SB 894
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 894 (Senator Rosapepe)
Finance and Budget and Taxation Rules and Executive Nominations
Post-Crisis Jobs Act of 2021
This emergency bill establishes three new workforce development grant programs within
the Maryland Department of Labor (MDL) and establishes mandated appropriations
totaling at least $100.0 million for the three programs in fiscal 2023 only. The bill also
authorizes new (or renewing) applicants for certain licenses or permits issued under the
Business Occupations and Professions, Business Regulation, Health Occupations, or
Education articles to complete their education and training (or continuing education and
training) requirements through a digital learning program that meets relevant accreditation
and program requirements otherwise established. The bill also requires MDL to provide
demographic and related information about unemployment insurance (UI) recipients to the
chief elected official of a county upon request, subject to specified requirements.
Fiscal Summary
State Effect: No change in federal fund expenditures for FY 2021 or 2022 as no federal
funds are available for the specified purposes. In FY 2023, the bill mandates allocation of
existing federal funds to the three grant programs established by the bill. However, no
federal funding is available for the purposes of this bill and must, therefore, be reallocated
from other sources. Any administrative costs necessary to operate the programs are covered
by federal funds designated for them; funds used for administrative purposes will reduce
funds available for grants administered by the programs. Higher education revenues and
expenditures, and UI program revenues and expenditures, may be affected. This bill
establishes mandated appropriations for FY 2023.
Local Effect: To the extent such funding would not have been provided to local
government entities absent the bill and they apply for and receive grants under the newly
established programs, local governments may benefit. Local expenditures may increase to
the extent local governments request information on UI recipients.
Small Business Effect: Meaningful.
 Analysis
Bill Summary:
The bill defines “digital learning” as any type of learning that does not require a physical
presence.
Exceptions to Digital Learning Permissions
The bill’s authorization for new (or renewing) applicants to complete their education and
training (or continuing education and training) requirements through a digital learning
program does not apply to a license, certification, or any other authorization issued by the
State Board of Dental Examiners or the State Board of Pharmacy. Further, such
authorization also does not apply to a license or registration to practice massage therapy.
Information Sharing with Local Governments
On request and for purposes consistent with the bill and other specified legislation, MDL
must provide to the chief elected official of a county demographic data and the addresses,
occupations, and last known employers of UI recipients who live in that county. A chief
elected official of a county may (1) share the provided information with the governing body
of the county and (2) request the information on behalf of a political subdivision within the
county and provide the information to the political subdivision. The Secretary of Labor
may adopt regulations to carry out these provisions, as specified.
Digital Learning Conversion Grant Program
The purposes of the Digital Learning Conversion Grant Program are to (1) allow trainees
(including students, apprentices, and employees) to complete educational or training
programs through digital learning and (2) provide financial assistance to specified
organizations that provide any required education, licensing, or certification program
through digital learning. For fiscal 2021 and 2022, the Governor must include an
appropriation of applicable federal funding allocated to the State under the Coronavirus
Response and Relief Supplemental Appropriations Act and any other federal legislation
enacted in calendar 2020 through 2022 to fund the program. For fiscal 2023 only, the
Governor must include an appropriation of at least $20.0 million in the annual budget bill,
which must consist only of federal funding allocated to the State under the Coronavirus
Response and Relief Supplemental Appropriations Act and any other federal legislation
enacted in calendar 2020 through 2022.
MDL must establish requirements for grant applications, a process for reviewing grant
applications, and criteria to award grants on a competitive basis. Appropriations made to
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the program may be used for administrative costs. Eligible applicants include
(1) employers or apprenticeship sponsors; (2) public or private training providers;
(3) colleges or universities; and (4) the Maryland State Department of Education (MSDE)
or local school boards. Grant amounts must be awarded in proportion to the number of
eligible applicants to whom each organization provides training; an organization may
receive only one grant per fiscal year.
Every three months, MDL must report to the General Assembly on (1) the number and
types of applicants that received grants; (2) the grant amount received by each applicant;
(3) total number of students, apprentices, and trainees that participated in the program; and
(4) progress in achieving the purposes of the program.
Basic Numeracy and Literacy Skills Grant Program
The Basic Numeracy and Literacy Skills Grant Program provides grants to eligible
providers and directly to students, apprentices, or trainees for training programs that meet
or exceed world-class education standards. The amount of a grant awarded under the
program to a student, apprentice, or trainee may not exceed $5,000. On or before
September 1 of the fiscal year immediately preceding the fiscal year in which the grant is
to be awarded, an eligible provider must demonstrate to MDL whether the eligible provider
met or exceeded the standards for college and career readiness required to be developed by
the Blueprint for Maryland’s Future (Chapter 36 of 2021). MDL must adopt regulations to
carry out the program, including requirements and processes for reviewing grant
applications and awards to eligible providers.
