FINANCE AND ADMINISTRATION COMMITTEE
THURSDAY, MARCH 12, 2026
MARYLAND TRANSPORTATION AUTHORITY
2310 BROENING HWY BALTIMORE, MD 21224
FINANCE AND ADMINISTRATION COMMITTEE MEETING AGENDA March 12, 2026 – 9:00 a.m. This meeting will be livestreamed on the Finance and Administration Committee Meeting Archive | MDTA (maryland.gov) NOTE: This is an Open Meeting being conducted via livestreaming. The public is welcomed to watch the meeting at the link listed above. If you wish to comment on an agenda item please email your name, affiliation, and agenda item to cgreen2@mdta.state.md.us no later than noon on Wednesday, March 11, 2026. You MUST pre-register in order to comment. Once you have pre-registered you will receive an email with all pertinent information.
AGENDA
OPEN SESSION Call to Order
1. Approval February 12, 2026 - Open Meeting Minutes
Chairman von Paris 5 min.
2. Update
Human Resources and Workforce Development - Update on
Tonya Dorsey
10 min.
key initiatives
3. Update
FY 2027 Department of Legislative Services Budget Analysis - A review of the MDTA's legislative budget hearing
Chantelle Green Jeffrey Brown
15 min.
4. Update
2026 Legislative Session - Update on the MDTA's two
Mary O'Keeffe
10 min.
departmental bills (Verbal)
5. Update
FSK Bridge Reconstruction - Description of the process utilized to verify the accuracy of federally reimbursable project expenses
Bill Bertrand
10 min.
Vote to Adjourn
Subject to change; revisions to be published
3/12/26
ITEM 1
FINANCE AND ADMINISTRATION COMMITTEE MONTHLY MEETING THURSDAY, FEBRUARY 12, 2026 OPEN MEETING VIA LIVESTREAM OPEN SESSION
MEMBERS ATTENDING:
Cynthia Penny-Ardinger Dontae Carroll Jeffrey Rosen John von Paris Greg Brown Jeffrey Brown Kevin Cullity Percy Dangerfield Jeffrey P. Davis Allen Garman Bruce Gartner Chantelle Green Anthony Hagen Kendra Joseph Mary O’Keeffe Megan Mohan, Esq. Terricka Holman-Moore Kenneth Montgomery Linda Sfakianoudis
STAFF ATTENDING:
Timothy Sheets Jennifer Stump Paul Truntich Clayton Viehweg
At 9:00 a.m., Member John von Paris, Chair of the Finance and Administration Committee, called the Finance and Administration Committee Meeting to order.
APPROVAL – OPEN MEETING MINUTES FROM JANARY 15, 2026 MEETING Member John von Paris called for the approval of the meeting minutes from the open meeting held on January 15, 2026. Member Cynthia Penny-Ardinger made the motion, and Member Jeffrey Rosen seconded the motion, which was unanimously approved.
OPEN SESSION FEBRUARY 12, 2026 PAGE TWO OF FOUR
APPROVAL - INVESTMENT COMMITTEE REPORT - QUARTERLY UPDATE ON THE INVESTMENT OF MDTA'S FUNDS Mr. Clayton Viehweg requested the Finance and Administration Committee’s concurrence and recommendation to move to the full MDTA Board for approval of the dealer addition, the dealer termination, and continuation of investment strategy and benchmark indices. The Investment Report update for the three-month period ending December 31, 2025 included a review of policy compliance, portfolio strategies, and total return performance relative to benchmark indices. Mr. Viehweg also discussed the recommended addition and removal of Huntington Securities and Janey Montgomery from the approved dealer’s list, respectively. Member von Paris called for a motion to recommend approval of this item to the full MDTA Board at its next scheduled meeting. Member Dontae Carroll made the motion, and Member Rosen seconded the motion, which was unanimously approved. UPDATE - SECOND QUARTER BUDGET COMPARISON - REVIEW OF ACTUAL VS. PROJECTED SPENDING FOR THE FY2026 OPERATING BUDGET Mr. Jeffrey Brown updated the Finance and Administration Committee on actual versus projected year-to-date spending for the second quarter of FY 2026. As of December 31, 2025, 44% of the operating budget was spent compared to the target of 48%. Except for fixed costs, all other objects were below budget. UPDATE - SECOND QUARTER BUDGET COMPARISON - REVIEW OF ACTUAL VS. PROJECTED SPENDING FOR THE FY2026 CAPITAL BUDGET Ms. Jennifer Stump updated the Finance and Administration Committee on actual year- to-date spending for the second quarter compared to projected spending as shown in the FY 2026-2031 Draft Consolidated Transportation Program. As of December 31, 2025, 28% of the FY 2025 capital budget was spent as compared to the target of 50%. The total budget for FY 2026 is $1.2 billion. The actual spending through the second quarter was $324.4 million. UPDATE - QUARTERLY UPDATE ON TRAFFIC AND REVENUE - ACTUAL PERFORMANCE OF TRAFFIC AND REVENUE COMPARED TO THE FORECAST Ms. Chantelle Green provided the Finance and Administration Committee with a quarterly and year-to-date update regarding traffic and toll revenue trends compared to the previous year and forecast. For the quarter ending December 31, 2025, overall collected revenue was above forecast by $4.4 million. The key drivers for the year-to- date traffic and revenue performance were higher than forecasted E-ZPass ® and civil penalty fee revenue. The overperformance in these areas was partially offset by lower
OPEN SESSION FEBRUARY 12, 2026 PAGE THREE OF FOUR
than forecasted video toll revenue collections. The variation between actual and forecasted civil penalty fee revenue is likely to smooth out as the year progresses. UPDATE - STAY INTERVIEW PROGRAM - MDTA'S EMPLOYEE RETENTION INITIATIVE Ms. Linda Sfakianoudis provided the Finance and Administration Committee with an update on the MDTA’s Stay Interview Program. The Stay Interview Program aims to assess employee satisfaction and retention by engaging current employees, at all levels of the agency, in proactive discussions about their experiences at the MDTA. The goal of the program is to understand what is working well and to identify opportunities for improvement within the agency. Through this program, a division or team participates in an in-person stay interview session consisting of an anonymous survey, a review of survey responses as a group, a small group activity focused on strategies and action planning, and a large group discussion. Following the session, the division is provided with a summary of the stay interview session, the themes identified, considerations for further discussion, and copies of each group activity. During 2025, a total of 253 employees participated in stay interviews. UPDATE - EMPLOYEE DRUG TESTING - AN OVERVIEW OF THE MDTA'S RANDOM CONTROLLED SUBSTANCES AND ALCOHOL TESTING PROGRAM Dr. Percy Dangerfield and Mr. Paul Truntich provided the Finance and Administration Committee with an update on