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SB 780

AN ACT RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- RETIREMENT SYSTEM -- CONTRIBUTIONS AND BENEFITS

2025 Regular Session Introduced by Elaine Morgan and 2 co-sponsors

SB 780 would move most 3-year-olds from public pre-K to private providers, allowing private centers to enroll Tier I 3-year-olds with state funding and prioritizing 4-year-olds.

05/08/2025 Committee recommended measure be held for further study
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Bill Summary · SB 780

Summary — SB 780 (Prekindergarten – 3‑Year‑Olds – Private Providers / Parental Choice for Prekindergarten Act)

Status: Withdrawn by sponsor (indefinitely postponed / withdrawn from consideration May 3, 2025).
Introduced: February 21, 2025.
Effective date (as drafted): July 1, 2025.
Primary sponsors: Sen. Rhoads; co‑sponsors Sen. Chang, Richards.
Related: SB 36 (companion), HB 1374 (companion).

Purpose / intent

SB 780 would have restructured how publicly funded full‑day prekindergarten (pre‑K) serves 3‑year‑olds in Maryland by removing public school providers from serving most Tier I 3‑year‑olds and allowing eligible private providers (child‑care/early learning centers) to enroll and receive State formula funding for those children. The bill emphasizes parental choice and shifts priority for publicly provided slots toward eligible four‑year‑olds.

Key provisions

  • Redefines “Tier I child” for the State prekindergarten funding program so that, for 3‑year‑olds, Tier I eligibility applies only if:
    • the child is 3 by Sept. 1 of the school year;
    • the child resides in a county where an eligible private provider elects to enroll 3‑year‑olds; and
    • the family chooses to enroll the child in full‑day pre‑K with an eligible private provider.
  • Removes 3‑year‑olds from the pool of children that eligible public (county board) providers may enroll under the full‑day pre‑K funding structure.
  • Authorizes eligible private providers that elect to serve Tier I 3‑year‑olds to:
    • enter into a memorandum of understanding (MOU) with MSDE and the local board of education; and
    • receive full‑day pre‑K formula aid on the same basis as providers serving 4‑year‑olds.
  • Requires the Maryland State Department of Education (MSDE) to notify local health departments and local departments of social services when private providers in a county elect to enroll Tier I 3‑year‑olds so those agencies can inform parents.
  • MOUs must address fund distribution consistent with existing pre‑K formula law and require private providers to report the number and enrollment period of Tier I 3‑year‑old slots.
  • Grandfathering: the bill would not affect 3‑year‑olds already enrolled in or scheduled to be enrolled in publicly provided pre‑K for 2025–2026 as of June 30, 2025.
  • Effective date as drafted: July 1, 2025.

Who would be affected

  • Families of low‑income (≤300% FPL) and homeless 3‑year‑olds who seek publicly funded full‑day pre‑K: public school options would generally no longer be available unless a private provider in the county enrolls 3‑year‑olds and the family selects that private provider.
  • Eligible private providers: would have a new opportunity to enroll Tier I 3‑year‑olds and obtain State formula aid, subject to MOU and program requirements.
  • County boards of education / public pre‑K providers: would no longer serve most Tier I 3‑year‑olds, potentially shifting enrollment and administrative responsibilities.
  • MSDE, local health departments, and local departments of social services: new notification and coordination duties.

Fiscal and operational impact

  • Fiscal note projects no significant net change to State or local expenditures because statewide pre‑K enrollment was not expected to change substantially; redistribution of where 3‑year‑olds are served (public → private) would vary by county.
  • Minimal increased administrative costs possible for some school systems and local agencies to implement notifications and MOUs.
  • Small business impact: potential minimal (opportunity for private providers).

Context (current law highlights)

  • Current funding tiers: Tier I covers 3‑ and 4‑year‑olds from families ≤300% FPL and homeless youth (no family share). Tier II/III are income‑based for 4‑year‑olds with sliding family shares. Per‑pupil formula amounts in the statute: $14,473 (FY2026), $19,950 (FY2027–28), then annual inflation adjustments thereafter.
  • Under existing law, private provider slots are phased up to account for at least 50% of county pre‑K slots by 2028–29. Prior law prioritized enrolling Tier I 3‑ and 4‑year‑olds across providers; SB 780 sought to remove the public provider role for most 3‑year‑olds.

Legislative outcome / timeline

  • Introduced early 2025, received committee referrals and fiscal analyses.
  • Withdrawn by the sponsor / indefinitely postponed (May 3, 2025); bill did not become law.

Compiled from official sources — confirm details with the bill’s official record.

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