Board of Education requests $6.4M recurring increase; commissioners raise questions about enrollment and state funding mechanics

St. Mary's County Public Schools (SMCPS) Superintendent Paul Smith asked the Board of County Commissioners for an additional $6.4 million in recurring local funds to cover negotiated agreements (a merit step and a 1.75% salary-scale adjustment) and nearly $2 million in nonrecurring needs. The board discussed enrollment declines, state holding-harmless proposals and federal stimulus money as they reviewed the request.

Smith told commissioners the request covers year-two costs of a four-year negotiated agreement and incremental healthcare and operational increases. He said there are no new positions or programs in the request; the funds would honor negotiated pay steps and scale adjustments to retain staff amid pandemic stress on students and staff.

Commissioners pressed for details about enrollment declines used in state maintenance-of-effort (MOE) calculations; staff told the board the package used a 783-student decline for pupil-allocation calculation in materials presented. Commissioners also raised the Budget Reconciliation and Finance Act (BRFAA) pending in Annapolis and its possible effect: staff explained that some state proposals would “hold harmless” school systems this year but could carry forward higher funding levels into subsequent years if enrollment rebounded, which could create larger local obligations later.

Board and county staff also discussed how federal ESSER funds (COVID-relief education dollars) and anticipated summer-program funding could cover nonrecurring needs such as summer instruction and technology. Smith said the district received significant federal ESSER funds and expects to run expanded summer programming paid from those sources; he asked commissioners to consider local recurring support for negotiated pay that federal one-time dollars cannot cover.

Commissioners asked staff for further detail on fund-balance projections, health-care reserve assumptions and what a maintenance-of-effort (flat-funding) scenario would imply for the district’s staffing and programs. No decision was made; staff and commissioners agreed to continue monitoring BRFAA developments in Annapolis, federal ESSER guidance, and to refine budget scenarios in subsequent work sessions.