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New State Funding Formula for New School Builds

Clarity on Impact for Lockerman Middle School Forthcoming

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ANNAPOLIS – On March 12, 2026, the Eastern Shore’s District 36 Delegation announced that the Interagency Commission on School Construction approved a long sought after change to the formula for how the state funds new school builds in small counties. For Caroline County, this change comes just as officials have begun discussing how to pay for the new north-county middle school.

A press release from Delegate Jeff Ghrist’s office reads, “The IAC voted…to amend COMAR 14.39.02.06 to create a new ‘Small County State Cost Share’ adjustment, which will significantly increase the state’s share of school construction funding for counties with limited tax bases.” Caroline’s adjustment increases the state’s share of school construction costs to 100%. 

Ghrist said, “These changes are the result of many years of relentless advocacy. We have introduced legislation, worked closely with IAC leadership, engaged the Hogan and Moore Administrations, and pushed this issue with House and Senate leadership because our students deserve safe, modern facilities just like every other child in Maryland.”

The original funding formula for Caroline County was a 97-3 split cost share, with the state paying 97% and the county paying 3%. The last reported numbers for the middle school build specifically would cost Caroline County around $1.432 million in fiscal year 2027, $8.128 million in fiscal year 2028, and $15.518 million in fiscal year 2029. But with the new formula increasing the state’s share to 100%, these numbers could change.

“We are grateful to the District 36 delegation for their efforts to reduce the financial burden of school construction projects for districts like Caroline County,” Superintendent Dr. Derek Simmons wrote to Caroline Review.News, “Though we do not yet know the exact ‘dollars and cents’ impact of the new middle school project in FY28 and FY29, moving from 97% to 100% should lower the county’s financial responsibility. In the coming weeks, we expect to get more clarity around the fiscal impact as we move towards opening the doors of a new school in August of 2029.”

The IAC’s decision comes as Caroline County Commissioners are in the process of amending and approving the county’s FY27 budget. The Commissioners have been adamant thus far that they are in a financial position to pay out of pocket for the original local share in FY27, and they intend to save money over the coming budget cycles to avoid having to borrow funds to pay for the middle school.