state of maryland department of budget and …

STATE OF MARYLAND

Lawrence J. Hogan Governor

Boyd K. Rutherford

Lieutenant Governor of Maryland

DEPARTMENT OF BUDGET AND MANAGEMENT

David R. Brinkley Secretary of Budget and Management

Marc L. Nicole

Deputy Secretary

OFFICE OF CAPITAL BUDGETING

Teresa A. Garraty Executive Director of Capital Budgeting

Neil L. Bergsman

Assistant Director of Capital Budgeting

Christina Perrotti Supervising Budget Examiner

Budget Analysts

Tiffany Cole-Stitt Phillip Fleischer

Susan Gore

Katherine Bryant Higgins Kwame Kwakye

Ted Walsh Jason Wardrup Shakia Word

January 2021

Department of Budget and Management State Office Building

301 West Preston Street Suite 1209

Baltimore, Maryland 21201-2365 Tel: (410) 767-4530 Fax: (410) 767-4169

Frostburg State University . 46Coppin State Univeristy . . 47Salisbury University 48University of Maryland, Baltimore County 49University of Maryland Center for Environmental Science . 50University System of Maryland Office 51

University of Maryland, Baltimore 39University of Maryland, College Park .. 40Bowie State University 42Towson University 43University of Maryland of Eastern Shore 45

$4,792

$1,105

Source Amount - in thousands New General Obligation Bonds 1,105,000 Bond Premiums 210,000 Deauthorizations 2,427

General Obligation Bonds - Total 1,317,427General Funds 16,250Special Funds 390,053Federal Funds 80,660Revenue Bonds 550,000Total 2,354,390

INTRODUCTION

Maryland’s proposed Capital Improvement Program (CIP) for fiscal year 2022, exclusive of theConsolidated Transportation Program (CTP), totals $2,339,389,459 and is derived from several fundsources:

For fiscal year 2022, the new net GO Bond amount, subtracting deauthorizations and Bond Premiums, is$1,105,000,000. The capital budget proposes $1,317,427,000 in GO Bonds, including Bond Premiums, forState-owned facilities and grant and loan programs. A total of $210,000,000 of this amount is estimatedBond Premium revenue from the March 2021, July 2021, and March 2022 bond sales that will be used tofund FY 2022 capital projects. A total of $2,427,000 in GO Bonds from prior years will be deauthorized andused to fund FY 2022 projects.

General Obligation (GO) Bonds are authorized and issued to provide funds for State-owned capitalimprovements such as prisons, State hospitals, facilities at public institutions of higher education, andState office buildings. GO Bonds are also issued for various local capital projects, local jails, publicschools, and community health centers.

Bond Premium cash proceeds result when the General Obligation Bonds are sold at a higher interest ratethan current rates in the market. Investment banks offer the State Bond Premiums in order to buy downthe true interest cost and win the bond sale. The FY 2022 - 2026 CIP includes Bond Premiums within theGO Bond fund source in fiscal years 2022 and 2023.

General tax revenues, or General Funds, are most frequently used for operating budget items. However, aportion of General Funds in FY 2022 - FY 2026 has been set aside for capital projects or programs andare identified herein. These funds are also referred to as "Capital Appropriations" or "PAYGO."

Special Funds are dedicated to specific purposes such as parks and open space. They include privategrants, user fees, dedicated taxes, and loan repayments. The Special Funds included in the chart abovedo not include $42,000,000 for a portion of mandated State funding for the Washington Metro Area TransitAuthority. These funds are included in the Department of Transportation budget.

Federal Funds are grants from the federal government, which are designated for a specific purpose suchas construction of military facilities or the financing of housing programs.

Revenue Bonds are funds generated through the sale of bonds secured by dedicated revenues and arenot considered an obligation of the State of Maryland.

Non-Budgeted Funds are funds generated from fees, charges, grants, donations, and operations whichare not included in the State budget because the activities which generate these funds are intended to beself-supporting. The expenditure of Non-Budgeted Funds for capital projects is subject to the availability ofsuch funds in the amounts and in the years projected and to decisions of the appropriate governingbodies. Non-Budgeted Funds are included in project funding summaries to display total project costs, butare not included in agency subtotals or grand totals.