the MDTA’s Random Controlled Substances & Alcohol Testing Program. The MDTA’s random controlled substance and alcohol testing guidelines are outlined in MDTA Policy D-90-1 (Alcohol and Controlled Substances Testing Directive) and D-95-1 (MDTA Commercial Driver License (CDL) Alcohol and Controlled Substances Testing Program). The policies require certain categories of sworn police officers, CDL drivers, and safety sensitive employees (an employee whose job responsibilities involve tasks that could impact the safety of people or property if performed under the influence of controlled substances or alcohol) to be randomly tested. In 2025, of the 245 random drug tests administered, there were 2 positive results. UPDATE - MDTA ROADEO - THE MDTA'S TRAINING & RECOGNITION DAY (VERBAL) Mary O’Keeffe provided the Finance and Administration Committee with an update on the MDTA’s 2026 Training and Recognition Day. The 2026 agency-wide training day is scheduled to occur the week before Memorial Day holiday. The event comprises three main components: (1) a vehicle skills competition; (2) an exposition of MDTA programs, opportunities, and information; and (3) the presentation of 10 annual employee awards.
OPEN SESSION FEBRUARY 12, 2026 PAGE FOUR OF FOUR
There being no further business, the meeting of the Finance and Administration Committee adjourned at 10:02 a.m., following a motion by Member Rosen, and seconded by Member Penny-Ardinger.
_________________________________________________ John von Paris, Chairman
ITEM 2
MEMORANDUM
TO:
MDTA Finance and Administration Committee Tonya J. Dorsey, Director, Human Resources and Workforce Development Human Resources and Workforce Development Update
FROM:
SUBJECT:
DATE:
March 12, 2026
PURPOSE OF MEMORANDUM The purpose of this Memorandum is to provide an update on key initiatives from the Office of Human Resources and Workforce Development. SUMMARY Recruitment and Examinations As you know, a Statewide hiring freeze went into effect on July 1, 2025. However, there are several MDOT classifications which are exempt from the hiring freeze for the agency to continue handling essential operations. For all other positions in classifications impacted by the hiring freeze, requests may be submitted to the MDTA Executive Director for consideration of a hiring freeze exception on an individual basis. The Recruitment and Examinations Unit received 329 requests for recruitment in 2025. Of those, 28 recruitment requests were canceled due to various reasons, such as a hiring manager choosing to reclassify the position and hiring freeze exception request denials. There were 232 total hires, including 118 new hires, 23 transfers, 6 reassignments, 21 reinstatements, 61 promotions, and 3 career change demotions. On March 11, 2025, the vacancy rate was 10.5%. As of February 6, 2026, the vacancy rate is 11.2%. Employee Relations In 2025, the MDTA Employee Relations Manager participated in an MDOT-wide initiative to develop comprehensive Labor Relations Training. Led by TSO’s Employee- Employee Relations unit, representatives across all MDOT modes worked together to
2310 Broening Highway • Baltimore, MD 21224 • mdta@mdta.maryland.gov • 410.537.1000 • 711 (MD Relay) • mdta.maryland.gov • DriveEzMD.com
Human Resources and Workforce Development Update Page Two
develop relevant content which explores union roles and rights, effective communication with union representatives, appropriate use of release time, and the importance of strong labor management relationships. This training initiative is being implemented in a two-phase approach in early 2026. Our office facilitated the Phase I Labor Relations Training on February 27, 2026. Phase I participants are those who occupy roles with direct responsibility for policy development, labor relations decision-making, and the interpretation or enforcement of collective bargaining agreements. These include Human Resources Directors, Deputy Directors, Employee Relations Managers, Labor Relations Specialists, and Appointing Authorities. Individuals in these positions routinely make decisions that affect bargaining-unit employees, participate in negotiations, manage grievances, and represent the mode in third-party proceedings. Because their actions carry legal, operational, and contractual implications, completing the training is essential. Phase II of the Labor Relations Training is slated for a target completion date of June 30, 2026. Phase II participants will focus on Operations Managers and frontline leaders, whose day-to-day responsibilities include supervising bargaining-unit employees and implementing MDOT/Modal policies and MOU provisions. Training for this group will be required based on each mode’s operational structure, workforce composition, and degree of collective-bargaining oversight. The goal is to ensure Operations leadership receives consistent labor relations training critical to achieving uniform application of MOUs, reducing grievances, and strengthening labor- management partnerships across MDOT. Workforce and Organizational Development The Workforce and Organizational Development (WaOD) unit has been expanding MDTA’s leadership development training initiatives. The MDTA partnered with Carroll Community College to facilitate the eight-week Supervisory Training and Engagement Program (STEP). STEP participation is now mandatory for all newly hired and newly promoted supervisory personnel within their first year in the role. The program covers a range of soft skills and policy overviews. The following is a list of the coursework covered: • Exploring One’s Leadership Style Using Disc Model • Communication Skills for Managers • Critical Thinking and Creative Problem Solving • Leading High-Performance Teams • Organizational Skills for the Busy Manager • Building Conflict Competence • Fostering Diversity in the Workplace
