SB 699
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Enrolled - Revised
Senate Bill 699 (Senator McCray)
Education, Health, and Environmental Affairs Appropriations
and Budget and Taxation
Baltimore Regional Neighborhood Initiative Program Fund
This bill makes permanent the annual mandated appropriation of $12.0 million for the
Baltimore Regional Neighborhood Initiative Program Fund. The bill takes effect
July 1, 2021.
Fiscal Summary
State Effect: No effect in FY 2022. Pay-as-you-go (PAYGO) general fund expenditures
increase by $9.0 million annually from FY 2023 through 2026. PAYGO general fund
expenditures increase by $12.0 million annually beginning in FY 2027, as discussed below.
Special fund revenues to the existing fund and expenditures from the fund increase
commensurately. The Department of Housing and Community Development can continue
to administer the program with existing resources. This bill makes permanent a
mandated appropriation beginning in FY 2023.
($ in millions) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
SF Revenue $0 $9.0 $9.0 $9.0 $9.0
SF Expenditure $0 $9.0 $9.0 $9.0 $9.0
PAYGO GF Exp. $0 $9.0 $9.0 $9.0 $9.0
Net Effect $0.0 ($9.0) ($9.0) ($9.0) ($9.0)
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: Although the bill does not directly affect local government operations or
finances, the bill may result in an increase in local revenues from increased economic
redevelopment in the Baltimore region.
Small Business Effect: Meaningful.
 Analysis
Current Law: Chapter 29 of 2016 established the Baltimore Regional Neighborhood
Initiative Program. The program provides strategic investment in local housing and
businesses and focuses on areas where modest investment will have an appreciable
neighborhood revitalization impact. Funds may be used for operating costs necessary to
implement various community enhancement projects throughout the Baltimore region,
including (but not limited to) down payment assistance for homebuyers to purchase and
rehabilitate homes, workforce and employment development programs, and strategic
demolition. Projects must be located in designated sustainable communities in
Baltimore City or in the inner-beltway communities of Baltimore or Anne Arundel
counties. For fiscal 2020 through 2022, the Governor is required to include an
appropriation of $12.0 million annually to the Baltimore Regional Neighborhood Initiative
Program Fund. The Governor’s proposed fiscal 2022 capital budget includes $12.0 million
for the fund.
State Fiscal Effect: As the General Assembly cannot mandate appropriations in the capital
budget, this analysis assumes that PAYGO general funds are used to meet the bill’s funding
requirement. Although the bill mandates ongoing spending of $12.0 million annually
beginning in fiscal 2023, the fiscal 2022 capital budget, as submitted by the Governor,
projects ongoing PAYGO general fund expenditures of $3.0 million annually to the fund
beginning in fiscal 2023 (after the current mandate expires). However, it is unknown if
successive capital budgets beginning in fiscal 2027 will continue to include $3.0 million
annually for the fund. Therefore, PAYGO general fund expenditures increase by
$9.0 million annually from fiscal 2023 through 2026 and are assumed to increase by
$12.0 million annually beginning in fiscal 2027.
Special fund revenues to and expenditures from the fund increase correspondingly each
year. To the extent any additional loans are made under the program due to the additional
funding mandated by the bill, special fund revenues increase further from loan repayments.
Local Fiscal Effect: Making the existing mandated appropriation permanent does not
have a direct effect on local government operations or finances, but local revenues
(e.g., residential and commercial property tax revenues) may increase from economic
development initiatives funded by the program.
Small Business Effect: Small businesses that are able to secure funding under the program
may be able to maintain or expand their activities as a result of the additional funding
provided by the bill.
SB 699/ Page 2
 Additional Information
Prior Introductions: None.
Designated Cross File: HB 867 (Delegate Smith) - Appropriations.
Information Source(s): Department of Budget and Management; Department of Housing
and Community Development; Department of Legislative Services
Fiscal Note History: First Reader - February 15, 2021
rh/mcr Third Reader - March 22, 2021
Enrolled - April 10, 2021
Revised - Amendment(s) - April 10, 2021
Analysis by: Thomas S. Elder Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 699/ Page 3


Statutes affected:
Text - First - Baltimore Regional Neighborhood Initiative Program Fund: 6-510 Housing and Community Development
Text - Third - Baltimore Regional Neighborhood Initiative Program Fund: 6-510 Housing and Community Development
Text - Enrolled - Baltimore Regional Neighborhood Initiative Program Fund: 6-510 []