Subject
title
Consider Approval of Proposed 2027 MML Legislative Action Requests
end
Department
City Manager's Office (CMO)
Recommendation
Discuss the recommended 2027 MML Legislative Action Requests and approve them for submittal to the Maryland Municipal League.
Discussion
Consideration of proposed Maryland Municipal League (MML) Legislative Action Requests (LAR) is the first step in the Mayor and Council’s development of the City of Rockville’s comprehensive 2027 State legislative program. MML has invited each member municipality to submit as many as three LARs for consideration to be included in the League’s priority program. MML members are required to have their elected officials approve the LARs by July 1, 2026.
LARs are issues that are resolved through State legislation and have a broad impact on the MML membership. The League does not typically advocate for issues that impact a small number of municipalities and does not engage with State legislation introduced by local Delegations. As the lead entity with whom decision makers in Annapolis engage on State legislation affecting municipalities, MML focuses on high-profile issues with significant impact on its membership. The Legislative Committee meets in the summer and may select up to four priority program issues to recommend to the Board of Directors for approval.
Rockville-specific State legislative issues are discussed and approved by the Mayor and Council in the early fall, after the MML priority program is adopted. Rockville’s approved LARs are incorporated into the City’s comprehensive State legislative priority program. In recent years, advocating in support of educational needs across the spectrum, including capital and operating funding, legislation in support of the City’s vision zero and pedestrian master plan, climate action plan goals, and legislation supporting renters are examples of items that are Rockville-specific that have been included in Rockville’s State legislative program. In recent years, the Mayor and Council’s comprehensive State legislative program has included MML-adopted priorities and Rockville-specific initiatives.
The recommended 2027 LARs are based on high-priority issues of interest to the Mayor and Council, including legislation the body supported in the 2026 Session. Three proposed LARS are provided for the Mayor and Council’s consideration.
Proposed 2027 Legislative Action Requests
1. Legislation Supporting the Findings and Recommendations of the Task Force to Modernize County and Municipal Revenue Sources, and Protect Municipal Highway User Revenue and State Aid for Police Protection
This legislative action request contains two related components:
• Support any related Legislation based on Task Force Recommendations that MML would advocate for in the 2027 Session to modernize municipal revenue structures; and
• Preserve full funding for Municipal Highway User Revenue and State Aid for Police Protection funding.
Please see the following sections for additional background on the two components included in this proposed 2027 MML LAR.
Task Force to Modernize County and Municipal Revenue Sources
HB 1142, MML’s priority legislation, and a Rockville 2026 State legislative priority, passed. The legislation establishes the Task Force to Modernize County and Municipal Revenue Sources and to make recommendations regarding the authority of County and municipal governments to increase sources of revenue. The study and analysis will include:
• The current revenue sources available to each County and municipal government;
• Optional revenue sources not currently utilized by County and municipal governments;
• The authority of each County and municipal government to raise revenues from additional sources;
• The revenue sources used by Counties and municipal governments in other states; and
• An analysis of the impact of potentially new county and municipal revenue sources on overall affordability and the cost of living generally (including an accounting of existing taxes).
The Commission is required to submit a report to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the House Ways and Means Committee by December 1, 2026. This 2027 LAR aligns with MML’s strategic focus aimed at expanding municipal revenue-generating authority.
Preserving Full Funding for Municipal Highway User Revenue and Police Aid Funding
Highway User Revenues are the share of the gas tax and vehicle titling tax dedicated to the construction and maintenance of local roadways and bridges. All the revenues are
levied by the State, as there are no local gas taxes in Maryland. Since local governments maintain most roads in Maryland, the State has historically shared a portion of these revenues through a formula with County and municipal governments. Municipal Highway User revenues help to fund municipal transportation projects, including street and sidewalk maintenance, and pedestrian safety initiatives. In the 2026 Session, FY27 Municipal HURs were preserved. Rockville’s projected FY27 Highway User Revenue allocation is $4.7 million. In FY28 and beyond, according to State law, Municipal HUR is scheduled to be reduced from 3.0% to 2.4%. According to MML, this “cliff” will result in a $12 million reduction per year to the Municipal Highway User Revenue allocation to municipalities.
