The Board of Education of Charles County on Oct. 14 approved two intercategory budget transfer requests for fiscal year 2026 to realign spending across state reporting categories and make technical adjustments staff said were needed after final program budgets arrived.

In a staff presentation, Karen Acton, who led the finance briefing, described the larger transfer for the county school system (excluding Posota) as a $1.5 million reclassification of funds across existing categories to make permanent decisions that had been implemented last year. Sherry Fisher‑Davis, the school system budget manager, explained the moves included making a previously temporary allocation for a director of IT position permanent and moving funds to support the district learning‑management system. The transfer package also included vehicle replacements (two older administrative cars), furniture for St. Charles High School, reading‑materials purchases reclassified under capital rules and several smaller adjustments such as moving funds from contracted nursing in student health to student personnel services to support community‑schools wraparound services.

Acton said the $130,000 coded to community services for overtime had historically been used for weekend maintenance and was being moved into operations to match actual payroll reporting. She also said student transportation funding was shifted to cover career counseling field trips and workforce development device purchases, and clarified that some vehicle purchases are coded to transportation until they are placed in their permanent reporting category.

Posota charter school: Acton and other staff presented a separate $1.2 million intercategory transfer request for Posota, a startup charter, to reallocate its total approved dollars into the MSDE reporting categories the operator chose after submitting a preliminary budget. The presentation said the dollar total had not changed but that the distribution among categories (for example, decreases in instructional supplies and increases in mid‑level administration and fixed charges) was adjusted to match the operator’s finalized budget. Staff stressed Posota’s special‑education services are provided by Charles County Public Schools and noted the charter’s budget process will be tightened moving forward to reduce the need for transfers.

Board action and discussion: Board members asked questions about vehicle replacement cycles, how community‑schools funds are moved when final plans arrive late, and whether technology purchases were new or replacements. Acton and Fisher‑Davis provided examples and said some purchases (biomed student computers, for example) were new equipment needed for specific CTE programs.

The board voted to approve the two intercategory transfer requests for FY2026 after staff responses. Members discussed that such transfers are routine during the budget cycle and must be sent on to the county commissioners for final approval.

Why it matters: The transfers do not add new dollars to the system’s total; they reclassify where existing funds will be reported and spent under MSDE categories. Staff said the moves improve compliance with state reporting rules and align budget codes with how programs actually operate, but acknowledged the practice raises questions from county officials and requires careful documentation.

What’s next: The board will forward the approved transfers to the county commissioners for their action, as required by county procedures. Staff said they will continue efforts to finalize charter and partner budgets earlier in the cycle to reduce the need for post‑adoption reclassifications.