Subject
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2027 State Legislative Priorities (including Legislative Bond Initiatives) - Work Session
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Department
City Manager's Office (CMO)
Recommendation
Staff recommends that the Mayor and Council (i) receive the presentation, (ii) discuss the proposed 2027 State legislative priorities, and (iii) direct staff to bring forth a resolution that includes the approved 2027 State legislative priorities.
Discussion
Purpose:
The purpose of this work session is to provide the Mayor and Council with an overview of the proposed 2027 State legislative priorities, and for staff to receive direction on priority legislative/policy issues that the City will advocate for in the upcoming General Assembly Session.
Feedback on the questions below is needed from the Mayor and Council to guide the next step:
1) Does the Mayor and Council support the proposed priorities?
2) Does the Mayor and Council have other priorities?
Background:
Staff seeks broad direction from the Mayor and Council regarding topics they would like to include in Rockville’s 2027 State Legislative Priorities program. With Mayor and Council direction, staff will return on October 5th with a resolution for adoption that includes the approved 2027 State Legislative priorities. This staff report includes proposed 2027 State legislative priorities for the Mayor and Council’s consideration, including Legislative Bond Initiatives.
The work session continues the Mayor and Council’s consideration of Rockville’s 2027 State legislative priorities. The discussion began on June 1, 2026, when the Mayor and Council approved three MML Legislative Action Requests that were forwarded to the League for consideration as 2027 priorities. This agenda item is a comprehensive package of all issues that will be included in Rockville’s 2027 State legislative priorities program. The 450th General Assembly Session will begin on January 13 and conclude on April 12, 2027.
2027 State Legislative Outlook
Maryland is in the midst of an election year, with the primary elections completed and the general election still to come in November. Given the Democratic Party’s dominance in the State, most competitive races are decided in the primary, although several general election contests warrant continued attention. The results of the 2026 election will shape the political landscape in Annapolis when the 2027 legislative session convenes, including the composition of the General Assembly, committee leadership, and the Governor’s priorities.
Although the overall leadership structure of the General Assembly is expected to remain relatively stable, the 2027 session will include a meaningful amount of membership turnover. At the end of the 2026 session, roughly 25 legislators were known to be leaving their current seats due to retirements, decisions not to seek reelection, or campaigns for other offices. Five additional incumbents were defeated in the June primary, bringing the number of legislative seats expected to have new occupants to at least 30. However, because some current House members are expected to win Senate seats, not all open seats will be filled by first-time legislators, reducing the number of entirely new members. Nevertheless, the General Assembly could see approximately 20 to 25 new members when it convenes in January, assuming the November general election produces relatively little additional turnover.
The State’s fiscal condition will remain one of the most significant factors affecting the 2027 legislative session. Although the General Assembly enacted a balanced FY 2027 budget, the State continues to face significant fiscal out-year pressures. Looking ahead, the State will need to address both cash and structural shortfalls. The Department of Legislative Services has projected that the State’s cash shortfall could reach approximately $2.5 billion in fiscal 2028, driven in significant part by the increasing costs of the Blueprint for Maryland’s Future and the depletion of the Blueprint Fund. DLS projects that General Fund support for Blueprint-related costs will increase substantially beginning in fiscal 2028.
Several additional budgetary pressures will be relevant to the 2027 session. Beginning October 1, 2027, Maryland could be required to assume a portion of Supplemental Nutrition Assistance Program (SNAP) benefit costs based on the State’s payment error rate. Maryland’s current rate would place the State in the highest cost-sharing tier, which the Department of Human Services estimates could represent approximately $240 million annually. The State will also need to address continued cost growth in Medicaid, behavioral health, and services for individuals with developmental disabilities. The Maryland Department of Legislative Services has identified these areas as among the primary drivers of recent State spending growth.
In addressing these pressures, the Administration and General Assembly are likely to consider a range of options, including mandate relief, revenue adjustments, fund balance transfers, and cost shifts. These decisions could have implications for municipalities if the State reduces funding, modifies State-local cost-sharing arrangements, or shifts additional responsibilities to local governments. The State’s broader approach to municipal revenues will also be an issue to watch during the 2027 session. House Bill 1142, enacted in 2026 as Chapter 17, established the Task Force to Modernize County and Municipal Revenue Structures to study and evaluate the revenue structures available to county and municipal governments. Among other things, the Task Force is examining existing and potential revenue sources, local authority to raise additional revenues, revenue practices in other states, and the potential effects of new revenue sources on affordability and the cost of living. The Task Force has begun its work and is required to submit its findings and recommendations to the Governor and the General Assembly by December 1, 2026. Its recommendations could serve as a starting point for legislation concerning municipal revenue and State-local fiscal relationships. Staff and the City’s State lobbyist will monitor the Task Force’s work and keep the City informed.
