Hogan signs $577M HBCU settlement bill, as long dispute nears end

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A bitter 15-year legal battle over how the state treats its historically Black colleges and universities took a major step toward a final settlement with the stroke of a pen at Bowie State University.

Legislation that will provide $577 million to four colleges was signed into law Wednesday by Republican Gov. Larry Hogan and Democratic legislative leaders, including House Speaker Adrienne Jones.

“We finally got to this day,” said Jones, the first woman and first Black person to serve as a presiding officer in the Maryland General Assembly and someone who has championed the effort to end the stalemated lawsuit.

Wednesday’s event at Bowie State University was the second bill signing of the 2021 session. Hogan and the presiding officers signed pandemic relief legislation earlier this year. Hogan allowed a related bill that provides tax credits to low-wage undocumented immigrants who do not qualify for the Earned Income Tax Credit to become law without his signature.

The House and Senate last week passed legislation that would provide $577 million in additional funding to the state’s four historically Black higher education institutions – Bowie State University, Coppin State University, Morgan State University and the University of Maryland Eastern Shore.

The money, paid out over a decade starting in 2023, would be split proportionally based on enrollment.

The new law is contingent, however, on the state entering into a final settlement agreement with the alumni groups who filed suit. With the bill signed into law, Jones said, she expects the two sides to meet quickly and reach a settlement.

“That’s the next journey we’re going to have to do,” she said.

The Coalition for Equity and Excellence in Higher Education, a group representing alumni of Bowie State, Coppin, Morgan and UMES filed the suit in federal court in 2006. That suit alleged that policies of the  Maryland Higher Education Commission created a segregated system where traditionally white colleges were able to duplicate educational programs that were unique to historically Black colleges and universities.

A federal judge in 2013 ruled in favor of the coalition of alumni but a final settlement remained elusive.

A similar bill was passed in 2020. Hogan vetoed that bill, calling it too expensive. That veto came a year after he sent a letter to plaintiffs offering $200 million in what he called the state’s “final offer,” one that was swiftly rebuffed by the HBCUs and their advocates.

The Senate unanimously passed legislation this year after the House of Delegates overwhelmingly approved it in margins that assured a veto override.

On Wednesday, Hogan praised the bill he was about to sign as a “an historic bipartisan measure that will be an unprecedented step forward in addressing inequities in our higher education system by making substantial investments in Maryland’s historically Black colleges and universities.”

“With our economy recovering and our much improved fiscal situation, I’m very pleased we are now able to take this historic action,” said Hogan.

The funds in the settlement would be used for scholarships and financial aid support services as well as faculty recruitment and development. The money also could be used to expand and improve existing academic programs, including online programs, as well as to develop new ones.