For fiscal 2021 and 2022, the Governor must include an appropriation of applicable federal
funding allocated to the State under the Coronavirus Response and Relief Supplemental
Appropriations Act and any other federal legislation enacted in calendar 2020 through 2022
to fund the program. For fiscal 2023 only, the Governor must include an appropriation of
at least $20.0 million in federal or State funds in the annual budget bill, which, nonetheless,
must consist only of federal funding allocated to the State under the Coronavirus Response
and Relief Supplemental Appropriations Act and any other federal legislation enacted in
calendar 2020 through 2022. Funds allocated to the program may be used to cover
reasonable administrative costs.
Recruitment of High Growth Industry Workers Grant Program
The purposes of the Recruitment of High Growth Industry Workers Grant Program are to
(1) develop a well-trained and productive workforce that meets the needs of the State’s
economy in high-growth industries; (2) encourage employers to hire apprentices in
high-growth industries; and (3) assist employers by offsetting additional costs associated
with hiring apprentices, including recruitment, processing new apprentices, and any
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necessary related instruction. MDL must distribute grant funds to local workforce boards
with the same formula that is used to determine the Workforce Innovation and Opportunity
Act (WIOA) funds for adults to local workforce areas. Local boards may use grant funds
– which must not exceed $8,000 per apprentice employed by an employer – to cover
administrative costs; engage, upskill, and connect specified residents to employment; and
provide subsidized employment opportunities.
For fiscal 2021 and 2022, the Governor must include an appropriation of applicable
federal funding allocated to the State under the Coronavirus Response and Relief
Supplemental Appropriations Act and any other federal legislation enacted in
calendar 2020 through 2022 to fund the program. For fiscal 2023 only, the Governor must
include an appropriation of at least $60.0 million in the annual budget bill, which must
consist only of federal funding allocated to the State under the Coronavirus Response and
Relief Supplemental Appropriations Act and any other federal legislation enacted in
calendar 2020 through 2022. Appropriated funds must be used to provide funding for such
grants and to cover administrative costs. MDL must adopt regulations to carry out the grant
program.
Current Law:
Licensure and Permit Authority
Generally, each board, commission, or other licensing or permitting entity sets its own
standards regarding the education and training required for the license or permit in
accordance with general requirements set out in statute. Statute does not explicitly provide
for a blanket authorization (or restriction) for training and education courses related to
licensing, registration, or permitting being delivered virtually on a permanent basis. Many
boards currently authorize all or a portion of continuing education to be provided online.
Additionally, there has been greater flexibility in meeting requirements under the current
state of emergency and catastrophic health emergency declarations.
College and Career Readiness Standards
The Blueprint for Maryland’s Future (Chapter 36 of 2021) requires the State Board of
Education (SBE), in consultation with specified entities, to develop college and career
readiness standards for secondary school students. It establishes a goal of the State that
students enrolled in public schools meet the standards by the end of the 10th grade and no
later than high school graduation. Initially, meeting the standards entails scoring at
specified proficiency levels on State-administered assessments in English and
mathematics. After SBE completes an empirical study of the proficiency levels necessary
to succeed in entry-level postsecondary courses, the revised standards must reflect the
findings of the study.
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Apprenticeships and Training
For an overview of apprenticeships in Maryland, see the Appendix – Apprenticeships.
Currently, the Division of Workforce Development and Adult Learning (DWDAL)
operates workforce development programs, including employment services, WIOA, and
labor market information programs. It also manages the adult education programs,
including adult literacy programs and skills training for correctional institutions. The
division’s mission is to support the State’s economic growth through a workforce
development, education, and training system that is responsive to the needs of adult
learners, job seekers, employers, and all system partners.
Significant investments are already made into Maryland’s 12 local workforce boards
through WIOA. For example, in fiscal 2021, DWDAL allocated nearly $11 million in
federal WIOA funds to local workforce boards for the Adult Program and nearly
$10.3 million in funds for the Dislocated Worker Grant program. Local boards already
work to support businesses and jobseekers in skill gaining activities, including
apprenticeship activities, as a primary function of these monies. Maryland’s
WIOA 2020-2024 State Plan provides greater detail on training and apprenticeship
programs funded.
The Recovery for the Economy, Livelihoods, Industries, Entrepreneurs, and Families
(RELIEF) Act (Chapter 39 of 2021) provides additional funding for workforce
development programs via the Recovery Now Fund in fiscal 2021. This funding will be
distributed to local workforce development boards using the same formula as fiscal 2021
WIOA Adult Program funds.
