SB 858
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
First Reader
Senate Bill 858 (Senator Hayes)
Budget and Taxation
Higher Education – Coppin State University – Funding
This bill requires the Governor to include an appropriation of at least $3.0 million annually
in the operating or capital budget for fiscal 2023 through 2026 to Coppin State University
(CSU) to establish a new student union facility and two student dormitories. The University
System of Maryland (USM) must prioritize using public-private partnership (P3)
agreements to build these facilities. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: General fund expenditures increase by at least $3.0 million from FY 2023
through 2026. To the extent that there are P3 agreements, CSU higher education revenues
may be impacted. However, any such impact cannot be reliably estimated. This bill
establishes a mandated appropriation for FY 2023 through 2026.
($ in millions) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Revenues $0 $0 $0 $0 $0
GF Expenditure 0 3.0 3.0 3.0 3.0
Net Effect $0.0 ($3.0) ($3.0) ($3.0) ($3.0)
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: None.
Small Business Effect: Minimal, although use of P3 agreements to build the facilities
could include a small business.
 Analysis
State Fiscal Effect: The Governor’s proposed fiscal 2022 Capital Improvement Program
(CIP), which covers the proposed CIP for fiscal 2023 through 2026, does not include
funding for CSU to establish a new student union facility and two student dormitories. The
Department of Budget and Management advises that the State does not typically fund
revenue-producing buildings such as dormitories, student unions, or book stores with
general obligation bonds. These projects are usually funded with USM auxiliary revenue
bonds, auxiliary accounts, grants, and private funds. Thus, since the bill specifies the
mandate can be satisfied using either operating or capital funds, it is assumed that general
fund expenditures increase by $3.0 million annually for fiscal 2023 through 2026.
There are many different models of P3 agreements, but the models generally involve a
government agency and private partner sharing revenue. Therefore, to the extent that a
P3 agreement includes revenue sharing, CSU higher education revenues are likely affected.
Any such impact cannot be reliably estimated and will depend on any particular agreement.
In addition, to the extent these mandated funds result in the completion of a new student
union facility and student dormitories, CSU revenues (from room and board fees) and
expenditures (for operating costs) increase. These impacts are not part of this fiscal
analysis, but they are likely significant.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Department of Budget and Management; Board of Public Works;
University System of Maryland; Department of Legislative Services
Fiscal Note History: First Reader - March 2, 2021
rh/rhh
Analysis by: Caroline L. Boice Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 858/ Page 2


Statutes affected:
Text - First - Higher Education – Coppin State University – Funding: 15-126 Education