Maryland public school funding comes from three primary sources:

The state of Maryland sends money to local school systems (called LEAs) based on a weighted-student formula called the Blueprint funding formula. The funding formula provides resources to local school systems based on the number of students enrolled at each school and the characteristics of those students. The formula also provides additional funding for specific programs that schools offer.[2]

The Blueprint for Maryland’s Future was passed by the Maryland General Assembly in 2021 to transform public education in the state into a world-class education system. The Blueprint increases state funding for education over the next 10 years, and changes how that money is allocated and tracked. The law focuses on equity, student achievement, and accountability.[3]

The Blueprint is a product of the recommendations made by the Commission on Innovation and Excellence in Education, more commonly known as the Kirwan Commission, which met over the course of three years (2017-2019). The commission was comprised of a cross-section of stakeholders, including education advocates, teachers, legislators, and experts to address education funding and needed approaches to better prepare students for success in the modern workforce. As a result of this work, the Blueprint prescribes new programs and innovative approaches to catalyze a world-renowned education system in Maryland.

In partnership with the Maryland State Board of Education, the Accountability and Implementation Board, and local school systems, the Maryland State Department of Education is reimagining programs and initiatives to best implement the Blueprint for Maryland’s Future.[4]

The Blueprint Funding Formula is a weighted-student formula that consists of three primary categories of funds. Within each category, there are funding components that provide funding for different programs or initiatives, supporting students to be successful in each aspect of their educational experience.

Base Amount. This is the largest component of the funding formula and is allocated to LEAs according to the total number of students enrolled in the system.

Weighted Amounts. This category provides LEAs with the financial resources needed to support specific student groups: Multilingual Learners, students with disabilities, and students who are economically disadvantaged. These amounts, sometimes referred to as targeted programs, are calculated by multiplying the number of eligible students in each of the above student groups by the specified per-pupil amounts each year.

Program Amounts. Unlike base per-pupil and weighted amounts, program amounts are allocated to LEAs to fund LEA costs not tied to student enrollment, but to district-level factors. For example, the transportation aid program is determined by the number of students transported, not enrolled. Likewise, Comparable Wage Index aid is provided to support additional LEA costs that some LEAs incur because of regional cost differences for supplies and personnel.

Each component type is calculated differently to direct funding to address specific needs at the LEA level. Through the wealth-equalization process, funding schools is a shared effort between the state and counties. Counties contribute their share — either through Maintenance of Effort (MOE) or a required Local Share under the Blueprint, whichever is greater.[5]

The Blueprint for Maryland’s Future policies are grouped into five areas — called pillars. These are described further below.

The Blueprint increases funding accountability for districts through the new “minimum school funding” provision, which requires districts to distribute funding to specific schools based on an individual school’s student enrollment. Minimum School Funding mandates that each public school in Maryland receives at least 75% of the per pupil funding from the Foundation program and seven targeted funding programs:

Additionally, schools must receive 100% of the per pupil funding for the concentration of poverty grant and for private providers participating in full-day prekindergarten programs. [7] LEAs must report expenditure data to the Accountability and Implementation Board (AIB) monthly, to track the LEA’s compliance with minimum school funding requirements at the school system and individual school level. This ensures that funding flows and is spent on students at their actual schools, rather than being held centrally by the district.[8]

The Foundation program is designed to provide a base amount of funding for all students. The base cost includes funds for classroom, school and system staffing, instructional materials, technology, operations and maintenance, and administration. Allowable expenses under this category are broad, including instructional salaries, supplies, administration, services, and any cost that supports all students.  

The Comparable Wage program provides certain LEAs with higher costs of living additional funding to account for the higher-than-average costs. LEAs may use these funds for any of the expenditure examples or categories identified under the Foundation Program.

The College and Career Ready program provides a set amount per student to support students who are identified as college and career ready by the end of 10th grade. LEAs may use these funds for personnel and costs related to Dual Enrollment, Advanced Placement, CTE, IB, and other programmatic expenses.

The Transitional Supplemental Instruction program is designed to provide additional support to students in kindergarten through third grade with a primary focus on reading and literacy. The funding for this program is designed to provide additional tutoring, supplemental instruction, and interventions to support struggling readers and struggling learners. Salaries, supplies, and fixed charges related to services for early struggling learners are allowable expenses under this program.

The Prekindergarten program is an expansion of high-quality prekindergarten programs for all children, with an immediate focus on children from families with annual incomes at or below 300% of the federal poverty level. Expenditures in a broad range of categories (administration, salaries, supplies, services, maintenance, etc.) are allowed if they meet the needs of public prekindergarten students.

The Compensatory Education program is designed to provide the additional funding needed so students at risk of academic failure can be successful. Funds under this program can cover costs for before and after school programs, summer school, additional transportation, academic interventions, social workers, positive behavior programming, smaller class sizes, and enrichment activities and materials. Therefore, expenditures can cover a broad range of categories (administration, salaries, supplies, services, maintenance, etc.) if they meet the needs of students who qualify for Free and Reduced Price Meals only after the Foundation minimum school funding requirement has been met.

The Multilingual Learners program is designed to provide the additional funding needed so students whose home language is other than English can be successful. Expenditures can cover a broad range of categories (administration, salaries, supplies, services, maintenance, etc.) if they meet the needs of students who qualify for English Language services only after the Foundation minimum school funding requirement has been met.

The Special Education program is designed to provide the additional funding needed so students receiving special education services can be successful. Expenditures in the following categories may be used to meet the needs of students who qualify for IEP services only after the Foundation minimum school funding requirement has been met: special education services, personnel, health services, transportation, operations, and fixed charges.[9]

The Blueprint for Maryland’s Future Accountability & Implementation Board (AIB) is an independent unit of state government that was created to ensure that the Blueprint for Maryland’s Future is implemented as intended. Along with holding the state and local governments accountable for implementing the Blueprint with fidelity, the AIB evaluates whether the Blueprint’s outcomes are being achieved.[10]

Local Education Agencies (LEAs) must report monthly budget and spending data through the Blueprint Financial Reporting System, starting July 1, 2024. The Maryland State Department of Education (MSDE) and the AIB will use this data to evaluate whether schools meet the required funding thresholds. Full compliance is expected by the 2026–2027 school year, which means by FY27 and each fiscal year thereafter, each LEA shall demonstrate that the minimum school funding level (at least 75%/100% as applicable) of per pupil formula funding follows all students to their school. The AIB may withhold state funds from schools or districts that have not made sufficient progress on an implementation plan or taken appropriate steps to improve student performance.[11]

No, but under Ed. §5-406(f), the AIB was required to establish an appeals process through which local school systems may request greater flexibility in meeting this requirement for reasons including a significant shift in total enrollment or at–promise enrollment between schools from the prior school year to the current school year.[12]

LEAs are encouraged to submit a waiver request as soon as they become aware a waiver may be necessary or not later than December 1st in the first fiscal year for which the waiver is being requested. The waiver request must include opportunities for public review and comment. Waiver guidance can be found here. [13]

For an overview of the Blueprint for Maryland’s Future policies, funding structures, and implementation, navigate to Maryland's official Blueprint website. To learn more about the Accountability & Implementation Board (AIB) and policy updates related to implementation, navigate to the AIB website.