Human Resources and Workforce Development Update Page Three The final day of the program focuses on internal policies and procedures relevant in MDTA, MDOT and State Government. There were 21 graduates in Spring 2025 and 26 graduates from Fall 2025. For Spring 2026, the next two cohorts began on March 3 rd and March 5 th respectively with 25 employees enrolled. So far, STEP has proved quite successful based on the participant survey results. MDTA is also committed to investing in the development of its future leaders. The Leadership Investment for Tomorrow (LIFT) program is designed for high-potential employees who are not currently in supervisory or managerial roles, bringing together some of the best and brightest individuals from across the organization. Through this program, participants develop their leadership capabilities, build on their existing strengths and talents, and gain the skills needed to support MDTA’s continued growth and success. Based on the success of the program—with an 80% success rate of participants either taking on stretch assignments or being promoted—LIFT curriculum is being expanded in Spring 2026 to provide an even greater opportunity to develop their leadership skills and prepare for future roles. There were 11 graduates from the Spring/Summer cohort in 2025. We are currently reviewing applications to select participants for the Spring 2026 cohort. The WaOD team conducted a training needs assessment across nine MDTA facilities in 2025 leading to the January 2026 launch of our All-Access Tours initiative. Designed for facility maintenance employees, our team is visiting all nine operations facilities to train on basic computer skills and how to navigate key employment systems such as mTrack (timekeeping), HRIS, Workday (benefits), and Cornerstone (online training). With up to 304 participants anticipated, the program aims to increase engagement with MDTA’s resources while expanding employees’ access to critical information important to their employment. The MDTA Career Development Program (CDP) continues to be a wonderful benefit to our employees in the pursuit of higher education. In 2025, we processed 166 applications for a total of 66 participants. This includes employees pursuing the following: Associate’s Degree (5), Bachelor of Arts (10), Bachelor of Science (24), Certifications (2), Master of Arts (6), Master of Business Administration (1), Master of Science (17), and PhD (6) programs. The Office of Human Resources and Workforce Development continues to look for ways to better serve the employees at the Maryland Transportation Authority and appreciate the opportunity to share some of our programs.
ITEM 3
MEMORANDUM
TO:
MDTA Finance and Administration Committee Director of Finance Chantelle Green Director of Budget, Jeffrey Brown
FROM:
SUBJECT:
Department of Legislative Services FY 2027 Budget Analysis
DATE:
March 12, 2026
PURPOSE OF MEMORANDUM To provide an overview of the budget issues and recommendations presented by the Department of Legislative Services (DLS) during the Maryland Transportation Authority’s (MDTA) FY 2027 legislative budget hearing. SUMMARY The DLS budget analysis is a comprehensive document that examines multiple facets of the MDTA’s operations, including changes in proposed funding and personnel. The budget analysis document typically examines an agency’s goals and mission, raises public policy issues, includes recommended budget actions, and provides appendices that summarize fiscal activity for the prior, current, and upcoming fiscal years. ATTACHMENTS DLS FY 2027 Budget Analysis MDTA FY 2027 Budget Analysis Responses
2310 Broening Highway • Baltimore, MD 21224 • mdta@mdta.maryland.gov • 410.537.1000 • 711 (MD Relay) • mdta.maryland.gov • DriveEzMD.com
J00J00 Maryland Transportation Authority
Executive Summary
The Maryland Transportation Authority (MDTA) has exclusive authority related to the supervision, financing, construction, operation, maintenance, and repair of Maryland’s toll facilities, as well as for financing new revenue-producing projects authorized under law.
Operating Budget Summary
Fiscal 2027 Budget Increases $42.6 Million, or 7.3%, to $629.9 Million ($ in Thousands)
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
2025
2026 Working
2027 Allowance
Nonbudgeted
• The majority of the increase in the fiscal 2027 operating budget allowance is attributable to increased debt service costs and contractual services for information technology (IT), maintenance, and other operations support.
For further information contact: Samuel M. Quist
samuel.quist@mga.maryland.gov
Analysis of the FY 2027 Maryland Executive Budget, 2026 1
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PAYGO Capital Budget Summary
Fiscal 2027 Budget Decreases $201.5 Million, or 15.7%, to $1.1 Billion ($ in Thousands)
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
2025
2026 Working
2027 Allowance
Nonbudgeted
Key Observations
• Financial Forecast: Although capital expenditures are projected to decrease between fiscal 2026 and 2027 based on project cash flow needs, fiscal 2027 capital expenditures are $560.4 million greater than in fiscal 2025, reflecting significant increases in capital expenditures primarily related to the reconstruction of the Francis Scott Key Bridge (Key Bridge). Expenditures for operating and debt service costs also increase in fiscal 2027. Increased expenditures combined with declining revenues in fiscal 2025 through 2027 result in the debt service coverage ratio declining below the required 2.0 level in fiscal 2028 and the rate covenant compliance ratio declining below the required 1.0 level in fiscal 2031. MDTA projects the need for the implementation of a toll increase to ensure adequate revenues to maintain the debt service coverage ratio by fiscal 2028. • Key Bridge Reconstruction Project: A preliminary design concept for the new Key Bridge was released in February 2025, and design reached the 70% level of completion in December 2025. Preliminary preconstruction activities are ongoing. In November 2025, MDTA announced updated cost estimates for the project of between $4.3 billion and
Analysis of the FY 2027 Maryland Executive Budget, 2026 2
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$5.2 billion and a revised project schedule with an estimated completion date of late calendar 2030. Approximately $228 million has been expended on the project through November 2025. MDTA has received preliminary reimbursements of federal funds and anticipates additional reimbursements in the next six months. • William Preston Lane Jr. Memorial Bridge (Chesapeake Bay Bridge): MDTA issued a request for proposals (RFP) for qualified design-build teams for the design and construction of the Bay Bridge Projection Project, which has been initiated by MDTA to add a physical pier projection system to the Chesapeake Bay Bridge. Additionally, the Chesapeake Bay Crossing Study: Tier 2 National Environmental Policy Act (NEPA) has continued to progress, with the issuance of the MDTA recommended preferred alternative for the new crossing in December 2025, and the issuance of a draft Environmental Impact Statement (EIS) in January 2026.
