SB 308
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 308 (Senator Ellis)
Education, Health, and Environmental Affairs Appropriations
Higher Education - Maryland Community College Promise Scholarship -
Eligibility
This bill exempts applicants for the Maryland Community College Promise Scholarship
(MCCPS) from the high school grade point average (GPA) requirements, for an initial
award, if the applicant graduated from high school five or more years before the date of
application. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: General fund expenditures increase by $35,200 in FY 2022 for one-time
costs. Expanding eligibility does not require additional spending; however, without
additional spending, more individuals may be added to the waiting list or fewer
scholarships may be awarded. Revenues are not affected.
(in dollars) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Revenues $0 $0 $0 $0 $0
GF Expenditure 35,200 0 0 0 0
Net Effect ($35,200) $0 $0 $0 $0
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: None.
Small Business Effect: None.
Analysis
Current Law: Chapter 554 of 2018 created a scholarship program in Maryland to provide
tuition assistance to students who attend a community college in the State and who meet
specified eligibility criteria, including an income limitation. MCCPS is a last-dollar award
that is applied after State or federal nonloan aid to eligible recipients has been applied; an
award cannot exceed $5,000 annually or actual tuition, whichever is less. Chapter 464 of
2019 specified that, if a local community college offers a Promise Scholarship, an award
from the statewide program must be applied before the award of the local scholarship.
To be eligible for the program, a student must:
 be eligible for in-state tuition and enroll at a community college, in an eligible
program;
 have earned at least a 2.3 high school GPA at the end of the first semester or the end
of the year of the senior year, for an initial award, or have earned at least a 2.5 GPA
while enrolled at a community college in the State; and
 have a gross adjusted income of $100,000 or less if the applicant is single or resides
in a single-parent household or of $150,000 or less if married or resides in a
two-parent household.
An applicant also has to attend the applicant’s local community college, except under
specified circumstances. In addition, an applicant must either enroll as a candidate for a
vocational certificate, a certificate, or an associate’s degree or participate in a registered
apprenticeship at a community college in the State. Further, an applicant must enroll in at
least 12 credits per semester or a sequence of credit or noncredit courses that leads to
licensure or certificate.
The Governor must appropriate at least $15.0 million annually for the program.
Initial awards are made based on greatest demonstrated need. Eligible applicants who do
not receive an award are placed on a waiting list. In subsequent years, priority is to be given
to prior-year recipients who remain eligible for the program. A recipient can receive the
award for a total of three years. To maintain the award, the recipient must complete
12 credits per semester or make satisfactory progress toward a vocational certificate and
earn a cumulative GPA of at least 2.5. The recipient must meet the designated income
requirements for the program, remain eligible for in-state tuition, apply annually, and
continue to make satisfactory academic progress as determined by the community college.
The Maryland Higher Education Commission (MHEC) must contact each school counselor
at each public high school in the State with information on MCCPS, including eligibility,
availability, and deadlines for the scholarship. In addition, MHEC and each
community college must post this information in a readily accessible location on their
respective websites. Finally, MHEC must annually report to the General Assembly on
specified aspects of its implementation of MCCPS including its outreach activities.
SB 308/ Page 2
State Expenditures: General fund expenditures increase by $35,180 in fiscal 2022 for
one-time contractual costs associated with enhancements to MHEC’s scholarship system,
known as the Maryland College Aid Processing System, necessitated by the bill. The
scholarship system must be upgraded to reflect the bill’s changes to eligibility for an award.
MHEC advises that the Office of Student Financial Assistance (OSFA) will need to create
a supplemental application that includes the date of high school graduation in order to
identify individuals that qualify for MCCPS due to removing the high school GPA
requirement for individuals that graduated five or more years prior to application.
Currently, OSFA primarily identifies individuals who may qualify for MCCPS using the
Free Application for Federal Student Aid (FAFSA) and the Maryland State Financial Aid
Application (MSFAA). FAFSA and MSFAA do not require individuals to report the year
the individual graduated from high school. MHEC advises that creating a supplemental
application will take six to nine months to develop and implement.
Expanding eligibility does not require additional spending; however, without additional
spending, more individuals may be added to the waiting list or fewer scholarship may be
awarded. It is unknown how many additional individuals will qualify under the bill.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Higher Education Commission; Baltimore City
Community College; Department of Budget and Management; Department of Legislative
Services
Fiscal Note History: First Reader - January 26, 2021
rh/rhh Third Reader - April 1, 2021
Revised - Amendment(s) - April 1, 2021
Analysis by: Caroline L. Boice Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 308/ Page 3


Statutes affected:
Text - First - Higher Education - Maryland Community College Promise Scholarship - Revisions: 18-3603 Education
Text - Third - Higher Education - Maryland Community College Promise Scholarship - Revisions: 18-3603 Education