Reelected Maryland treasurer seeks authority over Maryland 529 college plan

A joint session of the Maryland General Assembly nearly unanimously reelected the treasurer to a full term, providing continuity on the state’s spending board while the second-year officeholder asked the body for permission to clean up a troubled agency.

Dereck Davis, formerly a Prince George’s County delegate first elected to fill the remainder of the treasurer’s term in December 2021, closed his roughly 12-minute remarks by reminding the legislators of an issue with BGE rate increases that he worked to resolve as chair of the House Economic Matters Committee in 2006 at the request of then-House speaker Michael Busch.

“Maryland 529 Prepaid College Trust is why I’m telling you this,” said Davis, referencing the state agency that has come under fire in recent months for a calculation error and oversight issues. “If you decide to abolish the current setup and put it in the treasurer’s office, like it is in most states, I would ask that you do the same thing Speaker Busch did back in ’06.”

“Give me the resources that I need to be successful, help me manage expectations for when this can be resolved, and let me do what needs to be done,” he said.

More:Maryland 529's new chair says college plan issue 'resolved.' Yet parents still waiting

Davis has served on the 11-member board of Maryland 529 since becoming treasurer, but his suggestion of additional responsibility comes after the entity shifted to being managed by a Florida-based company, Intuition College Savings Solutions, in November 2021, one month before Davis was first elected.

Intuition runs prepaid college savings programs in nine other states, but Maryland is only one of three states in which the company is the program manager.

“Our parents and, more importantly, our children deserve better,” said Davis, to applause from lawmakers and the state’s new governor, Wes Moore.

Moore's executive order to increase minority business participation

Davis, Moore and Comptroller Brooke Lierman, who like the governor, was inaugurated last month, comprise the three-member Board of Public Works, which approves all state contracts.

As a candidate, Moore proposed meeting the state’s own goal of 29 percent minority business participation in its procurement process. In fiscal 2021, the state reached a 17.2 percent minority business participation rate. Last week, Moore issued an executive order aimed to increase participation in the Minority Business Enterprise program. Davis commended the action.

“The data your administration’s gathering will show us exactly where we stand,” said Davis, “and provide a roadmap of where we need to go.”

On Feb. 14, Davis had an interview before the Joint Committee on the Selection of the State Treasurer, receiving a recommendation to advance to today’s ballot vote.

The proceeding, which took place in the House chamber of the State House, and saw both Senate President Bill Ferguson and House Speaker Adrienne Jones swear in Davis, did have its moments of levity. While Davis received almost all of the votes (172) from the legislators present (179), one member cast a ballot for Chuck Brown, known as the Godfather of Go-Go, a D.C.-area-developed music genre.

“Chuck Brown, huh? There’s always one,” said Davis, to laughter, opening his remarks. “In all seriousness, I can’t emphasize enough how important I take my role as one of the guardians of our public dollars.”

Dwight A. Weingarten is an investigative reporter, covering the Maryland State House and state issues. He can be reached at dweingarten@gannett.com or on Twitter at @DwightWeingart2.

This article originally appeared on The Herald-Mail: Dereck Davis reelected Maryland treasurer, Board of Public Works seat