Howard County schools face $8M budget gap in proposed FY26 operating budget

The Howard County Public Schools Board of Education convened virtually on February 6, 2025, to discuss the Superintendent's proposed operating budget for fiscal year 2026. The meeting focused on the financial implications of state and county budget proposals, revealing significant challenges ahead for the school system.

Chief Financial Officer Brian Hall provided an overview of the current budget landscape, emphasizing that the figures discussed are preliminary and subject to change as state legislation progresses. A key point of concern is the proposed delay in collaborative time funding per pupil until fiscal year 2030, which could result in a reduction of over $4 million in revenue for the school system. This reduction is compounded by a projected decrease in state aid, now estimated at $5.5 million, due to changes in funding streams linked to the foundation amount.

Additionally, Hall highlighted a shift in non-public tuition costs that would increase expenditures by $2.5 million in FY26, escalating to $6.1 million in FY27. These factors collectively widen the budget gap by approximately $8 million, raising the request for above maintenance of effort funding from the county from $67.1 million to $76 million.

The meeting also addressed the broader implications of these financial shifts. Hall noted that while special education funding would remain stable, other areas such as compensatory education and support for multilingual learners would face cuts. Furthermore, a significant shift in retirement expenditures for teacher pensions would transfer approximately $6.8 million in costs to the county government, which could strain local resources.

Board members expressed concerns about the potential impact of federal funding changes, with Hall acknowledging the uncertainty surrounding federal budget decisions and their possible effects on local services.

As the board continues to navigate these financial challenges, the discussions underscored the importance of proactive planning and collaboration with county officials to ensure that Howard County Public Schools can maintain its educational standards amidst tightening budgets. The next steps will involve closely monitoring legislative developments and adjusting budget proposals accordingly to address the evolving financial landscape.