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St. Mary’s County Public Schools warns state budget proposals could cut millions, asks commissioners for $5.3M increase
Summary
Superintendent presented a FY26 request that counts on current law; the system said proposed state changes (HB504/BRFAA) would reduce state aid and raise local funding needs by several million dollars in worst‑case scenarios.
Superintendent Scott and St. Mary’s County Public Schools officials presented the school system’s FY26 operating request during the county’s Feb. 25 budget work session and warned that proposed changes in the Maryland budget and new education legislation could sharply reduce state aid.
The school system requested an increase of $5.3 million in local funding, taking the county contribution to $139.7 million under the school’s FY26 proposal. The district’s recommended recurring revenue total is about $293.0 million under current law, which includes state aid, federal funds and a proposed reduction in one‑time fund‑balance use compared with FY25.
Superintendent Scott told commissioners the governor’s FY26 proposal and related Budget Reconciliation and Financing Act language include multiple changes that would reduce state foundation and other formula funds to local systems. The school presentation identified House Bill 504 (referred to in the session as the Excellence in Maryland Public Schools Act) alongside BRFAA proposals that would, if enacted as proposed, cut foundation funding statewide and shift retirement/pension costs to local governments. The school system quantified the local impact: under the administration’s proposals the county could face a total reduction in state funding that would increase the district’s required local contribution from the $5.3 million ask to roughly $9.1 million.
Specific impacts presented by school staff included a $2.6 million reduction in foundation funding for St. Mary’s County in FY26 under the proposed legislation, smaller but material reductions in compensatory education and limited English proficiency funding, and a proposed reduction in the state share of nonpublic special education tuition from 70% to 60%.
Superintendent Scott framed the governor’s proposal as a significant risk to local budgets if enacted as written. “The governor has presented us all in education with the doomsday scenario,” she said in the meeting, describing the combination of formula changes and potential pension pass‑throughs. School officials said the worst‑case scenario would require substantially greater local funding or program cuts and stressed that foundation funding underpins multiple other state allocations.
Why it matters: St. Mary’s County Public Schools relies on a mix of county, state and federal funding. Large statewide changes to the foundation formula or a shift of retirement costs to counties would force local leaders to either increase local appropriations, reduce services, or restructure staffing and programs.
What’s next: The school system asked commissioners for the $5.3 million increase under current law and said it will return if state legislation changes; school and county staff also signaled the need for coordinated advocacy in Annapolis if the bill language and BRFAA remain in place. Commissioners asked staff to monitor developments and noted that the county’s revenue projections and pending decisions on homestead and tax policy will affect final appropriations.
