SB 943
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Enrolled - Revised
Senate Bill 943 (Senator Guzzone)
Budget and Taxation Appropriations
University of Maryland Strategic Partnership Act of 2016 - Appropriations,
Degree and Credential Programs, and Center for Cybersecurity
This bill codifies the Center for Cybersecurity at the University of Maryland Baltimore
County (UMBC) and requires the Governor to appropriate $3.0 million for the center
annually beginning in fiscal 2023. The bill also increases, beginning in fiscal 2023,
mandated appropriations by $2.5 million each for the Center for Maryland Advanced
Ventures at the University of Maryland (CMAVUM) and the University of Maryland
Center for Economic and Entrepreneurship Development (UMCEED). A portion of the
mandated funding is for the development and location of technology companies in
Baltimore City and Prince George’s County. In addition, for fiscal 2023 through 2027, the
Governor must appropriate at least an additional $4.0 million to the University System of
Maryland (USM) Office to increase the estimated funding guideline attainment levels of
USM institutions as specified. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: No effect in FY 2022. General fund expenditures increase by at least
$13.9 million annually in FY 2023 through 2027 due to the mandated funding and related
effects. Any impact due to the USM funding guideline attainment ends in FY 2027,
although $8.0 million in mandated appropriations and approximately $1.0 million in related
formula impacts continue in FY 2028 and beyond, as explained and detailed below. USM
higher education revenues and expenditures increase by $12.0 million from FY 2023
through 2027 and then $8.0 million annually beginning in FY 2028 (not shown below).
This bill establishes and increases mandated appropriations beginning in FY 2023.
($ in millions) FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Revenues $0 $0 $0 $0 $0
GF Expenditure 0 13.9 14.2 14.2 14.2
Net Effect $0.0 ($13.9) ($14.2) ($14.2) ($14.2)
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: Local community college revenues and expenditures increase due to
additional State aid under the Cade formula, as discussed below.
Small Business Effect: Potential meaningful.
Analysis
Bill Summary: Specifically, the Center for Cybersecurity is housed within the College of
Engineering and Information Technology at UMBC. The center provides interdisciplinary
academic and research leadership, partnership, innovation, and outreach by streamlining
academic, research, workforce development, and technology incubation activities related
to cybersecurity. By October 1 each year, the center must report on the use of State funds
in the field of cybersecurity as specified.
Beginning in fiscal 2023, $1.5 million of the additional $2.5 million mandated
appropriation for CMAVUM must be used to encourage the development and location of
university-created or -sponsored technology companies in Baltimore City.
UMCEED must develop degree and credential programs in quantum technologies,
advanced data computing, and information technologies, as specified.
Beginning in fiscal 2023, the Governor must include in the annual budget an appropriation
of at least $2.5 million to UMCEED to be used to encourage the development and location
of university-created or -sponsored technology companies in Prince George’s County.
For fiscal 2023 through 2027, the Governor must appropriate in the annual budget at least
an additional $4.0 million to USM Office for the purpose of increasing the estimated
funding guideline attainment levels of the primarily residential USM institutions. USM
must allocate the funds each year in a manner that brings the primarily residential
institutions with the lowest estimated funding guideline attainment levels in fiscal 2021 as
close as possible to a 68% estimated funding guideline attainment level by fiscal 2027. The
funds distributed each year through fiscal 2027 are in addition to the annual appropriation
for each institution.
Current Law: Chapter 25 of 2016 formally established a strategic partnership between
two distinct University of Maryland (UM) campuses – the Baltimore Campus and the
College Park Campus. The UM strategic partnership leverages the resources of each of
these campuses within UM to benefit the State and improve and enhance (1) academic
programs and experiences for students; (2) research, technology, technology transfer, and
commercialization for economic development; and (3) public service and the commitment
to community development. Each campus must have a president.
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Center for Maryland Advanced Ventures at the University of Maryland
Chapter 25 of 2016 established CMAVUM, which must be located on the UM Baltimore
Campus in Baltimore City.
CMAVUM must:
 pursue grant funding for UM, including interdisciplinary grant funding;
 develop and implement guidelines for the transfer of technology developed by UM
to the private sector, including a process to identify research projects that may be
viable for commercialization; and
 facilitate the transfer of technology from UM to commercial industries using
specified techniques.
The center also must provide these services related to interdisciplinary grant funding and
transfer of technology to any public institution of higher education that requests the
services. Subject to the approval of the presidents of the UM College Park Campus and the
UM Baltimore Campus, the center may assess a reasonable fee for providing services.
