St. Mary’s County approves FY2011 school budget; superintendent warns stimulus one‑time and enrollment is rising

The Board of County Commissioners approved the St. Mary’s County Public Schools fiscal 2011 operating and capital budget on Aug. 24, authorizing the county to sign the documents the Maryland State Department of Education requires.

Superintendent Dr. Martorano urged the board to treat recent federal and state one‑time funds cautiously while the district adapts to steady student growth. “We are approaching 17,500 students,” she said, noting enrollment was still rising that morning. The budget as approved contains about $2.9 million in stimulus dollars and anticipates the possibility of a one‑time Race to the Top award of roughly $1.4 million for curriculum and implementation work if the state receives the federal grant.

Why it matters: Commissioners and school leaders said the district used one‑time federal funds to avoid layoffs and preserve services in a difficult revenue environment, but cautioned that those sources are not recurring and could complicate FY2012 planning.

Board action and context - The board approved the school operating and capital budget and authorized the county commissioner president to sign the annual budget form required by MSDE and a consent letter confirming agreement with the Board of Education’s FY2011 budget. - The board also approved a FY2010 categorical transfer request to close out the prior fiscal year in the amount of $385,056.

Budget detail and constraints Dr. Martorano said stimulus dollars in the current budget were used for technology, special education and other nonrecurring purchases, not for creating permanent staff obligations. She reiterated the funds are “one time” and will need to be replaced from other sources if services are to be continued after the funds expire.

On federal and state developments: the district is in the Maryland finalist pool for the federal Race to the Top competition; if the state’s application succeeds, St. Mary’s County could receive one‑time money — Dr. Martorano cited a rough estimate of $1.4 million for the county — intended for implementation of common core and associated professional development, not recurring positions.

Pension and OPEB concerns Commissioners pressed the superintendent about retiree benefits and the district’s contribution to OPEB (other post‑employment benefits). Dr. Martorano said the county has consistently contributed its actuarial required amount; she reported that the school system’s recent contribution equated to roughly 56% of the annual required contribution (ARC), down from about 60% previously. She noted the state’s contribution is much lower and that many Maryland systems have reduced or deferred OPEB funding during the downturn.

“Every year, if we have money in fixed charges we put it toward OPEB,” she said, and added the system had placed roughly $8 million of fund balance into the budget this year to help bridge the gap. Commissioners said they expect close coordination with the Board of Education as one‑time funds move through the budget cycle.

Enrollment and facilities Dr. Martorano reported the district’s rapid enrollment growth and said the system will accelerate planning for a second Leonardtown elementary school because of growth in that area. She said some schools already exceed preferred class sizes and that the system had opened Wildwood Elementary earlier in the year to relieve pressure.

Charter school growth The superintendent said the charter school program has expanded as it adds grades. The board discussed the budget impact of the charter’s added classes and agreed the district must respond as enrollment evolves; Dr. Martorano said the charter’s students come from across the county and do not simply convert seats from one school to another.

What’s next Commissioners and district staff said they will continue to monitor state guidance on additional federal funds, update the board if more stimulus or Race to the Top allocations arrive, and continue planning for enrollment pressure and OPEB obligations.

Ending The motion to approve the FY2011 school budget passed unanimously. Commissioners and school officials said they will return to the board with allocation plans if further federal or state one‑time funds are awarded.