The fiscal year 2022 capital budget is summarized by fund source and use, for each agency's project orprogram, on the following pages.

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Bond Premium Total

Priority Agency Project/Program Funding Funding1 MDOT Washington Metropolitan Transit Authority Upgrades (WMATA) 125,000 167,0002 MHEC Community College Construction Grant Program 20,000 75,8803 MSDE Public School Construction Program 65,000 250,000

TOTALS 210,000 492,880

Fiscal Year 2022 Projects Funded with Bond Premiums

Note: These projects will be funded in priority order as listed above.

INTRODUCTION

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Agency Project Proposed FY 2022 FundingMES 637MES 6,756MES 2,000MES 3,514MHEC 1,416MHEC 3,776MHEC 3,048MHEC 13,844MHEC 11,630MHEC 24,137DoIT 5,300DMIL 5,028DPSCS 3,681SMCM 20,013UMCP 45,190BSU 3,600UMES 18,716FSU 46,655CSU 32,851UMBC 6,936USMO 4,829MISC 700MISC 500MISC 565Total 265,322

Utility Upgrades and Site Improvements

Education and Health Sciences Center

University System of Maryland at Southern Maryland -Third Academic Building

School of Pharmacy and Health Professions

Percy Julian Building Renovation for the College of Business

Howard Community College - Mathematics and Athletics Complex

Havre de Grace CSMS Surface Equipment and Automotive Maintenance FacilityJessup Region Electrical Infrastructure Upgrade

Note 1: Four of the five MES pre-authorized projects are being funded in FY 2022. The Swallow Falls State Park -Water and Wastewater Treatment Plant and Collection System Upgrade project is not being funded becausesufficient prior funds remain available.

Note 2: The DPSCS ECI High Temperature Distribution and Perimeter Security Improvements project waspreauthorized for FY 2022, but additional planning and construction costs have been deferred to FY 2023.

Note 3: The following projects were pre-authorized by legislative amendment, but were not included in the FY 2022capital budget due to limited capacity:

Department of Legislative Services Building Prince George's County Amphitheatre at Central Park UMBC Sherman Hall Facade and Infrastructure Improvements UMB School of Social Work Addition and Renovation UMCP School of Public Policy Building Baltimore Museum of Art Greenway Avenue Stadium

Bay Sox Stadium Burtonsville Parking Structure

The League for People with Disabilities - Facility Upgrade Andre De Shields Center for the Arts Friends House Retirement Community Our House Youth Home

MLK Communication Arts and Humanities Building

Garrett College - Community Education and Performing Arts Center

Public Safety Communications System

Merriweather Post PavillionThe Y in Central Maryland – Infrastructure Improvements and New Y Family Center

Prince George's Community College - Marlboro Hall Renovation and AdditionMontgomery College - Catherine and Isiah Leggett Math and Science Building

Chemistry Building Wing 1 Replacement

Point Lookout State Park - Water Distribution and Sewer Collection System Upgrade

Cecil College - Entrance, Roadway, and Facilities Management BuildingFrederick Community College - Linganore Hall Renovation

Woodstock - Wastewater Treatment Plant UpgradesAllegany College of Maryland - Technology Building Renovation, Phase 2

New Academic Building and Auditorium

INTRODUCTION

The following table shows projects with GO Bond pre-authorizations for FY 2022. The FY 2022 funding amounts forthese projects have been adjusted to reflect current project needs.

FY 2022 Funding for Pre-Authorized Projects

ECI Co-Generation Plant - Fuel Conversion to Natural Gas

Victor Cullen - Upgrade of Wastewater Treatment Plant and Collection System Upgrade

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Agency Project FY 2023 FY 2024 FY 2025MSD Veditz Building Renovation 6,935 - -MES ECI - Wastewater Treatment Plant and Reverse Osmosis Reject Treatment

Systems Upgrade (Somerset)- 2,000 -

MES New Germany State Park - Water and Wastewater Treatment Plants and Water Collection System Upgrades (Garrett)

