Charles County school leaders present aggressive FY2026 operating budget request as state funding shifts loom

Superintendent Dr. Navarro and Chief Financial Officer Karen Acton presented the Charles County Public Schools (CCPS) proposed fiscal year 2025–2026 operating budget at the board's January work session, outlining an estimated enrollment increase, proposed staffing additions and a county funding request of $25.3 million.

The budget materials presented by Karen Acton, CCPS chief financial officer, show full-time-equivalent enrollment expected to reach 27,370 in FY2026, up from 27,005 in the current year. Acton told the board the school system is asking for roughly $7 million in increased state support based on preliminary Maryland State Department of Education (MSDE) allocations and a county funding increase of about $25.3 million, which the presentation characterized as an 11% rise from the current fiscal year. Acton summarized the total revenue request as “about $31.7 million,” or a 6.3% overall increase, based on those preliminary numbers.

Why it matters: Board members pressed presenters on where the district would cut or shift funds if the state’s figures change. Superintendent Dr. Navarro warned the board that a recently proposed state bill, the “Excellence in Maryland Public Schools Act,” could redirect or repurpose dollars that the budget currently counts as available, and said the district may need to make multiple adjustments depending on Annapolis’s final actions. “The blueprint is law and it has the funding already committed in law,” Navarro said, adding that proposed state-level changes would require legislative fixes and could increase pressure on local budgets.

Key revenue and enrollment details - Enrollment: CCPS projected FY2026 FTE of 27,370 (present year 27,005). - Preliminary state funding increase: about $6.9–7.0 million, described in the presentation as a 2.6% increase tied to enrollment and free-and-reduced-price-meal (FARMS) counts. - County funding request: $25,300,000 (an 11% increase vs. FY2025 funding, as presented). - Total revenue increase requested: reported in the presentation as roughly $31.7 million (6.3%).

Acton and budget manager Sherry Fisher Davis said a recent drop in FARMS counts—FY2025 FARMS enrollment cited at 12,624, a decrease of about 1,404 from the previous year—reduced projected compensatory aid and the guaranteed tax base in the MSDE formulas. The presentation reported projected declines of about $5.3 million in compensatory aid and $3.2 million in the guaranteed tax base tied to those enrollment changes.

Mandatory costs and budget pressures Acton outlined mandatory cost increases the district must absorb, including health care, bus contracts and teacher pensions. Specific line items called out in the presentation and discussion included: - Health care increases (presentation cited a $2.4 million adjustment tied to being self-insured). - Student transportation increases estimated at $1.4 million to replace buses over 15 years old and to cover contract driver pay increases; CCPS operates a fleet of 384 buses, of which 315 are contracted and 69 are owned by CCPS. - Teacher pension cost increases (presented as a $2.5 million impact in the FY2026 request).

Acton also told the board the district previously used one-time cuts to open a new Waldorf early-learning center and now must restore those lines to maintain operations.

Requested new positions and program changes Acton outlined personnel and program requests tied to operational needs and strategic priorities: - Oracle ERP support positions: HR generalist, benefits manager, payroll supervisor and a database administrator to support the new system. - Instructional requests: increased high-school counselors, a staff growth and retention specialist, a community schools secretary (to support added community schools) and seed funding for an International Baccalaureate (IB) program to begin planning and implementation. The district said it would seed an IB program at St. Charles High School and would treat the next year as a planning year, with an intended freshman cohort start in FY2027. - Non-instructional: adjustments to HR hourly wages, a board support administrator, board travel and food, and international teacher fees.

Capital/operational items and school openings The presentation noted costs related to opening a new elementary school, Margaret J. Thornton Elementary School, and the need to reallocate staff. Acton described that about 13 full-time-equivalent staff positions were expected to move from other schools based on feeder patterns and projected student moves to staff the new school. The presentation also listed several one-time and start-up items previously funded by the county that will not recur in FY2026 (for example, a one-time TV production upgrade and start-up funds for the early learning center).

Proposed reductions and classroom impacts To reduce the ask, the administration proposed changes that include modest increases in class-size ratios at certain grade levels and school tiers. Dr. Navarro and Acton explained a tiered approach tied to FARMS percentages: high-FARMS schools would not see changes in class-size ratios, middle-tier schools would see class sizes increase by about two students, and the least impacted schools could see increases up to four students in some classrooms (the presentation noted high-school regular classrooms are staffed at a notional 1:30 ratio but that many individual class enrollments vary). Board members repeatedly raised concerns about the effect of increasing class sizes on teachers’ workloads, discipline, and student supports.

Board discussion and next steps Board members asked for additional clarifications about the guaranteed tax base and FARMS decline, requested average class-size statistics (mean and mode) for follow-up, and sought detail on how staffing moves for the new elementary school would be implemented. Board members also urged coordinated advocacy with the county delegation in Annapolis and thanked county commissioners for prior support while acknowledging future pressure on local budgets.

The superintendent told the board the district will continue to refine numbers and return with updates, noting uncertainty tied to pending state legislation and fiscal notes. “I don’t have a fiscal note attached to this bill, so I can’t for sure give you this,” Dr. Navarro said about the governor’s proposal, adding that the district expects continued budget conversations and likely changes before final adoption.

Ending note The board did not take formal action on the proposed operating budget at the work session. The budget presentation will be the basis for further review, public outreach and follow-up presentations as MSDE finalizes allocations and as the General Assembly and county government act on related funding decisions. The board recessed to the public forum and later set a virtual town hall on Feb. 4 focused on parent and family resources and engagement, to be used in part for outreach on budget impacts and community supports.