County budget staff outline 2026 state aid changes, warn of potential net county cost increases

Prince George’s County budget officials presented an annual state‑aid briefing to the County Council committee of the whole on Feb. 24, detailing proposed FY 2026 changes and a set of governor’s proposals and budget reconciliation items that could shift costs onto the county.

David Yupay, revenue and legislation manager in the county Office of Management and Budget, told the committee the county is estimated to receive about $2,000,000,000 in state aid in fiscal 2026 — roughly a $81,000,000 (4.4%) increase from the prior year — but several proposed changes in the governor’s Budget Reconciliation and Financing Act (BRFA) and in the Excellence in Maryland Public Schools Act could raise county expenses or reduce targeted aid.

Why it matters: County officials said some state proposals would increase mandated local spending (for example, a phased reduction of the teacher retirement supplemental grant and proposals to shift retirement liability costs) while other changes to state tax law could offset or change revenue flows to counties. Council members asked how the net impact would affect the county school budget and the general fund.

Key figures and program changes

- Total and education aid: Yupay said the county’s FY 2026 state aid estimate is about $2.0…