The presidents must appoint an executive director of the center. The executive director
must:
 ensure that the duties of the center are carried out;
 develop a plan to appropriately staff the center in order to effectively carry out the
duties of the center;
 develop a working relationship with the Secretary of Commerce and the
Executive Director of the Maryland Technology Development Corporation
(TEDCO); and
 annually report to the presidents of UM College Park Campus and UM Baltimore
Campus on specified topics.
TEDCO may advise the executive director of the center on the development of the center.
The Governor must appropriate at least $3.0 million in general funds to the center each
year. In addition, the Governor must appropriate at least $1.0 million annually in
general funds to the center to be used to encourage the development and location of
university-created or -sponsored technology companies in Baltimore City. State funding
for CMAVUM may not be included in the calculations of State funding for community
colleges (Senator John A. Cade Funding Formula), Baltimore City Community College
(BCCC), and private nonprofit institutions of higher education (Joseph A. Sellinger
formula).
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University of Maryland Center for Economic and Entrepreneurship Development
Chapter 25 of 2016 also established UMCEED, which must be located on the UM College
Park Campus.
Following all State law, regulations, and processes for program review and approval,
UMCEED must advance the education of students by developing degree and credential
programs in the following fields of study: virtual and augmented reality; neurosciences;
biomedical devices; data analytics; and cybersecurity.
The presidents must appoint an executive director of UMCEED. The executive director
must:
 ensure that the duties of UMCEED are carried out;
 develop a plan to appropriately staff UMCEED in order to effectively carry out the
duties of UMCEED; and
 annually report to the presidents of the UM College Park Campus and the
UM Baltimore Campus on specified topics.
The Governor must appropriate at least $6.0 million in general funds to UMCEED
annually. State funding for UMCEED may not be included in the calculations of State
funding for community colleges (Senator John A. Cade Funding Formula), BCCC, and
private nonprofit institutions of higher education (Joseph A. Sellinger funding formula).
Funding Guideline Attainment
Funding guidelines were used beginning in fiscal 2001 to assess how public four-year
institutions in Maryland were funded relative to their peers, except St. Mary’s College of
Maryland, which has a statutory funding formula. The funding guidelines are not mandated
in law. Colleges and universities throughout the United States that are similar in size,
program mix, enrollment composition, and other defining characteristics were identified
for each Maryland four-year public institution as the institution’s “funding peers.”
Beginning in fiscal 2015, the funding guidelines were revised to reflect institutions’ peers
in states that Maryland principally competes with for employers, i.e., competitor states
(California, Massachusetts, Minnesota, New Jersey, New York, North Carolina, Ohio,
Pennsylvania, Virginia, and Washington).
The funding guideline for each institution is calculated by determining the
seventy-fifth percentile (since 2009, the guideline for the historically black colleges and
universities has been tied to the eightieth percentile) of the sum of state appropriation and
tuition and fee revenue per full-time equivalent student of the competitor state peer
institutions. The resulting per student rate is multiplied by the institution’s projected
SB 943/ Page 4
enrollment to determine the recommended resources. Projected institutional tuition and fee
revenue is then subtracted from the recommended resources. The remainder represents the
State investment. Funding guideline attainment is expressed as a percentage with the goal
being 100%. As shown in Exhibit 1, under the fiscal 2021 estimated funding guideline
attainment, Salisbury University (SU), Towson University (TU), and UMBC all have
funding guideline attainment under 68%. The University of Maryland Center for
Environmental Science, UM Baltimore Campus, and the University of Maryland Global
Campus are not primarily residential institutions.
Exhibit 1
Funding Guideline Attainment for University System of Maryland Institutions
Fiscal 2021 Estimate
FY 2021 Funding FY 2021 Working FY 2021
Institution Guideline Appropriation Attainment
Bowie State University $67,187,723 $45,642,734 68%
Coppin State University 38,040,566 45,354,995 119%
Frostburg State University 56,631,253 42,308,037 75%
Salisbury University 95,824,409 57,346,149 60%
Towson University 218,473,733 131,276,111 60%
University of Baltimore 50,534,746 41,368,934 82%
UM, Baltimore Campus 368,039,027 236,614,908 64%
UM Baltimore County 223,497,356 145,004,178 65%
UM Center for Env. Science 36,642,481 22,066,489 60%
UM, College Park Campus 768,003,694 546,851,881 71%
UM Eastern Shore 49,094,626 43,964,816 90%
UM Global Campus 231,803,162 42,343,950 18%
USM Office 41,149,239
USM Total $2,203,772,776 $1,441,292,421 66%
UM: University of Maryland
USM: University System of Maryland
Note: Fiscal 2021 working appropriation reflects the Board of Public Works’ reductions.
