7-115 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–115LinkCopy Citation
(a)
On submission of the budget bill to the presiding officers of the General Assembly, the Governor shall provide the supporting material specified in this section.
(b)
The Governor shall provide budget books that include the information required in this section.
(c)
The budget books for a fiscal year shall:
(1)
(i)
state each source of State revenues for the year, from which the proposed appropriations are to be paid; and
(ii)
state the amount that the Governor estimates will be collected from each source;
(2)
contain a summary of the annuity bond accounts of the State as of the end of the last full fiscal year; and
(3)
(i)
include a copy of the statewide cost allocation plan filed with the federal government for federal reimbursement of the costs of indirect State services that benefit federally funded programs; and
(ii)
list, by unit of the State government, the amount of reimbursement received under the plan during the last full fiscal year.
(d)
The budget books shall contain personnel detail in a section that, by unit of the State government, sets forth, for each program or purpose of that unit:
(1)
the total number of officers and employees and the number in each job classification:
(i)
authorized in the State budget for the last full fiscal year and the current fiscal year; and
(ii)
requested for the next fiscal year; and
(2)
an itemized statement of the expenditures for contractual services, supplies and materials, equipment, land and structures, fixed charges, and other operating expenses:
(i)
made in the last full fiscal year;
(ii)
authorized in the State budget for the current fiscal year; and
(iii)
requested for the next fiscal year.
(e)
The following information shall be provided on the website of the Department of Budget and Management simultaneously with the submission of the annual State budget:
(1)
the StateStat or managing for results agency strategic plan required under this article, limited to a description of the agency’s mission, goals, objectives, and performance measures; and
(2)
personnel detail, by unit of State government, that sets forth, for each program or purpose of the unit, the total amount for salaries of officers and employees and the amount for salaries of each job classification:
(i)
spent during the last full fiscal year;
(ii)
authorized in the State budget for the current fiscal year; and
(iii)
requested for the next fiscal year.
(f)
Whenever a proposed budget exceeds the recommendations of the Spending Affordability Committee, the budget books shall:
(1)
indicate the degree to which the proposed budget and recommendations differ; and
(2)
set forth the Governor’s reasons for exceeding the recommendations.
(g)
The budget books shall include supporting data and the results of the calculations required under § 5–202(l) of the Education Article.
(h)
The information required under this section shall be provided on the website of the Department of Budget and Management simultaneously with the submission of the annual State budget.
Md. Code Ann., State Fin. & Proc. § 7-116 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–116LinkCopy Citation
(a)
In this section, “machine–readable format” means a comma–separated values file format.
(b)
On submission of the budget bill to the presiding officers of the General Assembly, the Governor shall provide the following number of copies of the budget books required under § 7–115 of this subtitle:
(1)
one copy to each member of the General Assembly; and
(2)
80 copies to the Department of Legislative Services.
(c)
The information required under § 7–115 of this subtitle shall be provided in a machine–readable format on the website of the Department of Budget and Management simultaneously with the publication of the proposed annual State budget.
(d)
The Department of Budget and Management shall archive the information provided in a machine–readable format on the website of the Department of Budget and Management beginning with the fiscal year 2017 budget.
Md. Code Ann., State Fin. & Proc. § 7-117 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–117LinkCopy Citation
(a)
Subject to § 2–1257 of the State Government Article, the Secretary shall provide to the General Assembly on a biennial basis by no later than February 1 of the fiscal year preceding the fiscal year the report covers, a report that contains a statement of the estimated amount by which exemptions from taxation reduce, for the year:
(1)
State revenues; and
(2)
revenues that the State collects for local governments.
(b)
For each exemption, the statement shall:
(1)
show the estimated amount by which the exemption reduces revenues;
(2)
identify the person or the part of the population that benefits from the exemption; and
(3)
say whether the exemption conflicts with any other State program.
