SUNDAY, OCTOBER 4, 2026
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FORMATIVESPACES.COM

Maryland's Blueprint oversight board weighs legislative changes as $3B budget gap looms

The AIB has recommended tweaks to the Blueprint each year since 2022. Now the state faces its largest budget gap in two decades, with Blueprint costs outpacing revenues.

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The Maryland State Capitol. Shown for state policy context. Photo: Irteagle102704 of English Wikipedia / Wikimedia Commons. Public domain. Resized for display; social preview adds branding.

Maryland's Accountability and Implementation Board (AIB), the panel overseeing the Blueprint for Maryland's Future education reform law, has recommended limited legislative changes to the Blueprint each year since 2022. The adjustments have centered on aligning Blueprint policies, timelines, and funding. For the 2025 legislative session, the board's major recommendation involves modifying minimum school funding requirements, according to the AIB's 2024 annual report.

The board's work now unfolds against Maryland's worst budget outlook in two decades. The state's structural deficit is projected to grow from $502 million in fiscal 2025 to $3.4 billion by fiscal 2029 under the Administration's budget plan, according to the Department of Legislative Services. The department's own estimate puts the gap at nearly $3 billion in fiscal 2029.

$3.4BProjected structural deficit in fiscal 2029 under the Administration's budget plan, per the Department of Legislative Services. [2]

The Blueprint Fund, which finances the reform's programs, is projected to run deficits starting in fiscal 2027. Expenditures that year are estimated at $3.24 billion against insufficient revenues, potentially requiring a general fund contribution of about $1.5 billion. By fiscal 2028, program costs are projected to exceed revenues by roughly $2.3 billion, according to the Department of Legislative Services.

Pre-K rules under discussion

Among the areas under discussion are pre-K provider certification requirements and eligibility rules. Under the Blueprint, multilingual learners and students with disabilities already receive free pre-K at income levels up to 600 percent of the federal poverty level, while non-multilingual or non-disabled students at the same incomes pay full cost or a sliding scale, according to the AIB's Blueprint overview.

The Blueprint requires pre-K lead teachers to hold a bachelor's degree and state certification in early childhood education, or be enrolled in an alternative certification program, by the 2027-2028 school year. Teaching assistants must hold at least a Child Development Associate certificate or an associate's degree by that date, per a 2023 joint committee report.

Maryland's 2024 legislative session already made early modifications to these rules under fiscal pressure. HB1441, signed into law in April 2024, established two classes of teacher certificates for pre-K: a first-class certificate requiring a bachelor's degree and a second-class certificate. The bill also moved the high staff qualification deadline from 2027-2028 to 2025-2026 for certain providers, according to the bill text.

Another 2024 law, HB1432, delayed Tier II state and local pre-K funding to fiscal 2028. The delay reduced state expenditures by an estimated $7.2 million in fiscal 2025, $12.3 million in fiscal 2026, and $16.0 million in fiscal 2027, according to the fiscal and policy note. The same bill also gave the AIB authority to withhold funding from local boards for inappropriate spending or unsatisfactory MCAP results.

$35.5MCombined state savings from the three-year delay of Tier II pre-K funding through fiscal 2027, per the fiscal note for HB1432. [7]

Fiscal reality versus reform ambitions

Governor Wes Moore has indicated to the Spending Affordability Committee that the Blueprint cannot continue in its current form, while House Appropriations Committee Chairman Delegate Ben Barnes has expressed strong reluctance to roll back education reforms, as reported by Fox Baltimore. The committee was told that Maryland's fiscal 2026 budget deficit is projected at $2.9 billion, with current revenues covering only 83 percent of expenditures.

The fiscal pressure is expected to intensify. By fiscal 2028, the state will exhaust the money set aside to cover Blueprint costs, requiring general fund support, according to Maryland Matters. The structural deficit is projected to grow to nearly $4.7 billion in 2028, then $5.2 billion in 2029, and $5.9 billion in fiscal 2030.