Operating Budget Recommended Actions
1. Adopt committee narrative requesting status reports on the Francis Scott Key Bridge reconstruction project.
PAYGO Budget Recommended Actions
1.
Nonbudgeted.
Analysis of the FY 2027 Maryland Executive Budget, 2026 3
J00J00 Maryland Transportation Authority
Budget Analysis
Program Description
MDTA has exclusive authority relating to the supervision, financing, construction, operation, maintenance, and repair of Maryland’s toll facilities, as well as for financing new revenue-producing transportation projects authorized under law. MDTA may act on behalf of, but is separate from, the Maryland Department of Transportation (MDOT) and is self-financed through toll revenues and other revenues related to the operation and maintenance of toll facilities. MDTA operates nine toll facilities across the State and also has jurisdiction over portions of I-95 and I-395 in Baltimore City. MDTA divides its facilities into three regions:
• Northern Region: includes the Thomas J. Hatem Memorial Bridge (US 40); the John F. Kennedy (JFK) Memorial Highway (I-95); and the Express Toll Lanes on I-95;
•
includes the Baltimore Harbor Tunnel (I-895); the Fort McHenry
Central Region:
Tunnel (I-95): and the Key Bridge (I-695); and
•
Southern Region: includes the Governor Harry W. Nice/Senator Thomas “Mac” Middleton Bridge (US 301); the Chesapeake Bay Bridge (US 50/301); and the Intercounty Connector (MD 200).
Membership of the MDTA Board is comprised of 8 members appointed by the Governor with the advice and consent of the Senate. The Secretary of Transportation serves as the chair of the MDTA Board. MDTA’s revenues are held separately from the Transportation Trust Fund, and the agency operates as a nonbudgeted agency. MDTA’s police force is responsible for security and law enforcement services at all of MDTA’s toll facilities except the northern region of I-95, which is patrolled by the Maryland State Police (MSP). MDTA is also under contract with the Maryland Aviation Administration (MAA) to provide law enforcement services at the Baltimore/Washington International Thurgood Marshall Airport (BWI Marshall Airport) and with the Maryland Port Administration (MPA) to provide law enforcement services at MPA-managed facilities at the Port of Baltimore.
Analysis of the FY 2027 Maryland Executive Budget, 2026 4
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Performance Analysis: Managing for Results
1.
E-ZPass Usage
E-ZPass toll transactions reduce costs and expedite the toll collection process, reduce delays at toll plazas, reduce vehicle idling time thereby reducing emissions, and allow for the more efficient movement of goods and people. E-ZPass toll collection is available at toll facilities in 20 states, including all MDTA facilities, most of the northeastern states, and parts of the midwest and southeast U.S. Exhibit 1 shows the percentage of tolls collected with E-ZPass and non-E-ZPass transactions (video tolls and pay-by-plate) at all MDTA facilities by fiscal year. Beginning in March 2020, during the height of the COVID-19 pandemic, MDTA began the implementation of systemwide all electronic tolling. In fiscal 2025, MDTA collected 88% of all tolls with E-ZPass. The remaining 12% of tolls were collected though either video tolling or pay-by-plate transactions. After decreasing from 91% in fiscal 2020 to 81% in fiscal 2021, due to the impacts of the pandemic and the resulting backlog of toll processing, E-ZPass usage has remained between 86% to 88% over the past three years. E-ZPass collection rates are estimated to remain within these ranges in fiscal 2026 and 2027, suggesting that most motorists who have interest in participating in the program have already enrolled.
Exhibit 1 Percent of Toll Transactions by Type Fiscal 2020-2025
100%
9%
12% 12%
19% 14% 14%
80%
60%
91%
88% 88%
81% 86% 86%
40%
20%
0%
2020
2021
2022
2023
2024
2025
E-ZPass
Video Tolls/Pay-by-plate
Source: Department of Budget and Management; Maryland Transportation Authority
Analysis of the FY 2027 Maryland Executive Budget, 2026 5
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Fiscal 2027 Overview of Agency Spending
As shown in Exhibit 2 , the capital program accounts for the largest share of fiscal 2027 MDTA expenditures, at approximately $1.1 billion, or 63% of total expenses. Due to increased capital expenditures related to the reconstruction of the Key Bridge and other projects, fiscal 2027 capital expenditures are projected to be $560.4 million greater than the level of capital expenditures in fiscal 2025. Operating costs, including administrative and personnel costs, are $463.1 million, or 27% of spending, while debt service costs are $166.8 million, or 10% of spending. Within operating costs, law enforcement personnel, including MDTA police and reimbursements for MSP that patrol at the I-95 facility, total $138.7 million.
Exhibit 2 Overview of Agency Spending Fiscal 2027 Allowance ($ in Millions)
Debt Service $166.8 10%
Capital Program $1,085.0 63%
Law Enforcement $138.7 8%
Other Operating $332.1 19%
Source: Governor’s Fiscal 2027 Budget Books; Maryland Transportation Authority
Proposed Budget Change
As shown in Exhibit 3 , the proposed fiscal 2027 operating budget increases by $42.6 million. The largest area of increase is for debt service on MDTA revenue bonds, which grow by $21.1 million due to new debt issuances anticipated in fiscal 2027. Contractual services
Analysis of the FY 2027 Maryland Executive Budget, 2026 6
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costs for IT services, maintenance, and operations needs increase by $18.2 million, and personnel expenses increase by $7.8 million, primarily due to retiree health insurance premiums. Motor vehicle expenses decrease by $10.7 million due to a delay in anticipated purchases of new vehicles.
