Prince George's County officials warned of about $170 million budget gap as state education mandate and federal grant risks rise

Prince George's County Council members were briefed on Feb. 4, 2025, by Stan Early, director of the Office of Management and Budget, who said the county faces roughly a $170 million budget gap for fiscal 2026 and significant new costs tied to the state education funding “Blueprint.”

Early told the council the county’s estimated new county-source revenue for the coming year is about $51.8 million, while the county will be required by state law to increase school spending by about $60 million next year and face additional governor-proposed costs of roughly $21 million, creating a structural mismatch between expected revenue and mandated spending.

Why it matters: the shortfall, coupled with a negative outlook from a rating agency and uncertainty about federal grants and the region’s federal workforce, could reduce the county’s flexibility to fund services, limit use of fund balance, and increase borrowing costs if a downgrade occurs.

Early said the county is contending with multiple revenue pressures and policy-driven cost increases. He listed these factors: the Blueprint for Maryland’s Future (the state education funding law) that would require an estimated $60 million in additional county spending for 2026 and rise in future years; a roughly $21…