Governor Hogan Announces Supplementary Budget of $291.7 Million with Health Service Provider Fee Increases, Support for Child Care Providers and Facilities

ANNAPOLIS, MD—Governor Larry Hogan submitted $291.7 million supplementary budget to the Maryland General Assembly with substantial fee increases for health care providers and disability services, and additional resources to support providers and child care 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 essential services for families in Maryland,” Governor Hogan said. . “We continue to dedicate some of our record surplus to relief and resources for those in need, including our developmentally disabled community.”

$210 MILLION FOR FURTHER RATE INCREASES FOR HEALTH AND DISABILITY SERVICE PROVIDERS

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

This is in addition to provider rate increases projected in the Governor’s initial FY23 budget. As a result, most providers will see overall rate increases in the 7.5-8% range over the course of the year exercise 23.

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

$31 MILLION FOR PROVIDERS AND CHILD CARE FACILITIES

Earlier this year, the Governor announced the state is committing $50 million for additional Child Care Stabilization Grants to help providers deal with the financial impacts of the COVID-19 pandemic. . This supplementary budget provides for:

• $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 essential renovations and upgrades to child care centres.

$45 MILLION FOR VIOLENT CRIME INITIATIVES

The governor announced these initiatives at 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 arrest activities.
• $35 million to provide additional funding to guard against federal cutbacks and support the Victims of Crime Act program.

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

This is the governor’s third supplementary budget for the 2022 legislative session: the first, submitted last month, included resources for first responders, tenants and landlords; the second, tabled last week, provided the means to suspend the gasoline tax for 30 days.