Rules and City Government Committee Meeting – April 2, 2026

The Rules and City Government Committee of the Annapolis City Council met on Thursday, April 2, 2026, at 6:30 PM (called to order at 6:41 PM, adjourned at 8:05 PM) to discuss and vote on legislation creating a property tax credit for child care providers, hear from daycare operators and city staff, and review related programs. The meeting was held virtually and chaired by Alderman Smith-Brown, with Aldermen Schandelmeier and Thorp present.

Consent Calendar

• Approval of the agenda and the March 5, 2026, meeting minutes were approved by voice vote.

Public Comments & Testimony

• Diego Medina (301 Rowe Boulevard, Annapolis, MD – Little One's Child Care Center, opening soon) expressed gratitude for the city’s support during the licensing and zoning process, noted his other locations are outside Annapolis, and stated that a $4,000 tax credit would help with improvements. He also emphasized the need for more support directed to operators, not just parents.
• Janique Smith (1778-B Belle Drive, Annapolis, MD – Little Lions of Judah family daycare) shared her experience as a four-year provider renting her space. She expressed strong need for help, especially in finding affordable locations and landlord support. She indicated a $4,000 credit would allow her to purchase curriculum materials and keep children engaged. She also noted that many women in the field struggle to find landlords willing to rent to daycare providers.

Discussion Items

• ID-66-26 – Daycare Providers in the City of Annapolis: The committee heard from Diego Medina and Janique Smith. Discussion covered the barriers providers face, the importance of the tax credit, and the need to include renters.
• ID-65-26 – Children and Families Success Grant: Aisha Young (Community Engagement Administrator/Director) and Aaron Lee (Social Work Care Coordinator) presented. The grant provides $50,000 annually to 10 organizations for after-school and summer programs, but no daycare providers have applied. The grant is focused on programming, not facility improvements. Alderman Thorp asked about increasing funding, but Young cited limited staff capacity (3 full-time, 2 part-time) managing over 70 grantees. Acting City Manager Buckland clarified the tax credit would be managed by finance, not community services.
• Legislation O-1-26 – Property Tax Credit for Child Care Centers, Family Child Care Homes, and Large Family Child Care Homes: The committee reviewed the bill, which originally set a maximum $10,000 credit for property owners who operate a child care facility. Discussion included:
  • Reducing the maximum to $4,000 based on median property tax paid by in-home providers (about $3,500).
  • Extending the credit to property owners who lease their property to a state-licensed child care operator (Amendment #3).
  • Adding an annual reporting requirement for the City Manager (Amendment #2).
  • Clarifying that the credit applies to improvements used exclusively for child care, whether made by owner or tenant.
  • The city attorney confirmed that landlords may apply for the credit on behalf of a tenant-operated facility, and that the credit is annual and conditional on continued operation.

Key Outcomes

• Amendment #1 (reduce max credit to $4,000 and update language throughout): Moved by Alderman Schandelmeier, seconded, carried on voice vote.
• Amendment #2 (Reporting Requirement – City Manager to report annually by February 28 the number of facilities requesting/receiving the credit, amount approved, assessment of effectiveness, and recommendations): Moved by Alderman Thorp, seconded, carried on voice vote.
• Amendment #3 (extend tax credit to property owners who permit (lease to) a child care facility – adding “or permit” after “who operate” on page 2, line 24): Moved by Alderman Schandelmeier, seconded, carried on voice vote.
• O-1-26 was recommended favorably as amended (moved by Alderman Schandelmeier, seconded, carried on voice vote). The legislation will now proceed to the full City Council for consideration.