St. Mary's commissioners approve school districtshift of stimulus and restricted funds amid warnings of a $3—$4 million FY11 shortfall

The St. Mary's County Board of County Commissioners on Sept. 1 approved a set of categorical transfers and restricted-fund adjustments requested by St. Mary's County Public Schools to reclassify federal and state stimulus stabilization money following new Maryland State Department of Education guidance.

Superintendent Michael Margarano and finance officer James ("Mister") Norris told commissioners MSDE directed that a portion of previously budgeted “stabilization” dollars be treated as restricted grants rather than general fund items. Norris said the reclassification follows state guidance and clarified eligible uses, including salaries, textbooks, technology and supports for at-risk, limited-English and special-education students. "Stabilization funds may be used to support both current expenses and other expenses such as capital expenditures," Norris said, reading MSDE guidance into the record.

Why it matters: District leaders told the board most of the categories moved are recurring expenses. Margarano…