MACo briefing: special session on redistricting, state fiscal crunch and federal grant rules worry counties

Maryland Association of Counties officials told the Howard County Council at its July monthly meeting that state and federal policy decisions could soon shift new costs onto counties and complicate local budgets.

Michael Sanderson, executive director of the Maryland Association of Counties, said the General Assembly plans a short special session that will likely place a constitutional amendment on the November ballot to address congressional redistricting. He also warned the council that the state faces a sizable fiscal shortfall tied to education spending and other obligations: “the tally at the moment is about 2 and a half billion dollars,” Sanderson said, describing the strain on the state’s general fund and the Education Trust Fund.

The MACo presentation centered on three risks for counties: a special session that could surface additional bills, continued upward pressure on county costs as the state invoices local governments for programs such as teacher pensions, and proposed Office of Management and Budget rules that Sanderson said could allow the federal government more latitude to terminate grants mid‑cycle.

“Counties are the implementers of an awful lot of these programs on the ground,” Sanderson said, urging local officials to monitor federal rule‑making; the OMB comment period closed the day of the meeting. MC Keeganair, who identified herself as MACo’s current president and a Frederick County councilmember, said MACo has submitted comments on the proposed grant rules and that the breadth of pushback has been “about as widespread as I think I’ve ever seen.”

Why it matters: Sanderson told Howard County officials that if the state shifts more recurring costs to counties — for example by billing for a share of teacher pension overages — local property tax levies or services could be affected. He said Maryland’s fiscal picture for FY28 will shape county budgets and could force decisions about delaying or stretching elements of the state’s multiyear education “blueprint.”

During the question period, councilmembers asked whether there are guardrails in proposed federal rules to prevent abrupt grant cancellations. Sanderson said particulars remained unclear but that the weight of public comment could produce a compromise. He encouraged local governments to stay engaged with MACo’s submissions and with national partners.

The council’s next steps: the presentation concluded with an invitation for follow‑up questions and MACo offered to send material packets and legislative summaries to councilmembers.