Affordable housing is also expected to remain a major focus of the 2027 legislative session. The issue has been a longstanding priority for Rockville and will remain a significant area of State-local policy discussion. The Moore Administration, through the Maryland Department of Housing and Community Development (DHCD), began engaging local government officials earlier in the legislative process to solicit feedback on potential housing legislation. DHCD is considering a range of high-level, conceptual legislative options intended to increase housing production and affordability. Proposals under consideration include by-right development of smaller and starter homes, single-stair reform, elimination of government-mandated parking minimums, increased development rights on larger lots, and changes to the development review and permitting process.
Staff and the City’s State lobbyist will continue to monitor developments leading up to the 2027 Session and keep the Mayor and Council informed of issues that may affect the City’s priorities and interests.
Proposed 2027 State Legislative Priorities
Rockville’s 2027 proposed State legislative priorities consist of the following:
• Approved 2027 MML Legislative Action Request Priorities
• 2027 MML Legislative Committee Recommended Priority
• Returning Priorities from the 2026 Session
• Ongoing State Legislative Priorities
Similar to previous years, a “Watch List” has been developed for issues of interest that staff and the City’s State lobbyist will monitor. Should legislation be introduced that aligns with watch list items, staff will bring it to the Mayor and Council for consideration and potential action.
Please see the section entitled “Watch List” on page nine of this staff report for additional information.
The following proposed priorities are specific issues to advocate for and advance in the 2027 General Assembly Session.
2027 Priorities Adopted To Date
At the June 1, 2026 meeting, the Mayor and Council approved three 2027 priorities for submittal to the Maryland Municipal League (MML) as Legislative Action Requests. The approved requests are as follows:
• Modernizing Municipal Revenue Structures
This LAR title has been adjusted to align with the 2027 MML Legislative Committee-recommended priority submitted by the City of Rockville. The initial title was “legislation supporting the findings and recommendations of the Task Force to modernize county and municipal revenue sources and protect municipal highway user revenues and state aid for police protection.” The MML priority is broadly constructed to address the various funding issues important to Maryland municipalities, including the preservation of Municipal Highway User Revenues and State Aid for Police Protection and the ability to support recommendations for legislation arising from the Task Force to Modernize County and Municipal Revenue Structures. The priority provides the MML with the flexibility to potentially work several revenue bills strategically through the 2027 Session.
MML is highlighting that municipalities are constrained by a nearly century-old financial
framework structured around the property tax, which serves as the primary vehicle to
fund municipal operations, and creates an unsustainable burden on residents and directly
conflicts with statewide housing affordability and stability goals. The Recommendations of the Task Force to Modernize Municipal Revenues will be included in a report that is due to the House Ways and Means Committee and the Senate Budget and Taxation Committee on December 1, 2026. MML staff have noted that there is a December 2, 2026 Board Meeting at the fall Leadership Conference and if needed, the Board could vote to update this priority to reflect potential recommendations that MML would want to support from the Task Force report.
• Advocate for Municipal Government Autonomy to Make Benefits and Leave Decisions, Including the State’s Family and Medical Leave Insurance Program
Rockville supports the State’s goal of expanding access to family and medical leave and offers a generous leave and benefits program, including paid parental leave. The City believes these decisions should be left to municipalities to determine leave and benefits that align with their budgetary and operational structures. Municipalities are best positioned to provide practical, locally appropriate leave and benefits that align with municipal budgets and operational capacity.
In the absence of flexibility 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.
While Gaithersburg, Berwyn Heights, Cumberland, and Gaithersburg all submitted this as LARs, the MML Legislative Committee did not select it for inclusion in the 2027 League priority program. A team of staff from Rockville, Gaithersburg, Cumberland, and Hagerstown is collaborating (including Gaithersburg and Rockville State lobbyists) to explore the potential for a solution. To date, two meetings have been held. Staff will keep the Mayor and Council informed of developments.
• Legislation Requiring Boards of Education to Consult with Municipalities and Incorporate Municipal Data into their Annual Student Residency and School Zones Report
The legislation would require School Boards 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. In the 2026 Session, the Rockville 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. The legislation failed. Rockville’s State lobbyist has indicated to the sponsor that the City supports the reintroduction of this legislation in the 2027 Session.
The community was heavily impacted by the Montgomery County 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 (in Rockville) as a holding school. The legislation could significantly reduce the likelihood of school boards making inaccurate projections that influence school boundaries and decisions related to whether schools remain open or closed. School communities would be better served by accurate, data-driven decisions that would help to ensure that the schools in the community meet the needs of the surrounding neighborhoods. It appears that this decision may be impacting development in the vicinity of the Wootton High School campus on Wootton Parkway.
2027 MML Legislative Committee Recommended Priorities
MML LC selected and is recommending to the Board to approve the following priorities:
• Modernizing Municipal Revenue Structures:
See the description from the preceding section titled “2027 Priorities Adopted to Date” for more information.