The State Aid for Police Protection Fund is a formula-driven funding program used to supplement resources for police protection in counties and municipalities. The State funds provide additional revenue to support the operational costs of local and county police agencies by providing additional funds for salaries, equipment, and other resources. Rockville’s FY27 Police aid allocation from the State is $1.1 million.
While the General Assembly’s actions in the 2026 Session addressed a projected $1.5 billion gap for FY27, the outlook in future years continues to be negative. According to the Maryland Department of Legislative Services, the FY 28 structural gap is $2.5 billion, $2.8 billion in FY29, $3.4 billion in FY30, and $3.3 billion in FY31. Continued uncertainty at the Federal level and persistent inflation could result in additional negative impacts on the State. It will be critical in the 2027 Session and beyond to preserve these State resources that help the City to maintain its transportation infrastructure and provide Police protection for Rockville residents, as well as to advocate for legislation providing additional revenue-raising authority for municipalities.
This LAR aligns with the Mayor and Council’s public safety, Vision Zero, and stewardship of infrastructure priorities.
2. Legislation Exempting Municipalities from the FAMLI Program Requirements
While Rockville supports the State’s goal of expanding access to family and medical leave, the FAMLI program, as currently configured, places significant operational and financial burdens on local governments. This LAR request focuses on Rockville requesting that the Maryland Municipal League advocate in 2027 for the State to reconsider applying the FAMLI program to municipal governments due to its significant fiscal and operational impacts.
Rockville anticipates additional annual costs to cover employees, creating substantial pressure on municipal budgets in an environment of inflation and uncertainty. Municipalities statewide have also raised concerns about the administrative complexity of implementing and coordinating FAMLI with existing local leave policies, the duplication of benefits for jurisdictions that already offer comprehensive leave programs, the compressed implementation timeline, and the challenges of maintaining essential public services during extended employee absences. The cost of compliance with FAMLI will direct municipal resources away from core public services that benefit residents in Rockville and other municipalities.
The Maryland Department of Labor is in the process of establishing the FAMLI (Family and Medical Insurance Leave) program. FAMLI offers up to twelve weeks of job-protected leave from work for eligible employees to care for a family member or themselves and receive up to $1,000 per week. All employers with at least one employee are required to participate in the program. Currently, no exemptions are available. Eligible employees can participate if they have worked at least 680 hours in a position located in Maryland (any combination of employers) for the 12-month period immediately preceding the date on which the leave is to begin. FAMLI benefits will apply to all full-time and part-time staff. The program will take effect in January 2028.
An employee can use FAMLI leave for the following qualifying events:
• To welcome a child by birth, adoption, or foster care;
• To manage their own serious health condition;
• To care for a family member who has a serious health condition; and
• To arrange for the deployment of a family member.
In the absence of an exemption from FAMLI for local governments, Rockville has joined the Maryland Association of Counties/Maryland Municipal League/Maryland Association of Boards of Education collaborative that is helping public-sector employers evaluate and potentially opt in to a collaborative insured Equivalent Private Insurance Plan (EPIP), which would serve as an alternative to the state-run FAMLI plan. The collaborative will work to identify insurance carriers that can offer an EPIP. After full approval from the Maryland Insurance Administration in 2027, the collaborative will solicit actual premium proposals for insured EPIP coverage beginning in January 2028. While the timing is to be determined, the collaborative plans to have more specific information on the actual cost before the January 2028 start of the program.
The benefits to local governments include:
• A structured alternative to the State FAMLI plan;
• Potential cost savings;
• Streamlined administrative burden; and
• Shared expertise and coordinated compliance support.
It would be beneficial for Rockville to partner with MML and its member municipalities to advocate for the State to reconsider the mandatory application of FAMLI to local governments and explore alternatives that recognize the unique fiscal and operational needs of local governments.
This LAR aligns with the Mayor and Council’s efficient and effective service delivery priority.
