Superintendent outlines $20M budget increase, $30M fund-balance use; board discusses cuts, transportation and fees

The Harford County Board of Education received a wide-ranging budget update Jan. 13 that mapped revenue uncertainty, anticipated cost increases and possible reductions for fiscal year 2026.

Finance staff said the district started with a baseline near $653 million and had prepared a draft showing roughly a $20 million increase (to about $673 million) in proposed expenditures; the presentation noted that $30 million of the current-year budget relied on fund balance. Finance staff described a working gap in the $30 million$60 million range depending on state and local actions and on final personnel and contract outcomes.

"We started at $653,000,000 and we're basically at... the budget is going up $20,000,000 to 673," a finance presenter said, explaining the algebra of the preliminary figures and the role of fund balance in the district92s baseline. The finance team warned the board its figures depend heavily on the governor's forthcoming budget proposal and on the General Assembly's decisions about blueprint funding.

Superintendent Balson said the district faces a difficult tradeoff between using fund balance to smooth a transition and making recurring reductions: he proposed reducing the planned draw from fund balance from $30 million to $10 million as a starting recommendation and indicated administrators are preparing systemwide reductions totaling roughly $13.4 million (about 145 positions) to shrink the structural ask to a lower, more sustainable figure.

Board members and staff discussed a wide set of possible offsets, including: raising building-use fees, restoring a limited number of program fees (for activities not required by law), targeted contract changes and longer-term operational changes such as outsourcing some transportation or special-education bus services. Several board members expressed reluctance to charge families for core services like daily transportation but said fee options may be considered if funding shortfalls persist.

Transportation emerged as a major topic in the discussion. Staff compared Harford County data with Frederick County and noted differences in mileage, service-area eligibility and the presence of magnet programs that change routing needs. Staff said Frederick County92s greater nonservice-area standard reduces its ridership and mileage; Harford92s dispersed magnet and specialized-program routing is a major driver of mileage and cost. Staff also said the district currently holds multi-year contracts with bus contractors that include minimum-hour guarantees (5 hours and 55 miles per contracted day) that affect cost calculations.

Special education is another key driver: administrators said enrollment and service needs continue to grow, that special-education costs are tied to per-pupil requirements, and that the district is attempting to slow cost growth while meeting legal obligations.

On timing, finance staff said the Maryland State Department of Education will produce preliminary state aid numbers in late January tied to the governor92s budget proposal; the board must finalize its local request before the county processes recommendations. Superintendent Balson said he would present a formal superintendent92s recommendation at the Jan. 27 board meeting and expects the board to hold a community input session in early February and — ideally — to adopt a budget request in mid-February before the county deadline in late February/early March.

No final decisions were made at the Jan. 13 work session; board members asked staff for additional cost and program impact analyses and said they would return to the budget as state and county numbers firmed up.

Votes at a glance: no budget motions were voted at the Jan. 13 work session; the superintendent will present a formal budget recommendation on Jan. 27.