Latest news with #BlueprintforMaryland
Yahoo
14-05-2025
- Business
- Yahoo
Maryland loses coveted AAA bond rating
State officials, including the governor, Senate president and House speaker, made the state's case last week to bond-rating agencies. (Screenshot from government presentation) Maryland lost its treasured 'triple triple-A' bond rating Wednesday when a key bond-rating agency downgraded its assessment of the state's creditworthiness to Aa1. The move by Moody's ends more than three decades in which Maryland held the highest bond rating from the three rating agencies: Moody's, Standard & Poor's and Fitch. Moody's had given Maryland a AAA rating every year since 1973 — until Wednesday. Prior to Wednesday's announcement, Maryland was one of 14 states to have the highest rating from the three major agencies — Fitch, Moody's and Standard & Poors. A triple-A rating means the state pays the lowest rates when it sells bonds to fund public projects. The downgrade means the state — and taxpayers — could pay more in interest on that borrowed money. The change announced Wednesday could mean taxpayers will pay more in interest on the money the state borrows. The next bond sale is scheduled for June 11. The rating downgrade was not wholly unexpected. A year ago, Moody's reaffirmed the state's AAA rating, but noted concerns in its report and lowered the state's outlook from stable to negative. Among those concerns were looming structural deficits driven by programs including the Blueprint for Maryland's Future education reforms. Gov. Wes Moore (D) and legislative leaders this session set about taming a $3.3 billion projected deficit with cuts, cost shifts and $1.6 billion in taxes and fees. But as lawmakers were crafting a budget amid a chaotic first 100 days of the second term of Republican President Donald Trump, Moody's issued another report seen as a potential harbinger of a rating downgrade. That report listed Maryland as the state at highest risk for economic problems as a new federal administration set about slashing agency budgets and employment. Moore, Senate President Bill Ferguson (D-Baltimore City) and House Speaker Adrienne Jones (D-Baltimore County) took the rare step of meeting in person with Moody's officials in Annapolis last week, to present a united front as they made the state's case for a better rating. Last month, Moody's downgraded the District of Columbia from AAA to AA1. The firm cited impacts from federal workforce reductions as well as weakening demand for commercial real estate. Besides Moody's, which gave Maryland an AAA rating in 1973, Standard & Poor's first rated Maryland AAA in 1961 and Fitch has given it that raking since 1993. This story will be updated.
Yahoo
03-05-2025
- Automotive
- Yahoo
Rating agency downgrades outlook on Maryland Transportation Authority bonds
Cars pass under a toll-collecting gantry on the Intercounty Connector, one of toll facilities operated by the Maryland Transportation Authority. Such gantries have replaced toll booths on the state's toll roads. (Photo courtesy the Maryland Transportation Authority) A key bond rating agency has issued a negative outlook for outstanding revenue bonds issued by the Maryland Transportation Authority, amid uncertainty surrounding the reconstruction of the Francis Scott Key Bridge. Standard & Poor's reaffirmed the authority's AA- bond rating, but in an April 25 report downgraded its outlook from stable to negative and warned of the potential for future changes. 'The outlook revision to negative reflects our view that there is at least a one-in-three chance we could lower the rating within the two-year outlook if potential project cost escalations and uncertain timing of future federal reimbursements weaken the authority's ability to sustain financial metrics at levels comparable with those of peers as it finances the reconstruction of the Francis Scott Key Bridge and its $5.1 billion capital improvement program,' S&P Global Ratings credit analyst Andrew Stafford said in a statement. The Standard & Poor's announcement warned: 'We could lower the rating if actual financial performance trends negatively, and is materially weaker than currently forecast due to construction cost escalations, project delays, or softening demand.' 'We do not anticipate raising the rating over the two-year outlook period, given MDTA's relatively high debt burden and additional borrowing plans,' the credit rating agency said. Currently, the authority has $2.1 billion in outstanding debt. In fiscal 2026, which begins in July, that amount is expected to 'increase significantly' to $2.6 billion, according to an analysis by the Department of Legislative Services. Outstanding debt is projected to increase to $3.3 billion in fiscal 2027, before peaking at $3.8 billion in fiscal years 2029 and 2030 — an amount just under the authority's statutory borrowing cap, according to the legislative analysis from February. New Key Bridge design highlights both 'triumph' and 'tragedy' a year after collapse Bond ratings determine the interest rate governments pay on money borrowed for buildings, roads and other infrastructure projects. Lower ratings ultimately cost governments – and taxpayers —more. Revenue bonds issued by the authority are separate from the state's general obligation bond borrowing. A year ago, Moody's reaffirmed the state's coveted AAA rating on general obligation bonds but downgraded its outlook from stable to negative, citing concerns about looming structural deficits driven by programs including the Blueprint