Maryland School for the Deaf budget rises slightly; audit flags procurement lapses

The Education, Business and Administration Subcommittee on the Maryland School for the Deaf heard that the school’s fiscal 2025 operating budget would rise by $1,100,000, a 2.1% increase from $51,900,000 to $53,000,000, largely driven by higher regular personnel expenses.

The Department of Legislative Services analyst Laura Hyde presented the budget overview, noting that MSD’s FY25 projected enrollment is 563 students (a formula count of 530 for funding purposes), and that 88% of the proposed budget is for regular personnel. Hyde told the committee MSD received $1,200,000 in federal COVID relief funds in 2020–21 and spent those funds on equipment, curriculum, PPE and other pandemic-related needs; those funds were spent by the September 2023 deadline.

Hyde also summarized a January 2024 Office of Legislative Audits report that identified four issues warranting agency action, including a repeat finding related to procurement and contracts for sign language interpreters. The audit said MSD did not always follow state procurement regulations, failed in some cases to obtain Department of General Services and Board of Public Works approvals, did not publish contract awards on the Maryland Marketplace, and split purchases to avoid competitive procurement thresholds. DLS recommended committee narrative and language restricting funds pending MSD’s report on remediation.

MSD Superintendent John Serrano said the school concurs with the analysis and recommendations and has submitted written testimony. "We are actively working on addressing that now, and we look forward to sharing our results in-depth later on this year," Serrano said, adding MSD is requiring procurement staff to take Office of State Procurement courses, training contract monitors, and revising memoranda of agreement with affiliate organizations.

The presentation also highlighted kindergarten readiness assessment (KRA) results: MSDE data show kindergarten KRA scores have not returned to pre-pandemic levels, with results in fiscal 2023 at or below 30% in tested areas. DLS recommended committee narrative requesting a report on why KRA scores remain depressed and asked MSD to discuss remediation plans.

The committee did not take formal action on the MSD budget at the hearing; DLS recommended two specific follow-ups: a committee-requested report on the audit remediation and committee narrative on KRA scores. MSD indicated it will provide further information later in the year.