A Budget and Taxation Committee presenter explained Senate Bill 136 would allow unused Safe Schools Fund allocations to be reallocated within the same fiscal year to other counties that "demonstrate need." The presenter said the fund was created in 2018 and that under current law unused local allocations remain in the special fund instead of being redistributed that year.

The presenter said, "right now the funds are distributed proportionally to each school in the state. This would allow those grant funds to be reallocated to school systems that have fully extended their allocation and demonstrate need within the same fiscal year." The presenter added the formula is based on number of schools, not the number of students, and that grants are awarded by the Center For School Safety in collaboration with the IAC.

Senator Hetleman asked which counties did not apply in 2024 and how decisions would be made about redistributing unused amounts. The presenter named four jurisdictions that did not apply in 2024: Baltimore City, Cecil County, Frederick County and Howard County. Hetleman asked, "Is there a way to tighten that up so that ... those decisions are made equitably?" The presenter responded that the bill is silent on specific reallocation criteria and that language could be amended to provide priorities or standards for the Center to follow.

Committee members noted that $10,000,000 of the fund is earmarked by statute for School Resource Officers or equivalent personnel coverage, while additional smaller amounts (about $600,000 from school bus fines) also flow into the same special fund. The presenter said because the fund is a special fund, unused dollars historically have remained in the fund and carried forward, sometimes producing balances greater than the annual appropriation.

Members raised broader fiscal questions: the presenter said the BRFAA (Budget Reconciliation and Financing Act) contains a provision that would maintain the $10,000,000 annual mandate but could eliminate the fund's rollover, which would change how unused allocations are handled (money would revert to the general fund under that proposal). One committee member summarized the conversation by saying, "this seems like a problem, solution and search for a problem," noting that if counties are not requesting money because they do not need it, the rollover mechanism still keeps the dollars for school safety in subsequent years.

There was no final action on the bill; the committee recorded that the bill was held for further consideration.