ANNAPOLIS, MD—Governor Larry Hogan has submitted a $291.7 million supplemental budget to the Maryland General Assembly with substantial provider rate increases for health care and disability services providers, and additional resources to support child care providers and facilities.

“Every day, we are inspired by the commitment of our health care and child care providers, and these investments will help further expand access to critical services for Maryland families,” said Governor Hogan. “We continue to devote part of our record surplus to relief and resources for those in need, including our developmentally disabled community.”

$210 MILLION FOR ADDITIONAL HEALTH CARE AND DISABILITY SERVICES PROVIDER RATE INCREASES

The supplemental budget commits $210 million to fund 4% provider rate increases across the board in the fields of behavioral health, developmental disabilities, Medicaid, foster care, non-public schools that serve children with disabilities, and other health care services.

This is in addition to the provider rate increases provided in the governor’s original FY23 budget. As a result, most providers will see overall rate increases in the 7.5-8% range in FY23.

Every budget under the Hogan administration has increased rates paid to developmental disabilities and behavioral health community service providers. The governor’s FY23 budget makes historic investments in public health, including record funding for local health departments.

$31 MILLION FOR CHILD CARE PROVIDERS AND FACILITIES

Earlier this year, the governor announced that the state is committing $50 million for additional Child Care Stabilization Grants to assist providers dealing with the financial impacts of the COVID-19 pandemic. This supplemental budget provides:

• $16 million to provide funds for retention and recruitment bonuses for child care providers and employees, to be administered by the Maryland State Department of Education.
• $15 million to establish a loan program through the Department of Commerce that will support critical renovations and improvements to child care facilities.

$45 MILLION FOR VIOLENT CRIME INITIATIVES

The governor announced these initiatives in a press conference earlier this week:

• $3.5 million to support additional prosecutors, investigators, and support staff for the U.S. Attorney’s Office for the District of Maryland in Baltimore City and Prince George’s County.
• $6.5 million to provide funding to the Baltimore Police Department to support warrant apprehension activities.
• $35 million to provide additional funds to guard against federal cuts and support the Victims of Crime Act program.

The supplemental budget also includes $5.6 million in additional assistance for Prince George’s Community College.

This is the governor’s third supplemental budget of the 2022 legislative session: the first, submitted last month, included resources for first responders, renters, and homeowners; the second, submitted last week, provided for the resources to suspend the gas tax for 30 days.