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Maryland Legislative Wrap-Up
The 447th Maryland General Assembly Session concluded on April 7th, with Governor Moore and legislative leaders reaching consensus on a number of issues, primarily resolution of the State’s $3 billion budget shortfall. The final budget deal included approximately $1.2 billion in new taxes and revenues, and nearly $2 billion in budget cuts and fund transfers. The major revenue components of the final agreement include an income tax increase, primarily on higher earners, and a new 3% sales tax on information technology and data services. Further guidance on implementation of this new tax is expected from the State Comptroller, but a not-for-profit entity currently exempt from the state sales tax would also be exempt from this new sales tax.
Ongoing uncertainty related to federal budget cuts, federal job reductions, and the pausing of anticipated federal funding have Maryland officials considering a possible special session of the legislature later this year. On the agenda could be a restructuring of state programs due to losses of federal funding, further budget cuts, and possibly new revenues. Budget cuts by the State’s Board of Public Works are also a possibility to ensure the State’s budget remains in balance.
Below is the final update on bills and issues of interest to Maryland Works and the disability community.
Developmental Disabilities Administration Budget
Following 90-days of advocacy and negotiation, close to $300 million of a proposed $457 million in cuts to the Developmental Disability Administration (DDA) were restored. As part of the restoration deal, the legislature is requiring DDA to submit a report broadly detailing cost containment measures both implemented and planned for fiscal year 2025 and fiscal year 2026, including specific actions related to State-only funded services, the day-to-day administrator category of services, and Low Intensity Support Services. Significant concerns still exist about the growth and sustainability of several DDA programs, including self-directed services. Some factors that led to the budget crisis are hopefully temporary in nature, such as the transition to the LTSS “fee-for-service” payment model which disrupted the ability of analysts to accurately forecast program costs for the agency.
HB 430 Employed Individuals with Disabilities Program – Upper Age Limit – Prohibition
This bill prohibits the Maryland Department of Health (MDH) from establishing an upper age limit on eligibility to receive services in the Employed Individuals with Disabilities (EID) program. This bill was heard by the Health and Government Operations Committee and ultimately withdrawn by the sponsor.
HB 500/SB 426 Procurement Reform Act of 2025
Governor Moore’s major procurement reform initiative includes the anticipated shift of the Preferred Provider Program from the Department of General Services (DGS) to the Governor’s Office of Small, Minority and Women Business Affairs (GOSBA). A priority of Governor Moore, this bill passed and is awaiting his signature.
HB 502/SB 433 Office of Disability Employment Advancement and Policy and Maryland as a Model Employer Initiative – Established
This bill introduced by the Moore Administration establishes the Office of Disability Employment Advancement and Policy (ODEAP) in the Maryland Department of Disabilities (MDOD) to, among other things, implement the Maryland as a Model Employer Initiative. The goal of the legislation is to make Maryland a leader in employing individuals with disabilities, addressing both employment disparities and workforce shortages. After concerns related to the program’s cost were addressed, the bill passed and was signed into law by Governor Moore on April 9th.
HB 508/SB 795 State Procurement Preferences – Blind Industries and Services of Maryland – Packaging and Repackaging
This bill supported by Blind Services Industries of Maryland (BISM) would clarify that janitorial products packaged or repacked by BISM be included as part of BISM’s scope within the Preferred Provider Program. Both bills passed and are expected to be signed into law by Governor Moore.
HB 541/SB 365 Department of Commerce – Nonprofit Organizations Navigator – Established
This bill establishes a nonprofit organizations navigator within the Department of Commerce. Among other duties, the navigator must represent the interests and concerns of nonprofit organizations as a member of the Maryland Efficient Grant Application (MEGA) Council. Both bills passed and are expected to be signed by Governor Moore.
HB 1244/SB 1027 Maryland Developmental Disabilities Administration Waiver Advisory Council – Establishment
This bill establishes the Maryland Developmental Disabilities Administration Waiver Advisory Council to advise and provide recommendations to the Developmental Disabilities Administration on system design, service delivery, and quality enhancement strategies for the Medicaid waiver programs operated by the Administration. The 21-member council includes 2 community service providers, a representative from the Maryland Association of Community Services, and a representative from the Arc of Maryland. This bill passed both chambers and await Governor Moore’s approval.
HB 1253 Department of Social and Economic Mobility
Sponsored by House Speaker Adrienne Jones, HB 1253 creates a new cabinet level department to reorganize several existing agencies and programs, including the Governor’s Office of Small, Minority, and Women Business Affairs (GOSBA); the Office of Social Equity (OSE) in the Maryland Cannabis Administration (MCA); and the Office of Minority Business Enterprises (OMBE) in the Maryland Department of Transportation (MDOT). With the Preferred Provider Program being transferred to GOSBA under Governor Moore’s procurement reform legislation, this bill’s passage results in the Preferred Provider Program ultimately being housed within this new department.
Three additional bill signing dates are scheduled for May 6th, May 13th, and May 20th. Governor Moore has until May 27th to sign, veto, or let bills become law without his signature.
Source: Manis Canning & Associates