MARYLAND STATE BOARD OF ELECTIONS P.O. BOX 6486, ANNAPOLIS, MD 21401-0486 PHONE (410) 269-2840 Michael R. Cogan, Chairman Patrick J. Hogan, Vice Chairman Malcolm L. Funn Kelley Howells William G. Voelp Linda H. Lamone Administrator Nikki Charlson Deputy Administrator July 21, 2020 Via Electronic Mail Only The Honorable David Brinkley Secretary, Department of Budget and Management Annapolis MD 21401 The Honorable Guy Guzzone Chair, Senate Budget and Taxation Committee Annapolis MD 21401 The Honorable Maggie McIntosh Chair, House Appropriations Committee Annapolis MD 21041 Dear Secretary Brinkley, Senator Guzzone, and Delegate McIntosh: As we prepare for the November 3 election, I would like to share with you important information about the State Board of Elections’ FY21 budget. First, we plan to submit an FY21 budget amendment of about $20 million to conduct the upcoming election. Second, using the federal Help America Vote Act funds to support the upcoming election will require an increase in general fund appropriations in FY21 and future fiscal years. State and local election officials are planning to provide in-person voting during early voting and on election day. Early voting will be conducted from October 22 through October 29 at 78 locations, and voting at about 1,600 neighborhood polling places is being planned for November 31. Due to the public health pandemic, however, election officials expect the number of voters requested and receiving a ballot by mail will significantly increase from prior elections. The fiscal impact of the primary election was reduced due to the federal CARES Act funding and election officials’ ability to transfer funds needed for a primarily in-person election to a primarily vote-by-mail election2. There are no federal CARES Act funding left, and there will not be sufficient savings to apply to the expected increase in mail-in ballots. Expected FY21 Budget Amendment Because our FY21 budget is not sufficient to conduct the November 3 election, we will submit a request for a FY21 budget amendment. The table below itemizes the estimated expenses that will be included in the request. This assumes that facilities are willing to be used as voting locations and election judges are willing to serve. For example, the local boards of elections were able to perform themselves (i.e.., not rely on temporary staffing) pre-election testing on election equipment because the amount of equipment needed for the June 2 election was significantly less than a traditional election. Similarly, less funds were needed to transport the equipment since there were 44 voting locations, not the 1,700 voting locations for a traditional election. 1 2 FAX (410) 974-2019 MD Relay Service (800) 735-2258 Toll Free Phone Number (800) 222-8683 http://www.elections.maryland.gov 151 West Street Suite 200 Annapolis, Maryland 21401 Letter to Secretary Brinkley, Senator Guzzone, and Delegate McIntosh Page 2 July 21, 2020 Description Est. Amount Cost to print and mail form to request a mail-in ballot $5,600,000 Cost to print and mail vote-by-mail packets to requesting voters3 $5,500,000 Pre-paid postage for voters to return mail-in ballot requests and voted ballots $1,800,0004 Cost to expand the call center & support remote viewing of canvasses $802,500 Additional ballot drop off boxes $40,500 Additional SBE resources to support mailings and related contracts $58,552 Additional SBE resources to assist local boards with recruiting election judges $58,552 Hire additional election judges to supplement local election official efforts5 $201,875 Statewide voter education campaign $4,000,000 Additional voting equipment carts, precinct booths & privacy sleeves $736,521 Mailings to inactive voters and eligible but not registered voters $300,000 Buy cleaning, PPE supplies, stanchions, and social distancing decals Approximate FY21 Budget Amendment $1,505,760 $20,604,260 We expect that there may be additional costs associated with processing the expected large volume of forms requesting a mail-in ballot. To address that concern, we are exploring whether there are data entry centers available to perform this work. We are in the early stages of exploring this option and do not have any cost estimates to provide. We also understand that federal funds authorized and appropriated under the Help America Vote Act may be used to supplement our FY21 budget. These federal funds were awarded to states for election security improvements. To date, we have used these funds for SQL licenses, two- factor authentication, network routers for same date registration, network & cyber security consultants, pollbook servers, statewide tabletop exercises, and other related information technology security upgrades and training and we have several contracts using these funds. They include:     Annual data services for the routers for same day registration – $530,000 Information security expertise through December 2024 – $4,100,000 Annual software licenses – $95,000 Annual software subscription – $245,000 Using these funds for non-election security items means that State funds will be needed to replace the federal funds or our efforts to enhance how we protect our election systems and data will be impacted. This assumes that 50% of eligible voters will request and vote by mail. This represents one-half of the estimated costs of the return mail for the two mailings. The local boards of elections pay the full cost of the postage, and we reimburse the local boards for one-half of the postage costs. 5 Under a current staffing contract, individuals could be recruited to serve as election judges. The lowest hourly rate under this contract is $23.75. The estimate cost assumes that 500 election judges are recruited from current staffing contract and work 17 hours a day. 3 4 Letter to Secretary Brinkley, Senator Guzzone, and Delegate McIntosh Page 3 July 21, 2020 If you have any questions or would like additional information, please do not hesitate to contact me. Sincerely, Linda H. Lamone State Administrator