Montgomery Public Schools proposes roughly $739 million operating budget for 2025–26, cites $35 million in reserves and declining enrollment

Montgomery County Board of Education members heard an overview of Montgomery Public Schools’ proposed fiscal year 2026 operating budget during a public hearing Sept. 9, 2025. Finance presenter Pamela Watkins told the board the district’s proposed total revenues across all funds are approximately $739 million and that general fund revenue — the board’s main focus — is about $295 million.

Watkins said the district has set reserves and other financial safeguards that helped win a recent credit-rating upgrade: “the district has set aside over $35,000,000 in reserves,” she said, and the district received “a 3 notch credit rating upgrade to an A-plus from a triple‑B plus.” The presentation noted that improved reserves, controlled spending and other measures were factors in the upgrade.

Why it matters: the budget determines school staffing, capital projects and how Montgomery Public Schools (MPS) will cover required local matches for state allocations. Watkins emphasized the district’s continuing reliance on state funding: about two‑thirds (≈67%) of general fund revenue is from the state and roughly 32% is local revenue, including ad valorem and sales tax receipts. That mix shapes how much local tax revenue must be reserved to meet state “foundation” program match requirements.

Key numbers and program highlights presented by Watkins: - Total revenues across all funds (including other fund sources): approximately $739,000,000; combined total expenditures across…