Maryland education aid grows to $10.1 billion; lawmakers press MSDE on MCAP results, meal counts and autism waiver capacity

The subcommittee received an overview of the FY25 Aid to Education allowance and a detailed DLS analysis that flagged several data and program risks. Laura Hyde, DLS analyst, said the aid-to-education budget grows by about $315,000,000 (3.2%) to $10,100,000,000 and that approximately $141,000,000 of that increase is general-fund support for teacher retirement. Hyde walked members through exhibits showing MCAP proficiency rates by grade and subject, enrollment trends, and the composition of state and federal fund allowances.

DLS highlighted two central data concerns. First, the omission of Algebra 2 data from the fiscal 2025 managing-for-results submission; Hyde asked MSTE (MSDE) to explain the missing data. Second, DLS identified inconsistencies in the free and reduced price meal (FRPM) enrollment counts used to calculate compensatory education and concentration-of-poverty grant eligibility and recommended continuing committee narrative and restricted funds until the discrepancies are resolved. Hyde also described FY23 closeout encumbrances totaling about $425,400,000 and recommended follow-up narrative on ESSER allocations and the autism waiver expansion.

Carrie Wright, interim state superintendent, said MSDE has launched a literacy initiative around the "science of reading," is developing literacy instructional teams to observe and advise schools, and is working on a math initiative called "Launch Ears" in partnership with the Dana Center at UT Austin. Wright said MSDE would form an assessment and accountability task force including parents, teachers, superintendents, psychometricians and higher-education experts to review the assessment and accountability model and return recommendations by December if statutory changes are needed.

Krishna Tagore (MSDE deputy superintendent for finance and operations) replied to DLS concerns. He said Algebra 2 data were omitted because the Algebra 2 test is not administered to all students at a grade level and new college-and-career-readiness standards have changed which tests can demonstrate readiness. Tagore said many FY23 encumbrances are tied to federal-timing provisions and that MSDE disagrees with DLS’s recommendation to withhold funds; MSDE offered to meet with DLS staff to reconcile calculation methodologies for compensatory education and CPG counts.

Senator Bailey pressed MSDE on how adaptive MCAP items work, whether students across schools are fairly compared when test items differ, and teachers’ access to test items. MSDE staff said adaptive tests are designed to measure proficiency by routing students to items at different difficulty levels; the department said item development is costly and that blueprints and standards accompany assessments. On FRPM counts, MSDE explained the technical difference between the 9/30 enrollment point-in-time count and October FRPM reporting and said reconciliation discussions with DLS will continue. DLS also noted Somerset County had late ESSER closeout reports and committee language had been used to restrict funds until the reports were submitted.

MSDE and DLS agreed to follow up on methodology and data reconciliation; committee members requested the task force examine assessment and accountability alignment and for MSDE to provide additional documentation on FRPM and autism waiver onboarding plans.