HB 1245
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Enrolled - Revised
House Bill 1245 (Delegate Washington)
Appropriations Education, Health, and Environmental Affairs
and Budget and Taxation
Guaranteed Access Grant and Next Generation Scholars of Maryland –
Alterations
This bill alters the eligibility criteria for students to prequalify for the Guaranteed Access
(GA) grant so that a student in grade 9 or 10 who is eligible for free or reduced-price meals
(FRPM) as specified automatically prequalifies for the award if the student meets other
existing eligibility requirements. (Only a student in grade 7 or 8 may currently prequalify
for a GA award.) The bill makes the current $5.0 million mandated appropriation for the
Next Generation Scholars of Maryland Program permanent beginning in fiscal 2024. The
existing reporting requirement is also expanded and made permanent and annual. The bill
takes effect July 1, 2021.
Fiscal Summary
State Effect: No effect in FY 2022 or 2023. Beginning in FY 2024, general fund
expenditures increase by $5.0 million annually due to making the mandated appropriation
permanent. Special fund revenues and expenditures increase correspondingly. Beginning
in FY 2025, additional funds from the Educational Excellence Award (EEA) Program may
be obligated for the GA grant portion of the scholarship program. This bill continues a
mandated appropriation beginning in FY 2024.
($ in millions) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
SF Revenue $0 $0 $5.0 $5.0 $5.0
GF Expenditure $0 $0 $5.0 $5.0 $5.0
SF Expenditure $0 $0 $5.0 $5.0 $5.0
Net Effect $0.0 $0.0 ($5.0) ($5.0) ($5.0)
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: No direct fiscal impact, although eligible students in eight school systems
qualify to participate in the mandated funding.
Small Business Effect: Minimal for small businesses; however, the bill may have a
meaningful impact on nonprofit organizations that may qualify or continue to qualify to
administer the program in one or all of the eight eligible school systems.
Analysis
Bill Summary: Specifically, a student in grade 9 or 10 who meets other existing eligibility
requirements automatically prequalifies for an award if the student is (1) eligible for FRPM
or (2) attends a school that participates in the U.S. Department of Agriculture Community
Eligibility Provision (better known as CEP) and the student is identified by direct
certification or income information provided by the family of the student to the local school
system on an alternative form developed by the Maryland State Department of Education
(MSDE).
The bill alters the requirements for the Next Generation Scholars of Maryland Program to
allow a matriculation assistance program as an alternative to an intensive summer bridge
program for students entering an institution of higher education directly from high school.
The annual report must include the potential for allocating additional funds for longitudinal
data collection of the number of students matriculating to institutions of higher education
each year, the number of students receiving retention services each year, and postsecondary
outcomes for those two categories of students.
Current Law:
Guaranteed Access Grant
The GA grant is a component of the Delegate Howard P. Rawlings Educational Excellence
Awards program that covers 100% of need when combined with a federal Pell grant for
the State’s lowest income students. The maximum award is capped at the cost of education
at the highest cost four-year University System of Maryland institution, excluding the
University of Maryland, Baltimore Campus and the University of Maryland Global
Campus. The maximum award for the 2021-2022 award cycle is $19,400. Students that
meet all program criteria, such as enrolling directly from high school and having certain
family income limits, are guaranteed funding.
A student in grade 7 or 8 can prequalify for a GA grant to be used at the time of enrollment
at an institution of higher education. To prequalify, a student must agree in writing, as a
secondary and undergraduate student, to (1) satisfy the attendance policy of the applicable
school; (2) refrain from substance abuse; (3) provide information required by the Maryland
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Higher Education Commission (MHEC) or the State Board of Education (SBE); (4) apply
for admission to an institution of higher education during the student’s senior year in
high school; (5) complete and file on a timely basis applications for federal student aid for
each year that the student plans to enroll in postsecondary education; (6) participate in the
Next Generation Scholars of Maryland Program until the student graduates from
high school and matriculates at an institution of higher education; (7) maintain a
cumulative grade point average of at least 2.5 on a 4.0 scale or its equivalent; and (8) satisfy
any other program requirements set by the Office of Student Financial Assistance, MHEC,
SBE, or MSDE.
In addition, for academic years 2017-2018 and 2018-2019, a student in grade 9 who
otherwise met the prequalifying conditions for grades 7 and 8 students described above
could prequalify if the student applied and met the financial need standards established by
MHEC.
Next Generation Scholars of Maryland
MSDE, in collaboration with MHEC, the local boards of education, local superintendents,
and institutions of higher education, must administer the Next Generation Scholars of
Maryland Program.
The program must provide guidance and services to students who qualify for a GA grant
to assist the students in successfully (1) completing a college preparatory curriculum;
(2) graduating from high school; (3) matriculating at an institution of higher education; and
(4) making timely progress to complete a degree program.
