# State Finance and Procurement (GSF)

## Title 7. Appropriations

### Subtitle 3. Unspent Balances

#### Section 7-305

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Capital expenditure" includes an expenditure for:

    (i) acquisition of land, buildings, or equipment; or

    (ii) new construction.

  (3) "Miscellaneous capital grant" means a grant for a capital project for an entity that is not a unit of State government funded in the annual State operating budget within the Department of General Services.

(b) At the end of a fiscal year, the unspent part of an appropriation for a capital expenditure made through the State budget or a supplementary appropriation act other than an enabling act for a general obligation loan:

  (1) does not revert to the General Fund; and

  (2) with the approval of the Board of Public Works, may be carried in a capital account until it is spent in accordance with subsection (c) of this section or until the authority to spend the appropriation for a project terminates.

(c) Money carried in a capital account under subsection (b) of this section may be spent only for a capital purpose.

(d) Unless otherwise provided by law, the authority to spend the appropriation for a project terminates:

  (1) 1 year after the latest of abandonment, completion, or acceptance of the project; or

  (2) except to the extent the Board has encumbered money for a State project or program authorized by an appropriation act, 7 years after the effective date of the appropriation act that authorized the project unless:

    (i) the appropriation act provides otherwise; or

    (ii) in an emergency, the Board unanimously grants a temporary exception for 1 year.

(e)

  (1) This subsection applies to a miscellaneous capital grant 3 years or more after the effective date of the appropriation act that authorized the grant.

  (2) On or before July 1 each year, the Department of General Services shall submit to the Legislative Policy Committee, in accordance with Sec. 2-1257 of the State Government Article, a report that identifies each grant for which:

    (i) no part of the grant is under contract approved by the Board; and

    (ii) the Board has not encumbered money for any part of the grant.

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Md. Code Ann., State Fin. & Proc. (as displayed at mgaleg.maryland.gov, October 16, 2026)