Last week MML testified in opposition to SB 3 / HB 188, a bill that alters certain aspects of the State's unemployment insurance system. The most impactful provision for municipal governments is the increase in weekly benefit amount to successful claimants. Municipal governments are typically "reimbursing employers" meaning that they reimburse the unemployment insurance trust fund when a former employee makes a successful claim. This means that municipal government expenditures are tied to the amount a claimant receives, dollar-for-dollar. This is different than private sector employers, which regularly pay into the Fund based on the taxable wage base.

While the League recognizes that the unemployment insurance weekly benefit amount has not been updated in many years, the provisions of the bill would raise the cost to municipal governments to a level that would pose a significant burden.

Last week, the Maryland Municipal League (MML) testified before the House Appropriations Committee in strong support of HB 559. This bill represents a critical turning point in our years-long advocacy to restore and protect Highway User Revenues (HUR) for Maryland’s cities and towns.

For years, municipal governments have operated under temporary "funding bridges" that increased our share of gas tax and vehicle fee revenues. However, under current law, those increases are set decrease after Fiscal Year 2027, from the 3.0% allocation of Highway User Revenues to 2.4%.

For nearly 60 years, Maryland’s municipal revenue structure has remained largely unchanged, forcing our cities and towns to rely on property taxes for approximately 50% of their general fund budgets. This over-dependence is no longer sustainable.

We have a critical opportunity to change this. HB 1142, MML's priority bill sponsored by Ways and Means Chair Jheanelle Wilkins, establishes a Task Force to Modernize County and Municipal Revenue Structures. This "blue-ribbon" commission will study alternative revenue sources - such as those used in other states - to ensure our communities can remain fiscally resilient without placing the entire burden on property owners.

Last week, the Maryland Municipal League (MML) testified before the House Ways and Means Committee on HB 594. While MML supports the bill - which seeks to return a portion of sales tax revenue to the City of Baltimore - we officially testified as Support with Amendment.

Currently, HB 594 would require the Comptroller to pay the City of Baltimore one-third of the sales and use tax revenues collected within its borders. In the hearing, MML staff highlighted how municipalities are the economic hubs of the state, where 34% of all sales tax revenue is generated despite only accounting for 5% of the state’s land mass.

MML testified Favorable with Amendments on SB 389, which would modify the State’s Transit-Oriented Development (TOD) framework. The bill would automatically designate qualifying TODs as Enterprise Zones and require that development impact fees and excise taxes for residential TOD projects be collected only after construction is complete and a certificate of occupancy is issued.

MML supports transit-oriented development and rail-adjacent housing growth. However, we raised concerns that automatic Enterprise Zone designation would apply a 10-year local property tax credit without local approval, creating significant fiscal implications for municipalities. We also expressed concern that delaying impact fee collection shifts infrastructure financing risk to local governments.

MML testified on SB 325 and cross-file HB 548, which would create a framework for permitting and vested rights protections. Once a substantially complete development application is submitted, the project would become subject only to the laws in effect at that time, and vesting rights would be established for a defined period.

In testimony, MML supported measures that reduce regulatory uncertainty for developers, but emphasized that vested rights and permitting timelines must preserve local oversight and stay aligned with municipal comprehensive plans.

This week, MML testified on SB 36 and its cross-file HB 239, legislation that would limit local zoning authority for certain residential housing types. The bill would prohibit municipalities from applying specific zoning standards, such as setbacks, lot coverage, or design requirements, to “starter” and “silver” homes, and would enable property owners on improved lots to subdivide into smaller lots under certain conditions.

MML’s testimony acknowledged the importance of expanding housing supply but raised concerns about state limits on local zoning and planning authority, especially near infrastructure and services. We emphasized that local governments need tools to balance growth with community character, public safety, and service capacity.

The winter issue of the National Civic Review examines how local democracy is being reshaped in response to declining trust, deepening divisions, and rapid technological change. From the role of community foundations and bridging institutions to new models of local governance, civic dialogue in schools, and the emerging implications of artificial intelligence, contributors explore what democracy actually looks like on the ground today. Together, these pieces highlight the evolving practices, leadership, and cultural forces shaping more inclusive, responsive, and resilient communities.

MML staff testified in opposition to HB 203 which would generally prohibit employers from entering into training repayment agreements with their employees as a condition of employment, with some exceptions. Training repayment agreements allow employers to pay for job training for employees but requires them to stay with the employer for a certain time period, otherwise the employee would be obligated to repay a portion of the cost of the training. When done properly these types of agreements benefit both the employer and the employee; the employee receives on the job training at a subsidized cost while the employer sees a return on the investment they made in their human talent. Eliminating this tool will remove the incentive for municipal governments to offer this fringe benefit.

For questions, please contact Bill Jorch: [email protected]

Last week, MML staff testified before the House Government, Labor, and Elections Committee in strong support of HB 99, a bill vital to ensuring that cities and towns have the final say in how their newly annexed land is developed. The legislation is sponsored by Delegate Schindler, a former municipal official from Hagerstown, Maryland.

Under current law, municipalities often face a "zoning freeze" after an annexation, regularly referred to as “The 5-year Rule.” Even when a town has a clear, community-vetted comprehensive plan, they are frequently barred from implementing higher-density or different land uses for five years unless they receive express permission from the county.

MML is thrilled to announce that we are seeking to sponsor League members with under 5,000 population for the Maryland Department of Housing and Community Development (DHCD) Circuit Rider Manager Program who do not already have a sponsor entity. This program allows small municipalities to form regional circuits and share a manager/administrator to assist your municipality. Instead of seeking out partners and sponsors, MML will now step in to fulfill this role on behalf of your municipality.

MML will host a webinar to go into further detail about this opportunity on February 13, at noon. Please register here.

Strong communities don’t happen by chance - they’re built through shared purpose and trusted relationships. To serve residents at the highest level, we rely on businesses, associations, and experts who bring insight, innovation, and experience. Our members are always looking ahead, and through your partnership, they gain guidance, build lasting connections, and turn solutions into real impact.

MML's Legislative Committee, made up of municipal elected officials and staff from around the State, has been busy reviewing General Assembly legislation that impact municipal governments. For a full list of bills with official MML positions, please visit our website here. This page will be updated as new positions are taken by the MML Legislative Committee. For questions please contact Bill Jorch, [email protected]

MML seeks amendments to SB 64 & HB 10 in support of public notice modernization.

Last week, MML staff testified before the House Judiciary and Senate Judicial Proceedings committees in favor of a critical modernization package for SB 64 (and cross-filed HB 10).

As we prepare to launch attendee registration for the Summer Conference on March 2, it's best to make sure you have your dates correct. Check out our Summer Conference website and mark your calendars with important dates.