3. Legislation Requiring Boards of Education to Consult with Municipalities and Incorporate Municipal Data into their Annual Student Residency and School Zones Report
In the 2026 Session, the Mayor and Council supported this concept in an amendment added by Senator Kagan to SB 31- School Construction and Housing - School Zones and Adequate Public Facilities Ordinances sponsored by Senator Lam. While the bill primarily impacted Counties, the Mayor and Council supported SB 31, as amended, which would have required County Boards of Education in their annual student residency and school zones report to the Maryland Department of Planning and the Interagency Commission on School Construction to consult with each municipality located in the County that exercises planning and zoning authority, and incorporate data provided by the municipalities into the plan’s enrollment projections and analysis of future facility needs. This LAR has broad applicability. According to the Maryland Department of Planning, there are 108 municipalities in Maryland with planning and zoning authority.
This LAR is highly relevant to Rockville. The community was heavily impacted by the Board of Education’s (BOE) decision to move Wootton High School to the new Crown Farm High School, which will open at the start of the 2027-2028 school year, and use the Wootton High School campus on Wootton Parkway as a holding school. During the Mayor and Council’s advocacy in support of keeping the high school at the Wootton Parkway Campus, the Mayor and Council expressed significant concern to the school system that, at their March 3 meeting, MCPS staff confirmed that enrollment projections are based solely on site-approved development and adopted planning documents are not directly included in the MCPS projections.
Rockville objected to this methodology, as significant residential growth in the City has been planned and adopted through approved development and master plans, but the final site plans may not yet be approved. The City advocated that major decisions relating to the use of a school service area should be based on projections that fully reflect the communities that are intended to be served by schools and should include an in-depth review of cluster planning considerations that reflect municipal growth planning. Rockville requested that when determining enrollment projections, the BOE incorporate growth reflected in all approved development and adopted planning documents, to ensure that MPCS aligns its facility planning decisions with Rockville’s long-range planning efforts. Additionally, the City requested that the school system include the 2040 Comprehensive Master Plan and Town Center Master Plan in the FY27 Capital Budget and FY27-32 Capital Improvements program.
Advocating for this request through a 2027 MML LAR would heighten MML's awareness of this issue and, if selected by MML, would strengthen Rockville’s advocacy in support of potential 2027 legislation. Given that 108 municipalities have planning and zoning authority, a significant number of MML members are impacted by this issue, which is a key element that MML looks for when considering potential priorities to adopt for the next State legislative Session.
This legislation aligns with the Mayor and Council’s housing and economic development priorities.
Impact Statements
Equity - The LAR to require Boards of Education to incorporate municipal planning data into their facility planning and enrollment projections has the potential for more equitable outcomes, as school communities may receive the educational facilities and services needed to support a high-quality education. The LAR associated with modernizing municipal revenue structures, including the preservation of HURs, also supports equity as it would generate or preserve resources used to invest in public infrastructure used by communities who walk, bike, roll, and use public transportation.
Environment - The LAR associated with modernizing municipal revenue structures, including the preservation of HURs and Police Aid, could generate additional investment in public infrastructure designed to facilitate and enhance safety for walking, rolling, and use of transit, which supports the environment by reducing greenhouse gas emissions, and aligns with Rockville’s Climate Action Plan goals.
Economy - The LAR to advocate for legislation to modernize municipal revenue structures and preserve HURs and Police aid could generate additional municipal revenues, which could stimulate Rockville's investment in public infrastructure, policing, and other critical city services. Quality public infrastructure and additional public safety resources may attract private development in Rockville, which could generate additional economic activity in Rockville.
Mayor and Council History
The Mayor and Council annually discuss and approve LAR items to forward to MML for consideration in the League’s priority program for the next General Assembly Session.
Next Steps
Staff will forward the approved LARs to MML for consideration by the League’s Legislative Committee. Staff will update the Mayor and Council on the 2027 priority issues approved by the MML Board of Directors. The Mayor and Council will consider and approve Rockville-specific priorities in its discussion of the City’s comprehensive 2027 State legislative priorities program in the early fall of 2025 (TBD), after MML’s priorities are adopted.