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St. Mary's County schools report a $7.3 million recurring boost; board reviews cuts, health‑care savings ahead of FY26 approval
Summary
Saint Mary's County Public Schools staff told the Board of Education on May 7 that updated local, state and federal funding would yield $7.3 million in recurring increases, enough to support negotiated agreements for 2025–26, while also outlining personnel cuts and health‑care savings to close remaining gaps.
St. Mary's County Public Schools officials told the Board of Education on May 7 that updated funding projections from the county, state and federal sources would produce $7.3 million in recurring revenue and allow the system to fully support negotiated employee agreements for fiscal 2026.
“Good morning. So before you is the financial update for fiscal 2025 as of April 30,” Mary McCourt said, opening her presentation. She reported year‑to‑date revenues of $265,700,000 against a budget of $292,500,000, encumbrances outstanding of $73,200,000, and an available balance of $11,400,000.
The staff presentation summarized the most recent budget developments: the county commissioners had placed $137,400,000 in their budget for the school system (which staff described as a $3,100,000 increase over the current fiscal year, pending the commissioners' vote May 20); state aid estimates reflected roughly a $3,100,000 increase as calculated by district staff; federal and other sources added modest amounts. Together, staff said, those changes yielded $7,300,000 in recurring increases and a proposed total revenue figure of $291,700,000 for FY26, about $3,200,000 below the district's earlier recommended budget.
McCourt, answering board questions, detailed steps already taken to close gaps: reductions in central office and school staffing, changes to benefits and other operational adjustments. Among the actions cited were cuts to several cabinet‑level positions (including an assistant superintendent and other senior roles), elimination of up to 15 teacher positions (inclusive of previously announced reductions), removal of one‑to‑one technology for kindergarten and first grade, and consolidation of the virtual academy facility back to county control effective July 1.
On employee health coverage, staff described multiple measures that reduced projected costs. Those included shifting retirees to an offered Medicare Advantage option (580 retirees chose to enroll), implementing a Medicare Advantage plan for eligible retirees, adopting a Medicare Advantage/health center strategy and pharmacy savings programs, and negotiating lower stop‑loss insurance costs with the district's third‑party consultant. McCourt said an independent consultant, Bolton Partners, negotiated a 25% reduction in the district's stop‑loss insurance premium. She added that a combination of those changes and employee education around plan choices produced a smaller premium increase than originally projected.
Board members thanked staff for the analysis and for the county commissioners' tentative support. Board member Josh (first name in the transcript) said he was grateful the county had allocated more funding and acknowledged cuts at the cabinet level. Dr. Smith, the superintendent, and other board members indicated they expected a formal budget book and a detailed change sheet in two weeks before the board's vote.
Discussion only: staff emphasized that final state aid figures depend on official calculations from the Maryland State Department of Education (MSDE) and that numbers used for planning are the best available estimates. The presentation noted a planned use of $1,500,000 in fund balance, primarily to support the charter school and a bus‑driver retention program.
No formal board action on the FY26 budget was taken at the May 7 meeting; the board was scheduled to receive a final budget book and a detailed change log before a future vote.
