Queen Anne’s County schools face $2.6 million projected shortfall; board pauses budget approval for two weeks

Interim finance staff presented the draft fiscal year 2026 operating budget at the Queen Anne’s County Board of Education budget work session on March 19, saying the document still is a work in progress and currently shows a budget shortfall.

Rob Watkins, interim supervisor of finance, told the board the district is modeling revenue with the county’s preliminary offer of $7,000,000 in local funds and noted additional state costs being allocated to local governments. After the projected revenue increases are applied to the district’s spending plan, Watkins said the draft budget shows a remaining deficit of about $2,613,205.

Watkins and other staff told members roughly 83.5 percent of the proposed budget is devoted to salaries and benefits, with about 59 percent for pay and 25 percent for fixed charges such as retirement and insurance. Staff said most of the year‑over‑year budget increase is tied to salary step increases and fixed employee costs.

Board members and district staff discussed a wide range of line items and policy initiatives during a multi‑hour session. Key items that drew extended public discussion included Marathon Health (the district’s onsite health center program), changes to food service after ending the Sodexo contract, prekindergarten expansion tied to state “Blueprint” funding, transportation and…