for Maryland's Future education reforms. In March, Moody's issued another report citing concerns about cuts to federal employment and other concerns. The firm said Maryland is at greatest risk from those cuts. Moody's, along with Standard & Poor's and Fitch are all expected to meet with state officials this month. From those meetings, the three agencies will issue updated annual bond ratings in advance of a scheduled June bond sale. There are rumblings in corners of Annapolis about a potential downgrade of the state's creditworthiness from one or more of the rating agencies. The state has held the coveted 'triple, triple-A' rating for more than three decades. Maryland got its first triple-A rating from Standard & Poor's in 1961, followed by Moody's 12 years later and Fitch in 1993. The authority operates eight toll facilities including the Fort McHenry and Harbor tunnels, the Bay Bridge, the Gov. Harry W. Nice/Sen. Thomas 'Mac' Middleton Bridge and the Intercounty Connector. It also operated the Key Bridge and is in charge of its replacement. Tolls charged by the authority at those facilities are pledged to repay its borrowing. A Maryland Transportation Authority spokesperson, in an emailed statement said the agency will continue to meet its debt payment obligations. 'The Maryland Transportation Authority (MDTA) recognizes that the negative ratings outlook reflects the uncertainty associated with a mega project the size of the Key Bridge Rebuild and uncertain timing of when federal funding will be received,' the spokesperson wrote. 'Despite the loss of the Key Bridge and temporary loss of associated revenues, the MDTA expects to remain in compliance with all board directed financial policies and trust agreement covenants.' SUPPORT: YOU MAKE OUR WORK POSSIBLE The negative outlook comes a year after the catastrophic collapse of the bridge. The span over the Patapsco collapsed after a pier was struck by the Dali, a fully laden 984-foot cargo vessel that lost power. Six people working on the bridge died in the incident. The allision remains under investigation by the National Transportation Safety Board. 'The State of Maryland continues to pursue the DALI's owner and manager for all the damages caused by their negligence and incompetence – including the cost to reconstruct the Francis Scott Key Bridge – so that the parties responsible for this tragedy pay for the damages they caused,' the MdTA spokesperson wrote. 'The American Relief Act, 2025, provides that if any additional funds are required to build the new bridge beyond the compensation paid by the DALI, the federal government will provide that funding.' Those federal lawsuits are complicated and ongoing. Final resolution could take years of litigation. Standard and Poor's issued a bond opinion immediately following the incident. In that opinion, the bond rating agency said 'disruption and damage from the recent collapse of the Francis Scott Key Bridge … is not expected to have immediate credit implications for its ratings' on the authority, Baltimore City or the state. 'However, the long-term financial impact, particularly for MDTA, will likely be unknown for some time,' according to the Standard & Poor's 2024 opinion. Moody's ratings issued its own updated opinion that same month. In it, the agency downgraded the authority's outlook from stable to negative on $2.2 billion in outstanding debt. The company cited 'uncertainty around the Francis Scott Key Bridge's … replacement project's costs, including their funding, and timing. Any negative impact from the replacement project would be on top of financial metrics that were expected to narrow from capital investments prior to the loss of the bridge.' Maryland officials mark one year since collapse of Key Bridge A replacement is expected to cost at least $1.7 billion. Officials hope to complete the new span by 2028. State officials continue to rely on promises of full federal funding for a replacement made by then-President Joseph Biden (D) just hours after the span collapsed. But that promise is less certain since the election of President Donald Trump (R). Trump has made good on his campaign promise to slash government spending and employment. In March, he said he would block plans for a new FBI headquarters in Greenbelt — a project Gov. Wes Moore and others lauded as an economic boon to the state and Prince George's County. Trump's election also cast doubt on the likelihood of federal funding for an east-west Red Line transit project in Baltimore. Moore made construction of the line a signature campaign promise. For now, the authority said it does not expect to speed up a projected toll increase, though one is coming. 'MDTA's current financial plan indicates that toll increases are not needed before FY 2028. This action by S&P is not likely to change the projected timing of that need,' the agency spokesperson wrote. In January, a Department of Legislative Services analysis highlighted the authority's own projection of 'fiscal challenges on the horizon,' including increases in outstanding debt between fiscal 2026 and 2030. That legislative review noted 'the need for action, such as implementing a toll increase to maintain the debt service coverage ratio by fiscal 2028.' The projected need for an increase is a year sooner than the timeline projected in a 2024 analysis. 'Compared to the prior forecast, the current forecast has significant forecasted increases in capital expenditures related to the rebuilding of the Francis Scott Key Bridge,' analysts wrote in their review.