State Fiscal Effect:
Expenditures for the Maryland Department of Labor
MDL advises the three grant programs established by the bill have a significant effect on
the department. For fiscal 2023 alone, the three programs are to be allocated at least
$100.0 million in federal funds, almost matching DWDAL’s $132.0 million fiscal 2022
allowance.
The Department of Legislative Services advises that no federal funding has been allocated
for the purposes of this bill. The fiscal 2022 budget, as enacted, does allocate $37.5 million
in federal coronavirus relief funding in both fiscal 2022 and 2023 directly to local
Workforce Investment Boards; however, no other appropriations of federal coronavirus
relief funds relate to workforce and job training grant programs. To the extent that federal
funds are redirected from other sources to meet the bill’s mandate, they will no longer be
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available for their other designated purposes. Thus, net federal revenues and expenditures
are not assumed to increase – merely to be repurposed, if possible. This analysis does not
include the possibility of additional federal relief funding becoming available in new
federal legislation, as no new federal legislation is pending.
MDL advises that the vast majority of federal workforce and adult learning funds in
Maryland come from the U.S. Department of Labor and the U.S. Department of Education
for very specific purposes. Further, MDL is not aware of any federal funds that could be
diverted to these programs and activities in any fiscal year. More specifically, MDL advises
that the Governor cannot re-commit federal grant dollars from fiscal 2021 and 2022 unless
the grants were applied for and received for the purpose of these new programs. As the bill
requires only available federal funds to be allocated to the programs in fiscal 2021 and
2022, and there are no federal funds specifically available for these purposes, this analysis
assumes that no funding is provided in fiscal 2021 or 2022. To the extent that federal funds
become available, the programs may receive funding in those years. The mandated
appropriations totaling $100.0 million apply only to fiscal 2023, so this analysis assumes
that federal funds are not provided in subsequent years, except for closeout activities as
discussed below.
To the extent staffing is required to set up, administer, and close out the grant programs
established under the bill, federal funds designated for each grant program may be used to
cover these administrative expenses. Any such funds designated for administration reduce
the amount of funds available to make grants.
For illustrative purposes only, if the full $100.0 million in mandated appropriations were
transferred from other federal funding sources to meet the mandate for fiscal 2023, MDL
would need to hire contractual staff at a cost of about $268,775 in fiscal 2022 to set up the
programs (even though it is not clear such funding would be available then), $422,736 in
fiscal 2023 to administer the programs and $109,500 in fiscal 2024 to close out the
programs as discussed below.
This estimate reflects the cost of MDL hiring 6.5 FTE contractual staff to administer the
three programs, including 2.5 FTE project managers, an apprenticeship navigator, an
education program specialist, and two fiscal specialists to set up, administer, and establish
requirements for the various grant programs in the bill. It assumes that staff are hired in
January 2021. It includes salaries, fringe benefits, one-time start-up costs, and ongoing
operating expenses.
Contractual Positions 6.5
Salaries and Fringe Benefits $231,016
Operating Expenses 37,759
Total FY 2022 MDL Administrative Expenditures $268,775
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Future year expenditures reflect full salaries with annual increases, elimination of one-time
expenses, and ongoing operating expenses. This analysis also assumes these contractual
staff are no longer needed by October 2023 after various closeout activities for the
programs have been completed.
This estimate does not include any health insurance costs that could be incurred for
specified contractual employees under the State’s implementation of the federal Patient
Protection and Affordable Care Act.
Further, this estimate does not include other costs that are likely incurred for program
oversight (such as travel) or necessary costs to reimburse for federally funded staff at MDL
providing support to the contractual staff. Such costs have not been quantified and are
assumed to be covered by mandated program funding.
Other Impacts
Additionally, MSDE advises that the workload for its Office of Program Approval may
increase to handle an increase in requests from colleges and universities to convert or
transfer educational programs to digital learning formats. To the extent that MSDE requires
additional contractual assistance to manage any such increase in workload, program
funding can support short-term staffing for that purpose. Any such costs are not reflected
in this analysis as they would be covered by existing funds.
MSDE, Baltimore City Community College, and the senior public institutions of
higher education are explicitly eligible for grants under the Digital Learning Conversion
Grant Program; they are also likely eligible under the Basic Numeracy and Literacy Skills
Grant Program.
MDL advises that the requirement for the department to share certain claimant data with
counties upon request likely conforms to federal requirements, but that associated costs are
not reimbursable from the federal government. MDL will charge counties that choose to
request the data a fee to cover the costs of providing the data. Typical fees have a fixed
component of $5,000 to $10,000 and then a variable component based on the number of
requests received. Accordingly, revenues and expenditures for MDL increase beginning as
early as fiscal 2021 by an unknown, but likely modest, amount to th