(c)
The statement shall include:
(1)
each subtraction modification under § 10–207, § 10–208, or § 10–209 of the Tax – General Article; and
(2)
each exemption under:
(i)
Title 8, Subtitle 7 of the Natural Resources Article;
(ii)
§ 5–104, § 6–103, § 7–203, § 7–303, § 9–203, § 9–303, § 9–304, § 10–104, § 10–211, § 10–212, § 12–104, or Title 11, Subtitle 2 of the Tax – General Article;
(iii)
Title 7 of the Tax – Property Article; and
(iv)
§ 13–810 or § 13–903 of the Transportation Article.
(d)
The Comptroller, the Department of Assessments and Taxation, the Maryland Department of Labor, the Department of Natural Resources, the Department of Transportation, and other units of the State government shall help the Secretary of Budget and Management to prepare a draft of the statement under this section.
Md. Code Ann., State Fin. & Proc. § 7-118 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–118LinkCopy Citation
(a)
In its annual submission of the proposed budget, the Department of Budget and Management shall provide, for informational purposes, a budget presentation that includes a description of the proposed expenditures under the Maryland Emergency Medical System Operations Fund for the:
(1)
Maryland Institute for Emergency Medical Services Systems;
(2)
R Adams Cowley Shock Trauma Center;
(3)
Maryland Fire and Rescue Institute;
(4)
Aviation Division of the Special Operations Bureau, Department of State Police; and
(5)
grants under the Senator William H. Amoss Fire, Rescue, and Ambulance Fund.
(b)
(1)
(i)
In this subsection the following words have the meanings indicated.
(ii)
“Cancer Program” means the Cancer Prevention, Education, Screening, and Treatment Program established under Title 13, Subtitle 11 of the Health – General Article.
(iii)
“Tobacco Program” means the Tobacco Use Prevention and Cessation Program established under Title 13, Subtitle 10 of the Health – General Article.
(2)
The budget books shall contain a budget presentation that provides an overview of the proposed expenditures for:
(i)
the Tobacco Program, including the proposed expenditures for:
(1)
each Component of the Tobacco Program;
(2)
each program funded under each Component of the Tobacco Program; and
(3)
each Local Public Health Tobacco Grant;
(ii)
the Cancer Program, including the proposed expenditures for:
(1)
each Component of the Cancer Program;
(2)
each program funded under each Component of the Cancer Program;
(3)
each Local Public Health Cancer Grant;
(4)
each statewide Academic Health Center Public Health Grant;
(5)
each statewide Academic Health Center Cancer Research Grant;
(6)
each statewide Academic Health Center Tobacco–Related Diseases Research Grant; and
(7)
each statewide Academic Health Center Network Grant;
(iii)
the Tri–County Council for Southern Maryland, in accordance with § 13–611 of the Economic Development Article, including proposed expenditures for the Southern Maryland Agricultural Development Commission; and
(iv)
any other program that is funded with the Cigarette Restitution Fund established under § 7–317 of this title.
Md. Code Ann., State Fin. & Proc. § 7-119 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–119LinkCopy Citation
(a)
(1)
For each fiscal year, General Fund capital appropriations shall be budgeted in the operating budget in separate eight–digit programs.
(2)
When multiple projects or programs are budgeted within the same nontransportation eight–digit program, each distinct program and project shall be budgeted in a distinct subprogram.
(b)
(1)
To the extent possible, subprograms for projects spanning multiple years shall be retained to preserve funding history.
(2)
The budget detail for prior and current fiscal years submitted with each proposed budget shall be organized in the same fashion to allow comparison between fiscal years.
Md. Code Ann., State Fin. & Proc. § 7-120 (2026)
Title 7. Appropriations
Subtitle 1. State Operating Budget
§ 7–120LinkCopy Citation
On submission of a supplemental budget bill to the presiding officers of the General Assembly that includes an appropriation in accordance with § 5–202(l) of the Education Article, the Governor shall provide supporting data and the results of the calculations required under that subsection.