Analysts: Governor's proposed budget would deliver $342.1 million in state aid to Washington County, with school funding driving most of the increase

Arnold Aja of the Department of Legislative Services told the Washington County delegation that the governor's proposed budget would direct $342,100,000 in total state aid to the county in fiscal 2027, with $317,500,000 in direct aid and roughly $24,600,000 for retirement contributions.

"This presentation today will provide a snapshot of the state aid to Washington County," Aja said, outlining program-level impacts that include $278,100,000 to the public school system, $20,400,000 to Hagerstown Community College and $12,900,000 for county and municipal governments. Local health departments and the library system would receive $4,400,000 and $1,700,000 respectively under the proposal.

DLS analysts said total state aid for the county would rise by $11.9 million over the prior year, driven primarily by increases for public schools. The briefing identified four policy changes in the proposed budget that materially affect Washington County: revised enrollment counts for free and reduced-price meals that raise school funding statewide; a proposed 3% cap on formula increases for community colleges (a provision requiring General Assembly approval); a freeze in the disparity grant program at a prior-year formula amount; and a proposal shifting 50% of statewide increases in retirement payments for teachers, librarians and community college faculty to local governments, subject to legislative approval.

Aja noted Hagerstown Community College would see a reduction under some provisions and attributed that outcome in part to declining student enrollment at the institution and the proposed cap on formula increases. DLS provided a county-level breakout showing a $5,000,000 increase in aid tied to revised enrollment counts for free and reduced-price meals and an estimated $882,000 in additional local costs if the retirement cost shift is adopted.

Delegation members asked for follow-up on specific community college figures. The chair requested DLS review a previously circulated chart that appeared to show Hagerstown Community College as the only community college facing a cut; Aja said DLS would check the numbers and report back.

The presentation also covered highway user revenue allocations, the police aid enhancement program and the disparity grant formula. DLS pointed out that some allocations in the current proposal use prior-year crime data rather than the most recent uniform crime report, which in Washington County's case preserves more than $96,000 compared with using updated data.

DLS closed by directing members to online resources, including local briefings and statewide budget exhibits available on the Maryland General Assembly and DLS web pages. Delegation members said they would review the materials and follow up with questions to staff.