Board approves $298 million FY2026 budget that includes $7.7 million use of fund balance

The Saint Mary's County Board of Education voted to approve the FY2026 unrestricted fund budget on May 21, approving a $298,000,000 total plan that includes a planned use of fund balance of approximately $7,700,000.

The budget, presented by the district budget team, sets unrestricted recurring funds at $290,200,000 — reflecting a $7,300,000 increase from the current year — with local funding of $137,400,000 (a $3,100,000, or 2.3 percent, increase) and state funding of $146,500,000 (a $3,100,000, or 2.2 percent, increase). The presentation also listed federal funding at $2,700,000 and other funding at $3,400,000.

The board heard a line-item recap that said nonrecurring funds total about $7,800,000, composed mainly of the $7,700,000 planned use of fund balance together with charter school fund-balance uses. The administration recommended allocations of that planned fund-balance use that include $1,200,000 for bus-contractor retention, $1,000,000 for a capital transfer to support critical building maintenance, $250,000 for redistricting consulting, $231,000 for workforce development (restricted under the Blueprint program), $2,500,000 for a technology refresh, $500,000 for classroom furniture at Lexington Park Elementary School and Margaret Brent School, and $2,000,000 for OPEB contributions.

Budget staff emphasized increases under instructional salaries and wages ($2,300,000), special education ($1,300,000), and associated fixed charges ($1,300,000) to support three negotiated agreements. The presentation also described several budget adjustments made to reduce costs, including a 17.2-percent reduction in positions in selected areas, discontinuing a 1-to-1 device program for kindergarten and first grade, relocating the virtual academy and returning its lease to the county, and other operational changes.

The board discussed the state’s Blueprint funding reporting requirement, a new accounting and reporting framework for certain targeted funds. The administration noted that while the district reports 94 percent of Blueprint funds at the school level in the aggregate, meeting the law’s school‑ and program‑level 75-percent standard by category is complex and may require a waiver for the multilingual component. The district said MSDE and AIB issued guidance that allowed phased compliance (a 50-percent improvement target in FY26, with full compliance deferred to FY27) and that staff are continuing calculations to finalize school-level allocations.

A motion to approve the FY2026 budget as presented and forward it to the Saint Mary's County commissioners for their review and approval was made and seconded; the motion passed on a voice vote with no opposition stated. The board chair instructed staff to post the formal budget docket and supporting line-item documents to the district website following the board's approval.

The budget presentation named district staff and partners involved in the work, including Karen Breslauer (supervisor of budget), Michelle Aguto (Blueprint accountant), and representatives from county government who supported coordination of the FY26 plan.