MPS financial snapshot: district reports $116 million general fund balance, notes PHIP and TRS cost pressures

Interim Chief Financial Officer Pamela Watkins presented December 2024 financial statements to the Montgomery Public Schools Board on Feb. 11, describing the district—s fiscal position at the end of the first fiscal quarter and raising planning issues for FY2026.

Watkins said the district's general fund balance is approximately $116 million as of December, but noted that roughly $15 million of that is obligated to specific purposes (transportation, pre-K, summer math, state foundation and governor's turnaround programs), leaving about $101 million in local discretionary funds. She reminded the board that local revenues typically accrue more heavily between December and March and that the board—s budgeted expenditures are anticipated through the fiscal year ending Sept. 30.

Watkins highlighted two anticipated cost pressures for FY2026 planning: a possible increase in PHIP (health insurance) that could add approximately $1,000 per employee and an anticipated increase in Teachers' Retirement System (TRS) rates. She said units earned are not expected to change significantly because the district did not experience as large an ADM (average daily membership) loss this year as in previous years.

The report included a snapshot analysis and comparative statements of revenues and expenditures versus prior year figures, a statement of cash flow, pie charts and state reporting exhibits. Watkins said expenditures at the end of the first quarter typically run around 25 percent of budget.

Board members had no additional questions during the presentation. Watkins identified the timing of revenue recognition and obligated funds as key considerations for the FY2026 budget process.

The December financial report will be posted with the meeting materials; the board received the report as part of the regular agenda packet.