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13.1 Generally

Maryland has a public financing system for candidates for Governor and Lieutenant Governor.  It is a voluntary program where. if the candidate chooses to accept public funds, the ticket must abide by strict expenditure limits.

13.2 Initial Requirements

To be eligible to receive public contributions for the Primary Election, the following documentation must be filed at the State Board no later than the deadline to file a Certificate of Candidacy:

• A Certificate of Candidacy for Governor and Lt. Governor;
• A notice of intent to qualify for public contributions; and
• A certification, signed by the candidate’s treasurer, that the required seed money was raised and received after March 1 of the preceding year of the election year.

A candidate who did not receive public funds in the Primary Election may become eligible to receive public funds in the General Election if:

• The candidate’s expenditures in the Primary Election did not exceed the maximum campaign expenditure limit; and
• The candidate files the notice of intent and the certification of seed money with the State Board not later than 5 days after the State Board declares the candidates for Governor and Lieutenant Governor in the general election.

13.3 Seed Money

The amount of seed money that must be raised is equal to 10% of the maximum campaign expenditure limit. 

Seed money must consist of eligible private contributions. An eligible private contribution can only be made by an individual and may not exceed $250. Accordingly, money from business entities, political action committees, and other organizations or associations may not be counted as seed money. An in-kind contribution from an individual may be counted as seed money.

13.4 Receiving the Public Funds

The first distribution of public funds will occur on February 1 of the year of the election. Subsequent distributions will occur on the first Tuesday in April, May, June July, August, and September. The last distribution for the Primary Election will occur on the second Tuesday after the primary.

General Election funds will distributed no later than 5 days after candidates for Governor and Lieutenant Governor have been declared.

13.5 Post Election Requirements

Not later than the 6th Monday after the primary election or the general election, a candidate who received public funds must report to the State Board the amount of the public funds that were spent and how those funds were spent. This is in addition to filing the campaign finance reports required under Election Law Article § 13-309. Within 60 days following the election for which public funds were received, a candidate must return to the Comptroller any unspent portion of the funds (private contributions being presumed to be spent first).

13.6 Maximum Campaign Expenditure Limit

A candidate who receives public funds may not exceed the expenditure limit. The expenditure limit is calculated as follows:

30¢ (adjusted for inflation) x State Population = Expenditure Limit

The State Population is determined as of January 1 of the year of the election and the 30¢ amount is adjusted annually beginning in 1997 in accordance with the Consumer Price Index.  In 2010, the expenditure per resident was $0.4079. 

Expenditures made on behalf of a candidate by a State or local party central committee are not subject to the expenditure limit.

However, the following expenditures do count towards the candidate’s expenditure limit:

• An expenditure by a political committee that is coordinated with the candidate, an agent of the candidate, or an authorized committee of the candidate;
• An expenditure by a slate of which the candidate is a member (the amount attributed to the candidate is the amount of the expenditure divided by the number of members of the slate); and
• An in-kind contribution of $51.00 or more made to the candidate’s campaign.

13.7 How the Money Will Be Disbursed

It is the responsibility of the State Board to order the disbursements of the public funds. Generally, the amount disbursed is as follows:

Primary Election:

• Candidates with opposition: $1 in public funds for every $1 in eligible private contributions
• Candidate without opposition: $1 in public funds for every $3 in eligible private contributions

General Election:

• Candidates with opposition: Equal shares of the remainder of the fund (including unspent money from the primary)
• Candidate without opposition: No funds will be provided.

However, the actual amount disbursed is dependent on the amount of money in the fund and the number of eligible candidates. If the State Board determines that there is not enough money in the fund to provide a full disbursement to all eligible candidates, the State Board is required to allocate the available money so that each eligible candidate will receive a pro rata share of the full disbursement to which the candidate would otherwise be entitled.

13.8 Spending Public Funds

A candidate may not spend public funds for:

• Any purpose that violates any law or regulation of the State;
• Any expense incurred later than 30 days after the election; or
• Any real or personal property that will be retained more than 30 days after the election.

13.9 Liability and Penalties

The Gubernatorial ticket candidates, and any chairman or treasurer associated with an expenditure that exceeds the maximum campaign expenditure limit are jointly and severally liable, both civilly and criminally, for that violation. 

The Gubernatorial ticket candidates, the chairman and treasurer are also jointly and severally liable, personally, to repay any obligation arising from a failure to refund unspent public funds or any amount spent improperly.

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