• Addressing Coordinated Takeover Events:
The MML Legislative Committee adopted a priority to address a growing public safety issue. According to MML, municipalities in Maryland are increasingly confronting coordinated takeover events in large groups - often organized rapidly through social media and private messaging platforms. Individuals involved converge in public spaces, community events, and commercial areas, and engage in disruptive, dangerous, and unlawful conduct. These activities can overwhelm law enforcement and municipal resources, disrupt business and community activity, damage property, and create significant public safety risks for residents and visitors. Municipalities and law enforcement need effective tools to deter, investigate, and hold accountable those who violate the law during these events, while maintaining constitutional protections.
The MML Board of Directors will have the opportunity to review and approve the recommended
2027 League priorities at its September meeting. MML will share the outcome with its members.
Returning Priorities from the 2026 Session
• Legislation to Support Funding for Youth Service Bureaus and Initiatives for Teens During Out-of-School Hours.
This priority focuses on advocacy for youth and at-risk youth programming, including:
o Youth Service Bureau funding restoration;
o Out-of-school activities; and
o Juvenile services for youth involved in repeat crimes who do not have access to restoration services support.
In the 2025 Session, the City supported, House Bill 814 - Department of Juvenile Services - Report on Youth Service Bureaus (passed), which requires the Department of Juvenile Services (DJS) to report to the Senate Judicial Proceedings Committee and the House Judiciary Committee by October 1, 2025, and each October 1 thereafter, on (1) efforts by DJS to promote predelinquent programs, including YSBs; (2) efforts by DJS to collaborate with and provide technical assistance to local governments regarding the establishment, use, and funding of YSBs; (3) an assessment of the programs and activities conducted by YSBs; and (4) any other efforts to prevent youth offenses. During the 2026 Session, the City supported HB 1058/SB 537 Youth Delinquency Prevention Fund, which would have established a Youth Service Bureau fund. The bill failed. If this priority is approved, the City will continue to advocate for dedicated funding for Youth Service Bureaus and related initiatives in the 2027 Session.
• Legislation Strengthening Tenant Protections
o Advocate for Just Cause Eviction Legislation
Delegate Jheanelle Wilkins (Montgomery County Delegation) has been the lead sponsor on this bill, which has been introduced for several years. The legislation would authorize a County to enact local laws or ordinances that prohibit a landlord from failing to renew a lease during the lease period or seeking to terminate a holdover tenancy without good cause, as specified. Essentially, landlords could not evict a tenant or refuse to renew a lease without a reason. The City supported SB 462/HB774 in the 2026 Session (failed). If this priority is approved, the City would continue to advocate for Just Cause Eviction legislation in the 2027 Session.
o Advocate for Landlord-Tenant Residential Leases Fee Disclosure Legislation
In the 2026 Session, the City supported Delegate Vogel’s House Bill 80 - Landlord and Tenant - Residential Leases - Fee Disclosures (failed). The legislation would require a landlord to provide prospective tenants with specified information about fees and prohibit the charging of undisclosed mandatory fees. If approved, the City will continue to advocate for this legislation in the 2027 Session. The City’s recently adopted new landlord/tenant code increased transparency around fees and guarantor requirements.
o Advocate for Legislation Banning the Use of Algorithmic Devices by Landlords
In the 2026 Session, Rockville supported House Bill 434: Residential Leases - Use of Algorithmic Device by Landlord to Determine Rent, Occupancy, and Lease - Terms - Prohibition. The bill did not pass. The Rockville Mayor and Council included an algorithmic pricing ban in the Chapter 18 Code Update recently approved that prohibits landlords from using rent-setting software, shared competitor data, or algorithmic devices to set rent, fees, or lease terms. Montgomery County Bill 8-26 Landlord-Tenant Relations - Prohibition Against Price Coordination and Rent-Setting Algorithms was introduced in February of 2026. A press conference and public hearing were held in March 2026, and the bill is currently awaiting committee review by the County Council’s Planning, Housing, and Parks Committee.
Ongoing Rockville 2027 State Legislative Priorities
• Expand Access to the State Property Tax Credit to Low and Medium-Income Homeowners, Including Senior Residents, and Individuals with Disabilities to Provide Relief from Inflationary Pressures and Cost-of-Living Increases
This priority would expand the eligibility for the State Homeowner’s Property Tax Credit. Low and moderate-income residents, including senior residents, and individuals with disabilities would benefit by receiving some relief from inflationary pressures driving cost-of-living increases.
