Governor Larry Hogan Submits Third Supplemental Budget

Reflects Administration’s Commitment to Higher Education, K-12 Education and the Prevention and Treatment of Heroin Addiction

ANNAPOLIS, MD – Governor Larry Hogan today introduced a third supplemental budget for FY 2017 that provides additional financial backing for several administration priorities such as K-12 education, new construction at five University System of Maryland institutions and $3 million in new funding for heroin addiction prevention and treatment programs.

“Education has and always will be a top priority for our administration, and moving forward with these important projects at Maryland universities will benefit college students for decades,” said Governor Hogan. “Additionally, as part of an agreement with members of the General Assembly, we are providing $13.8 million in additional one-time K-12 education funding, including $12.7 million for Baltimore City schools and $1.1 million for Calvert County. With this supplemental submitted and a number of critical issues and priorities addressed, we look forward to seeing the budget pass smoothly through the Senate and House over the final weeks of session.”

The third supplemental for FY 2017 includes the following K-12 education components as well as $46.2 million for higher education projects:

$13.8 million in one-time supplemental K-12 education funding for systems with declining enrollment

$12.7 million for Baltimore City schools

$1.1 million for Calvert County schools

$4.7 million for the new Student Services Support Building at Morgan State University

$1.3 million to renovate the Percy Julian Science Building at Coppin State University

$5 million for the Interdisciplinary Life Sciences Building at UMBC

$3.5 million for the School of Pharmacy and Allied Heath at the University of Maryland Eastern Shore

$31.7 million for the Biomedical Sciences and Engineering Education Facility at the Universities at Shady Grove

Offsetting these additions to the budget are new savings identified by the Hogan administration. Improvement in Maryland’s economy over the past several months has resulted in fewer Marylanders enrolling in Medicaid, allowing the administration to redirect $58.1 million previously allocated for the program toward the governor’s education priorities.

Other important additions to the FY 2017 budget included in the governor’s third supplemental are the following:
To help fight the heroin epidemic ravaging communities across Maryland, $3 million has been included in the budget to support drug addiction treatment services in prisons, to reduce drug-related crime and recidivism.

The administration has committed $13.8 million to the Department of Human Resources for a Shared Human Services Platform to replace outdated, cumbersome, and inefficient mainframe computer systems. This investment will making it possible for the department and other agencies to significantly enhance and modernize the delivery of essential services.

Based on projected revenues and planned expenditure in Governor Hogan’s budget, Maryland is forecast to end FY 2017 with a general fund balance of $303 million.