Maryland Association of Communtiy Colleges - 16 community colleges, one voice

2008 Session Wrap-Up

Annapolis, April 8, 2008 — This was the 425th Session of the Maryland General Assembly. Despite the Special Session that took place last November to address the State’s structural deficit, the 2008 Session primarily focused on money.  There was no movement on the Governor’s budget until after the Quarterly Revenue Estimates were reported out of the Comptroller’s office on March 6. The report showed that the State’s revenues were down even more than originally estimated. This resulted in the General Assembly having to reduce the Governor’s budget by $400 million. Unfortunately, the state aid to community colleges was reduced $7.9 million from the Governor’s original budget, which had fully funded the Cade formula (see SB 90 below).

In an unexpected move by the House Appropriations Subcommittee on Education and Economic Development, HB 649 was amended to change the maintenance of effort provision that requires counties to allocate the same or more to their community college in order to receive state aid increases.  The amendments changed the amount from an aggregate amount to an FTE amount.  The Maryland Council of Community College Presidents (MCCCP) recognized that the change had numerous unexamined consequences and asked their respective delegations to postpone enactment, and the legislation failed. MACC will be examining the effects of this legislation throughout the interim session (see HB 649 below).

Other issues that loomed over the General Assembly until the final days of the Session were the growing movement to repeal the sales tax on computer services and how to allocate the Chesapeake Bay restoration fund.  In the final days of the Session, the “Tech Tax” was repealed and the Chesapeake Bay fund was reduced.  The repeal of this tax necessitated another $200 million in budget reductions.  As a result, the General Assembly expanded the income tax by creating another tax bracket for those making in excess of $1 million, made reductions in the Transportation Trust Fund, and directed the Governor to work with the Board of Public Works to make further reductions in the 2009 budget.   As a result, the 2009 state aid allocation to community colleges is not yet finalized.    

Over 1,600 House Bills and another 1,000 Senate Bills were introduced this session. Almost all bills had a public hearing.  From this list, MACC pulled 45 Senate Bills and another 37 House Bills and forwarded them to the MACC Legislative Committee for further review.  Below is a synopsis of some of the more controversial legislation that the MACC Legislative Committee tracked this session. A full report on the session, the 2008 MACC Legislative Report, is also available.

SB 90 opens in a new window

Status as of April 8 – Passed.

Sponsor(s)

The President (By Request-Administration)

Entitled

Budget Bill (Fiscal Year 2009)

PASSED AMENDED

Instead of funding the Cade formula for community colleges, the Senate and House accepted a DLS recommendation to fund community colleges at a 4% per FTE increase.  This decision reduced the 2009 statutory allocation to community colleges to $210.8 million for an increase of $16.4 million or an 8.4% increase over last year’s appropriation.  In addition to this increase, state retirement benefits to community college increased 8.8% and grant funds increased 9%.

In the final days of the Session, the General Assembly repealed the tax on computer services creating an addition $200 million budget shortfall.  To balance the budget, a new income tax bracket was added for those making in excess of $1 million; reductions were made to the Transportation Trust Fund; and the Governor was directed to work with the Board of Public Works to make further reductions in the 2009 State budget. 

While there has been no specific indication that community colleges are slated for further reductions, the 2009 State budget will be reduced by another $50 million.

In the final hours of the Session, an additional $800,000 was allocated to the five Regional Higher Education centers that are not funded through the USM budget.

SB 150 opens in a new window

Status as of April 8 – Passed.

Sponsor(s)

The President (By Request-Administration)

Entitled

Creation of a State Debt - Maryland Consolidated Capital Bond Loan of 2008, and the Maryland Consolidated Capital Bond Loans of 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, and 2007

PASSED AMENDED

The Governor’s capital budget allocated $81 million to fund the community college consolidated bond bill request.  The $81 million represents a $24.6 million increase over last year’s appropriation and provides a new cap for community college capital funds for the next five years.   The prior cap was $60 million; in raising it to $80 million, the Governor increased the capital funding by $100 million over five years.   

