Revenue Stabilization Account - Transfer of Funds - State Disaster Recovery Fund
Summary
HB953 authorizes the Governor, with approval from the Board of Public Works, to transfer money from Maryland’s Revenue Stabilization Account (the Rainy Day Fund) to the State Disaster Recovery Fund. The bill adds the Revenue Stabilization Account as a permitted source of funding for the Disaster Recovery Fund, alongside existing transfers from the Catastrophic Event Account, repayments, federal reimbursements, interest earnings, and other accepted money. The transfer authority is limited so that it cannot reduce the Revenue Stabilization Account below 5% of estimated General Fund revenues for the fiscal year, preserving the existing minimum balance safeguard.
The bill also amends the State Finance and Procurement Article to create a specific exception allowing transfers from the Revenue Stabilization Account to the Disaster Recovery Fund, while leaving intact the general rule that the Governor may transfer funds from the account to General Fund revenues under certain conditions. The measure takes effect June 1, 2026, and is a targeted fiscal and emergency-management change rather than a broad restructuring of state finance law.
Impact
HB953 changes Maryland law by expanding the permitted uses of the Revenue Stabilization Account to include transfers to the State Disaster Recovery Fund under § 14-110.5 of the Public Safety Article. It directly affects the rules governing the Rainy Day Fund in § 7-311 of the State Finance and Procurement Article and the funding structure for disaster recovery assistance. The practical effect is to give the State an additional source of flexible funding for disaster response and recovery, while maintaining the statutory 5% reserve floor and requiring Board of Public Works approval.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the House 126-0 and the Senate 36-0, indicating unanimous approval in both chambers. The lack of committee transcript material also suggests there was little recorded opposition or debate, and the measure was treated as a straightforward fiscal preparedness tool.
Contention
No notable substantive contention is reflected in the available record. The main policy consideration is balancing disaster recovery funding flexibility against preserving the integrity of the Revenue Stabilization Account as a budget reserve. Any concern would likely center on whether allowing transfers from the Rainy Day Fund could weaken long-term fiscal stability, but the bill addresses that concern by keeping the 5% minimum balance requirement and requiring Board of Public Works approval.