Superintendent reports budget outlook stable; hold-harmless funds and MSDE numbers expected for FY26

Finance staff and Superintendent McGarty briefed the board on the district’s revenue outlook for fiscal year 2026, saying recent legislative developments left the district in a stronger position than earlier anticipated.

The presenter said that as of late the district’s understanding is that funding tied to House Bill 504 remains intact and that the conference committee had preserved certain allocations. Staff also said the state’s “hold-harmless” funding was still in place at the time of the meeting and would add about $1.8 million if it holds. Using current information, staff estimated a FY26 revenue projection of about $59,700,000; staff cautioned final numbers are pending MSDE’s release of official allocations.

The superintendent also noted district decisions made during the COVID federal grant period and said Garrett County Public Schools did not request late liquidation of unspent federal COVID funds, so the recent federal decision to end late-liquidation windows should not affect the district.

Separately, the board discussed two specially built 10-passenger vans (one per high school) that the district still plans to request as a miscellaneous capital item with the county commissioners; staff estimated the two vans would total about $140,000 and that the request will be separate from the operating budget.

Why it matters: State funding decisions and hold-harmless provisions materially affect the district’s budget planning and presentation to county commissioners; the district will present its FY26 budget priorities to the Garrett County commissioners in April.