Worcester County board reviews FY26 budget showing about $4.6M increase; votes to engage MABE for superintendent search

WORCESTER COUNTY, Md. — The Worcester County Board of Education on Jan. 27 reviewed a proposed Fiscal Year 2026 operating budget that would raise spending by about $4.6 million from FY25 and discussed state aid changes, technology and special-education cost pressures. During the meeting the board also voted unanimously to engage the Maryland Association of Boards of Education for a superintendent search and approved a closed-session meeting under state law to discuss personnel negotiations.

The draft FY26 proposal, presented by Mr. Tolbert, staff member, and Terry Searing, the district’s finance manager, projects an overall local operating increase of roughly $4.6 million while noting several large, uncertain state and federal funding items. "The first column listed type of aid that we received. ... you can see in FY25, we received $25,950,045 in those funds," Mr. Tolbert said while walking the board through a one-page state-aid summary included in the packet.

Why it matters: Worcester County Public Schools serves about 7,000 students and the board said many line-item restorations and additions are intended to maintain class sizes, restore extracurricular pay and rebuild programs reduced in prior years. Several budget items are also driven by the Blueprint for Maryland’s Future and other policy requirements that the board said are only partially funded through state allocations.

Most significant revenue and cost items discussed

- State aid and the governor’s proposal: Tolbert said the governor’s FY26 proposal would delay a planned per-student increase of $163 (the amount tied to planning time) and reduce the district’s projected state-aid increase from about $1,466,297 to $1,109,630 — roughly $357,000 less if the proposal survives the legislature. The presentation repeatedly noted that the governor’s proposal must still pass the General Assembly and final numbers are expected in April.

- Blueprint funding and concentration-of-poverty (COP): The district expects larger restricted-state allocations in some Blueprint categories, including roughly $676,910 more across CCR (college and career readiness), pre-K, COP and other Blueprint programs; Tolbert said nearly $400,000 of that increase is COP funding after Snow Elementary was newly identified as a COP school.

- Teacher pension shift: The proposal flagged a potential $672,000 increase in the district’s local share of teacher pension costs if the governor’s plan to shift more of the teacher-pension local share is implemented. Tolbert said the state-wide shift would total about $92 million returned to local jurisdictions; how the charge is invoiced (directly to counties or billed to school systems) was uncertain.

- Personnel and program restorations: The draft restores several FY25 cuts and adds a small number of positions, including one registrar/grade-secretary (shared across schools to support summer/fall registration), two social-worker positions in special education, and restorations for extracurricular pay and technology staffing. Tolbert said there are no salary increases baked into the draft pending labor negotiations.

- Technology and 1:1 device refresh: The proposal includes roughly $550,000 to refresh iPads in the district’s 1:1 program and to replace cases and accessories after extended use. Tolbert said the district expects some offsetting revenue from selling surplus devices and estimated potential revenue "probably around $1,000,000" but emphasized that figure was not final.

- Dual enrollment and AP costs: The board discussed rising costs tied to Blueprint expectations for college-and-career pathways. Dr. Wallace and Tolbert said dual-enrollment participation has grown rapidly — from about 309 students (FY22) to 402 (FY23) to 548 (FY24) — and that state aid covering dual-enrollment tuition does not fully offset district expenses.

- Special education risks: Staff described nonpublic placements as a high-cost, low-frequency risk. Tolbert and Dr. Wallace said a single out-of-county residential placement can cost on the order of $128,000 to $200,000 per year; the draft includes a contingency line of $128,000 to guard against that exposure.

- Transportation and safety investment: The draft proposes a $65,119 investment in a GPS/manifest system (vendor cited as Xunar) composed of a one-time setup of $42,098 plus about $23,000 in annual software costs. Tolbert said the system should improve manifest accuracy and could reduce contractor mileage disputes over time. The board also heard that the district carries a $2,000,000 liability limit on bus insurance for contractors.

Restricted and federal grants

Dr. Cook and Leanne Terrace reviewed restricted federal, state and local grant budgets. They told the board ESSER-era funds are largely spent out (ESSER3 closed Sept. 30), and many federal grant notices remain late from the state and federal schedules. Dr. Cook said the district expects roughly $24 million in restricted grants in the prior year and that some competitive grants (including a Donnie Williams competitive application) remain uncertain until award notices are issued.

Board debate and concerns

Board members pressed staff on the distribution of Blueprint funding and the "wealth-based" formula used by the state, repeatedly saying the combination of increased expectations and partial funding is a strain. "It's not fair to Worcester County Public Schools when we have a wealth based formula and a state law that mandates we have to come in compliance with the blueprint," said Dr. John Andes, board member, during a series of remarks criticizing the state distribution method. Board members also asked for clearer marking of Blueprint-driven line items in future packet versions so that the board and public can see which costs are driven by state mandates.

Operational notes and next steps

Tolbert and staff said the FY26 draft assumes no final salary adjustments until negotiations conclude; the board will review a revised draft at a Feb. 11 work session and the board plans to forward a proposed budget to the county commissioners on March 4. The timeline discussed in public: board adoption of a proposed budget in mid-February, a joint work session with county commissioners on April 8, county public hearings in May, and final local appropriations likely in early June; the board then adopts a final school budget in mid/late June.

Votes at a glance

- Motion to approve the Jan. 27, 2025 budget work session agenda — moved by Donald Smack, seconded by Dr. John Andes; voice vote, carried ("Aye"). - Motion to enter closed session under Annotated Code of Maryland, General Provisions Article, §3-305(b)(9), to discuss personnel matters related to negotiations — moved by William Gordy, seconded by Elena McComas; voice vote, carried. The board later stated publicly that a closed session was held pursuant to that statute to discuss negotiations and contracts. - Motion to engage the Maryland Association of Boards of Education (MABE) to conduct a superintendent search — moved by William Buchanan, seconded by Elena McComas; voice vote, carried. - Motion to adjourn the meeting — moved by Donald Smack, seconded by Elena McComas; voice vote, carried.

What the board asked staff to provide next

Board members asked staff to: - Flag Blueprint-driven line items in blue (staff agreed to add clearer markings); - Provide more detailed breakout of school activity/business accounts (the NEST/Pines Cafe and school activity funds) and regular updates on those enterprise accounts; and - Provide updated pension invoice information and any clarity from the county or state on how teacher-pension shifts will be invoiced.

The board will reconvene for additional budget review Feb. 11, 2025 and the public can find meeting materials on the district’s website.