At the direction of the Maryland General Assembly, the MCCCP established a capital project priority process based on agreed criteria.  The 2009 CIP request is the first time that community colleges submitted their capital (CIP) request to the General Assembly in priority order. 

The full 2009 CIP request was for $134 million dollars to fund 34 projects across 14 community colleges.  The Governor’s budget funded 13 of the top 14 projects on the priority list.  In order to get funding for each college that had a project in the 2009 CIP request, another $24 million was needed to fund the Center for Health Studies at Prince George’s Community College.  The MCCCP agreed that the Center will be the first priority project in the 2010 request.    

SB 203 opens in a new window

Status as of April 8 – Passed.

Sponsor(s)

The President (By Request-Administration)

Entitled

Department of Labor, Licensing, and Regulation - Consolidation of Workforce Development Functions - Transfer of Adult Education and Literacy Services and Education Programs for Correctional Facilities

PASSED AS AMENDED

This bill transfers adult literacy (including correction programs) from the Maryland State Department of Education to the Department of Labor, Licensing and Regulation (DLLR).  Amendments create a Transition Council that is co-chaired by the Secretary of DLLR and the Superintendent of Schools.  The purpose of the Transition Council is to develop a plan to transfer the programs to DLLR and to assist in developing a new State Plan for Adult Education in Maryland.  The amendments also delay implementation to July 1, 2009 and guarantee current grant allocations through 2010.

SB 438 PDF format

Status as of April 8 – Passed.

Sponsor(s)

Senators Jones, Conway, Currie, Gladden, King, McFadden, Muse, Pugh, and Raskin

Entitled

Plans for Programs of Cultural Diversity

PASSED AS AMENDED

This bill requires institutions of higher education to develop and implement plans for programs of cultural diversity.  The plan must enhance cultural diversity programming and sensitivity to cultural diversity through instruction and training at the institution and must include implementation strategies and timetables for meeting goals in the plans. Each institution must submit its cultural diversity plan to its governing board by May 1 of each year, and the governing boards must submit progress reports regarding the implementation of the plans to MHEC by August 1 each year.

SB 464 opens in a new window

Status as of April 8 – Failed.

Sponsor(s)

Senators Conway, Currie, Dyson, Exum, Forehand, Frosh, Gladden, Jones, Kelley, Madaleno, McFadden, Muse, Pinsky, Pugh, Raskin, and Harrington

Entitled

Maryland Higher Education Commission - Unreasonable Duplication of Programs - Standards

FAILED

Amendments to SB 464 eliminated concerns that would have required all institutions seeking approval for new or expanded academic programs to address the expansion of competing programs in the event a request was challenged because of “unreasonable duplication.”   Further amendments require MHEC to define standards, relate findings in writing, and codify the current COMAR regulations pertaining to “unreasonable duplication.”    This legislation passed the Senate as amended and was referred to the House Appropriations Committee where it died.

SB 591 opens in a new window

Status as of April 8 – Failed.

Sponsor(s)

Senators Pinsky, Currie, Exum, Forehand, Gladden, King, Lenett, Madaleno, Pugh, and Raskin

Entitled

Higher Education - Tuition Charges - Maryland High School Students

FAILED

This bill exempts individuals who attended and graduated from Maryland high schools from paying nonresident tuition at public institutions of higher education in Maryland.  To qualify for an exemption, an individual must  1) have attended a secondary school in the State for at least two years; 2) have graduated from a high school in the State or received the equivalent of a high school diploma in the State; 3) register as an entering student at a public institution of higher education in Maryland no earlier than the fall 2008 semester; 4) provide documentation that the individual or the individual’s parent or guardian has had Maryland income tax withheld during the year prior to high school graduation; 5) make application to attend the institution within three years of high school graduation; and 6)  provide an affidavit stating that the individual will file an application to become a permanent resident within 30 days after becoming eligible to do so.

