Primary and Secondary Education - Maintenance of Effort - Inflation Adjustment (Maintenance of Effort Modernization Act)

HB 562, the "Maintenance of Effort Modernization Act," updates Maryland's method for calculating annual inflation adjustments in local school funding. It replaces the current formula with a new standard that uses the lesser of three measures: the Consumer Price Index for the Washington Metropolitan Area, a government spending index, or 5%, with 0% if neither index rises. This change requires county governments and Baltimore City to adjust their annual local school funding appropriations based on this new inflation metric, starting July 1, 2026. The bill directly affects all Maryland counties and Baltimore City, which are responsible for maintaining local school funding levels.