• Advocate in Support of the City’s Vision Zero and Pedestrian Master Plan Efforts, including:
o Advocate for a comparative negligence law that allows pedestrians to claim damages at the percentage to which they are determined to be at fault in a vehicle crash.
o Clarify the State’s responsibility for maintaining transportation facilities, including sidewalks and streetlights at state intersections along state roadways, with dedicated state funding for maintenance.
o Advocate for the State to mitigate the increase in streetlight outages in support of pedestrian safety and to address increased overtime for City Police to maintain safety and direct traffic during outages.
o Advocate for Don’t Block the Box legislation that would prohibit a vehicle facing a green or yellow signal from entering an intersection if the vehicle is unable to proceed completely through the intersection.
o Advocate for legislation to authorize regional transportation authorities to implement regional plans and raise transportation revenues for the State and local governments.
o Advocate for additional complete streets implementation along MD 355, Veirs Mill Road, and all State roads with high numbers of crashes or fatalities.
• Support Legislation that Advances Rockville’s Climate Action Goals of Reducing Greenhouse Gases, Prioritizing Equity, and Building Resiliency.
• Advocate for Increased Senior Transportation Services, Recreation and Wellness Programs, Senior programs in Neighborhoods, Aging-in-Place and Village Initiatives, and Senior Outreach.
Proposed Legislative Bond Initiative (LBI) Options
Staff recommends two options for the Mayor and Council’s consideration, as the District 17 Delegation prefers to have more than one legislative bond initiative project to consider. Additionally, staff requests that the Mayor and Council provide approval for staff to share the two potential priority projects with the District 17 Delegation, and for direction on the ranking of priorities by order of importance. Staff will update the Mayor and Council on the option that gains majority support from the District 17 Delegation. Staff will keep the Mayor and Council informed and engaged.
Project Option #1: Playground Equity Project ($700,000)
This LBI option includes two projects.
The request is for $700,000 of LBI funding for equitable and modern play features that will create inclusive spaces for children and youth to safely engage in physical activity, develop motor skills, social skills, and promote creative exploration-quality-of-life amenities that are often less available to vulnerable populations and communities.
Mattie Stepanek Park Playground Accessibility Enhancement - ($350,000)
This project entails requesting $350,000 in LBI funding to increase playground accessibility and meet the criteria for Maryland Playgrounds for All - PLAYGROUNDS FOR ALL! MARYLAND <https://www.playgroundsforallmd.org/>.
Creating a completely accessible and inclusive playground at Mattie J.T. Stepanek Park would have a positive impact because it would allow children of all abilities to play, explore, and make friends together. This would support Mattie's message of inclusion, kindness, and peace. The park already has accessible trails and facilities. An inclusive playground would build on its commitment to accessibility, exceed minimum ADA requirements commonly found in most playgrounds, and make this City park a destination play space for young people with disabilities and their families.
Lone Oak Park Playground Replacement - ($350,000)
This project entails requesting $350,000 in State LBI funding. The playground at Lone Oak Park is 25 years old and located in Rockville’s vulnerable Twinbrook Community. The original playground was built without consideration for accessibility. A new playground will follow ADA (Americans with Disabilities Act) guidelines so that children of all abilities can enjoy the park. Building an accessible playground would help reduce inequality, support inclusion, and ensure that every child can play, exercise, and connect with others, regardless of their neighborhood or abilities.
Project Option#2 - Rockville City Hall Accessibility and Security $550,000
This project funds enhancements to the entrance to City Hall. The improvements include a gender-neutral restroom, adult changing station, code-compliant restrooms, doorway/vestibule improvements, and security upgrades. These improvements are important investments in accessibility, safety, and the overall experience of employees and visitors. Since City Hall is often the first impression of municipal government, ensuring that the facility is welcoming, inclusive, secure, and accessible supports the community's needs and demonstrates the City’s commitment to providing quality public services.
Watch List Items
The following is a listing of issues of interest to the Mayor and Council that staff and the City’s State lobbyist will monitor and bring forward legislation for consideration by the Body:
• Legislation that would impact Rockville’s development review process and/or local planning and zoning authority.
• Legislation supporting Nonprofit operations, including health insurance and other administrative costs.
• Legislation supporting native plant and animal species and restricting invasive species, including measures for spotted lanternfly mitigation and eradication, in alignment with Rockville’s efforts.
• Legislation related to tenant issues and protections.
• Legislation that enhances pedestrian, bike safety, and transportation safety.
• Legislation related to financial empowerment.
Mayor and Council History
In the fall of each year, the Mayor and Council discuss, select, and approve a comprehensive State legislative priorities program for the upcoming General Assembly Session.
Next Steps
Should the Mayor and Council choose to provide broad direction on 2027 Rockville State Legislative Priorities, staff will return on October 5, 2026, with a resolution that includes the selected priorities for adoption.
Rockville’s approved 2027 State legislative priorities will be highlighted at the Legislative Priorities hearing before the Montgomery County Delegation in November 2026 (TBD). Rockville and its State lobbyist will collaborate with District 17 and other stakeholders to advocate for the adopted priorities in the 2027 General Assembly Session.