CBS News
03-04-2025
- General
- CBS News
Anne Arundel County Public Schools to drop Pre-K programs for four year old students
Beginning in the 2025-2026 school year, Anne Arundel County Public Schools will no longer offer prekindergarten programs for 3-year-olds, AACPS said Thursday. The shift comes due to the adoption of a new policy by the Maryland State Board of Education and the Blueprint for Maryland's Future's Accountability and Implementation Board. "Specifically, we encourage public school systems to focus on delivering prekindergarten to Tier I four-year-olds, while private providers are encouraged to focus on serving Tier I three-year-olds and Tier II and Tier III four-year-olds," the policy states. AACPS will prioritize 4-year-old students in "Tier I." This includes children from low-income families, homeless children, some multilingual learners, and some students with special education plans. The school system wants to place students in schools closer to their homes, so they don't have to travel as far. "This change will allow us to better focus instruction and services to students who need it most and to do so at schools that are closer to the homes of those students," AACPS Superintendent of Schools Dr. Mark Bedell said. "We must, by law, accommodate all 4-year-old Tier I students, but some of those students have had to travel great distances in prior years, and we are hoping to minimize if not eliminate that in the next school year." Registration for next year's Pre-K programs starts on May 6, 2025. Programs for 3-year-olds will still exist, but they'll be offered by private schools, childcare centers, Head Start, and family childcare homes instead of public schools. Positions allocated to 3-year-old programs in the current school year will be converted to 4-year-old programs in the 2025-2026 school year, according to AACPS.
Yahoo
27-03-2025
- Politics
- Yahoo
Blueprint reform bill continues to advance, heads to full Senate next
A bill tweaking the Blueprint for Maryland's Future education reforms got out of a second Senate committee Wednesday and heads to the full Senate this week -- and a likely showdown with the House. (File photo by Danielle E. Gaines/Maryland Matters) A Senate committee voted Wednesday to accept an amended version of its Blueprint for Maryland's Future education reform plan and send it to the full chamber, where a debate is expected to take place Friday. The Budget and Taxation Committee 9-4 vote not only accepts portions of the 'Excellence in Maryland Public Schools Act' first submitted by Gov. Wes Moore (D), but it also voted to make the House version approved earlier this month conform to the Senate version. If approved by the full Senate sometime early next week, then both bills will be sent back to the House. Because the delegates rejected many of the governor's proposals, such as a four-year pause in the phase-in of collaborative time for teachers, the House is expected to reject the Senate plan, setting up a conference committee to hash out differences between the House and Senate versions of the bill. The last day of the legislative session is April 7. Before its vote Wednesday, the committee discussed amendments approved Tuesday night by the Senate Education, Energy and the Environment Committee, which focused on provisions that mainly deal with statewide and local school system programs and initiatives. Some members of the Budget and Taxation Committee, which approved the fiscal items in the bill, had questions on some programs such as instructional coaches. There are about 800 coaches throughout the state, but officials with the state Department of Education said before the Senate education committee Tuesday another 200 would need to be hired under the Blueprint. About 63% of the current coaches are located in five of the state's 24 school systems, and three school systems – in Western Maryland, Southern Maryland and on the Eastern Shore – have no coaches. Alex Reese, chief of staff at the department, said Tuesday the 'best practice' is a 12-to1 ratio of teachers to a coach, but the current ratio is more like 79:1. Under the bill, coaches would be housed in the department's new Academic Excellence Program that would provide coaching for teachers and administrators at schools with 'low proficiency rates and declining achievement results in recent years.' During fiscal years 2026 and 2027, the focus would be on literacy in elementary schools. The program is estimated to cost $17 million next year, which would also include hiring regional program managers to support instructional coaches to provide evidence-based tools and strategies, professional development materials and other guidance. Sen. Michael Jackson (D-Prince George's Calvert and Charles) wanted to know why three school systems have no coaches. Mike Thomas, deputy legislative officer for the governor, said some instructional coaches went back into the classroom to help teach. Jackson, who voted for the bill, wasn't pleased that no one from the department appeared Wednesday. 'That's a little troubling for me. This is an important matter,' he said. 'We all want to get this right. This is talking about accountability at all levels.'
