A bill before the Senate Budget and Taxation Committee would create a task force to examine how Maryland’s education funding formula accounts for rapid student enrollment growth and to recommend changes before the next legislative session.

Sen. Karen Lewis Young and Frederick County officials told the committee the state’s funding formula uses the prior September 30 enrollment count to set per-pupil funding, which can leave fast-growing jurisdictions to carry the state share for newly enrolled students until the following fiscal year. Frederick County officials said the county experienced substantial student growth and that, for example, 804 students counted in 2023 were not recognized in state funding in time, creating an approximately $7 million shortfall in the state share that the county fronted.

The proposed task force would gather data and study best practices — including rolling averages, midyear adjustments or thresholds for jurisdictions exceeding a growth percentage — and report recommendations to the governor before the next session. Witnesses included the Frederick County executive, a county council member and the Maryland State Education Association, which said accurate and timely enrollment counts are critical because the formula also drives funding for special categories such as special education and multilingual learners.

Proponents said the aim is not to ask the state for immediate new funding but to devise a fairer formula so rapidly growing school districts are not penalized by timing; they suggested options such as multi-year rolling averages or limited midyear adjustments to prevent localities from having to forward-fund the state share. The bill sponsor said the task force would produce a report and recommendations to the governor and that the state should consider implementation steps after receiving the findings.

Supporters urged a favorable report so the task force can complete its analysis and present options before budget decisions for the next fiscal year.