To administer the Next Generation Scholars of Maryland Program, MSDE must:
publicize the program through community outreach and marketing materials;
award grants to nonprofit organizations to administer the program;
solicit applications from nonprofit organizations to administer the program in local
school systems; and
give priority to applications from Maryland-based nonprofit organizations and that
include business and institution of higher education partners.
The following guidance and services must be provided to students participating in the
program:
a high school graduation plan;
summer work or internship opportunities;
financial aid literacy assistance;
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career interest assessments;
mentorship and one-on-one counseling;
visits to college campuses and workplaces;
an intensive summer bridge program for students entering an institution of higher
education directly from high school; and
a plan to matriculate and graduate from an institution of higher education.
For fiscal 2020 through 2023, the Governor must include in the annual budget bill an
appropriation of $5.0 million for the program. MSDE must use the mandated funding to
distribute grants to nonprofit organizations that are selected in accordance with specified
priorities to administer the program in local school systems in which at least 50% of the
students are eligible to receive a free lunch under National School Lunch Program (NSLP)
in the 2015-2016 school year.
There is a Next Generation Scholars of Maryland Program Fund to provide funds to
administer the program. MSDE must administer the fund. The Next Generation Scholars
of Maryland Program Fund is a special, nonlapsing fund that consists of (1) money
appropriated in the State budget; (2) interest earnings; and (3) any other money from any
other source given to the fund. The fund may only be used to administer the program, and
expenditures from the fund may be only in accordance with the State budget. Any
investment earnings of the fund must be credited to the fund.
On December 1, 2020, and December 1, 2022, MHEC and MSDE must report on the
implementation of the program as specified.
National School Lunch Program
NSLP is one of the federal programs for FRPM in schools. To be eligible for free meals, a
child must be from a family with an annual income at 130% or less than the federal poverty
guidelines, which was $31,525 for a child from a family of four for the 2015-2016 school
year. To be eligible for reduced-price meals, a child must be from a family with an annual
income at 185% or less than the federal poverty guidelines, or $44,863 for a child from a
family of four for the 2015-2016 school year.
The following eight local school systems met the qualifications for the $5.0 million
mandated appropriation for the Next Generation Scholars of Maryland Program to be
administered in the school system due to having at least 50% of their students eligible to
receive free lunch under NSLP during the 2015-2016 school year:
Allegany County Public Schools;
Baltimore City Public Schools;
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Caroline County Public Schools;
Dorchester County Public Schools;
Kent County Public Schools;
Prince George’s County Public Schools;
Somerset County Public Schools; and
Wicomico County Public Schools.
State Fiscal Effect: Under current law, the Governor is mandated to appropriate
$5.0 million for the program through fiscal 2023. Beginning in fiscal 2024, general fund
expenditures increase by $5.0 million annually due to making the mandated appropriation
permanent.
The mandated appropriation is specifically to be used to fund the Next Generation Scholars
of Maryland Program in local school systems that had at least 50% of their students eligible
to receive a free lunch under NSLP during the 2015-2016 school year. Special fund
revenues and expenditures increase correspondingly, assuming the full mandated
appropriation of $5.0 million is spent each year.
MSDE can continue to use a portion of the mandated funding to oversee the program, with
the remaining funds being for awards to nonprofit organizations to operate the program in
the eight local school systems. MSDE can continue to produce the annual report including
the additional information required by the bill.
Beginning in fiscal 2025, additional funds from the EEA Program may be obligated for the
GA grant portion of the scholarship program as the tenth graders in the Next Generation
Scholars of Maryland Program who qualify in the 2021-2022 school year (fiscal 2022)
matriculate at higher education institutions. According to the December 2020 report
approximately 4,100 students were served by the Next Generation Scholars Program in
fiscal 2021; however, it is unknown how many students first qualified in grade 9 under
current law.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
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Information Source(s): Maryland State Department of Education; Maryland Higher
Education Commission; University System of Maryland; Morgan State University;
Department of Budget and Management; Department of Legislative Services
Fiscal Note History: First Reader - March 15, 2021
rh/rhh Third Reader - March 30, 2021
Revised - Amendment(s) - March 30, 2021
Enrolled - May 10, 2021
Revised - Amendment(s) - May 10, 2021
Analysis by: Caroline L. Boice Direct Inquiries to:
(410) 946-5510
(301) 970-5510
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Statutes affected: Text - First - Guaranteed Access Grant and Next Generation Scholars of Maryland – Alterations: 18-303 Education, 18-303.1 Education, 5-202 Education, 21-257 Education
Text - Third - Guaranteed Access Grant and Next Generation Scholars of Maryland – Alterations: 18-303 Education, 18-303.1 Education, 5-202 Education, 21-257 Education
Text - Enrolled - Guaranteed Access Grant and Next Generation Scholars of Maryland – Alterations: 18-303 Education, 18-303.1 Education, 5-202 Education, 21-257 Education