Exhibit 3 Proposed Budget Maryland Transportation Authority ($ in Thousands)
How Much It Grows:
Nonbudgeted Fund
Total
Fiscal 2025 Actual
$603,632
$603,632
Fiscal 2026 Working
587,227
587,227
Fiscal 2027 Allowance
629,875
629,875
Fiscal 2026-2027 $ Change
$42,648
$42,648
Fiscal 2026-2027 % Change
7.3%
7.3%
Where It Goes:
Change
Personnel Expenses Employee and retiree health insurance ................................................................. Other fringe benefit adjustments .......................................................................... Other Changes Debt service requirements .................................................................................... Contractual IT personnel due to transfer of personnel from MDTA to MDOT in fiscal 2026 as part of MDOT IT consolidation ................................................ Toll collections vendor work order contract......................................................... Other fixed charges, including property and liability insurance premiums.......... Other contractual services for facility maintenance and operations ..................... Equipment purchases, primarily for MDTA police ..............................................
$7,774
511
21,081
8,000 6,400 3,946 3,826 1,539
Supplies and materials, primarily for building and roadway maintenance .......... 258 Motor vehicle purchases ....................................................................................... -10,683 Other ..................................................................................................................... -3 Total $42,648
IT: information technology MDOT: Maryland Department of Transportation MDTA: Maryland Transportation Authority
Note: Numbers may not sum to total due to rounding.
Analysis of the FY 2027 Maryland Executive Budget, 2026 7
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Revenues
Section 4-313 of the Transportation Article establishes the Transportation Authority Fund, a nonlapsing fund into which all MDTA revenues flow, except to the extent that revenues are pledged under a trust agreement. MDTA revenues come primarily from tolls, as well as from concessions income from travel plazas that it owns along I-95, investment income, and payments from MDOT. MDOT payments comprise reimbursement for police services provided at BWI Marshall Airport and the Port of Baltimore. To support its capital program, MDTA may issue toll revenue bonds with a maturity of up to 40 years. Typically, MDTA issues its toll revenue bonds with a 30- to 33-year maturity.
Fiscal 2027 Revenues
Exhibit 4 shows the various sources of MDTA revenues in fiscal 2027. The primary source of ongoing funding for MDTA is toll revenues, which total $770.1 million, or 46% of projected fiscal 2027 revenues. A projected federal grant of $556.3 million for the rebuilding of the Key Bridge and bond proceeds of $253.7 million account for just under half of total revenues. Intergovernmental revenues include funding reimbursements for MDTA police services provided at the Port of Baltimore and BWI Marshall Airport, loan repayments from loans issued to MDOT – the Secretary’s Office and MDOT – MAA, and a federal grant to support a capital project on the I-895 Baltimore Harbor Tunnel Thruway.
Analysis of the FY 2027 Maryland Executive Budget, 2026 8
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Exhibit 4 Fiscal 2027 Revenue Sources ($ in Millions)
Francis Scott Key Bridge Federal Grant $566.3 34%
Intergovernmental Revenues $68.2 4%
Bond Proceeds $253.7 15%
Other $86.6 5%
Investment Income $13.9 1%
Toll Revenues $770.1 46%
Concessions $4.5 0%
Source: Governor’s Fiscal 2027 Budget Books
Toll Revenues
As shown in Exhibit 5 , toll revenues decreased by $19.6 million, or 2.3%, to $828.9 million in fiscal 2025. Fiscal 2025 was the fourth consecutive year in which toll revenues exceeded $800 million following significant decreases in toll revenues in fiscal 2020 and 2021 caused by the impacts of the pandemic on traffic patterns. However, following the decline in fiscal 2025, MDTA projects that toll revenues will continue to decline in fiscal 2026 by $32.2 million, or 3.9% and in fiscal 2027 by $26.8 million, or 3.4%. Compared to fiscal 2025 revenues, fiscal 2026 revenues are projected to decline across all MDTA facilities except for the I-95 Express Toll Lanes and the Intercounty Connector.
Analysis of the FY 2027 Maryland Executive Budget, 2026 9
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Exhibit 5 Actual and Projected Toll Revenues Fiscal 2020-2027 Estimated ($ in Millions)
$900
$839.2 $848.5
$828.9
$806.9
$796.7
$769.9
$800
$700
$620.9
$600
$455.9
$500
$400
$300
$200
$100
$0
2020 2021 2022 2023 2024 2025 2026 Estimate
2027 Estimate
Source: Governor’s Fiscal 2027 Budget Books, Maryland Transportation Authority
Exhibit 6 shows actual fiscal 2025 toll revenue by facility. Nearly two-thirds of all toll revenues collected by MDTA in fiscal 2025 came from the Fort McHenry Tunnel (30%), I-95 (the JFK Memorial Highway) (22%), and the Baltimore Harbor Tunnel (13%). Prior to the collapse of the Key Bridge in March 2024, it accounted for approximately 5% of fiscal 2024 revenues, or $44.8 million of total revenues collected that year. In fiscal 2022 and 2023, the Key Bridge accounted for over $50 million in toll revenues in each year.
