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SB 320

Creation of a State Debt - Maryland Consolidated Capital Bond Loan of 2025, and the Maryland Consolidated Capital Bond Loans of 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023, and 2024

2025 Regular Session

Authorizes a 2025 Maryland Consolidated Capital Bond Loan of $1.814B to fund state and local capital projects, with matching funds and deadlines.

First Reading Budget and Taxation
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Bill Summary · SB 320

SB 320 — Creation of a State Debt: Maryland Consolidated Capital Bond Loan of 2025

First Reading — Budget and Taxation (Introduced January 15, 2025)

Purpose / Intent

SB 320 authorizes a new Maryland Consolidated Capital Bond Loan for 2025 and makes targeted modifications to prior consolidated capital bond loans (2011–2024). The bill creates State debt of $1,814,825,000 to finance a wide range of capital needs across State agencies and to provide grants to local governments and nonprofit organizations for capital projects.

Key provisions

  • Authorizes the issuance and sale of bonds totaling $1,814,825,000 (the 2025 consolidated capital bond loan).
  • Directs bond proceeds be used for: planning, new construction, renovation, conversion, replacement, demolition, capital equipment purchases, acquisition of related real estate, and grants to subdivisions/other organizations for specified development and improvement projects.
  • Conditions some grants on the grantee providing matching funds by specified dates; modifies or adds deadlines and match requirements for prior-authorized projects.
  • Repeals, reenacts, and amends provisions in multiple prior capital bond acts (Chapters/Acts from 2011 through 2024) to:
    • Alter authorized project lists, locations, and uses of previously authorized funds.
    • Reallocate unexpended appropriations to other eligible public projects.
    • Reduce or expand previously authorized amounts where specified.
  • Requires certain grantees to convey specified easements to the Maryland Historical Trust under particular circumstances.
  • Requires that proceeds of certain loans be expended or encumbered by statutory deadlines (as specified in the bill).
  • Authorizes the Board of Public Works (BPW), in limited circumstances, to approve certain appropriations notwithstanding statutory differences; requires the Department of General Services to record corrected information in grant agreements when necessary.
  • Permits use of bond sale premiums in particular fiscal years for authorized purposes; requires Comptroller transfers and reconciliations connected to the bond transactions.
  • Technical and conforming changes: clarifies permitted uses of certain bond proceeds and repeals some preauthorization acts.

Who or what would be affected

  • State government capital programs and facilities (universities, state agencies, public buildings, correctional facilities, parks, transportation-related capital where authorized).
  • Local governments, nonprofits, and other grant recipients eligible for capital grants — including those required to provide matching funds.
  • State finances: increases outstanding State debt and creates associated future debt service obligations.
  • Administrative entities: Board of Public Works, Department of General Services, Comptroller — tasks include approvals, record corrections, transfers, and compliance monitoring.

Fiscal and procedural impacts

  • Establishes new borrowing authority and an increase in State debt service obligations to be repaid from State sources (paid through the normal debt-service mechanism and an imposed tax on all assessable property to support repayment as provided under State law).
  • Uses and timing of appropriations and reallocated prior authorizations will affect near-term capital spending and project schedules.
  • Implements grant conditions and matching requirements that may obligate local governments or grantees to provide funds or meet project timelines.

Timeline / Legislative status (selected)

  • Introduced: January 15, 2025 (By Request — Administration).
  • Referred to the Senate Budget and Taxation Committee.
  • Committee action: Passed out of an authorizing committee with amendments and was re-referred to the Committee on Appropriations; placed on the Appropriations suspense file (May 5, 2025); hearing held May 23, 2025 — held in committee and under submission.
  • Current status at time of this summary: Pending in Appropriations (Budget & Taxation origin).

Practical takeaway

SB 320 is a comprehensive capital financing bill that (1) creates $1.814 billion+ in bonding authority for State and local capital projects, (2) updates and reallocates many prior capital authorizations from 2011–2024, and (3) imposes statutory conditions (matching funds, deadlines, easements, administrative requirements) that will shape which projects move forward and the State’s future debt-service obligations.

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

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