Montgomery College budget holds tuition flat; council committee flags pension shift and agrees to seek seed funding for collective‑impact institute

The Montgomery County Council’s Education and Culture Committee reviewed Montgomery College’s proposed FY26 operating budget Wednesday, April 23, with college officials stressing the package is a “maintenance of effort” plan that holds tuition steady while asking the county to absorb a newly shifted state pension cost.

The budget keeps tuition flat and would preserve pay increases and other core services for the college’s roughly 45,000 students, college officials said. The committee heard details on enrollment trends, an expected increase in state aid, and a separate request to seed a “Collective Impact Institute” partnership with Montgomery Moving Forward and other stakeholders.

Why it matters: College leaders told the committee the budget sustains operations without raising tuition, but a state decision to shift pension costs onto local governments would increase Montgomery College’s local funding need unless the county offsets that change. Committee members signaled support to move the college’s budget forward while awaiting a county executive amendment intended to cover that pension liability.

Dr. Williams, a Montgomery College official who briefed the committee on the institution’s FY26 request, described the budget as “very straightforward and utilizing existing resources, trying to maximize what we have to offer and contribute,” and said the maintenance‑of‑effort plan helps preserve compensation for faculty and staff while keeping tuition flat.

Committee staff and college analysts told the panel that MC is projecting modest enrollment growth over the next several years. Senior legislative analyst Doug Prady summarized the enrollment outlook, saying MC is “projecting enrollment will continue, increasing for the next few years, by 1 to 2%,” and that credit hours per student are rising as students take larger course loads.

Pension cost shift and state aid: Committee staff described a late legislative change that increased the college’s state aid by approximately $1.9 million but also included a shift of certain pension costs to the county. Office of Management and Budget staff notified the committee that the county executive intends to file a budget amendment to add roughly $1 million to the college’s current fund to cover the county’s share of the pension shift; committee members said they would consider that amendment when it arrives.

Collective Impact Institute request: Council members also discussed a separate request to provide seed funding for a proposed Collective Impact Institute at Montgomery College. Council sponsors proposed $550,000 originally and then asked the committee to consider a smaller, $350,000 startup allocation to seed planning and strategic work with community partners. A sponsor moved the smaller amount and a second was recorded; the committee agreed to add the $350,000 request to its reconciliation list for the budget process.

Fund balance and contracts: College and county staff reviewed the college’s fund balance and use of reserves for the operating budget; staff noted the projected available balance increased after the late state aid increase but that the fund balance is expected to decline year‑to‑year because of prior budget decisions. College officials also confirmed that most collective bargaining agreements were reflected in the FY26 request; one remaining bargaining unit (AFSCME in the packet) was expected to ratify an agreement by the end of the month and its cost was included in the college’s request.

Committee action: Without objection, the committee moved Montgomery College’s full FY26 operating budget forward with the understanding that the county executive will transmit a budget amendment to address the pension shift. The Collective Impact Institute seed request was added to the committee’s reconciliation list for final budget negotiations.

Looking ahead: Committee members asked for the county executive’s amendment and said they expect to consider the reconciliation list and amendments before finalizing their recommendation to the full council.