This legislation has been introduced in the MGA every year since 2002. Opposition has centered on concerns that an undocumented student will take a “seat slot” at a public college that would otherwise go to a resident of the State.  Because community colleges are open access institutions, this is not an issue.  We supported an amendment that would permit students who graduate from their local area high schools and meet the requirements outlined above, to attend their local area community college at resident tuition rates.  This legislation failed to receive a favorable report from the Senate EHEA Committee.   

SB 657 opens in a new window

Status as of April 8 – Failed.

Sponsor(s)

Senators Conway, Pinsky, Rosapepe, Colburn, Dyson, Greenip, Klausmeier, Lenett, Raskin, Harrington, and Middleton

Entitled

College Textbook Competition and Affordability Act of 2008

FAILED

The Senate addressed two major concerns with amendments to Senate Bill 657: 1) issues regarding academic freedom, and 2) requirements to use auxiliary funds to reduce the cost of textbooks. The legislation passed the Senate and was assigned to the House Appropriations Committee.  It continues to require colleges to post ISBN numbers on websites and to compete with their own campus bookstores, possibly putting future bookstore contracts with outside vendors in question.  MACC submitted follow-up testimony to the Appropriations Committee that asked the Committee to hold enactment of this legislation until after Congress has acted on the Higher Education Re-Authorization Act which includes a comprehensive set of provisions addressing the rising cost of textbooks.  In addition, MACC presented amendments that would 1) require colleges to post ISBN numbers “only if there are no additional costs to the institutions to do so,” 2) to provide information and opportunities for competing bookstores “providing there is no violation with current bookstore contracts,” and 3) to streamline the extensive reporting requirements.  Although the House did not accept all of MACC’s amendments, the Senate bill was amended in the final hours of the Session and sent back to the Senate.  The Senate refused to agree with the House amendments and the legislation died.

HB 603 opens in a new window

Status as of April 8 – Failed.

Sponsor(s)

Delegates Pena-Melnyk, Ali, Barnes, Benson, Branch, Cane, Costa, Donoghue, Dumais, Gutierrez, Hammen, Healey, Hubbard, Hucker, Ivey, Kipke, Kullen, Levi, Mizeur, Montgomery, Morhaim, Nathan-Pulliam, Niemann, Oaks, Reznik, Robinson, Rosenberg, Ross, Tarrant, V. Turner, Valderrama, and Walker

Entitled

Health Care Coverage - Institutions of Higher Education

FAILED

This bill would have mandated health insurance coverage for all full-time students at Maryland institutions of higher education; required such institutions to offer health insurance coverage to enrolled students; and required that health insurance coverage be considered in the calculation of student financial aid.  This bill is expected to be studied over the summer interim.

HB 649 PDF format

Status as of April 8 – Failed.

Sponsor(s)

Chair, Ways and Means Committee (By Request - Departmental - Baltimore City Community College)

Entitled

Community Colleges - Funding Requirements

FAILED

As introduced, this legislation would have authorized the Board of Trustees of Baltimore City Community College to create any new positions that can be supported with existing funds.  However, the House Appropriations Committee amended this bill to alter the maintenance of effort calculation for county support for community colleges from an aggregate amount to a per student basis.  In addition, it increased the annual appropriation from the City of Baltimore to Baltimore City Community College.  Community college presidents were asked to contact members of their House Delegation and oppose the legislation as amended. The legislation failed to reach second reading on the House floor. 

HB 683 opens in a new window

Status as of April 8 – Failed.

Sponsor(s)

Delegate Griffith

Entitled

Optional Retirement Program - Employing Institutions - Community Colleges

FAILED

This bill would have established community colleges as independent employing institutions with respect to their employees’ eligibility for the Optional Retirement System (ORP).  The legislation was introduced at the request of community colleges and withdrawn at the request of community colleges.  Currently MHEC holds this responsibility for community colleges and therefore has the fiduciary responsibilities involved with these retirement plans.

Use this link to download a PDF of the Session Wrap-Up (5 pages) shown above PDF format

Use this link to download a PDF of the full 2008 MACC Legislative Report (95 pages) PDF format

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