Early precedents for change

The 2024 session's changes were not the first. HB1426 extended the Prekindergarten Expansion Grant consolidation by four years, to fiscal 2030, saving money in the near term, according to the fiscal note for that bill. These moves represent early-stage modifications to a reform plan enacted in 2021, as the state adjusts its ambitions to its fiscal capacity.

Implementation challenges beyond funding

The AIB's review of local implementation plans identified common areas for growth that extend beyond dollars, including increasing educator diversity, supporting school leaders in achieving National Board Certification, and improving the use of data to monitor progress, according to the AIB's 2024 annual report. The board also found that Maryland's nine approved ESOL teacher preparation programs and two alternative preparation programs will not meet the need for ESOL and bilingual teachers, recommending expanded grow-your-own programs and conditional certification pathways, per a joint AIB/MSDE report.

These capacity concerns are directly relevant to the discussions about easing certification requirements for pre-K providers serving multilingual learners. The state faces a choice between modifying the Blueprint's timelines and requirements or finding new revenue to meet them, all while the projected gap between Blueprint costs and revenues widens.

Analysis

By the Formative Spaces Newsroom, written after the reporting above was filed.

Colorado tried this exact maneuver. The temporary cut lasted 15 years and drained $10 billion from schools.

During the Great Recession, Colorado lawmakers created a "budget stabilization factor" to temporarily reduce school funding. It was supposed to be a short-term fix. It lasted from 2009 to 2024, diverting nearly $10 billion from classrooms. Denver Public Schools alone lost over $1 billion. An entire cohort of Colorado children went through school without ever seeing full funding. Maryland's HB504, signed in May 2025, includes a similar trigger that could become permanent. A parent should assume the slowdown Moore just signed is the new floor, not a pause.

Moore's bill cuts the base per-pupil amount but shields funding for low-income, special ed, and English learner students.

HB504, signed into law as Chapter 237 on May 6, 2025, reduces the per-pupil foundation amount starting in fiscal 2027. By 2033, the gap reaches $434 per pupil versus what the Blueprint originally promised. But compensatory education, English learner, and special education formula grants are held at current-law levels, decoupled from the base. So a child in a well-resourced district with few high-need peers feels the cut most. A child in a high-poverty school sees less impact on paper, though the base funds things like teacher salaries that affect everyone.

An automatic funding freeze is now built into Maryland law. No vote required.

HB504 includes a trigger: if December revenue estimates fall 3.75 percent or more below March projections, per-pupil education aid freezes entirely for the following fiscal year, with no additional Title 5 funding. The old threshold was 7.5 percent. Halving the trigger makes a freeze roughly twice as likely. If Maryland's economy softens, a parent could see their district's funding flatline without any legislative debate. The mechanism is designed to make cuts automatic and depoliticized, which also makes them harder to reverse.

Sources

  1. Accountability and Implementation Board, State of Maryland. 2024 Annual Report View
  2. Maryland Department of Legislative Services. 2024 Fiscal Briefing View
  3. Maryland Department of Legislative Services. 2024FY Operating Budget Analysis - MSDE Aid to Education View
  4. Blueprint for Maryland's Future, AIB. Explore Blueprint - Pillar 1: Expand High-Quality Publicly Funded Full-Day Pre-K View
  5. Maryland Department of Legislative Services. Accountability and Implementation Board Blueprint for Maryland's Future - Joint Committee Report 2023 View
  6. Maryland General Assembly. House Bill 1441 - Early Childhood Education - Publicly Funded Prekindergarten Programs - Alterations (Chapter 165) View
  7. Maryland Department of Legislative Services. Fiscal and Policy Note for House Bill 1432 View
  8. Fox Baltimore (WBFF). How will leaders fix Maryland's $3 billion budget crisis? It's still unclear View
  9. Maryland Matters. Five-year state budget projection foresees 'enormous gap' not seen in two decades View
  10. Maryland General Assembly / Department of Legislative Services. Fiscal and Policy Note for House Bill 1426 View
  11. Maryland Department of Legislative Services. Fiscal and Policy Note for House Bill 504 (Excellence in Maryland Public Schools Act) View
  12. CPR News. State leaders celebrate end of school budget shortfalls but some districts worry about the future of funding View