Howard County board hears options to close FY26 budget gap, considers class-size and program cuts

The Howard County Board of Education heard detailed proposals May 27 to close a shortfall in the school system's FY26 operating budget and to narrow a larger difference between the board's requested budget and the county appropriation.

Superintendent (presenter) told the board the updated shortfall between the board—s requested budget and the County appropriation is $40.5 million, and that after several adjustments the remaining gap to cover existing service commitments and negotiated agreements is roughly $20.4 million. After recommending a mix of responsible draws on fund balances, a larger investment-income estimate and a $1 million transfer of reserves from a special revenue program, staff said the remaining amount to be found is about $9 million.

The proposed tools to reduce the gap range from one-time actions and revenue changes to recurring program and staffing reductions. Superintendent (presenter) framed the options as choices between maintaining current service levels and restoring board priorities, and warned that many of the options would affect valued staff and programs. "My heart hurts and goes out to staff who are questioning the security of their positions," the superintendent said.

Why it matters: The board's decisions will influence staffing levels, class sizes and some student-facing programs for FY26. Staff told members the board must make final decisions at the June 4 work session to allow time for the June 12 formal budget adoption and for operational offices to implement staffing and scheduling changes before summer break.

Key revenue and cost updates - County contribution: County Executive Calvin Ball proposed and the County Council approved a $14.5 million addition to the schools' budget through a county charter mechanism for recurring PEGO funds. Staff credited the executive and council for narrowing the original shortfall. - New cost items: Staff reported three recently updated cost areas that increase FY26 needs by about $725,000: pension cost adjustments (~$111,000), a national-board certification cost adjustment (~$113,000) and $500,000 for planning and support for the Blueprint for Maryland—s Future career ladder framework. - Net positions: With the county addition and the new cost assumptions, staff said the board—s requested budget is now $40.5 million above the final county appropriation; the gap to simply maintain existing services and negotiated increases was described at different points in the presentation as $15.3 million and then $20.4 million depending on which removals…