Source: Maryland Higher Education Commission; Department of Legislative Services
State Fiscal Effect: In total, general fund expenditures increase by at least $13.9 million
annually for fiscal 2023 through fiscal 2027, as shown in Exhibit 2. Of this, $3.0 million
is mandated for the cybersecurity center at UMBC and a total of $5.0 million is mandated
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 Exhibit 2
Additional General Fund Expenditures
Fiscal 2023-2027
($ in Thousands)
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
Cybersecurity Center $3,000 $3,000 $3,000 $3,000 $3,000
CMAVUM1 2,500 2,500 2,500 2,500 2,500
UMCEED2 2,500 2,500 2,500 2,500 2,500
USM Guidelines Attainment3 4,000 4,000 4,000 4,000 4,000
Cade4 1,431 1,692 1,682 1,675 1,683
Sellinger4 508 503 499 496 495
Additional GF Expenditures $13,939 $14,195 $14,182 $14,171 $14,178
CMAVUM: Center for Maryland Advanced Ventures at the University of Maryland
UMCEED: University of Maryland Center for Economic and Entrepreneurship
UM: University of Maryland
USM: University System of Maryland
1
Of this additional funding, $1.5 million must be used to encourage the development and location of
UM-created or -sponsored technology companies in Baltimore City (for a total of $2.5 million to be used
for this purpose).
2
This funding must be used to encourage the development and location of UM-created or -sponsored
technology companies in Prince George’s County.
3
The USM Office must allocate the funds each year in a manner that brings the primarily residential
institutions with the lowest estimated funding guideline attainment levels in fiscal 2021 as close as possible
to a 68% estimated funding guideline attainment level by fiscal 2027. The funds distributed each year are
in addition to the annual appropriation for each institution.
4
Additional formula funding due to the $3.0 million annually for the cybersecurity center at the University
of Maryland Baltimore County and due to USM guideline attainment being included in the funding for
select institutions for that particular fiscal year. No impact from the guideline attainment beyond fiscal 2027
when the USM funding guideline attainment funding ends because the funding is not included in the base
budget for the institutions; however, impacts from the $3.0 million in annual cybersecurity center funding
continue in fiscal 2028 and beyond.
Notes: Numbers may not sum to total due to rounding. As discussed below, Baltimore City Community
College is not affected in fiscal 2023 through 2027 and is, therefore, not reflected above.
Source: Department of Legislative Services
SB 943/ Page 6
for CMAVUM and UMCEED annually beginning in fiscal 2023. The total amount also
includes a funding guideline attainment supplement, through which general fund
expenditures for specific USM institutions increase by $4.0 million each year for
fiscal 2023 through 2027. This supplemental funding and the cybersecurity center funding
also result in additional general fund expenditures for formula-funded higher education
institutions beginning in fiscal 2023. Since the USM guideline attainment funding is not
included in the base budgets, there is no impact for that provision in fiscal 2028 and beyond.
However, the cybersecurity center funding continues to impact the funding formulas in
fiscal 2028 and beyond. The information and assumptions used in this estimate are
discussed more fully below.
Mandated Funding for the Center for Cybersecurity at the University of Maryland
Baltimore County
Beginning in fiscal 2023, general fund expenditures increase by $3.0 million annually due
to the mandated funding for the UMBC cybersecurity center. It is assumed that any
minimal reporting costs for the center can be covered by the mandated funding.
Mandated Funding for Center for Maryland Advanced Ventures at the University of
Maryland and University of Maryland Center for Economic and Entrepreneurship
Beginning in fiscal 2023, general fund expenditures increase by $5.0 million due to the
additional funding mandated for CMAVUM and UMCEED. Of the $2.5 million in
additional funds mandated for CMAVUM, $1.5 million must be used to encourage the
development and location of UM-created or -sponsored technology companies in
Baltimore City (for a total of $2.5 million for that purpose). The entire $2.5 million
mandated for UMCEED must be used to encourage the development and location of
UM-created or -sponsored technology companies in Prince George’s County.
Mandated Funding for the University System of Maryland Funding Guideline Attainment
For fiscal 2023 through 2027, the Governor must appropriate at least an additional
$4.0 million to the USM Office for the purpose of increasing the estimated funding
guideline attainment levels of the primarily residential institutions in USM with the lowest
estimated funding guideline attainment levels in fiscal 2021 (i.e., SU, TU, and UMBC).
The funds will be distributed