Yahoo
21-03-2025
- Business
- Yahoo
Blueprint board staff will soon have an office to call home
The Blueprint for Maryland's Future Accountability and Implementation Board meets online Thursdayt. (Screenshot) For more than three years, they've had a high-profile and an outsized impact on the Blueprint for Maryland's Future, but there's one thing the Accountability and Implementation Board has not had in all the time: a home. That changes this fall when the board's 10 employees are scheduled to move into an office space on West Street in Annapolis, after largely working virtually since the board first met in November 2021. The board on Thursday approved a 10-year lease with Annapolis West Limited Partnership for a 3,012-square-foot office on West Street in Annapolis. The action follows Board of Public Works approval on Feb. 26 of an initial annual lease agreement of $119,124 for the space, increasing every year until it reaches $155,430 by the final year of the lease. In this fiscal year's budget, the board has $140,000 for office space, supplies and equipment. While the lease includes services such as electricity, water and sewer, cleaning supplies and snow removal, it says the AIB will be responsible for about 6% of any increase in those expenses during the first year of the lease. Board employees will also be able to rent up to eight parking spaces attached to the building, at additional cost. In addition the 10 current employees, the office advertised for an additional four workers, said AIB Executive Director Rachel Hise — three education policy analysts and a financial data analyst. Hise said the board could take occupancy of the space sometime in the fall. She also said a 'limited number' of people could be able to attend meetings are held in person in the new space. Except for the occasional joint meeting with the state Board of Education, the majority of AIB meetings have been held online. The lease was the biggest bit of business in a busy, four-hour — virtual — meeting Thursday. In other business, the board extended the time for local school officials to submit a comprehensive math plan to the state Department of Education. The plans, which had been due by June 30, 2025, will now be due on Sept. 30. The extension is designed to let the department draft new guidance and technical support to school systems as they develop their plans. It comes as state performance on the math portion of the latest National Assessment of Educational Progress improved slightly for fourth- and eighth-grade students from 2022, when the state ranked 42nd for both grades. The state moved up to 39th place for fourth graders in 2024, and 38th for eighth graders that year. The average math score for fourth graders rose from 229 to 234, while the average for the state's eighth graders slipped from 269 to 268 in 2024. The board also heard a presentation from representatives with NORC at the University of Chicago, which was approved in January to perform an interim evaluation on the overall Blueprint plan. Jenna Scott, co-principal investigator and vice president at NORC, called the state's Blueprint plan 'bold and critical.' 'We've worked with states that I think are forward-thinking in approaches, but this is different,' she said. 'I think the systems-change aspect makes it particularly unique.' The nonprofit research organization plans to speak with various school officials and other stakeholders and review documents to assess the implementation progress for an initial report due in June. That will be followed by a year of surveys to assess the successes and challenges of the Blueprint plan and assess administrative data through the Maryland Longitudinal Data System Center. The center produced a report last year that included trends on new teachers trained in and out of the state, longevity of teachers and graduates of early childhood programs. An interim evaluation report is due by Dec. 1, 2026, which will be the basis for an AIB report to the governor and General Assembly by Jan. 15, 2027. Once a report is completed next year, Margaret 'Meg' Hargreaves, principal investigator and senior fellow at NORC, said seven presentations on the Blueprint assessment will be conducted through May 2027.