Analysis of the FY 2027 Maryland Executive Budget, 2026 10
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Exhibit 6 Toll Revenues by Facility Fiscal 2025 ($ in Millions)
I-95 Express Toll Lanes $19.1 2%
Nice/Middleton Bridge $22.2 3% Hatem Bridge $15.8 2%
Fort McHenry Tunnel $248.0 30%
I-95 JFK Memorial Highway $188.0 22%
Chesapeake Bay Bridge $55.7 7%
Other Toll Fees $96.9 12%
Baltimore Harbor Tunnel $109.8 13%
Intercounty Connector $73.6 9%
Chesapeake Bay Bridge: William Preston Lane Jr. Memorial Bridge Hatem Bridge: Thomas J. Hatem Memorial Bridge JFK: John F. Kennedy Nice/Middleton Bridge: Governor Harry W. Nice/Senator Thomas “Mac” Middleton Bridge
Source: Governor’s Fiscal 2027 Budget Books, Maryland Transportation Authority
Analysis of the FY 2027 Maryland Executive Budget, 2026 11
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Operating and PAYGO Personnel Data
FY 25
FY 26
FY 27
FY 26-27
Actual
Working
Allowance
Change
Regular Positions Contractual FTEs Total Personnel
1,697.00
1,641.00
1,641.00
00.00
0.00
0.00
0.00
0.00
1,697.00
1,641.00
1,641.00
00.00
Vacancy Data: Regular Positions
Turnover and Necessary Vacancies, Excluding New Positions
146.05
8.90%
Positions and Percentage Vacant December 31, 2025
218.00
13.3%
Vacancies Above Turnover
71.95
• In October 2025, the Board of Public Works (BPW) approved the abolition of 502.7 positions statewide, including 170.7 vacant positions and 332.0 positions associated with the Voluntary Separation Program (VSP). In MDTA, 12 positions were abolished due to the VSP. • The fiscal 2026 Budget Bill authorized the transfer of 44 IT-related positions from MDTA to the MDOT Secretary’s Office as part of the fiscal 2026 legislative appropriation. The fiscal 2027 budget of MDTA reflects the costs for these positions through contractual services. • While MDTA has independent authority over its personnel, it mirrors statewide salary actions for its civilian workforce. MDTA Police compensation adjustments are collectively bargained.
PAYGO Capital Program
Program Description
MDTA’s capital program involves the construction and maintenance of revenue-generating transportation facilities throughout the State.
Fiscal 2026 to 2031 Consolidated Transportation Program
The fiscal 2026 to 2031 Consolidated Transportation Program (CTP) for MDTA totals $8.4 billion. As shown in Exhibit 7 , the annual planned amount of capital spending decreases in
Analysis of the FY 2027 Maryland Executive Budget, 2026 12
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fiscal 2027 before increasing significantly in fiscal 2028 and 2029. The increases are driven primarily by the anticipated cash flow needs for the rebuilding of the Key Bridge. Between fiscal 2026 and 2031, the planned funding for this project accounts for between 50% and 66% of total capital spending each year. As the project nears its completion, capital spending is projected to decline in fiscal 2031. Approximately 89% of total capital spending programmed over the six-year period is categorized as system preservation projects.
Exhibit 7 Six-year Programmed Capital Spending Fiscal 2026-2031 ($ in Millions)
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
2026
2027
2028
2029
2030
2031
System Preservation
Expansion and Efficiency
Other
Source: Maryland Department of Transportation, Fiscal 2026-2031 Consolidated Transportation Program
Fiscal 2027 Capital Allowance by MDTA Facility
Exhibit 8 shows capital funding programmed by facility in fiscal 2027. The largest share of capital spending (63%) is for the reconstruction of the Key Bridge and other related projects. The next largest share of MDTA capital spending (20%) is for various projects along I-95, the largest of which is the Express Toll Lanes Northern Extension project. Capital spending for projects at the Chesapeake Bay Bridge is the third largest share of total capital spending (11%).
Analysis of the FY 2027 Maryland Executive Budget, 2026 13
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Exhibit 8 Capital Funding by Facility Fiscal 2027 ($ in Millions)
I-95 $172.3 20%
Baltimore Harbor Tunnel $22.5 2%
Chesapeake Bay Bridge $102.0 11%
Francis Scott Key Bridge $549.3 63%
Fort McHenry Tunnel $23.2 3%
Authoritywide $6.7 1%
Chesapeake Bay Bridge: William Preston Lane, Jr. Memorial Bridge I-95: John F. Kennedy Memorial Highway
Source: Maryland Department of Transportation, Fiscal 2026-2031 Consolidated Transportation Program
Fiscal 2027 Capital Allowance Detail
Exhibit 9 provides additional detail on the programmed funds for the fiscal 2027 capital allowance by project and program along with the total estimated costs and six-year funding for each program. Total programmed fiscal 2027 capital spending is estimated at approximately $1.1 billion.