1,386 - -

MES Point Lookout State Park - Water Distribution and Sewer Collection System Upgrade (St. Mary's)

312 - -

MES Swallow Falls Wastewater Treatment and Water Treatment Upgrade (Garrett)

2,850 1,082 -

MES Victor Cullen - Upgrade of Wastewater Treatment Plant and Collection System Upgrade (Frederick)

1,976 - -

MHEC College of Southern Maryland - Student Resource Center 1,859 - -MHEC Community College of Baltimore County - Essex - Wellness and Athletics

Center Renovation and Addition 1,026 - -

MHEC Harford Community College - Chesapeake Welcome Center Renovation and Addition

9,162 3,052 -

MHEC Howard Community College - Mathematics and Athletics Complex 13,844 11,747 -MHEC Montgomery College - Catherine and Isiah Leggett Math and Science

Building 3,939 - -

MHEC Prince George's Community College - Marlboro Hall Renovation and Addition

12,897 - -

MHEC Wor-Wic Community College - Applied Technology Building 7,175 - -HSMCC Maryland Heritage Interpretive Center 10,846 - -DOIT Public Safety Communications System 2,650 - -DJS New Female Detention Center 26,360 36,640 -DJS Baltimore City Juvenile Justice Center Education Expansion 7,182 - -MSU New Health and Human Services Building, Phase II 56,250 42,339 -DNR Johnson WMA and Hillsboro SP Shooting Range Improvements 4,515 - -

MDP Maryland Archeological Conservation Laboratory Expansion and Renovation 7,958- -

DPSCS Jessup Region Electrical Infrastructure Upgrade 6,273 - -DPSCS ECI High Temperature Distribution and Perimeter Security Improvements 11,840 - -MSP Barrack V - Berlin: New Barrack, Forensic Lab, and Garage 9,763 - -

UMB Central Electric Substation and Electric Infrastructure Upgrades 925 - -UMCP Chemistry Building Wing 1 Replacement 48,317 5,330BSU MLK Communication Arts and Humanities Building 40,703 75,094 16,342TU New College of Health Professions Building 73,152 31,120 -Total 370,095 208,404 16,342

INTRODUCTION

The following table shows the proposed GO Bond pre-authorization levels for FY 2023, FY 2024, and FY 2025.

Projects with Planned Pre-Authorizations

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Abbreviations used in this document include:

Term AbbreviationProperty Acquisition AAcademic Revenue Bonds ARBAmericans with Disabilities Act ADABond Premiums BPConstruction, Renovation, or Demolition CCapital Improvement Program CIPMovable Equipment or Furniture EFederal Funds FFFiscal Year FYGeneral Funds GFGeneral Obligation Bonds GO BondsGross Square Feet GSFNet Assignable Square Feet NASFNon-Budgeted Funds NBFNet Square Feet NSFPlanning or Design PRevenue Bonds RBSpecial Funds SF

INTRODUCTION

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SUMMARY OF CAPITAL BUDGET BY FUND SOURCE

GeneralObligation General Special Federal Revenue

Bonds Funds Funds Funds Bonds TotalsState-Owned* 584,662 - 1,175 - 30,000 615,837Grants and Loans 732,765 16,250 388,878 80,660 520,000 1,738,553SUBTOTALS 1,317,427 16,250 390,053 80,660 550,000 2,354,390Deauthorizations (2,427) - - - - (2,427)SUBTOTALS 1,315,000 16,250 390,053 80,660 550,000 2,351,963Department of Transportation** - - 652,369 1,847,397 - 2,499,766TOTAL 1,315,000 16,250 1,042,422 1,928,057 550,000 4,851,729Bond Premiums (210,000)TOTAL New GO Bonds 1,105,000

* Included in State-Owned General Obligation Bonds is $146,500,000 for the Department of Transportation:$125,000,000 in Bond Premiums for the Washington Metro Area Transit Authority (WMATA) and $21,500,000in GO Bonds for the Howard Street Tunnel.

** Included in the Department of Transportation Special Funds is $42,000,000 for the remainder of theWMATA State funding mandate.

FISCAL YEAR 2022

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All dollars displayed in thousands.