Analysis of the FY 2027 Maryland Executive Budget, 2026 14
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Exhibit 9 Capital Allowance Detail Fiscal 2027 ($ in Thousands)
Total Estimated Cost
Six-year Total
Facility
Project Description
2027
Key Bridge
Key Bridge Rebuild
$529,583 $5,188,758 $4,991,367
Rehabilitation of Curtis Creek Drawbridges Superstructure
9,827
19,600
18,507
MDTA
Police
Training
Academy
7,282
24,405
19,630
Subgrade Improvements at Bear Creek
2,564
43,913
13,623
Subtotal – Key Bridge
$549,256 $5,276,676 $5,043,127
JFK Memorial Highway (I-95) ETL Northern Extension
$99,423 $1,039,304
$287,479
I-695 Ramps to I-95 Northbound ETLs I-95 Southbound Hard Shoulder Running JFK Highway Maintenance Facility Complex Memorial
37,700
79,125
74,756
13,723
39,260
35,648
12,906
52,206
48,605
Construct
Interchange
at
Belvidere Road
8,542
81,661
33,434
Subtotal – JFK Memorial Highway (I-95)
$172,294 $1,291,556
$479,922
Chesapeake Bay Bridge
Chesapeake
Bay
Bridge
Protection Project
$42,079
$207,596
$206,600
Rehabilitate Eastbound Bridge Deck Eastbound Spans Full Paint – Phase 1 Project Management Office and Maintenance Equipment Storage Building
30,000
251,651
80,419
21,593
58,304
58,300
4,638 3,700
12,610 25,924
9,535 6,023
Tier 2 NEPA Study
Subtotal – Chesapeake Bay Bridge
$102,010
$556,085
$360,877
I-895 Baltimore
Envelope Switchgear Replacements at Vent Buildings and Rehabilitate Tunnel Lighting System
Harbor Tunnel
$8,126
$80,675
$30,118
5,740
26,016
25,459
Analysis of the FY 2027 Maryland Executive Budget, 2026 15
J00J00 – Maryland Transportation Authority
Total Estimated Cost
Six-year Total
Facility
Project Description
2027
Facilitywide Signing Upgrades Lane Use Signals Extension All Tolling Conversion with Frankfurst Avenue Interchange Modifications Electronic
4,712 3,542
13,674
12,589
9,927
9,174
375
15,094
5,623
Subtotal - I-895 Baltimore Harbor Tunnel
$22,495
$145,386
$82,963
Fort McHenry Tunnel
MDTA Police Vehicle Storage Garage and Auto Repair Shop
$7,125
$23,488
$22,076
Facilitywide
Zone
Paint
Program
6,113 4,998 4,957
26,539 10,496 11,335 $71,858
20,766 10,027 10,524 $63,393
Box Girder Preservation
Rehabilitate Area-wide Lighting
Subtotal – Fort McHenry Tunnel
$23,193
Subtotal – Projects
$869,248 $7,341,561 $6,030,282
Programs Authoritywide
n/a
Minor Program
$209,000
$2,353,000
Replace
Electronic
Toll
Collection
and
Operating
Authoritywide
System – Third Generation
5,513
$139,353
19,966
Enterprise IT Capital Program – MDTA OTTS
Authoritywide
1,220
13,615
6,000
Total – Projects and Programs
$1,084,981 $7,494,529 $8,409,248
Chesapeake Bay Bridge: William Preston Lane Jr. Memorial Bridge ETL: Express Toll Lane IT: information technology JFK: John F. Kennedy
Key Bridge: Francis Scott Key Bridge MDTA: Maryland Transportation Authority NEPA: National Environmental Policy Act OTTS: Office of Transportation Technology Services
Note: This table includes only projects and programs that will receive funding in fiscal 2027. Additional projects appear in this year’s Consolidated Transportation Program (CTP) that are funded in other years during the six-year period. As a result, the six-year total and total estimated cost shown is lower than the figures listed in the CTP. The Chesapeake Bay Bridge Protection Project, Chesapeake Bay Crossing Study Tier 2 NEPA, and Authoritywide Enterprise IT Capital Program are included as part of the Major Development and Evaluation Program.
Source: Maryland Department of Transportation, Fiscal 2026-2031 Consolidated Transportation Program
Analysis of the FY 2027 Maryland Executive Budget, 2026 16
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Fiscal 2026 and 2027 Cash Flow Analysis
Exhibit 10 shows the changes in programmed capital funding between the fiscal 2026 budget as introduced during the 2025 session and the working appropriation, as well as between the working appropriation and the fiscal 2027 allowance. From the fiscal 2026 budget, as introduced, to the fiscal 2026 working appropriation, there is an increase of $227.6 million. This increase is primarily due to increased expenses for the Key Bridge reconstruction of $460 million, which is partially offset by decreases of $127 million for minor program projects and $79 million for projects at the Chesapeake Bay Bridge. Compared to the fiscal 2026 working appropriation, the fiscal 2027 allowance decreases by $201.5 million. The fiscal 2027 decrease is due primarily to a $306 million reduction in expenses for the Key Bridge reconstruction, which is partially offset by increases of $63 million for projects at the Chesapeake Bay Bridge and $84 million for minor program projects.
Exhibit 10 Capital Cash Flow Changes Fiscal 2026-2027 ($ in Millions)
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
2026 As Introduced
2026 Working
2027 Allowance
Minor Program Major Development and Evaluation Program Major Construction Program
Source: Maryland Department of Transportation, Fiscal 2025 and 2026 Consolidated Transportation Programs
Analysis of the FY 2027 Maryland Executive Budget, 2026 17
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Significant Changes from the Previous CTP
Exhibit 11 lists the significant changes from the fiscal 2025 to 2030 CTP, which includes the addition of four projects to the construction program. The largest of these projects is the Bay Bridge Protection Project, which has a total estimated project cost of $207.6 million. The total cost of the new projects is $311.5 million.
Exhibit 11 Major Changes from the Fiscal 2025 to 2030 CTP ($ in Millions)
Projects Added to the Construction Program
Total Cost
US 50/301 Chesapeake Bay Bridge – Bay Bridge Protection Project I-695 Francis Scott Key Bridge – Rehabilitation of Curtis Creek Drawbridges Superstructure I-895 BHT Thruway – Rehabilitate BHT Tunnel Lighting System US 50/301 Chesapeake Bay Bridge – Eastbound Spans Full Paint – Phase 1 (T14-T22 and Suspension Span Towers from Water to Below Roadway)
$207.6
19.6 26.0
58.3
BHT: Baltimore Harbor Tunnel Chesapeake Bay Bridge: William Lane Jr. Memorial Bridge CTP: Consolidated Transportation Program
Source: Maryland Department of Transportation, Fiscal 2026 to 2031 Consolidated Transportation Program
Analysis of the FY 2027 Maryland Executive Budget, 2026 18
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Issues
1.
MDTA Financial Outlook
MDTA must balance operating and capital costs, including debt service requirements, to manage its financial standard requirements while also keeping facilities in a state of good repair. The terms of MDTA’s trust agreement with its bondholders are the driving force in MDTA finances. Maintaining its debt service coverage and liquidity ratios is the primary concern, and all revenue adjustments and operating and capital expenditures are managed to maintain these ratios. As shown in Exhibit 12 , four financial standards guide MDTA: (1) rate covenant compliance ratio; (2) debt service coverage ratio; (3) unencumbered cash balance; and (4) debt outstanding limits. Each standard has a threshold that is set either in statute or has an agency policy to ensure that MDTA is in good financial standing and able to cover its obligations, even if revenues decline.
Exhibit 12 Financial Standards
Financial Ratio
Requirement
Rate Covenant (Legal)
Net Revenues Greater Than or Equal to 1.0 Times the Sum of 120% of Debt Service and 100% of Deposits to the Maintenance and Operations Reserve Account Net Revenues Greater Than or Equal to 2.0 Times Annual Debt Service
Debt Service Coverage (Policy, Legal)
Unencumbered Cash (Policy) Cash Greater Than or Equal to $400 Million Debt Outstanding Limit (Statutory) $4.0 Billion for Toll Revenue-backed Debt
Source: Maryland Transportation Authority
MDTA develops and maintains a six-year financial forecast that corresponds to the same six-year period as the current CTP. Section 4-210 of the Transportation Article requires MDTA to provide the General Assembly with a copy of its financial forecast by September 1 of each year and in conjunction with submission of the Governor’s budget in January. A summary of the forecast, including projected values for each of the four financial standards, appears in Exhibit 13 . As noted previously, each standard has a threshold that is set either in statute or as an agency policy to ensure that MDTA is in good financial standing and able to cover its obligations, even if revenues unexpectedly decline or expenses unexpectedly increase. Due to increases in overall expenses, MDTA’s forecast relative to each of the financial standards declines during the forecast period. The full MDTA fiscal 2026 through 2031 financial forecast can be found in Appendix 2 .
Analysis of the FY 2027 Maryland Executive Budget, 2026 19
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Exhibit 13 Financial Forecast Summary Fiscal 2025-2031 ($ in Millions)
2025
2026
2027
2028
2029
2030
2031
Total Revenues Total Expenses
$913.4 $863.4 $830.2 $844.9 $857.0
$865.9
$892.5
$1,128.2 $1,902.8 $1,714.9 $2,247.2 $2,539.1 $2,515.9 $1,792.3
Annual Cash
Surplus/Deficit
$178.6 -$466.6
-$75.3
$0.0
$0.0
$0.0
$0.0
Total MDTA Cash Balance
$975.0 $508.4 $433.1 $433.1 $433.1
$433.1
$433.1
Financial Standards Rate Covenant Compliance
(Legal; Greater Than or Equal to 1.0)
2.3
2.0
1.7
1.5
1.2
1.0
0.9
Debt Service
Coverage (Policy; Greater Than or Equal to 2.0) Unencumbered Cash (Policy; Greater Than or Equal to $400 Million) Debt Outstanding
3.3
2.6
2.2
1.9
1.5
1.3
1.2
$595.7 $475.3 $400.0 $400.0 $400.0
$400.0
$400.0
(Statutory, Greater Than or Equal to $4 Billion)
$2,072.2 $2,580.9 $2,744.1 $3,514.6 $4,243.1 $4,694.8 $4,395.1
MDTA: Maryland Transportation Authority
Source: Maryland Transportation Authority, 2025-2031 MDTA Financial Forecast
Analysis of the FY 2027 Maryland Executive Budget, 2026 20
J00J00 – Maryland Transportation Authority
Revenue Bonds and Nonrecourse Debt
MDTA bonds are backed by toll revenues and are not considered State debt and, therefore, are not limited by the State’s debt affordability measures. Under statute, MDTA is authorized to issue bonds without obtaining the consent of any unit or agency in the State; however, bond issuances are limited by MDTA’s previously mentioned financial standards. In addition to its own revenue bonds, MDTA also issues debt on behalf of other State agencies and projects, which is referred to as nonrecourse debt. Current outstanding MDTA nonrecourse debt totals $190.3 million and includes $181.5 million associated with expansion efforts at BWI Marshall Airport and $8.8 million associated with the Calvert Street Parking Garage in Annapolis for State employees. Debt service totals approximately $33.6 million annually in fiscal 2025 through 2027. The debt service for these projects is paid using the revenues from the projects or through lease payments from other agencies and does not affect MDTA’s debt outstanding or its budget. Debt service and debt outstanding for MDTA’s nonrecourse bonds from fiscal 2025 through 2027 is shown in Appendix 3.
Debt Affordability
The debt outstanding limit is set in statute and requires that the total bonds outstanding at the end of any fiscal year do not exceed $4.0 billion. The current statutory cap on debt outstanding was increased from $3.0 billion by Chapter 2 of 2024 to allow for additional capacity for debt issuances to support capital costs in response to the collapse of the Key Bridge. As shown in Exhibit 14 , due to new planned bond issuances in fiscal 2027 and subsequent fiscal years to support the growing needs of the capital program, total debt outstanding is projected to increase from just under $2.1 billion at the end of fiscal 2025 to $2.7 billion by the end of fiscal 2027. It is projected that total debt outstanding will exceed the current $4.0 billion debt outstanding limit at the end of fiscal 2029, when it will be at $4.2 billion, and will peak in fiscal 2030 at just under $4.7 billion. HB 229/SB 188 of 2026 is departmental legislation that would, if enacted, increase the debt outstanding limit from $4.0 billion to $5.0 billion.
Analysis of the FY 2027 Maryland Executive Budget, 2026 21
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